{"success":true,"data":{"pressRelease":{"id":"12698","rtpr_id":"nBw2HtflNa","ticker":"PRG","exchange":"NYSE","all_tickers":["PRG"],"title":"PROG Holdings Reports First Quarter 2026 Results","author":"Business Wire","published_at":"2026-04-29T11:30:00.486Z","article_body":"PROG Holdings Reports First Quarter 2026 Results\n\n\n * Consolidated revenues from continuing operations of $742.7 million, up 11.1%;\nNet earnings from continuing operations of $36.2 million\n\n * Adjusted EBITDA from continuing operations of $90.3 million, up 29.2%\n\n * Diluted EPS from continuing operations of $0.89; Non-GAAP Diluted EPS from\ncontinuing operations of $1.24, up 37.8%\n\n * Consolidated GMV of $805.6 million, up 54.4%\n\n * $210 million of net recourse debt reduction since the acquisition of\nPurchasing Power, resulting in net leverage ratio of 2.0\n\nPROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive\nLeasing, Purchasing Power, Four Technologies and MoneyApp, today announced\nfinancial results for the first quarter ended March 31, 2026, which includes\nthe results of Purchasing Power since January 2, 2026, the date the Company\nacquired Purchasing Power.\n\n\"We delivered a strong start to 2026, with first quarter results exceeding the\nhigh end of our outlook for earnings, and non-GAAP EPS,\" said PROG Holdings\nPresident and CEO Steve Michaels. \"This performance reflects disciplined\nexecution across the organization and the benefits of our diversified model,\nwith improving trends at Progressive Leasing, continued triple-digit growth\nand strong economics at Four, and growth at Purchasing Power. Importantly,\nProgressive Leasing returned to year-over-year GMV growth as we exited the\nquarter, reflecting the progress we've made on our initiatives and the lapping\nof prior headwinds. We also meaningfully improved the balance sheet, reducing\nour net leverage ratio to two times as we prioritized debt reduction following\nthe Purchasing Power acquisition.\"\n\n\"We saw continued momentum in our ecosystem with increasing engagement across\nproducts, which is driving higher customer lifetime value and improving\nacquisition efficiency. As our ecosystem scales, we are able to drive more\nefficient growth through cross-product connectivity.\"\n\n\"Based on our strong first quarter and the momentum we are seeing in the\nbusiness, we have increased our full-year 2026 outlook, providing a positive\nstart towards the three-year 2028 compound annual growth targets we outlined\nat our Investor Day. These targets, inclusive of Purchasing Power on a pro\nforma 2025 basis, are to grow consolidated GMV 20% to 25%, revenue 5% to 8%,\nAdjusted EBITDA 13% to 16%, and non-GAAP EPS 17% to 20%. Despite a challenging\nmacro environment, our model is performing as designed, and we remain focused\non executing our Grow, Enhance, and Expand strategy that we believe will\ndeliver durable, profitable growth and long-term shareholder value,\" concluded\nMichaels.\n\nConsolidated Results\n\nConsolidated revenues for the first quarter of 2026 were $742.7 million, an\nincrease of 11.1% from the same period in 2025.\n\nConsolidated net earnings from continuing operations for the quarter were\n$36.2 million, compared with $34.6 million in the prior year period. The\neffective income tax rate was 23.9% in the first quarter of 2026, compared to\n26.8% in the same period in the prior year. Adjusted EBITDA from continuing\noperations for the quarter was $90.3 million, or 12.2% of revenues, compared\nwith $69.9 million, or 10.5% of revenues for the same period in 2025.\n\nDiluted earnings per share from continuing operations for the first quarter of\n2026 were $0.89, compared with $0.83 in the year ago period. On a non-GAAP\nbasis, diluted earnings per share from continuing operations were up 37.8% at\n$1.24 in the first quarter of 2026, compared with $0.90 for the same period in\n2025.\n\nProgressive Leasing Results\n\nProgressive Leasing's first quarter GMV of $393.0 million was down 2.2%\ncompared to the same period in 2025. Revenues were $596.9 million, down 8.4%\nfrom the prior year. The provision for lease merchandise write-offs for the\nquarter was 7.3% of leasing revenues, approximately flat from the prior year,\nand within the Company's 6-8% targeted annual range. Earnings before taxes for\nthe first quarter of 2026 were $52.0 million, up 6.9% from the first quarter\nof 2025. Adjusted EBITDA was $76.7 million, up 14.1% from the first quarter of\n2025.\n\nFour Results\n\nFour's GMV for the first quarter of 2026 was $280.0 million, an increase of\n133.6% compared to the same period in the prior year. Revenues were $35.0\nmillion, up 142.3% from the year ago period. Four's earnings before taxes for\nthe first quarter of 2026 were $11.4 million, up 478.2% from the first quarter\nof 2025. Adjusted EBITDA was $12.9 million, up 201.0% from the first quarter\nof 2025.\n\nPurchasing Power Results\n\nThe Company acquired Purchasing Power on January 2, 2026. Accordingly, results\nfor the first quarter 2026 reflect activity since the acquisition date.\nPurchasing Power's GMV, which is defined as the total value of merchandise and\nservices purchased and delivered to customers through its platform, was $132.7\nmillion, up 10.3% from the first quarter of 2025 on a standalone basis.\nRevenues were $107.1 million in the first quarter of 2026. Loss before taxes\nwas $7.5 million and adjusted EBITDA was $0.8 million for the first quarter of\n2026.\n\nLiquidity and Capital Allocation\n\nPROG Holdings ended the first quarter of 2026 with cash of $69.4 million and\ngross debt of $943.7 million. During the quarter, the Company incurred a total\nof $260.0 million of new corporate debt related to the acquisition of\nPurchasing Power on January 2, 2026, and $338.6 million of non-recourse\nfunding debt for Purchasing Power remained in place immediately following the\nacquisition. Since the acquisition of Purchasing Power, the Company has\nreduced debt by $254.9 million. The Company did not repurchase any shares\nduring the first quarter and maintains $309.6 million of repurchase capacity\nunder its $500 million share repurchase program. Additionally, the Company\npaid a quarterly cash dividend of $0.14 per share.\n\n2026 Outlook\n\nDue to the strong start to the year and the momentum in the business, the\nCompany is increasing its full year 2026 outlook for revenue and earnings as\nwell as providing guidance for the second quarter of 2026. This outlook\nassumes an operating environment with no change in the current financial\npressures and uncertainties for our customer, no material changes in the\nCompany's decisioning posture, no meaningful increase in unemployment rates\nfor our consumer base, an effective tax rate for non-GAAP EPS of approximately\n26% and no impact from additional share purchases.\n                                                                  Revised 2026 outlook          Previous 2026 outlook     \n (In thousands, except per share amounts)                         Low          High             Low          High         \n                                                                                                                          \n PROG Holdings - Total revenues from continuing operations        $ 3,000,000  $ 3,100,000      $ 2,950,000  $ 3,070,000  \n PROG Holdings - Net earnings from continuing operations          150,500      166,000          132,000      155,000      \n PROG Holdings - Adjusted EBITDA from continuing operations       343,000      370,000          320,000      350,000      \n PROG Holdings - Diluted EPS from continuing operations           3.68         4.06             3.34         3.79         \n PROG Holdings - Diluted non-GAAP EPS from continuing operations  4.40         4.80             4.00         4.45         \n                                                                                                                          \n Progressive Leasing - Total revenues                             2,227,500    2,285,000        2,202,500    2,253,000    \n Progressive Leasing - Earnings before taxes                      191,000      198,500          182,000      193,000      \n Progressive Leasing - Adjusted EBITDA                            269,500      279,500          254,000      266,000      \n                                                                                                                          \n Purchasing Power - Total revenues                                620,000      640,000          610,000      660,000      \n Purchasing Power - Earnings before taxes                         14,500       22,000           13,000       22,000       \n Purchasing Power - Adjusted EBITDA                               50,000       60,000           50,000       60,000       \n                                                                                                                          \n Four - Total revenues                                            140,000      157,000          125,000      140,000      \n Four - Earnings before taxes                                     16,500       20,500           7,500        11,000       \n Four - Adjusted EBITDA                                           25,000       29,000           17,500       22,500       \n                                                                                                                          \n Other - Total revenues                                           12,500       18,000           12,500       17,000       \n Other - Loss before taxes                                        (14,500)     (12,000)         (14,500)     (12,000)     \n Other - Adjusted EBITDA                                          (1,500)      1,500            (1,500)      1,500        \n\n                                                                  Three months ended          \n                                                                  \n                           \n                                                                  \nJune 30, 2026 outlook      \n (In thousands, except per share amounts)                         Low           High          \n                                                                                              \n PROG Holdings - Total revenues from continuing operations        $ 700,000     $ 725,000     \n PROG Holdings - Net earnings from continuing operations          29,000        38,000        \n PROG Holdings - Adjusted EBITDA from continuing operations       72,000        82,000        \n PROG Holdings - Diluted EPS from continuing operations           0.74          0.93          \n PROG Holdings - Diluted non-GAAP EPS from continuing operations  0.85          1.05          \n\n\nConference Call and Webcast\n\nThe Company has scheduled a live webcast and conference call for Wednesday,\nApril 29, 2026, at 8:30 A.M. ET to discuss its financial results for the first\nquarter of 2026. To access the live webcast, visit the Events and\nPresentations page of the Company’s Investor Relations website,\nhttps://investor.progholdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.progholdings.com%2F&esheet=54525025&newsitemid=20260429712300&lan=en-US&anchor=https%3A%2F%2Finvestor.progholdings.com%2F&index=1&md5=14a775cbf7a412f4f8290d64ede4d90d)\n.\n\nAbout PROG Holdings, Inc.\n\nPROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in\nSalt Lake City, UT, that provides inclusive, transparent and competitive\npayment options to consumers. The Company owns Progressive Leasing, a leading\nprovider of e-commerce, app-based, and in-store point-of-sale lease-to-own\nsolutions; Purchasing Power, a voluntary employee benefit program provider,\nallowing employees to purchase brand-name products and services through either\nautomatic payroll deductions or allotments; Four Technologies, a provider of\nBuy Now, Pay Later payment options through its platform, Four; and MoneyApp, a\nmobile application that offers customers interest-free cash advances. More\ninformation on PROG Holdings and its companies can be found at\nhttps://investor.progholdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.progholdings.com%2F&esheet=54525025&newsitemid=20260429712300&lan=en-US&anchor=https%3A%2F%2Finvestor.progholdings.com%2F&index=2&md5=e38eaff5b81251431d4a721e70e30fdf)\n.\n\nForward-Looking Statements:\n\nStatements, estimates and projections in this press release regarding our\nbusiness that are not historical facts are \"forward-looking statements\" that\ninvolve risks and uncertainties which could cause actual results to differ\nmaterially from those contained in the forward-looking statements. Such\nforward-looking statements generally can be identified by the use of\nforward-looking terminology, such as \"continued,\" \"outlook,\" \"targets,\"\n\"believe,\" \"guidance,\" and similar forward-looking terminology. These risks\nand uncertainties include (i) continued volatility and challenges in the\nmacroeconomic environment, including due to the war in Iran and related\ngeopolitical disruptions and increases in fuel and other prices, and their\nimpact on: (a) consumer confidence and customer demand for the merchandise\nthat our retail partners and Purchasing Power sell, in particular consumer\ndurables, such as home appliances, electronics and furniture; (b) our\ncustomers’ disposable income and their ability to make the lease and loan\npayments they owe the Company; and (c) our overall financial performance and\noutlook; (ii) the impact of the uncertain macroeconomic environment on our\nproprietary algorithms and decisioning tools that we use to approve customers\nsuch that they are no longer indicative of our customers’ ability to\nperform, which in turn may limit the ability of our businesses to manage risk,\navoid lease and loan charge-offs and may result in insufficient reserves to\ncover actual losses; (iii) a large percentage of Progressive Leasing's revenue\nbeing concentrated with several key retail partners, and the loss of any of\nthese retail partner relationships materially and adversely affecting several\naspects of our performance; (iv) Progressive Leasing being unable to attract\nadditional retail partners and retain and grow its relationships with its\nexisting retail partners, and/or Purchasing Power being unable to attract\nadditional employer-clients and retain and grow its relationships with its\nexisting clients, resulting in several aspects of our performance being\nmaterially and adversely affected; (v) our businesses being unable to attract\nnew consumers and retain and grow their relationships with their existing\ncustomers materially and adversely affecting several aspects of our\nperformance; (vi) Four’s and Purchasing Power's business models differing\nsignificantly from Progressive Leasing’s lease-to-own business, which means\nthese businesses have different risk profiles; (vii) our efforts to modernize\nand enhance certain enterprise-wide information management systems and\ntechnologies adversely impacting our businesses and operations; (viii) the\ninability of our businesses to successfully operate in highly and increasingly\ncompetitive industries materially and adversely affecting several aspects of\nour performance; (ix) our business, results of operations, financial\ncondition, and prospects being materially and adversely affected due to our\nbusinesses failing to maintain a consistently high level of consumer\nsatisfaction and trust in its brands; (x) our businesses being subject to\nextensive federal, state and local laws and regulations, including certain\nlaws and regulations unique to the industries in which our businesses operate,\nthat may subject them to government investigations and significant monetary\npenalties, remediation expenses and compliance-related burdens that may result\nin them changing the manner in which they operate, which may be materially\nadverse to several aspects of our performance; (xi) our performance being\nmaterially and adversely affected due to the transactions offered to consumers\nby our businesses being negatively characterized by federal, state and local\ngovernment officials, consumer advocacy groups and the media; (xii) our\ninability to protect confidential, proprietary, or sensitive information,\nincluding the confidential information of our customers, being adversely\naffected by cyber-attacks or similar disruptions, which may result in\nsignificant costs, litigation and reputational damage or otherwise have a\nmaterial adverse impact on several aspects of our performance; (xiii) any\nsignificant disruption in our vendors' information technology systems, or\ndisruptions in the information our businesses rely on in their lease and loan\ndecisioning, materially and adversely affecting several aspects of our\nperformance; (xiv) our capital allocation strategy and financial policies; and\n(xv) the other risks and uncertainties discussed under \"Risk Factors\" in the\nCompany’s Annual Report on Form 10-K for the fiscal year ended December 31,\n2025, filed with the SEC on February 18, 2026. Statements, estimates and\nprojections in this press release that are \"forward-looking\" include without\nlimitation statements, estimates and projections about: (i) improving\nperformance trends in our Progressive Leasing business; (ii) continued growth\nof our Four business; (iii) our ability to improve customer acquisition\nefficiency and lifetime value; (iv) our ability to deliver sustainable,\nprofitable growth and long-term shareholder value going forward; (v) our\nrevised full year 2026 outlook and the guidance we provide for the second\nquarter of 2026; and (vi) our three-year CAGR targets for GMV, Revenue,\nAdjusted EBITDA and non-GAAP Earnings Per Share. You are cautioned not to\nplace undue reliance on these forward-looking statements, which speak only as\nof the date of this press release. Except as required by law, the Company\nundertakes no obligation to update these forward-looking statements to reflect\nsubsequent events or circumstances after the date of this press release.\n PROG Holdings, Inc.                                                                                       \n \n                                                                                                         \n \nConsolidated Statement of Earnings                                                                       \n \n                                                                                                         \n \n(In thousands, except per share data)                                                                    \n                                                                (Unaudited)                                \n                                                                \n                                          \n                                                                \nThree months ended                        \n                                                                March 31,                                  \n                                                                     2026                    2025          \n Revenues                                                                                                  \n Lease revenues and fees                                        $    596,864            $    651,557       \n Product and service revenues                                        106,406                 —             \n Other revenue                                                       39,404                  16,871        \n                                                                     742,674                 668,428       \n Costs and expenses                                                                                        \n Depreciation of lease merchandise                                   409,010                 460,443       \n Cost of product sales                                               62,506                  —             \n Provision for lease merchandise write-offs                          43,651                  48,018        \n Operating expenses                                                  150,200                 98,124        \n Provision for credit losses                                         24,167                  5,501         \n                                                                     689,534                 612,086       \n Gain on sale of lease receivables                                   6,457                   —             \n Gain on change in fair value of receivables                         5,712                   —             \n Operating profit                                                    65,309                  56,342        \n Interest expense                                                    (18,389  )              (9,963   )    \n Interest income                                                     643                     873           \n Earnings from continuing operations before income tax expense       47,563                  47,252        \n Income tax expense                                                  11,345                  12,662        \n Net earnings from continuing operations                             36,218                  34,590        \n (Loss) earnings from discontinued operations, net of tax            (164     )              128           \n Net earnings                                                   $    36,054             $    34,718        \n Basic earnings per share                                                                                  \n Continuing operations                                          $    0.91               $    0.85          \n Discontinued operations                                             —                       —             \n Total basic earnings per share                                 $    0.91               $    0.85          \n Diluted earnings per share                                                                                \n Continuing operations                                          $    0.89               $    0.83          \n Discontinued operations                                             —                       —             \n Total diluted earnings per share                               $    0.89               $    0.83          \n                                                                                                           \n Cash dividend declared per share                                                                          \n Common Stock                                                   $    0.14               $    0.13          \n Weighted average shares outstanding                                                                       \n Basic                                                               39,898                  40,841        \n Diluted                                                             40,810                  41,851        \n\n PROG Holdings, Inc.                                                                                                 \n \n                                                                                                                   \n \nConsolidated Balance Sheets                                                                                        \n \n                                                                                                                   \n \n(In thousands, except share data)                                                                                  \n                                                                                     March 31,        December 31,   \n                                                                                     \n2026            \n2025          \n Assets                                                                                                              \n Cash and cash equivalents                                                           $ 69,386         $ 308,774      \n Restricted cash                                                                     10,116           —              \n Receivables (net of allowances and unearned interest income of $80,638 in 2026      387,586          74,228         \n and $68,806 in 2025; includes $203,043 recorded at fair value in 2026)(1)                                           \n Other receivables (net of allowances and unearned interest income of $3,344 in      34,588           —              \n 2026 and $0 in 2025; includes $20,891 recorded at fair value in 2026)(1)                                            \n Lease merchandise (net of accumulated depreciation and allowances of $412,002       531,292          609,009        \n in 2026 and $407,104 in 2025)                                                                                       \n Loans receivable (net of allowances and unamortized fees of $18,055 in 2026         71,000           90,648         \n and $18,246 in 2025)                                                                                                \n Property and equipment, net                                                         21,817           19,526         \n Goodwill and other intangibles, net                                                 771,676          353,835        \n Income tax receivable                                                               26,601           47,894         \n Deferred income tax assets                                                          19,311           19,561         \n Prepaid expenses and other assets                                                   86,649           73,383         \n Assets of discontinued operations                                                   12,490           13,550         \n Total assets                                                                        $ 2,042,512      $ 1,610,408    \n Liabilities and shareholders' equity                                                                                \n Accounts payable and accrued expenses                                               $ 136,967        $ 96,471       \n Debt, net(1)                                                                        936,122          594,861        \n Deferred income tax liabilities                                                     147,922          121,152        \n Other liabilities                                                                   43,759           44,676         \n Liabilities of discontinued operations                                              3,387            6,831          \n Total liabilities                                                                   1,268,157        863,991        \n Shareholders' equity                                                                                                \n Common stock, par value $0.50 per share: authorized: 225,000,000 shares at          41,039           41,039         \n March 31, 2026 and December 31, 2025; shares issued: 82,078,654 at March 31,                                        \n 2026 and December 31, 2025                                                                                          \n Additional paid-in capital                                                          348,486          363,583        \n Retained earnings                                                                   1,624,879        1,594,685      \n                                                                                     2,014,404        1,999,307      \n Less: treasury shares at cost                                                                                       \n Common Stock: 42,014,857 shares at March 31, 2026 and 42,502,844 at December        (1,240,049)      (1,252,890)    \n 31, 2025                                                                                                            \n Total shareholders' equity                                                          774,355          746,417        \n Total liabilities and shareholders' equity                                          $ 2,042,512      $ 1,610,408    \n\n (1) As of March 31, 2026, receivables included $375.1 million of contractual     \n amounts outstanding of consolidated VIEs that can only be used to settle their   \n obligations, and debt included $293.7 million of liabilities of consolidated     \n VIEs for which creditors have no recourse to the Company.                        \n\n PROG Holdings, Inc.                                                                                                         \n \n                                                                                                                           \n \nConsolidated Statements of Cash Flows                                                                                      \n \n                                                                                                                           \n \n(In thousands)                                                                                                             \n                                                                      Three months ended March 31,                           \n                                                                             2026                           2025             \n Operating activities                                                 (in thousands)                                         \n Net earnings                                                         $      36,054                  $      34,718           \n Adjustments to reconcile net earnings to cash provided by operating                                                         \n activities:                                                                                                                 \n Depreciation of lease merchandise                                           409,010                        460,443          \n Other depreciation and amortization                                         14,150                         6,122            \n Provisions for accounts receivable and credit losses                        100,150                        98,958           \n Stock-based compensation                                                    7,642                          7,902            \n Gain on change in fair value of receivables                                 (5,712    )                    —                \n Deferred income taxes                                                       7,756                          (9,928    )      \n Gain on sale of receivables                                                 (7,030    )                    —                \n Non-cash lease expense                                                      (732      )                    (1,025    )      \n Other changes, net                                                          964                            (15       )      \n Changes in operating assets and liabilities:                                                                                \n Additions to lease merchandise                                              (389,976  )                    (385,254  )      \n Book value of lease merchandise sold or disposed                            58,682                         49,654           \n Accounts receivable                                                         (32,901   )                    (70,947   )      \n Prepaid expenses and other assets                                           (802      )                    5,533            \n Income tax receivable and payable                                           21,269                         22,200           \n Accounts payable and accrued expenses                                       (44,499   )                    (3,761    )      \n Customer deposits and advance payments                                      (2,326    )                    (4,671    )      \n Cash provided by operating activities                                       171,699                        209,929          \n Investing activities                                                                                                        \n Investments in loans receivable                                             (284,863  )                    (165,883  )      \n Proceeds from loans receivable                                              293,997                        163,753          \n Funding of other receivables                                                (19,419   )                    —                \n Collections from other receivables                                          18,821                         —                \n Purchases of property and equipment                                         (3,149    )                    (1,962    )      \n Proceeds from sale of property and equipment                                584                            —                \n Acquisition of business, net of cash acquired                               (391,845  )                    —                \n Cash used in investing activities                                           (385,874  )                    (4,092    )      \n Financing activities                                                                                                        \n Proceeds from debt                                                          546,178                        —                \n Repayments on debt                                                          (541,108  )                    (50,000   )      \n Dividends paid                                                              (5,609    )                    (5,265    )      \n Acquisition of treasury stock                                               —                              (26,119   )      \n Issuance of stock under stock option and employee purchase plans            187                            325              \n Cash paid for shares withheld for employee taxes                            (10,117   )                    (7,048    )      \n Debt issuance costs                                                         (4,628    )                    (84       )      \n Cash used in financing activities                                           (15,097   )                    (88,191   )      \n (Decrease) increase in cash, cash equivalents and restricted cash           (229,272  )                    117,646          \n Cash, cash equivalents and restricted cash at beginning of period           308,774                        95,655           \n Cash, cash equivalents and restricted cash at end of period          $      79,502                  $      213,301          \n Net cash (received) paid during the period:                                                                                 \n Interest                                                             $      8,722                   $      509              \n Income taxes                                                         $      (17,687   )             $      300              \n\n PROG Holdings, Inc.                                                                                                          \n \n                                                                                                                            \n \nQuarterly Revenues by Segment                                                                                               \n \n                                                                                                                            \n \n(In thousands)                                                                                                              \n                               (Unaudited)                                                                                    \n                               Three months ended                                                                             \n                               March 31, 2026                                                                                 \n                               Progressive Leasing     Purchasing Power      Four         Other       Consolidated total      \n Lease revenues and fees       $           596,864     $          —          $    —       $    —      $           596,864     \n Product and service revenues              —                      106,406         —            —                  106,406     \n Other revenues                            —                      729             34,967       3,708              39,404      \n Total revenues                $           596,864     $          107,135    $    34,967  $    3,708  $           742,674     \n\n                               (Unaudited)                                                                                    \n                               Three months ended                                                                             \n                               March 31, 2025                                                                                 \n                               Progressive Leasing     Purchasing Power      Four         Other       Consolidated total      \n Lease revenues and fees       $           651,557     $          —          $    —       $    —      $           651,557     \n Product and service revenues              —                      —               —            —                  —           \n Other revenues                            —                      —               14,429       2,442              16,871      \n Total revenues                $           651,557     $          —          $    14,429  $    2,442  $           668,428     \n\n PROG Holdings, Inc.                                                                             \n \n                                                                                               \n \nQuarterly Gross Merchandise Volume by Segment                                                  \n \n                                                                                               \n \n(In thousands)                                                                                 \n                      (Unaudited)                                                                \n                      Three months ended March 31,                   Change                      \n                              2026                     2025          $                %          \n Progressive Leasing  $       392,970          $       401,962       $   (8,992   )   (2.2   )%  \n Purchasing Power             132,678                  —        —        132,678      nmf        \n Four                         279,990                  119,863           160,127      133.6      \n Total GMV            $       805,638          $       521,825       $   283,813      54.4   %   \n\n nmf - Calculation is not meaningful  \n\n                           (Unaudited)                                                                                                     \n                           Purchasing Power                                                                                                \n                           Pre-Acquisition Gross Merchandise Volume                                                                        \n                           Three months ended                                                                      Twelve months ended     \n                           March 31, 2025      June 30,        September 30, 2025      December 31, 2025           December 31, 2025       \n                                               \n                                                                                           \n                                               \n2025                                                                                       \n Gross merchandise volume  $         120,287   $      137,890  $           143,516     $          247,641          $           649,334     \n\n\nUse of Non-GAAP Financial Information:\n\nNon-GAAP net earnings from continuing operations, non-GAAP diluted earnings\nfrom continuing operations per share, and adjusted EBITDA are supplemental\nmeasures of our performance that are not calculated in accordance with\ngenerally accepted accounting principles in the United States (\"GAAP\").\nNon-GAAP diluted earnings per share from continuing operations for the full\nyear 2026 and second quarter 2026 outlook excludes intangible amortization\nexpense, restructuring expenses, transaction-related costs, gain on changes in\nfair value of receivables and also excludes Vive as its normal operations have\nbeen discontinued as a result of the sale of its credit card portfolio in\nOctober 2025. Non-GAAP net earnings from continuing operations and non-GAAP\ndiluted earnings per share from continuing operations for the three months\nended March 31, 2026 exclude intangible amortization expense,\ntransaction-related costs, restructuring costs, gain on changes in fair value\nof receivables, and costs related to the cybersecurity incident, net of\ninsurance recoveries. Non-GAAP net earnings from continuing operations and\nnon-GAAP diluted earnings from continuing operations per share for the three\nmonths ended March 31, 2025 exclude intangible amortization expense,\nrestructuring expenses, and costs related to the cybersecurity incident, net\nof insurance recoveries. The amount for the after-tax non-GAAP adjustment,\nwhich is tax effected using our statutory tax rate, can be found in the\nreconciliation of net earnings and diluted earnings per share to non-GAAP net\nearnings and diluted earnings per share table in this press release.\n\nThe Adjusted EBITDA figures presented in this press release are calculated as\nthe Company’s earnings from continuing operations before interest expense,\nnet, depreciation on property and equipment, amortization of intangible assets\nand income taxes. Adjusted EBITDA for the full year and second quarter 2026\noutlook also excludes stock-based compensation expense, transaction-related\ncosts for the acquisition of Purchasing Power, restructuring charges, gain on\nchanges in fair value of receivables, and the operations of Vive. Adjusted\nEBITDA for the full year and second quarter 2026 includes estimated interest\nexpense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA\nfor the three months ended March 31, 2026 also excludes stock-based\ncompensation expense, costs related to the cybersecurity incident, net of\ninsurance recoveries, restructuring costs, gain on changes in fair value of\nreceivables, and transaction-related costs for the acquisition of Purchasing\nPower. Adjusted EBITDA for the three months ended March 31, 2025 also excludes\nstock-based compensation expense and costs related to the cybersecurity\nincident, net of insurance recoveries. The amounts for these pre-tax non-GAAP\nadjustments can be found in the segment EBITDA tables in this press release.\n\nManagement believes that non-GAAP net earnings, non-GAAP diluted earnings per\nshare, and adjusted EBITDA provide relevant and useful information, and are\nwidely used by analysts, investors and competitors in our industry as well as\nby our management in assessing both consolidated and business unit\nperformance.\n\nNon-GAAP net earnings from continuing operations, non-GAAP diluted earnings\nfrom continuing operations, and adjusted EBITDA provide management and\ninvestors with an understanding of the results from the primary operations of\nour business by excluding the effects of certain items that generally arose\nfrom larger, one-time transactions that are not reflective of the ordinary\nearnings activity of our operations or transactions that have variability and\nvolatility of the amount. We believe the exclusion of stock-based compensation\nexpense provides for a better comparison of our operating results with our\npeer companies as the calculations of stock-based compensation vary from\nperiod to period and company to company due to different valuation\nmethodologies, subjective assumptions and the variety of award types. We\nbelieve interest expense on Purchasing Power's asset-backed secured borrowings\nrepresents a direct operating cost required to generate revenue; therefore,\nthe Company is including this interest expense when calculating consolidated\nand Purchasing Power's adjusted EBITDA. This measure may be useful to an\ninvestor in evaluating the underlying operating performance of our business.\n\nAdjusted EBITDA also provides management and investors with an understanding\nof one aspect of earnings before the impact of investing and financing charges\nand income taxes. These measures may be useful to an investor in evaluating\nour operating performance because the measures:\n\n\n * Are widely used by investors to measure a company’s operating performance\nwithout regard to items excluded from the calculation of such measure, which\ncan vary substantially from company to company depending upon accounting\nmethods, book value of assets, capital structure and the method by which\nassets were acquired, among other factors.\n\n * Are used by rating agencies, lenders and other parties to evaluate our\ncreditworthiness.\n\n * Are used by our management for various purposes, including as a measure of\nperformance of our operating entities and as a basis for strategic planning\nand forecasting.\n\nNon-GAAP financial measures, however, should not be used as a substitute for,\nor considered superior to, measures of financial performance prepared in\naccordance with GAAP, such as the Company’s GAAP basis net earnings and\ndiluted earnings per share and the GAAP revenues and earnings before income\ntaxes of the Company’s segments, which are also presented in the press\nrelease. Further, we caution investors that amounts presented in accordance\nwith our definitions of non-GAAP net earnings, non-GAAP diluted earnings per\nshare, and adjusted EBITDA may not be comparable to similar measures disclosed\nby other companies, because not all companies and analysts calculate these\nmeasures in the same manner.\n PROG Holdings, Inc.                                                                                                    \n \n                                                                                                                      \n \nReconciliation of Net Earnings and Diluted Earnings Per Share to                                                      \n \n                                                                                                                      \n \nNon-GAAP Net Earnings and Diluted Earnings Per Share                                                                  \n \n                                                                                                                      \n \n(In thousands, except per share amounts)                                                                              \n                                                                                (Unaudited)                             \n                                                                                Three months ended                      \n                                                                                March 31,                               \n                                                                                      2026                2025          \n Net earnings from continuing operations                                        $     36,218        $     34,590        \n Add: Intangible amortization expense                                                 11,812              4,001         \n Add: Restructuring expense                                                           3,872               —             \n Add: Costs related to the cybersecurity incident, net of insurance recoveries        9                   (18     )     \n Add: Transaction-related costs                                                       9,691               —             \n Less: Gain on changes in fair value of receivables                                   (5,712  )           —             \n Less: Tax impact of adjustments((1))                                                 (5,115  )           (1,036  )     \n Non-GAAP net earnings from continuing operations                               $     50,775        $     37,537        \n Diluted earnings per share from continuing operations                                0.89                0.83          \n Add: Intangible amortization expense                                                 0.29                0.10          \n Add: Restructuring expense                                                           0.09                —             \n Add: Costs related to the cybersecurity incident, net of insurance recoveries        —                   —             \n Add: Transaction-related costs                                                       0.24                —             \n Less: Gain on changes in fair value of receivables                                   (0.14   )           —             \n Less: Tax impact of adjustments((1))                                                 (0.13   )           (0.02   )     \n Non-GAAP diluted earnings per share from continuing operations((2))            $     1.24          $     0.90          \n Diluted weighted average shares outstanding                                          40,810              41,851        \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n PROG Holdings, Inc.                                                                                                                                                               \n \n                                                                                                                                                                                 \n \nNon-GAAP Financial Information                                                                                                                                                   \n \n                                                                                                                                                                                 \n \nQuarterly Segment Adjusted EBITDA                                                                                                                                                \n \n                                                                                                                                                                                 \n \n(In thousands)                                                                                                                                                                   \n                                                                           (Unaudited)                                                                                             \n                                                                           Three months ended                                                                                      \n                                                                           March 31, 2026                                                                                          \n                                                                           Progressive Leasing     Purchasing Power        Four         Other           Consolidated total         \n Net earnings from continuing operations                                                                                                                $        36,218            \n Income tax expense((1))                                                                                                                                         11,345            \n Earnings (loss) from continuing operations before income tax expense      $           51,960      $       (7,500  )       $    11,390  $   (8,287  )            47,563            \n Interest expense, net                                                                 11,603              423                  1,073       3                    13,102            \n Depreciation                                                                          1,540               273                  24          501                  2,338             \n Amortization                                                                          3,771               7,812                229         —                    11,812            \n EBITDA from continuing operations                                                     68,874              1,008                12,716      (7,783  )            74,815            \n Stock-based compensation                                                              7,287               414                  189         (278    )            7,612             \n Transaction-related costs                                                             —                   1,781                —           7,910                9,691             \n Restructuring expense                                                                 526                 3,343                —           3                    3,872             \n Gain on changes in fair value of receivables                                          —                   (5,712  )            —           —                    (5,712   )        \n Costs related to the cybersecurity incident, net of insurance recoveries              9                   —                    —           —                    9                 \n Adjusted EBITDA from continuing operations                                $           76,696      $       834             $    12,905  $   (148    )   $        90,287            \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n                                                                           (Unaudited)                                                                       \n                                                                           Three months ended                                                                \n                                                                           March 31, 2025                                                                    \n                                                                           Progressive Leasing        Four        Other           Consolidated total         \n Net earnings from continuing operations                                                                                          $        34,590            \n Income tax expense((1))                                                                                                                   12,662            \n Earnings (loss) from continuing operations before income tax expense      $        48,625            $    1,970  $   (3,343  )            47,252            \n Interest expense, net                                                              7,163                  1,233      694                  9,090             \n Depreciation                                                                       1,357                  