second quarter of 2026
Filed Jul 29, 2026PROG Holdings Reports Second Quarter 2026 Results
Consolidated revenues from continuing operations increased 22.3%, adjusted EBITDA from continuing operations increased 22.8%, consolidated GMV increased 60.1%, and the Company raised its full-year 2026 outlook. Offsetting factors included a decline in Progressive Leasing revenue and earnings before taxes, while consolidated net earnings from continuing operations and diluted EPS were modestly below the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenues from continuing operationsGAAP | $719.7 million | – | up 22.3% |
| Consolidated net earnings from continuing operationsGAAP | $37.4 million | – | – |
| Effective income tax rateGAAP | 26.4% | – | – |
| Adjusted EBITDA from continuing operationsnon-GAAP | $88.4 million | – | up 22.8% |
| Adjusted EBITDA margin from continuing operationsnon-GAAP | 12.3% of revenues | – | – |
| Diluted earnings per share from continuing operationsGAAP | $0.92 | – | – |
| Diluted non-GAAP earnings per share from continuing operationsnon-GAAP | $1.19 | – | up 19.0% |
| Consolidated GMVother | $902.0 million | – | up 60.1% |
| Progressive Leasing GMVother | $428.1 million | – | up 3.4% |
| Progressive Leasing provision for lease merchandise write-offsGAAP | 8.4% of leasing revenues | – | – |
| Progressive Leasing earnings before taxesGAAP | $45.4 million | – | down 11.9% |
| Progressive Leasing adjusted EBITDAnon-GAAP | $69.9 million | – | up 0.3% |
| Four GMVother | $315.1 million | – | up 110.6% |
| Four earnings before taxesGAAP | $7.1 million | – | up 139.9% |
| Four adjusted EBITDAnon-GAAP | $8.7 million | – | up 111.2% |
| Purchasing Power GMVother | $158.8 million | – | up 15.2% |
| Purchasing Power loss before taxesGAAP | $0.3 million | – | – |
| Purchasing Power adjusted EBITDAnon-GAAP | $10.6 million | – | – |
| Net leverage ratioother | 1.7x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Progressive LeasingGMV of $428.1 million was up 3.4% compared to the same period in 2025. | $550.6 million | – | down 3.4% |
| FourGMV of $315.1 million was up 110.6% compared to the same period in the prior year. | $35.1 million | – | up 118.2% |
| Purchasing PowerGMV of $158.8 million was up 15.2% from the second quarter of 2025 on a standalone basis. | $130.4 million | – | – |
Full year 2026 and three months ended September 30, 2026 outlook
- RevenueFull year 2026 PROG Holdings - Total revenues from continuing operations: $ 3,025,000 to $ 3,100,000 (In thousands, except per share amounts)
- Tax ratean effective tax rate for non-GAAP EPS of approximately 26%
- NoteFull year 2026 PROG Holdings - Net earnings from continuing operations: 155,000 to 164,500 (In thousands, except per share amounts)
- NoteFull year 2026 PROG Holdings - Adjusted EBITDA from continuing operations: 355,000 to 375,000 (In thousands, except per share amounts)
- NoteFull year 2026 PROG Holdings - Diluted EPS from continuing operations: 3.82 to 4.06 (In thousands, except per share amounts)
- NoteFull year 2026 PROG Holdings - Diluted non-GAAP EPS from continuing operations: 4.75 to 5.00 (In thousands, except per share amounts)
- NoteFull year 2026 Progressive Leasing - Total revenues: 2,247,500 to 2,285,000 (In thousands, except per share amounts)
- NoteFull year 2026 Progressive Leasing - Earnings before taxes: 188,500 to 193,000 (In thousands, except per share amounts)
- NoteFull year 2026 Progressive Leasing - Adjusted EBITDA: 272,500 to 279,500 (In thousands, except per share amounts)
- NoteFull year 2026 Purchasing Power - Total revenues: 620,000 to 640,000 (In thousands, except per share amounts)
- NoteFull year 2026 Purchasing Power - Earnings before taxes: 17,000 to 21,500 (In thousands, except per share amounts)
- NoteFull year 2026 Purchasing Power - Adjusted EBITDA: 54,000 to 60,000 (In thousands, except per share amounts)
- NoteFull year 2026 Four - Total revenues: 145,000 to 157,000 (In thousands, except per share amounts)
