PROG (NYSE:PRG) Posts Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• PROG reported third-quarter EPS of $1.06, $0.03 below consensus, while revenue of $725.8 million also missed the $737.8 million estimate. Despite the misses, GMV rose 59% year over year and revenue increased approximately 26%.
• Consumer financial pressure is affecting Progressive Leasing, prompting tighter approval standards and contributing to lease write-offs of 8.3% of revenue. The company reduced full-year guidance to revenue of $3.015–$3.05 billion, adjusted EBITDA of $345–$355 million, and EPS of $4.70–$4.85.
• Management plans a $100 million accelerated share repurchase, while the Four and Purchasing Power businesses continued to expand profitably. PROG shares fell 2.4% following the results, although analysts maintained a “Moderate Buy” consensus rating.

PROG (NYSE:PRG - Get Free Report) posted its quarterly earnings results on Wednesday. The fintech holding company reported $1.06 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.03), Zacks reports. The business had revenue of $725.78 million for the quarter, compared to the consensus estimate of $737.83 million.

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

• Consolidated growth remained strong: Third-quarter GMV increased 59% year over year, revenue rose approximately 26%, and non-GAAP EPS increased 21.8% to $1.06, with results within the company’s outlook ranges.
• Consumer pressure is weighing on Progressive Leasing. The company tightened approval standards again as inflation and higher fuel prices affected customer liquidity; leasing write-offs reached 8.3% of revenue, and full-year results are expected near the high end of the 6%-8% target range.
• Four and Purchasing Power continued to expand profitably. Four delivered its 12th consecutive quarter of triple-digit GMV growth, with GMV up 103% and a 30.6% adjusted EBITDA margin, while Purchasing Power GMV grew 12.3% and adjusted EBITDA margin improved sequentially to 9.8%.
• Full-year guidance was reduced to revenue of $3.015 billion-$3.05 billion, adjusted EBITDA of $345 million-$355 million, and non-GAAP EPS of $4.70-$4.85, reflecting expectations that customer financial pressures will persist through year-end.
• Management announced a planned $100 million accelerated share repurchase. The company expects an initial delivery of approximately 2.7 million shares, supported by debt reduction since the Purchasing Power acquisition and a net leverage ratio of 1.5 times.

PROG Stock Down 2.4%

PROG stock traded down $0.71 during mid-day trading on Wednesday, hitting $28.90. The company's stock had a trading volume of 366,777 shares, compared to its average volume of 545,891. PROG has a twelve month low of $25.18 and a twelve month high of $47.73. The stock has a market capitalization of $1.15 billion, a P/E ratio of 8.00 and a beta of 1.78. The stock's fifty day moving average price is $34.47 and its two-hundred day moving average price is $35.61.

PROG Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Tuesday, August 18th were issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Tuesday, August 18th. PROG's dividend payout ratio (DPR) is presently 15.47%.

PROG News Summary

Here are the key news stories impacting PROG this week:

• Positive Sentiment: PROG announced plans to repurchase $100 million of common stock through an accelerated share-repurchase agreement, with the transactions expected to be completed in the first quarter of 2027. The buyback signals management’s confidence in the company’s long-term outlook and could support earnings per share by reducing the share count. PROG Holdings Announces Intention to Enter into $100 Million Accelerated Share Repurchase Program
• Positive Sentiment: Third-quarter revenue was approximately $725.8 million, with some coverage indicating that sales exceeded estimates. Earnings per share increased from $0.90 in the year-earlier quarter to $1.06, reflecting continued earnings growth and contributions from the Purchasing Power acquisition. PROG’s Q3 2026 sales top estimates but stock drops 12%

Analyst Ratings Changes

Several research analysts have issued reports on PRG shares. Zacks Research downgraded shares of PROG from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Wall Street Zen cut PROG from a "strong-buy" rating to a "buy" rating in a report on Sunday, September 6th. B. Riley Financial upped their target price on PROG from $57.00 to $64.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Weiss Ratings upgraded PROG from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, October 16th. Finally, Loop Capital upgraded PROG from a "hold" rating to a "buy" rating and set a $45.00 price objective for the company in a report on Thursday, October 8th. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $47.81.

Insider Buying and Selling at PROG

In related news, insider Michael King sold 1,070 shares of PROG stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $46.00, for a total value of $49,220.00. Following the completion of the sale, the insider owned 60,825 shares of the company's stock, valued at approximately $2,797,950. The trade was a 1.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO George M. Sewell sold 2,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $45.53, for a total transaction of $91,060.00. Following the transaction, the chief accounting officer directly owned 28,385 shares of the company's stock, valued at approximately $1,292,369.05. This represents a 6.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 4,000 shares of company stock valued at $183,060. 3.72% of the stock is currently owned by insiders.

PROG Company Profile

PROG Holdings, Inc is a financial technology company that provides consumer payment and lease-to-own solutions through its operating businesses. Its services are designed to help consumers acquire household goods and other merchandise through retail stores, e-commerce websites and other merchant channels.

The company's primary business is Progressive Leasing, a lease-to-own provider that gives consumers an alternative to traditional credit when purchasing products such as furniture, appliances, electronics, mattresses and other household merchandise.

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