162        455                  1,974             \n Amortization                                                                       3,771                  230        —                    4,001             \n EBITDA from continuing operations                                                  60,916                 3,595      (2,194  )            62,317            \n Stock-based compensation                                                           6,307                  692        591                  7,590             \n Costs related to the cybersecurity incident, net of insurance recoveries           (18      )             —          —                    (18      )        \n Adjusted EBITDA from continuing operations                                $        67,205            $    4,287  $   (1,603  )   $        69,889            \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                                                                                                    \n \n                                                                                                                                                                                      \n \nNon-GAAP Financial Information                                                                                                                                                        \n \n                                                                                                                                                                                      \n \nReconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA                                                                                                                  \n \n                                                                                                                                                                                      \n \n(In thousands)                                                                                                                                                                        \n                                                                                 Fiscal year 2026 ranges                                                                                \n                                                                                 Progressive Leasing  Purchasing Power   Four               Other                  Consolidated total   \n Estimated net earnings from continuing operations                                                                                                                 $150,500 - $166,000  \n Income tax expense((1))                                                                                                                                           57,000 - 63,000      \n Projected earnings (loss) from continuing operations before income tax expense  $191,000 - $198,500  $14,500 - $22,000  $16,500 - $20,500  $(14,500) - $(12,000)  207,500 - 229,000    \n Interest expense, net                                                           38,000               1,500 - 2,000      5,500              1,500 - 2,000          46,500 - 47,500      \n Depreciation                                                                    6,500 - 7,500        5,500 - 6,000      500                3,000                  15,500 - 17,000      \n Amortization                                                                    4,000                32,000             1,000              —                      37,000               \n Projected EBITDA from continuing operations                                     239,500 - 248,000    53,500 - 62,000    23,500 - 27,500    (10,000) - (7,000)     306,500 - 330,500    \n Stock-based compensation                                                        29,500 - 30,500      2,000 - 3,000      1,500              500                    33,500 - 35,500      \n Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of  500 - 1,000          (5,500) - (5,000)  —                  8,000                  3,000 - 4,000        \n receivables/ acquisition-related transaction-costs                                                                                                                                     \n Projected adjusted EBITDA from continuing operations                            $269,500 - $279,500  $50,000 - $60,000  $25,000 - $29,000  $(1,500) - $1,500      $343,000 - $370,000  \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                                                                                                    \n \n                                                                                                                                                                                      \n \nNon-GAAP Financial Information                                                                                                                                                        \n \n                                                                                                                                                                                      \n \nReconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA                                                                                                                  \n \n                                                                                                                                                                                      \n \n(In thousands)                                                                                                                                                                        \n                                                                                 Fiscal year 2026 ranges                                                                                \n                                                                                 Progressive Leasing  Purchasing Power   Four               Other                  Consolidated total   \n Estimated net earnings from continuing operations                                                                                                                 $132,000 - $155,000  \n Income tax expense((1))                                                                                                                                           56,000 - 59,000      \n Projected earnings (loss) from continuing operations before income tax expense  $182,000 - $193,000  $13,000 - $22,000  $7,500 - $11,000   $(14,500) - $(12,000)  188,000 - 214,000    \n Interest expense, net                                                           36,000 - 35,000      1,000              8,000 - 9,000      1,500 - 2,000          46,500 - 47,000      \n Depreciation                                                                    5,000 - 6,000        9,000              —                  2,500                  16,500 - 17,500      \n Amortization                                                                    4,000                18,000 - 19,000    1,000              —                      23,000 - 24,000      \n Projected EBITDA from continuing operations                                     227,000 - 238,000    41,000 - 51,000    16,500 - 21,000    (10,500) - (7,500)     274,000 - 302,500    \n Stock-based compensation                                                        27,000 - 28,000      1,000              1,000 - 1,500      —                      29,000 - 30,500      \n Restructuring/ regulatory insurance recoveries/ cyber/ transaction-related      —                    8,000              —                  9,000                  17,000               \n costs                                                                                                                                                                                  \n Projected adjusted EBITDA from continuing operations                            $254,000 - $266,000  $50,000 - $60,000  $17,500 - $22,500  $(1,500) - $1,500      $320,000 - $350,000  \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                 \n \n                                                                                                   \n \nNon-GAAP Financial Information                                                                     \n \n                                                                                                   \n \nReconciliation of the Three Months Ended June 30, 2026 Outlook for Adjusted                        \n EBITDA                                                                                              \n \n                                                                                                   \n \n(In thousands)                                                                                     \n                                                                                 Three months ended  \n                                                                                 \n                   \n                                                                                 \nJune 30, 2026      \n                                                                                 Consolidated total  \n Estimated net earnings from continuing operations                               $29,000 - $38,000   \n Income tax expense((1))                                                         14,000              \n Projected earnings from continuing operations before income tax expense         43,000 - 52,000     \n Interest expense, net                                                           10,500              \n Depreciation                                                                    4,000 - 5,000       \n Amortization                                                                    8,500               \n Projected EBITDA from continuing operations                                     66,000 - 76,000     \n Stock-based compensation                                                        9,000               \n Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of  (3,000)             \n receivables                                                                                         \n Projected adjusted EBITDA from continuing operations                            $72,000 - $82,000   \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                              \n \n                                                                                                                \n \nReconciliation of Revised Full Year 2026 Outlook for Diluted Earnings Per                                       \n Share                                                                                                            \n \n                                                                                                                \n \nto Non-GAAP Diluted Earnings Per Share                                                                          \n                                                                                Full year 2026                    \n                                                                                Low              High             \n Projected diluted earnings per share from continuing operations                $    3.68        $    4.06        \n Add: Projected intangible amortization expense                                      0.90             0.90        \n Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair          0.07             0.10        \n value of receivables                                                                                             \n Subtract: Tax effect on non-GAAP adjustments((1))                                   (0.25  )         (0.26  )    \n Projected non-GAAP diluted earnings per share from continuing operations((2))  $    4.40        $    4.80        \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n PROG Holdings, Inc.                                                                                              \n \n                                                                                                                \n \nReconciliation of Previous Full Year 2026 Outlook for Diluted Earnings Per                                      \n Share                                                                                                            \n \n                                                                                                                \n \nto Non-GAAP Diluted Earnings Per Share                                                                          \n                                                                                Full year 2026                    \n                                                                                Low              High             \n Projected diluted earnings per share from continuing operations                $    3.34        $    3.79        \n Add: Projected intangible amortization expense                                      0.58             0.59        \n Add: Restructuring/ regulatory insurance recoveries/ cyber/                         0.29             0.29        \n transaction-related costs                                                                                        \n Subtract: Tax effect on non-GAAP adjustments((1))                                   (0.22  )         (0.22  )    \n Projected non-GAAP diluted earnings per share from continuing operations((2))  $    4.00        $    4.45        \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n PROG Holdings, Inc.                                                                                                  \n \n                                                                                                                    \n \nReconciliation of the Three Months Ended June 30, 2026 Outlook for Diluted                                          \n \n                                                                                                                    \n \nEarnings Per Share to Non-GAAP Diluted Earnings Per Share                                                           \n                                                                                Three months ended                    \n                                                                                \n                                     \n                                                                                \nJune 30, 2026                        \n                                                                                Low                High               \n Projected diluted earnings per share from continuing operations                $     0.74         $     0.93         \n Add: Projected intangible amortization expense                                       0.22               0.22         \n Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair           (0.07  )           (0.07  )     \n value of receivables                                                                                                 \n Subtract: Tax effect on non-GAAP adjustments((1))                                    (0.04  )           (0.04  )     \n Projected non-GAAP diluted earnings per share from continuing operations((2))  $     0.85         $     1.05         \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260429712300/en/\n(https://www.businesswire.com/news/home/20260429712300/en/)\n\nInvestor Contact \n\nJohn A. Baugh, CFA\n\nVice President, Investor Relations\n\njohn.baugh@progholdings.com (mailto:john.baugh@progholdings.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw2HtflNa","title":"PROG Holdings Reports First Quarter 2026 Results","author":"Business Wire","ticker":"PRG","created":"2026-04-29T11:30:00.486Z","tickers":["PRG"],"exchange":"NYSE","article_body":"PROG Holdings Reports First Quarter 2026 Results\n\n\n * Consolidated revenues from continuing operations of $742.7 million, up 11.1%;\nNet earnings from continuing operations of $36.2 million\n\n * Adjusted EBITDA from continuing operations of $90.3 million, up 29.2%\n\n * Diluted EPS from continuing operations of $0.89; Non-GAAP Diluted EPS from\ncontinuing operations of $1.24, up 37.8%\n\n * Consolidated GMV of $805.6 million, up 54.4%\n\n * $210 million of net recourse debt reduction since the acquisition of\nPurchasing Power, resulting in net leverage ratio of 2.0\n\nPROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive\nLeasing, Purchasing Power, Four Technologies and MoneyApp, today announced\nfinancial results for the first quarter ended March 31, 2026, which includes\nthe results of Purchasing Power since January 2, 2026, the date the Company\nacquired Purchasing Power.\n\n\"We delivered a strong start to 2026, with first quarter results exceeding the\nhigh end of our outlook for earnings, and non-GAAP EPS,\" said PROG Holdings\nPresident and CEO Steve Michaels. \"This performance reflects disciplined\nexecution across the organization and the benefits of our diversified model,\nwith improving trends at Progressive Leasing, continued triple-digit growth\nand strong economics at Four, and growth at Purchasing Power. Importantly,\nProgressive Leasing returned to year-over-year GMV growth as we exited the\nquarter, reflecting the progress we've made on our initiatives and the lapping\nof prior headwinds. We also meaningfully improved the balance sheet, reducing\nour net leverage ratio to two times as we prioritized debt reduction following\nthe Purchasing Power acquisition.\"\n\n\"We saw continued momentum in our ecosystem with increasing engagement across\nproducts, which is driving higher customer lifetime value and improving\nacquisition efficiency. As our ecosystem scales, we are able to drive more\nefficient growth through cross-product connectivity.\"\n\n\"Based on our strong first quarter and the momentum we are seeing in the\nbusiness, we have increased our full-year 2026 outlook, providing a positive\nstart towards the three-year 2028 compound annual growth targets we outlined\nat our Investor Day. These targets, inclusive of Purchasing Power on a pro\nforma 2025 basis, are to grow consolidated GMV 20% to 25%, revenue 5% to 8%,\nAdjusted EBITDA 13% to 16%, and non-GAAP EPS 17% to 20%. Despite a challenging\nmacro environment, our model is performing as designed, and we remain focused\non executing our Grow, Enhance, and Expand strategy that we believe will\ndeliver durable, profitable growth and long-term shareholder value,\" concluded\nMichaels.