PROG (NYSE:PRG) Issues Earnings Results, Beats Expectations By $0.46 EPS

Key Points

• PROG reported Q1 adjusted EPS of $1.24, beating consensus by $0.46 on revenue of about $743 million (up 11.1% YoY) and set Q2 guidance at $1.05 EPS.
• Consolidated GMV rose 54% YoY, driven by the rapidly scaling "Four" segment (Q1 GMV $280M, +134% YoY and 37% Adjusted EBITDA margin), while Progressive Leasing showed sequential improvement but slight YoY portfolio declines.
• Balance sheet progress included paying down $210 million of recourse debt to exit Q1 at ~2.0x net leverage, a raised quarterly dividend to $0.14 and a focus on deleveraging, M&A and potential buybacks.

PROG (NYSE:PRG - Get Free Report) posted its quarterly earnings results on Wednesday. The fintech holding company reported $1.24 EPS for the quarter, beating analysts' consensus estimates of $0.78 by $0.46, FiscalAI reports. The company had revenue of $742.67 million during the quarter, compared to analyst estimates of $726.96 million. PROG had a net margin of 5.97% and a return on equity of 20.99%. The firm's revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.90 EPS. PROG updated its Q2 2026 guidance to 1.050-1.050 EPS.

Here are the key takeaways from PROG's conference call:

• Delivered a strong Q1, beating guidance with consolidated revenue of $743 million, Adjusted EBITDA of $90.3 million, Non-GAAP EPS of $1.24, and consolidated GMV up 54% year‑over‑year.
• Four continued rapid, profitable scaling—Q1 GMV of $280 million (+134% YoY), revenue up 142%, and Adjusted EBITDA of $12.9 million with a 37% margin, showing improving unit economics.
• Progressive Leasing showed sequential improvement (January down high single digits → March up low single digits) but Q1 GMV was down 2.2% YoY and portfolio size remained down ~5.4% YoY, even as gross margin expanded ~210 bps and write‑offs stayed within the 6%–8% target.
• Purchasing Power delivered modest momentum with Q1 GMV +10.3% and revenue of $107.1 million, producing near‑breakeven Adjusted EBITDA (~$0.8M) while integration and employer distribution remain early‑stage growth drivers.
• Balance sheet progress: paid down $210 million of recourse debt post‑acquisition, exiting Q1 at ~2.0x net leverage (within the 1.5–2.0x target), raised the quarterly dividend, and prioritized deleveraging, M&A, and potential buybacks.

PROG Price Performance

PRG traded down $0.33 during trading on Thursday, reaching $35.52. 155,891 shares of the company traded hands, compared to its average volume of 507,783. The company has a debt-to-equity ratio of 0.80, a quick ratio of 2.32 and a current ratio of 4.71. PROG has a 12-month low of $25.80 and a 12-month high of $41.14. The firm has a fifty day simple moving average of $31.25 and a 200 day simple moving average of $30.92. The company has a market cap of $1.41 billion, a P/E ratio of 9.78 and a beta of 1.81.

PROG Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Thursday, March 12th were issued a dividend of $0.14 per share. This is an increase from PROG's previous quarterly dividend of $0.13. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $0.56 dividend on an annualized basis and a yield of 1.6%. PROG's payout ratio is 15.56%.

Analyst Ratings Changes

A number of research firms have recently weighed in on PRG. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PROG in a research report on Thursday, January 22nd. Stephens upped their target price on shares of PROG from $40.00 to $47.50 and gave the company an "overweight" rating in a research note on Thursday. Wall Street Zen upgraded shares of PROG from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. TD Cowen upped their target price on shares of PROG from $42.00 to $43.00 and gave the company a "buy" rating in a research note on Wednesday, March 11th. Finally, Zacks Research cut shares of PROG from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 20th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $42.88.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vident Advisory LLC grew its holdings in shares of PROG by 17.2% in the fourth quarter. Vident Advisory LLC now owns 22,133 shares of the fintech holding company's stock valued at $653,000 after purchasing an additional 3,253 shares in the last quarter. State of Tennessee Department of Treasury grew its holdings in shares of PROG by 6.7% in the fourth quarter. State of Tennessee Department of Treasury now owns 26,887 shares of the fintech holding company's stock valued at $872,000 after purchasing an additional 1,680 shares in the last quarter. Mackenzie Financial Corp grew its holdings in shares of PROG by 18.8% in the fourth quarter. Mackenzie Financial Corp now owns 72,343 shares of the fintech holding company's stock valued at $2,186,000 after purchasing an additional 11,435 shares in the last quarter. Empowered Funds LLC lifted its position in PROG by 9.8% in the fourth quarter. Empowered Funds LLC now owns 133,730 shares of the fintech holding company's stock worth $3,944,000 after buying an additional 11,912 shares during the last quarter. Finally, XTX Topco Ltd bought a new stake in shares of PROG during the fourth quarter worth $395,000. 97.92% of the stock is owned by hedge funds and other institutional investors.

About PROG

PROG Holdings, Inc, formerly known as Aaron’s, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron’s Business Solutions and Progressive Financial Services. Through Aaron’s Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.