- NoteFull year 2026 Four - Earnings before taxes: 22,000 to 25,000 (In thousands, except per share amounts)
- NoteFull year 2026 Four - Adjusted EBITDA: 30,000 to 34,000 (In thousands, except per share amounts)
- NoteFull year 2026 Other - Total revenues: 12,500 to 18,000 (In thousands, except per share amounts)
- NoteFull year 2026 Other - Loss before taxes: (13,500) to (10,500) (In thousands, except per share amounts)
- NoteFull year 2026 Other - Adjusted EBITDA: (1,500) to 1,500 (In thousands, except per share amounts)
- NoteThree months ended September 30, 2026 PROG Holdings - Total revenues from continuing operations: $ 715,000 to $ 750,000 (In thousands, except per share amounts)
- NoteThree months ended September 30, 2026 PROG Holdings - Net earnings from continuing operations: 36,000 to 42,500 (In thousands, except per share amounts)
- NoteThree months ended September 30, 2026 PROG Holdings - Adjusted EBITDA from continuing operations: 79,000 to 89,000 (In thousands, except per share amounts)
- NoteThree months ended September 30, 2026 PROG Holdings - Diluted EPS from continuing operations: 0.86 to 1.06 (In thousands, except per share amounts)
- NoteThree months ended September 30, 2026 PROG Holdings - Diluted non-GAAP EPS from continuing operations: 1.00 to 1.20 (In thousands, except per share amounts)
- NoteThe outlook assumes no change in the current financial pressures and uncertainties for customers, no material changes in the Company's decisioning posture, no meaningful increase in unemployment rates for its consumer base, and no impact from additional share purchases.
Capital returns
- The Company repurchased $10.2 million of its stock in the quarter at an average price of $36.37 per share.
- $299.4 million of repurchase capacity remained under its $500 million share repurchase program.
- The Company paid a quarterly cash dividend of $0.14 per share.
What drove it
- Consolidated GMV increased 60.1% to $902.0 million.
- Four GMV increased 110.6% to $315.1 million and revenue increased 118.2% to $35.1 million.
- Purchasing Power contributed $130.4 million of revenue following its January 2, 2026 acquisition, while standalone GMV increased 15.2% to $158.8 million.
- Progressive Leasing GMV returned to positive growth, increasing 3.4% to $428.1 million.
Concerns
- Progressive Leasing revenue declined 3.4% to $550.6 million.
- Progressive Leasing earnings before taxes declined 11.9% to $45.4 million, while adjusted EBITDA increased 0.3% to $69.9 million.
- Consolidated net earnings from continuing operations were $37.4 million compared with $37.6 million in the prior-year period, and diluted EPS from continuing operations was $0.92 compared with $0.93.
- The outlook assumes no meaningful increase in unemployment rates for the Company's consumer base and no material changes in the Company's decisioning posture.
What to watch
- Progressive Leasing revenue growth and earnings before taxes following second-quarter revenue decline of 3.4% and earnings-before-taxes decline of 11.9%.
- Four's ability to sustain GMV growth following the reported 110.6% increase.
- Purchasing Power's contribution following the January 2, 2026 acquisition, including its full-year revenue outlook of 620,000 to 640,000.
- Debt reduction and leverage relative to the Company's targeted range of 1.5 to 2.0 times.
- Execution against the three months ended September 30, 2026 outlook for total revenues from continuing operations of $ 715,000 to $ 750,000 and adjusted EBITDA from continuing operations of 79,000 to 89,000.
Balance sheet and cash flow
- Cash was $85.2 million at the end of the second quarter of 2026.
- Gross debt was $893.7 million at the end of the second quarter of 2026.
- The Company repaid $50.0 million of debt related to the acquisition of Purchasing Power during the quarter.
- Since the acquisition of Purchasing Power, the Company has reduced its total debt by $304.9 million.