\n\nConsolidated Results\n\nConsolidated revenues for the first quarter of 2026 were $742.7 million, an\nincrease of 11.1% from the same period in 2025.\n\nConsolidated net earnings from continuing operations for the quarter were\n$36.2 million, compared with $34.6 million in the prior year period. The\neffective income tax rate was 23.9% in the first quarter of 2026, compared to\n26.8% in the same period in the prior year. Adjusted EBITDA from continuing\noperations for the quarter was $90.3 million, or 12.2% of revenues, compared\nwith $69.9 million, or 10.5% of revenues for the same period in 2025.\n\nDiluted earnings per share from continuing operations for the first quarter of\n2026 were $0.89, compared with $0.83 in the year ago period. On a non-GAAP\nbasis, diluted earnings per share from continuing operations were up 37.8% at\n$1.24 in the first quarter of 2026, compared with $0.90 for the same period in\n2025.\n\nProgressive Leasing Results\n\nProgressive Leasing's first quarter GMV of $393.0 million was down 2.2%\ncompared to the same period in 2025. Revenues were $596.9 million, down 8.4%\nfrom the prior year. The provision for lease merchandise write-offs for the\nquarter was 7.3% of leasing revenues, approximately flat from the prior year,\nand within the Company's 6-8% targeted annual range. Earnings before taxes for\nthe first quarter of 2026 were $52.0 million, up 6.9% from the first quarter\nof 2025. Adjusted EBITDA was $76.7 million, up 14.1% from the first quarter of\n2025.\n\nFour Results\n\nFour's GMV for the first quarter of 2026 was $280.0 million, an increase of\n133.6% compared to the same period in the prior year. Revenues were $35.0\nmillion, up 142.3% from the year ago period. Four's earnings before taxes for\nthe first quarter of 2026 were $11.4 million, up 478.2% from the first quarter\nof 2025. Adjusted EBITDA was $12.9 million, up 201.0% from the first quarter\nof 2025.\n\nPurchasing Power Results\n\nThe Company acquired Purchasing Power on January 2, 2026. Accordingly, results\nfor the first quarter 2026 reflect activity since the acquisition date.\nPurchasing Power's GMV, which is defined as the total value of merchandise and\nservices purchased and delivered to customers through its platform, was $132.7\nmillion, up 10.3% from the first quarter of 2025 on a standalone basis.\nRevenues were $107.1 million in the first quarter of 2026. Loss before taxes\nwas $7.5 million and adjusted EBITDA was $0.8 million for the first quarter of\n2026.\n\nLiquidity and Capital Allocation\n\nPROG Holdings ended the first quarter of 2026 with cash of $69.4 million and\ngross debt of $943.7 million. During the quarter, the Company incurred a total\nof $260.0 million of new corporate debt related to the acquisition of\nPurchasing Power on January 2, 2026, and $338.6 million of non-recourse\nfunding debt for Purchasing Power remained in place immediately following the\nacquisition. Since the acquisition of Purchasing Power, the Company has\nreduced debt by $254.9 million. The Company did not repurchase any shares\nduring the first quarter and maintains $309.6 million of repurchase capacity\nunder its $500 million share repurchase program. Additionally, the Company\npaid a quarterly cash dividend of $0.14 per share.\n\n2026 Outlook\n\nDue to the strong start to the year and the momentum in the business, the\nCompany is increasing its full year 2026 outlook for revenue and earnings as\nwell as providing guidance for the second quarter of 2026. This outlook\nassumes an operating environment with no change in the current financial\npressures and uncertainties for our customer, no material changes in the\nCompany's decisioning posture, no meaningful increase in unemployment rates\nfor our consumer base, an effective tax rate for non-GAAP EPS of approximately\n26% and no impact from additional share purchases.\n                                                                  Revised 2026 outlook          Previous 2026 outlook     \n (In thousands, except per share amounts)                         Low          High             Low          High         \n                                                                                                                          \n PROG Holdings - Total revenues from continuing operations        $ 3,000,000  $ 3,100,000      $ 2,950,000  $ 3,070,000  \n PROG Holdings - Net earnings from continuing operations          150,500      166,000          132,000      155,000      \n PROG Holdings - Adjusted EBITDA from continuing operations       343,000      370,000          320,000      350,000      \n PROG Holdings - Diluted EPS from continuing operations           3.68         4.06             3.34         3.79         \n PROG Holdings - Diluted non-GAAP EPS from continuing operations  4.40         4.80             4.00         4.45         \n                                                                                                                          \n Progressive Leasing - Total revenues                             2,227,500    2,285,000        2,202,500    2,253,000    \n Progressive Leasing - Earnings before taxes                      191,000      198,500          182,000      193,000      \n Progressive Leasing - Adjusted EBITDA                            269,500      279,500          254,000      266,000      \n                                                                                                                          \n Purchasing Power - Total revenues                                620,000      640,000          610,000      660,000      \n Purchasing Power - Earnings before taxes                         14,500       22,000           13,000       22,000       \n Purchasing Power - Adjusted EBITDA                               50,000       60,000           50,000       60,000       \n                                                                                                                          \n Four - Total revenues                                            140,000      157,000          125,000      140,000      \n Four - Earnings before taxes                                     16,500       20,500           7,500        11,000       \n Four - Adjusted EBITDA                                           25,000       29,000           17,500       22,500       \n                                                                                                                          \n Other - Total revenues                                           12,500       18,000           12,500       17,000       \n Other - Loss before taxes                                        (14,500)     (12,000)         (14,500)     (12,000)     \n Other - Adjusted EBITDA                                          (1,500)      1,500            (1,500)      1,500        \n\n                                                                  Three months ended          \n                                                                  \n                           \n                                                                  \nJune 30, 2026 outlook      \n (In thousands, except per share amounts)                         Low           High          \n                                                                                              \n PROG Holdings - Total revenues from continuing operations        $ 700,000     $ 725,000     \n PROG Holdings - Net earnings from continuing operations          29,000        38,000        \n PROG Holdings - Adjusted EBITDA from continuing operations       72,000        82,000        \n PROG Holdings - Diluted EPS from continuing operations           0.74          0.93          \n PROG Holdings - Diluted non-GAAP EPS from continuing operations  0.85          1.05          \n\n\nConference Call and Webcast\n\nThe Company has scheduled a live webcast and conference call for Wednesday,\nApril 29, 2026, at 8:30 A.M. ET to discuss its financial results for the first\nquarter of 2026. To access the live webcast, visit the Events and\nPresentations page of the Company’s Investor Relations website,\nhttps://investor.progholdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.progholdings.com%2F&esheet=54525025&newsitemid=20260429712300&lan=en-US&anchor=https%3A%2F%2Finvestor.progholdings.com%2F&index=1&md5=14a775cbf7a412f4f8290d64ede4d90d)\n.\n\nAbout PROG Holdings, Inc.\n\nPROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in\nSalt Lake City, UT, that provides inclusive, transparent and competitive\npayment options to consumers. The Company owns Progressive Leasing, a leading\nprovider of e-commerce, app-based, and in-store point-of-sale lease-to-own\nsolutions; Purchasing Power, a voluntary employee benefit program provider,\nallowing employees to purchase brand-name products and services through either\nautomatic payroll deductions or allotments; Four Technologies, a provider of\nBuy Now, Pay Later payment options through its platform, Four; and MoneyApp, a\nmobile application that offers customers interest-free cash advances. More\ninformation on PROG Holdings and its companies can be found at\nhttps://investor.progholdings.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.progholdings.com%2F&esheet=54525025&newsitemid=20260429712300&lan=en-US&anchor=https%3A%2F%2Finvestor.progholdings.com%2F&index=2&md5=e38eaff5b81251431d4a721e70e30fdf)\n.\n\nForward-Looking Statements:\n\nStatements, estimates and projections in this press release regarding our\nbusiness that are not historical facts are \"forward-looking statements\" that\ninvolve risks and uncertainties which could cause actual results to differ\nmaterially from those contained in the forward-looking statements. Such\nforward-looking statements generally can be identified by the use of\nforward-looking terminology, such as \"continued,\" \"outlook,\" \"targets,\"\n\"believe,\" \"guidance,\" and similar forward-looking terminology. These risks\nand uncertainties include (i) continued volatility and challenges in the\nmacroeconomic environment, including due to the war in Iran and related\ngeopolitical disruptions and increases in fuel and other prices, and their\nimpact on: (a) consumer confidence and customer demand for the merchandise\nthat our retail partners and Purchasing Power sell, in particular consumer\ndurables, such as home appliances, electronics and furniture; (b) our\ncustomers’ disposable income and their ability to make the lease and loan\npayments they owe the Company; and (c) our overall financial performance and\noutlook; (ii) the impact of the uncertain macroeconomic environment on our\nproprietary algorithms and decisioning tools that we use to approve customers\nsuch that they are no longer indicative of our customers’ ability to\nperform, which in turn may limit the ability of our businesses to manage risk,\navoid lease and loan charge-offs and may result in insufficient reserves to\ncover actual losses; (iii) a large percentage of Progressive Leasing's revenue\nbeing concentrated with several key retail partners, and the loss of any of\nthese retail partner relationships materially and adversely affecting several\naspects of our performance; (iv) Progressive Leasing being unable to attract\nadditional retail partners and retain and grow its relationships with its\nexisting retail partners, and/or Purchasing Power being unable to attract\nadditional employer-clients and retain and grow its relationships with its\nexisting clients, resulting in several aspects of our performance being\nmaterially and adversely affected; (v) our businesses being unable to attract\nnew consumers and retain and grow their relationships with their existing\ncustomers materially and adversely affecting several aspects of our\nperformance; (vi) Four’s and Purchasing Power's business models differing\nsignificantly from Progressive Leasing’s lease-to-own business, which means\nthese businesses have different risk profiles; (vii) our efforts to modernize\nand enhance certain enterprise-wide information management systems and\ntechnologies adversely impacting our businesses and operations; (viii) the\ninability of our businesses to successfully operate in highly and increasingly\ncompetitive industries materially and adversely affecting several aspects of\nour performance; (ix) our business, results of operations, financial\ncondition, and prospects being materially and adversely affected due to our\nbusinesses failing to maintain a consistently high level of consumer\nsatisfaction and trust in its brands; (x) our businesses being subject to\nextensive federal, state and local laws and regulations, including certain\nlaws and regulations unique to the industries in which our businesses operate,\nthat may subject them to government investigations and significant monetary\npenalties, remediation expenses and compliance-related burdens that may result\nin them changing the manner in which they operate, which may be materially\nadverse to several aspects of our performance; (xi) our performance being\nmaterially and adversely affected due to the transactions offered to consumers\nby our businesses being negatively characterized by federal, state and local\ngovernment officials, consumer advocacy groups and the media; (xii) our\ninability to protect confidential, proprietary, or sensitive information,\nincluding the confidential information of our customers, being adversely\naffected by cyber-attacks or similar disruptions, which may result in\nsignificant costs, litigation and reputational damage or otherwise have a\nmaterial adverse impact on several aspects of our performance; (xiii) any\nsignificant disruption in our vendors' information technology systems, or\ndisruptions in the information our businesses rely on in their lease and loan\ndecisioning, materially and adversely affecting several aspects of our\nperformance; (xiv) our capital allocation strategy and financial policies; and\n(xv) the other risks and uncertainties discussed under \"Risk Factors\" in the\nCompany’s Annual Report on Form 10-K for the fiscal year ended December 31,\n2025, filed with the SEC on February 18, 2026. Statements, estimates and\nprojections in this press release that are \"forward-looking\" include without\nlimitation statements, estimates and projections about: (i) improving\nperformance trends in our Progressive Leasing business; (ii) continued growth\nof our Four business; (iii) our ability to improve customer acquisition\nefficiency and lifetime value; (iv) our ability to deliver sustainable,\nprofitable growth and long-term shareholder value going forward; (v) our\nrevised full year 2026 outlook and the guidance we provide for the second\nquarter of 2026; and (vi) our three-year CAGR targets for GMV, Revenue,\nAdjusted EBITDA and non-GAAP Earnings Per Share. You are cautioned not to\nplace undue reliance on these forward-looking statements, which speak only as\nof the date of this press release. Except as required by law, the Company\nundertakes no obligation to update these forward-looking statements to reflect\nsubsequent events or circumstances after the date of this press release.\n PROG Holdings, Inc.                                                                                       \n \n                                                                                                         \n \nConsolidated Statement of Earnings                                                                       \n \n                                                                                                         \n \n(In thousands, except per share data)                                                                    \n                                                                (Unaudited)                                \n                                                                \n                                          \n                                                                \nThree months ended                        \n                                                                March 31,                                  \n                                                                     2026                    2025          \n Revenues                                                                                                  \n Lease revenues and fees                                        $    596,864            $    651,557       \n Product and service revenues                                        106,406                 —             \n Other revenue                                                       39,404                  16,871        \n                                                                     742,674                 668,428       \n Costs and expenses                                                                                        \n Depreciation of lease merchandise                                   409,010                 460,443       \n Cost of product sales                                               62,506                  —             \n Provision for lease merchandise write-offs                          43,651                  48,018        \n Operating expenses                                                  150,200                 98,124        \n Provision for credit losses                                         24,167                  5,501         \n                                                                     689,534                 612,086       \n Gain on sale of lease receivables                                   6,457                   —             \n Gain on change in fair value of receivables                         5,712                   —             \n Operating profit                                                    65,309                  56,342        \n Interest expense                                                    (18,389  )              (9,963   )    \n Interest income                                                     643                     873           \n Earnings from continuing operations before income tax expense       47,563                  47,252        \n Income tax expense                                                  11,345                  12,662        \n Net earnings from continuing operations                             36,218                  34,590        \n (Loss) earnings from discontinued operations, net of tax            (164     )              128           \n Net earnings                                                   $    36,054             $    34,718        \n Basic earnings per share                                                                                  \n Continuing operations                                          $    0.91               $    0.85          \n Discontinued operations                                             —                       —             \n Total basic earnings per share                                 $    0.91               $    0.85          \n Diluted earnings per share                                                                                \n Continuing operations                                          $    0.89               $    0.83          \n Discontinued operations                                             —                       —             \n Total diluted earnings per share                               $    0.89               $    0.83          \n                                                                                                           \n Cash dividend declared per share                                                                          \n Common Stock                                                   $    0.14               $    0.13          \n Weighted average shares outstanding                                                                       \n Basic                                                               39,898                  40,841        \n Diluted                                                             40,810                  41,851        \n\n PROG Holdings, Inc.                                                                                                 \n \n                                                                                                                   \n \nConsolidated Balance Sheets                                                                                        \n \n                                                                                                                   \n \n(In thousands, except share data)                                                                                  \n                                                                                     March 31,        December 31,   \n                                                                                     \n2026            \n2025          \n Assets                                                                                                              \n Cash and cash equivalents                                                           $ 69,386         $ 308,774      \n Restricted cash                                                                     10,116           —              \n Receivables (net of allowances and unearned interest income of $80,638 in 2026      387,586          74,228         \n and $68,806 in 2025; includes $203,043 recorded at fair value in 2026)(1)                                           \n Other receivables (net of allowances and unearned interest income of $3,344 in      34,588           —              \n 2026 and $0 in 2025; includes $20,891 recorded at fair value in 2026)(1)                                            \n Lease merchandise (net of accumulated depreciation and allowances of $412,002       531,292          609,009        \n in 2026 and $407,104 in 2025)                                                                                       \n Loans receivable (net of allowances and unamortized fees of $18,055 in 2026         71,000           90,648         \n and $18,246 in 2025)                                                                                                \n Property and equipment, net                                                         21,817           19,526         \n Goodwill and other intangibles, net                                                 771,676          353,835        \n Income tax receivable                                                               26,601           47,894         \n Deferred income tax assets                                                          19,311           19,561         \n Prepaid expenses and other assets                                                   86,649           73,383         \n Assets of discontinued operations                                                   12,490           13,550         \n Total assets                                                                        $ 2,042,512      $ 1,610,408    \n Liabilities and shareholders' equity                                                                                \n Accounts payable and accrued expenses                                               $ 136,967        $ 96,471       \n Debt, net(1)                                                                        936,122          594,861        \n Deferred income tax liabilities                                                     147,922          121,152        \n Other liabilities                                                                   43,759           44,676         \n Liabilities of discontinued operations                                              3,387            6,831          \n Total liabilities                                                                   1,268,157        863,991        \n Shareholders' equity                                                                                                \n Common stock, par value $0.50 per share: authorized: 225,000,000 shares at          41,039           41,039         \n March 31, 2026 and December 31, 2025; shares issued: 82,078,654 at March 31,                                        \n 2026 and December 31, 2025                                                                                          \n Additional paid-in capital                                                          348,486          363,583        \n Retained earnings                                                                   1,624,879        1,594,685      \n                                                                                     2,014,404        1,999,307      \n Less: treasury shares at cost                                                                                       \n Common Stock: 42,014,857 shares at March 31, 2026 and 42,502,844 at December        (1,240,049)      (1,252,890)    \n 31, 2025                                                                                                            \n Total shareholders' equity                                                          774,355          746,417        \n Total liabilities and shareholders' equity                                          $ 2,042,512      $ 1,610,408    \n\n (1) As of March 31, 2026, receivables included $375.1 million of contractual     \n amounts outstanding of consolidated VIEs that can only be used to settle their   \n obligations, and debt included $293.7 million of liabilities of consolidated     \n VIEs for which creditors have no recourse to the Company.                        \n\n PROG Holdings, Inc.                                                                                                         \n \n                                                                                                                           \n \nConsolidated Statements of Cash Flows                                                                                      \n \n                                                                                                                           \n \n(In thousands)                                                                                                             \n                                                                      Three months ended March 31,                           \n                                                                             2026                           2025             \n Operating activities                                                 (in thousands)                                         \n Net earnings                                                         $      36,054                  $      34,718           \n Adjustments to reconcile net earnings to cash provided by operating                                                         \n activities:                                                                                                                 \n Depreciation of lease merchandise                                           409,010                        460,443          \n Other depreciation and amortization                                         14,150                         6,122            \n Provisions for accounts receivable and credit losses                        100,150                        98,958           \n Stock-based compensation                                                    7,642                          7,902            \n Gain on change in fair value of receivables                                 (5,712    )                    —                \n Deferred income taxes                                                       7,756                          (9,928    )      \n Gain on sale of receivables                                                 (7,030    )                    —                \n Non-cash lease expense                                                      (732      )                    (1,025    )      \n Other changes, net                                                          964                            (15       )      \n Changes in operating assets and liabilities:                                                                                \n Additions to lease merchandise                                              (389,976  )                    (385,254  )      \n Book value of lease merchandise sold or disposed                            58,682                         49,654           \n Accounts receivable                                                         (32,901   )                    (70,947   )      \n Prepaid expenses and other assets                                           (802      )                    5,533            \n Income tax receivable and payable                                           21,269                         22,200           \n Accounts payable and accrued expenses                                       (44,499   )                    (3,761    )      \n Customer deposits and advance payments                                      (2,326    )                    (4,671    )      \n Cash provided by operating activities                                       171,699                        209,929          \n Investing activities                                                                                                        \n Investments in loans receivable                                             (284,863  )                    (165,883  )      \n Proceeds from loans receivable                                              293,997                        163,753          \n Funding of other receivables                                                (19,419   )                    —                \n Collections from other receivables                                          18,821                         —                \n Purchases of property and equipment                                         (3,149    )                    (1,962    )      \n Proceeds from sale of property and equipment                                584                            —                \n Acquisition of business, net of cash acquired                               (391,845  )                    —                \n Cash used in investing activities                                           (385,874  )                    (4,092    )      \n Financing activities                                                                                                        \n Proceeds from debt                                                          546,178                        —                \n Repayments on debt                                                          (541,108  )                    (50,000   )      \n Dividends paid                                                              (5,609    )                    (5,265    )      \n Acquisition of treasury stock                                               —                              (26,119   )      \n Issuance of stock under stock option and employee purchase plans            187                            325              \n Cash paid for shares withheld for employee taxes                            (10,117   )                    (7,048    )      \n Debt issuance costs                                                         (4,628    )                    (84       )      \n Cash used in financing activities                                           (15,097   )                    (88,191   )      \n (Decrease) increase in cash, cash equivalents and restricted cash           (229,272  )                    117,646          \n Cash, cash equivalents and restricted cash at beginning of period           308,774                        95,655           \n Cash, cash equivalents and restricted cash at end of period          $      79,502                  $      213,301          \n Net cash (received) paid during the period:                                                                                 \n Interest                                                             $      8,722                   $      509              \n Income taxes                                                         $      (17,687   )             $      300              \n\n PROG Holdings, Inc.                                                                                                          \n \n                                                                                                                            \n \nQuarterly Revenues by Segment                                                                                               \n \n                                                                                                                            \n \n(In thousands)                                                                                                              \n                               (Unaudited)                                                                                    \n                               Three months ended                                                                             \n                               March 31, 2026                                                                                 \n                               Progressive Leasing     Purchasing Power      Four         Other       Consolidated total      \n Lease revenues and fees       $           596,864     $          —          $    —       $    —      $           596,864     \n Product and service revenues              —                      106,406         —            —                  106,406     \n Other revenues                            —                      729             34,967       3,708              39,404      \n Total revenues                $           596,864     $          107,135    $    34,967  $    3,708  $           742,674     \n\n                               (Unaudited)                                                                                    \n                               Three months ended                                                                             \n                               March 31, 2025                                                                                 \n                               Progressive Leasing     Purchasing Power      Four         Other       Consolidated total      \n Lease revenues and fees       $           651,557     $          —          $    —       $    —      $           651,557     \n Product and service revenues              —                      —               —            —                  —           \n Other revenues                            —                      —               14,429       2,442              16,871      \n Total revenues                $           651,557     $          —          $    14,429  $    2,442  $           668,428     \n\n PROG Holdings, Inc.                                                                             \n \n                                                                                               \n \nQuarterly Gross Merchandise Volume by Segment                                                  \n \n                                                                                               \n \n(In thousands)                                                                                 \n                      (Unaudited)                                                                \n                      Three months ended March 31,                   Change                      \n                              2026                     2025          $                %          \n Progressive Leasing  $       392,970          $       401,962       $   (8,992   )   (2.2   )%  \n Purchasing Power             132,678                  —        —        132,678      nmf        \n Four                         279,990                  119,863           160,127      133.6      \n Total GMV            $       805,638          $       521,825       $   283,813      54.4   %   \n\n nmf - Calculation is not meaningful  \n\n                           (Unaudited)                                                                                                     \n                           Purchasing Power                                                                                                \n                           Pre-Acquisition Gross Merchandise Volume                                                                        \n                           Three months ended                                                                      Twelve months ended     \n                           March 31, 2025      June 30,        September 30, 2025      December 31, 2025           December 31, 2025       \n                                               \n                                                                                           \n                                               \n2025                                                                                       \n Gross merchandise volume  $         120,287   $      137,890  $           143,516     $          247,641          $           649,334     \n\n\nUse of Non-GAAP Financial Information:\n\nNon-GAAP net earnings from continuing operations, non-GAAP diluted earnings\nfrom continuing operations per share, and adjusted EBITDA are supplemental\nmeasures of our performance that are not calculated in accordance with\ngenerally accepted accounting principles in the United States (\"GAAP\").