PROG Holdings shares rise 2% as third quarter earnings beat expectations

SALT LAKE CITY - On Wednesday, PROG Holdings, Inc. (NYSE:PRG) reported third quarter earnings that exceeded analyst expectations, despite facing ongoing consumer economic pressures.

The fintech company’s shares climbed 2.08% in pre-market trading after the release.

The lease-to-own provider posted adjusted earnings of $0.90 per share, significantly beating the analyst estimate of $0.74. Revenue came in at $595.1 million, surpassing the consensus estimate of $586.11 million, though representing a 1.8% decline compared to the same period last year.

"Our third quarter results once again highlight the strength and consistency of our execution, even as consumers face ongoing economic pressures," said Steve Michaels, President and CEO of PROG Holdings.

The company’s Progressive Leasing segment, its largest business unit, reported GMV (gross merchandise volume) of $410.9 million, down 10.0% YoY. However, the company’s Four Technologies division showed strong growth, increasing GMV by 162.8% and achieving its third consecutive quarter of positive adjusted EBITDA.

PROG Holdings maintained strong profitability with adjusted EBITDA of $67.0 million, representing 11.3% of revenues, compared with $63.5 million, or 10.5% of revenues for the same period in 2024.

The company’s outlook for the fourth quarter came in slightly below analyst expectations, with projected revenue of $575-590 million versus the consensus of $599.5 million, and adjusted EPS guidance of $0.55-$0.65, below the $0.67 analyst estimate.

PROG Holdings ended the quarter with $292.6 million in cash and $600 million in gross debt. The company also noted that it recently sold its Vive Financial credit card portfolio, which it described as "a meaningful step in improving our capital efficiency."

"With a strong product portfolio, solid financial foundation, and continued investment in customer experience, we are well positioned to deliver sustainable growth in 2026 and beyond," Michaels concluded.

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