- Net leverage ratio ended the quarter at 1.7x.
Analysis
PROG Holdings reported a solid second quarter, led by consolidated revenues from continuing operations of $719.7 million, up 22.3%, and adjusted EBITDA from continuing operations of $88.4 million, up 22.8%. The adjusted EBITDA margin was 12.3% of revenues, compared with 12.2% of revenues in the prior-year period. Consolidated GMV increased 60.1% to $902.0 million, showing that growth was broad across the product ecosystem rather than limited to a single business line.
Four was the most prominent organic growth contributor, with GMV up 110.6% to $315.1 million, revenue up 118.2% to $35.1 million, earnings before taxes up 139.9% to $7.1 million, and adjusted EBITDA up 111.2% to $8.7 million. Purchasing Power, acquired on January 2, 2026, contributed $130.4 million in quarterly revenue and $10.6 million in adjusted EBITDA. Its standalone GMV increased 15.2% to $158.8 million.
Progressive Leasing showed an improved GMV trend but continued revenue and earnings pressure. GMV rose 3.4% to $428.1 million, while revenue declined 3.4% to $550.6 million and earnings before taxes declined 11.9% to $45.4 million. Adjusted EBITDA was nearly flat, increasing 0.3% to $69.9 million. The provision for lease merchandise write-offs was 8.4% of leasing revenues, a key reported credit-performance measure for this business.
Consolidated GAAP earnings did not rise with revenue. Net earnings from continuing operations were $37.4 million versus $37.6 million in the prior-year period, and diluted earnings per share from continuing operations were $0.92 versus $0.93. Non-GAAP diluted EPS increased 19.0% to $1.19. The effective income tax rate was 26.4%, compared with 26.5% in the prior-year period.
Capital allocation prioritized deleveraging while resuming shareholder returns. The Company ended the quarter with $85.2 million of cash and $893.7 million of gross debt, repaid $50.0 million of acquisition-related debt during the quarter, and stated that total debt has been reduced by $304.9 million since the Purchasing Power acquisition. Net leverage ended at 1.7x. PROG Holdings also repurchased $10.2 million of stock, paid a quarterly cash dividend of $0.14 per share, and retained $299.4 million of capacity under its $500 million repurchase program.
Management raised its full-year 2026 outlook for revenue and earnings and introduced third-quarter guidance. Full-year total revenues from continuing operations are guided to $ 3,025,000 to $ 3,100,000, while adjusted EBITDA from continuing operations is guided to 355,000 to 375,000, in thousands except per-share amounts. The guide depends on no meaningful increase in unemployment rates for the Company's consumer base, no material change in decisioning posture, and no impact from additional share purchases.
Management, verbatim
PROG Holdings delivered a strong second quarter, with revenue toward the higher end of our outlook and both adjusted EBITDA and Non-GAAP EPS coming in above the top end of our April outlook ranges, a reflection of disciplined execution across the business.
Steve Michaels, Chairman, President and CEO
Every product in our ecosystem contributed: consolidated GMV grew 60% year-over-year, Progressive Leasing returned to positive GMV growth of 3.4% with adjusted EBITDA margin at 12.7%, Four delivered its eleventh consecutive quarter of triple-digit GMV growth, and Purchasing Power's GMV grew double-digits.
Steve Michaels, Chairman, President and CEO
Reflecting our second-quarter outperformance and the momentum we see across our product ecosystem, we are raising our full-year 2026 outlook.
Steve Michaels, Chairman, President and CEO
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating income
- Operating expenses
- Cash flow from operations
- Free cash flow
- Prior-quarter comparisons for reported metrics
- Prior-year revenue amounts for consolidated revenues and each reported segment revenue
- Prior-year values for Progressive Leasing earnings before taxes and adjusted EBITDA
- Prior-year values for Four earnings before taxes and adjusted EBITDA
- Prior-year Purchasing Power revenue, loss before taxes, and adjusted EBITDA
- Prior-year consolidated GMV and segment GMV amounts
- Prior guidance from a previous release for comparison with reported actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.