\nNon-GAAP diluted earnings per share from continuing operations for the full\nyear 2026 and second quarter 2026 outlook excludes intangible amortization\nexpense, restructuring expenses, transaction-related costs, gain on changes in\nfair value of receivables and also excludes Vive as its normal operations have\nbeen discontinued as a result of the sale of its credit card portfolio in\nOctober 2025. Non-GAAP net earnings from continuing operations and non-GAAP\ndiluted earnings per share from continuing operations for the three months\nended March 31, 2026 exclude intangible amortization expense,\ntransaction-related costs, restructuring costs, gain on changes in fair value\nof receivables, and costs related to the cybersecurity incident, net of\ninsurance recoveries. Non-GAAP net earnings from continuing operations and\nnon-GAAP diluted earnings from continuing operations per share for the three\nmonths ended March 31, 2025 exclude intangible amortization expense,\nrestructuring expenses, and costs related to the cybersecurity incident, net\nof insurance recoveries. The amount for the after-tax non-GAAP adjustment,\nwhich is tax effected using our statutory tax rate, can be found in the\nreconciliation of net earnings and diluted earnings per share to non-GAAP net\nearnings and diluted earnings per share table in this press release.\n\nThe Adjusted EBITDA figures presented in this press release are calculated as\nthe Company’s earnings from continuing operations before interest expense,\nnet, depreciation on property and equipment, amortization of intangible assets\nand income taxes. Adjusted EBITDA for the full year and second quarter 2026\noutlook also excludes stock-based compensation expense, transaction-related\ncosts for the acquisition of Purchasing Power, restructuring charges, gain on\nchanges in fair value of receivables, and the operations of Vive. Adjusted\nEBITDA for the full year and second quarter 2026 includes estimated interest\nexpense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA\nfor the three months ended March 31, 2026 also excludes stock-based\ncompensation expense, costs related to the cybersecurity incident, net of\ninsurance recoveries, restructuring costs, gain on changes in fair value of\nreceivables, and transaction-related costs for the acquisition of Purchasing\nPower. Adjusted EBITDA for the three months ended March 31, 2025 also excludes\nstock-based compensation expense and costs related to the cybersecurity\nincident, net of insurance recoveries. The amounts for these pre-tax non-GAAP\nadjustments can be found in the segment EBITDA tables in this press release.\n\nManagement believes that non-GAAP net earnings, non-GAAP diluted earnings per\nshare, and adjusted EBITDA provide relevant and useful information, and are\nwidely used by analysts, investors and competitors in our industry as well as\nby our management in assessing both consolidated and business unit\nperformance.\n\nNon-GAAP net earnings from continuing operations, non-GAAP diluted earnings\nfrom continuing operations, and adjusted EBITDA provide management and\ninvestors with an understanding of the results from the primary operations of\nour business by excluding the effects of certain items that generally arose\nfrom larger, one-time transactions that are not reflective of the ordinary\nearnings activity of our operations or transactions that have variability and\nvolatility of the amount. We believe the exclusion of stock-based compensation\nexpense provides for a better comparison of our operating results with our\npeer companies as the calculations of stock-based compensation vary from\nperiod to period and company to company due to different valuation\nmethodologies, subjective assumptions and the variety of award types. We\nbelieve interest expense on Purchasing Power's asset-backed secured borrowings\nrepresents a direct operating cost required to generate revenue; therefore,\nthe Company is including this interest expense when calculating consolidated\nand Purchasing Power's adjusted EBITDA. This measure may be useful to an\ninvestor in evaluating the underlying operating performance of our business.\n\nAdjusted EBITDA also provides management and investors with an understanding\nof one aspect of earnings before the impact of investing and financing charges\nand income taxes. These measures may be useful to an investor in evaluating\nour operating performance because the measures:\n\n\n * Are widely used by investors to measure a company’s operating performance\nwithout regard to items excluded from the calculation of such measure, which\ncan vary substantially from company to company depending upon accounting\nmethods, book value of assets, capital structure and the method by which\nassets were acquired, among other factors.\n\n * Are used by rating agencies, lenders and other parties to evaluate our\ncreditworthiness.\n\n * Are used by our management for various purposes, including as a measure of\nperformance of our operating entities and as a basis for strategic planning\nand forecasting.\n\nNon-GAAP financial measures, however, should not be used as a substitute for,\nor considered superior to, measures of financial performance prepared in\naccordance with GAAP, such as the Company’s GAAP basis net earnings and\ndiluted earnings per share and the GAAP revenues and earnings before income\ntaxes of the Company’s segments, which are also presented in the press\nrelease. Further, we caution investors that amounts presented in accordance\nwith our definitions of non-GAAP net earnings, non-GAAP diluted earnings per\nshare, and adjusted EBITDA may not be comparable to similar measures disclosed\nby other companies, because not all companies and analysts calculate these\nmeasures in the same manner.\n PROG Holdings, Inc.                                                                                                    \n \n                                                                                                                      \n \nReconciliation of Net Earnings and Diluted Earnings Per Share to                                                      \n \n                                                                                                                      \n \nNon-GAAP Net Earnings and Diluted Earnings Per Share                                                                  \n \n                                                                                                                      \n \n(In thousands, except per share amounts)                                                                              \n                                                                                (Unaudited)                             \n                                                                                Three months ended                      \n                                                                                March 31,                               \n                                                                                      2026                2025          \n Net earnings from continuing operations                                        $     36,218        $     34,590        \n Add: Intangible amortization expense                                                 11,812              4,001         \n Add: Restructuring expense                                                           3,872               —             \n Add: Costs related to the cybersecurity incident, net of insurance recoveries        9                   (18     )     \n Add: Transaction-related costs                                                       9,691               —             \n Less: Gain on changes in fair value of receivables                                   (5,712  )           —             \n Less: Tax impact of adjustments((1))                                                 (5,115  )           (1,036  )     \n Non-GAAP net earnings from continuing operations                               $     50,775        $     37,537        \n Diluted earnings per share from continuing operations                                0.89                0.83          \n Add: Intangible amortization expense                                                 0.29                0.10          \n Add: Restructuring expense                                                           0.09                —             \n Add: Costs related to the cybersecurity incident, net of insurance recoveries        —                   —             \n Add: Transaction-related costs                                                       0.24                —             \n Less: Gain on changes in fair value of receivables                                   (0.14   )           —             \n Less: Tax impact of adjustments((1))                                                 (0.13   )           (0.02   )     \n Non-GAAP diluted earnings per share from continuing operations((2))            $     1.24          $     0.90          \n Diluted weighted average shares outstanding                                          40,810              41,851        \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n PROG Holdings, Inc.                                                                                                                                                               \n \n                                                                                                                                                                                 \n \nNon-GAAP Financial Information                                                                                                                                                   \n \n                                                                                                                                                                                 \n \nQuarterly Segment Adjusted EBITDA                                                                                                                                                \n \n                                                                                                                                                                                 \n \n(In thousands)                                                                                                                                                                   \n                                                                           (Unaudited)                                                                                             \n                                                                           Three months ended                                                                                      \n                                                                           March 31, 2026                                                                                          \n                                                                           Progressive Leasing     Purchasing Power        Four         Other           Consolidated total         \n Net earnings from continuing operations                                                                                                                $        36,218            \n Income tax expense((1))                                                                                                                                         11,345            \n Earnings (loss) from continuing operations before income tax expense      $           51,960      $       (7,500  )       $    11,390  $   (8,287  )            47,563            \n Interest expense, net                                                                 11,603              423                  1,073       3                    13,102            \n Depreciation                                                                          1,540               273                  24          501                  2,338             \n Amortization                                                                          3,771               7,812                229         —                    11,812            \n EBITDA from continuing operations                                                     68,874              1,008                12,716      (7,783  )            74,815            \n Stock-based compensation                                                              7,287               414                  189         (278    )            7,612             \n Transaction-related costs                                                             —                   1,781                —           7,910                9,691             \n Restructuring expense                                                                 526                 3,343                —           3                    3,872             \n Gain on changes in fair value of receivables                                          —                   (5,712  )            —           —                    (5,712   )        \n Costs related to the cybersecurity incident, net of insurance recoveries              9                   —                    —           —                    9                 \n Adjusted EBITDA from continuing operations                                $           76,696      $       834             $    12,905  $   (148    )   $        90,287            \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n                                                                           (Unaudited)                                                                       \n                                                                           Three months ended                                                                \n                                                                           March 31, 2025                                                                    \n                                                                           Progressive Leasing        Four        Other           Consolidated total         \n Net earnings from continuing operations                                                                                          $        34,590            \n Income tax expense((1))                                                                                                                   12,662            \n Earnings (loss) from continuing operations before income tax expense      $        48,625            $    1,970  $   (3,343  )            47,252            \n Interest expense, net                                                              7,163                  1,233      694                  9,090             \n Depreciation                                                                       1,357                  162        455                  1,974             \n Amortization                                                                       3,771                  230        —                    4,001             \n EBITDA from continuing operations                                                  60,916                 3,595      (2,194  )            62,317            \n Stock-based compensation                                                           6,307                  692        591                  7,590             \n Costs related to the cybersecurity incident, net of insurance recoveries           (18      )             —          —                    (18      )        \n Adjusted EBITDA from continuing operations                                $        67,205            $    4,287  $   (1,603  )   $        69,889            \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                                                                                                    \n \n                                                                                                                                                                                      \n \nNon-GAAP Financial Information                                                                                                                                                        \n \n                                                                                                                                                                                      \n \nReconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA                                                                                                                  \n \n                                                                                                                                                                                      \n \n(In thousands)                                                                                                                                                                        \n                                                                                 Fiscal year 2026 ranges                                                                                \n                                                                                 Progressive Leasing  Purchasing Power   Four               Other                  Consolidated total   \n Estimated net earnings from continuing operations                                                                                                                 $150,500 - $166,000  \n Income tax expense((1))                                                                                                                                           57,000 - 63,000      \n Projected earnings (loss) from continuing operations before income tax expense  $191,000 - $198,500  $14,500 - $22,000  $16,500 - $20,500  $(14,500) - $(12,000)  207,500 - 229,000    \n Interest expense, net                                                           38,000               1,500 - 2,000      5,500              1,500 - 2,000          46,500 - 47,500      \n Depreciation                                                                    6,500 - 7,500        5,500 - 6,000      500                3,000                  15,500 - 17,000      \n Amortization                                                                    4,000                32,000             1,000              —                      37,000               \n Projected EBITDA from continuing operations                                     239,500 - 248,000    53,500 - 62,000    23,500 - 27,500    (10,000) - (7,000)     306,500 - 330,500    \n Stock-based compensation                                                        29,500 - 30,500      2,000 - 3,000      1,500              500                    33,500 - 35,500      \n Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of  500 - 1,000          (5,500) - (5,000)  —                  8,000                  3,000 - 4,000        \n receivables/ acquisition-related transaction-costs                                                                                                                                     \n Projected adjusted EBITDA from continuing operations                            $269,500 - $279,500  $50,000 - $60,000  $25,000 - $29,000  $(1,500) - $1,500      $343,000 - $370,000  \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                                                                                                    \n \n                                                                                                                                                                                      \n \nNon-GAAP Financial Information                                                                                                                                                        \n \n                                                                                                                                                                                      \n \nReconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA                                                                                                                  \n \n                                                                                                                                                                                      \n \n(In thousands)                                                                                                                                                                        \n                                                                                 Fiscal year 2026 ranges                                                                                \n                                                                                 Progressive Leasing  Purchasing Power   Four               Other                  Consolidated total   \n Estimated net earnings from continuing operations                                                                                                                 $132,000 - $155,000  \n Income tax expense((1))                                                                                                                                           56,000 - 59,000      \n Projected earnings (loss) from continuing operations before income tax expense  $182,000 - $193,000  $13,000 - $22,000  $7,500 - $11,000   $(14,500) - $(12,000)  188,000 - 214,000    \n Interest expense, net                                                           36,000 - 35,000      1,000              8,000 - 9,000      1,500 - 2,000          46,500 - 47,000      \n Depreciation                                                                    5,000 - 6,000        9,000              —                  2,500                  16,500 - 17,500      \n Amortization                                                                    4,000                18,000 - 19,000    1,000              —                      23,000 - 24,000      \n Projected EBITDA from continuing operations                                     227,000 - 238,000    41,000 - 51,000    16,500 - 21,000    (10,500) - (7,500)     274,000 - 302,500    \n Stock-based compensation                                                        27,000 - 28,000      1,000              1,000 - 1,500      —                      29,000 - 30,500      \n Restructuring/ regulatory insurance recoveries/ cyber/ transaction-related      —                    8,000              —                  9,000                  17,000               \n costs                                                                                                                                                                                  \n Projected adjusted EBITDA from continuing operations                            $254,000 - $266,000  $50,000 - $60,000  $17,500 - $22,500  $(1,500) - $1,500      $320,000 - $350,000  \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                 \n \n                                                                                                   \n \nNon-GAAP Financial Information                                                                     \n \n                                                                                                   \n \nReconciliation of the Three Months Ended June 30, 2026 Outlook for Adjusted                        \n EBITDA                                                                                              \n \n                                                                                                   \n \n(In thousands)                                                                                     \n                                                                                 Three months ended  \n                                                                                 \n                   \n                                                                                 \nJune 30, 2026      \n                                                                                 Consolidated total  \n Estimated net earnings from continuing operations                               $29,000 - $38,000   \n Income tax expense((1))                                                         14,000              \n Projected earnings from continuing operations before income tax expense         43,000 - 52,000     \n Interest expense, net                                                           10,500              \n Depreciation                                                                    4,000 - 5,000       \n Amortization                                                                    8,500               \n Projected EBITDA from continuing operations                                     66,000 - 76,000     \n Stock-based compensation                                                        9,000               \n Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of  (3,000)             \n receivables                                                                                         \n Projected adjusted EBITDA from continuing operations                            $72,000 - $82,000   \n\n (1) Taxes are calculated on a consolidated basis and are not identifiable by  \n Company segment.                                                              \n\n PROG Holdings, Inc.                                                                                              \n \n                                                                                                                \n \nReconciliation of Revised Full Year 2026 Outlook for Diluted Earnings Per                                       \n Share                                                                                                            \n \n                                                                                                                \n \nto Non-GAAP Diluted Earnings Per Share                                                                          \n                                                                                Full year 2026                    \n                                                                                Low              High             \n Projected diluted earnings per share from continuing operations                $    3.68        $    4.06        \n Add: Projected intangible amortization expense                                      0.90             0.90        \n Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair          0.07             0.10        \n value of receivables                                                                                             \n Subtract: Tax effect on non-GAAP adjustments((1))                                   (0.25  )         (0.26  )    \n Projected non-GAAP diluted earnings per share from continuing operations((2))  $    4.40        $    4.80        \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n PROG Holdings, Inc.                                                                                              \n \n                                                                                                                \n \nReconciliation of Previous Full Year 2026 Outlook for Diluted Earnings Per                                      \n Share                                                                                                            \n \n                                                                                                                \n \nto Non-GAAP Diluted Earnings Per Share                                                                          \n                                                                                Full year 2026                    \n                                                                                Low              High             \n Projected diluted earnings per share from continuing operations                $    3.34        $    3.79        \n Add: Projected intangible amortization expense                                      0.58             0.59        \n Add: Restructuring/ regulatory insurance recoveries/ cyber/                         0.29             0.29        \n transaction-related costs                                                                                        \n Subtract: Tax effect on non-GAAP adjustments((1))                                   (0.22  )         (0.22  )    \n Projected non-GAAP diluted earnings per share from continuing operations((2))  $    4.00        $    4.45        \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n PROG Holdings, Inc.                                                                                                  \n \n                                                                                                                    \n \nReconciliation of the Three Months Ended June 30, 2026 Outlook for Diluted                                          \n \n                                                                                                                    \n \nEarnings Per Share to Non-GAAP Diluted Earnings Per Share                                                           \n                                                                                Three months ended                    \n                                                                                \n                                     \n                                                                                \nJune 30, 2026                        \n                                                                                Low                High               \n Projected diluted earnings per share from continuing operations                $     0.74         $     0.93         \n Add: Projected intangible amortization expense                                       0.22               0.22         \n Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair           (0.07  )           (0.07  )     \n value of receivables                                                                                                 \n Subtract: Tax effect on non-GAAP adjustments((1))                                    (0.04  )           (0.04  )     \n Projected non-GAAP diluted earnings per share from continuing operations((2))  $     0.85         $     1.05         \n\n (1)    Adjustments are tax-effected using an assumed statutory tax rate of 26%.       \n (2)    In some cases, the sum of individual EPS amounts may not equal total non-GAAP  \n        EPS calculations due to rounding.                                              \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260429712300/en/\n(https://www.businesswire.com/news/home/20260429712300/en/)\n\nInvestor Contact \n\nJohn A. Baugh, CFA\n\nVice President, Investor Relations\n\njohn.baugh@progholdings.com (mailto:john.baugh@progholdings.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-29T11:30:00.629812332Z","server_sent_at_ms":1777462200629},"received_at":"2026-04-29T11:30:00.726Z","source_url":"https://www.businesswire.com/news/home/20260429712300/en/"},"analysis":{"id":"10378","press_release_id":"12698","analysis_json":{"industry":{"label":"Financial Services","sector":"Financials"},"redFlags":[],"eventType":"earnings","narrative":"PROG Holdings reported Q1 revenue of $742.7 million, up 11.1% year-over-year, with Adjusted EBITDA surging 29.2% to $90.3 million.\n\nThe company raised its full-year 2026 outlook, now projecting revenue of $3.00B-$3.10B and non-GAAP EPS of $4.40-$4.80, citing strong momentum across its Four and Purchasing Power segments.\n\nManagement highlighted significant balance sheet improvement, reducing net leverage to 2.0x since the Purchasing Power acquisition, while maintaining substantial share repurchase authorization.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Beat-and-raise quarter driven by Four segment growth and disciplined post-acquisition deleveraging."},"keyFigures":{"eps":0.89,"revenue":"$742.7 million","guidance":"FY26 Revenue $3.0B-$3.1B (raised from $2.95B-$3.07B); Adj. EBITDA $343M-$370M (raised from $320M-$350M); Non-GAAP EPS $4.40-$4.80 (raised from $4.00-$4.45).","revenueYoy":"11.1%"},"quotedText":"We delivered a strong start to 2026, with first quarter results exceeding the high end of our outlook for earnings, and non-GAAP EPS","namedEntities":{"people":[{"name":"Steve Michaels","role":"President and CEO"}],"products":["Progressive Leasing","Purchasing Power","Four","MoneyApp"],"companies":[{"name":"PROG Holdings, Inc.","ticker":"PRG"},{"name":"Progressive Leasing","relationship":"subsidiary"},{"name":"Purchasing Power","relationship":"subsidiary"},{"name":"Four Technologies","relationship":"subsidiary"},{"name":"MoneyApp","relationship":"subsidiary"}],"dollarAmounts":[{"amount":"$742.7 million","context":"Consolidated revenues from continuing operations"},{"amount":"$90.3 million","context":"Adjusted EBITDA from continuing operations"},{"amount":"$805.6 million","context":"Consolidated GMV"},{"amount":"$210 million","context":"net recourse debt reduction since the acquisition of Purchasing Power"},{"amount":"$309.6 million","context":"share repurchase capacity"}]},"materialImpact":{"score":4,"reasoning":"Q1 results significantly exceeded internal expectations, prompting a full-year guidance raise across revenue, net earnings, Adjusted EBITDA, and EPS metrics. The company also demonstrated strong operational leverage with Adjusted EBITDA growing 29.2% on 11.1% revenue growth and materially de-levered the balance sheet post-acquisition."},"tickerRelevance":{"others":[],"primary":"PRG"},"globalImportance":35,"audienceRelevance":30,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"guidance raise + operational leverage","sectorWeight":"Financials","householdBrandBoost":0,"marketCapAdjustment":0,"retailFavoriteBoost":0}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"PROG Holdings reported Q1 revenue of $742.7 million, up 11.1% year-over-year, with Adjusted EBITDA surging 29.2% to $90.3 million.\n\nThe company raised its full-year 2026 outlook, now projecting revenue of $3.00B-$3.10B and non-GAAP EPS of $4.40-$4.80, citing strong momentum across its Four and Purchasing Power segments.\n\nManagement highlighted significant balance sheet improvement, reducing net leverage to 2.0x since the Purchasing Power acquisition, while maintaining substantial share repurchase authorization.","key_figures":{"eps":0.89,"revenue":"$742.7 million","guidance":"FY26 Revenue $3.0B-$3.1B (raised from $2.95B-$3.07B); Adj. EBITDA $343M-$370M (raised from $320M-$350M); Non-GAAP EPS $4.40-$4.80 (raised from $4.00-$4.45).","revenueYoy":"11.1%"},"named_entities":{"people":[{"name":"Steve Michaels","role":"President and CEO"}],"products":["Progressive Leasing","Purchasing Power","Four","MoneyApp"],"companies":[{"name":"PROG Holdings, Inc.","ticker":"PRG"},{"name":"Progressive Leasing","relationship":"subsidiary"},{"name":"Purchasing Power","relationship":"subsidiary"},{"name":"Four Technologies","relationship":"subsidiary"},{"name":"MoneyApp","relationship":"subsidiary"}],"dollarAmounts":[{"amount":"$742.7 million","context":"Consolidated revenues from continuing operations"},{"amount":"$90.3 million","context":"Adjusted EBITDA from continuing operations"},{"amount":"$805.6 million","context":"Consolidated GMV"},{"amount":"$210 million","context":"net recourse debt reduction since the acquisition of Purchasing Power"},{"amount":"$309.6 million","context":"share repurchase capacity"}]},"model_name":"glm-4.7","prompt_hash":"sha256:1fc968c3ac7f7ebb","schema_hash":"sha256:1f8af1196c7db48c","created_at":"2026-04-29T19:57:54.079Z","global_importance":35,"audience_relevance":30,"importance_components":{"tickerTier":"mid-cap","eventGravity":"guidance raise + operational leverage","sectorWeight":"Financials","householdBrandBoost":0,"marketCapAdjustment":0,"retailFavoriteBoost":0}},"durationMs":213384,"modelName":"glm-4.7"}}