-- Consolidated revenues from Continuing Operations of $574.6 million; Net
earnings of $40.5 million
-- Adjusted EBITDA from Continuing Operations of $61.5 million
-- Diluted EPS from Continuing Operations of $0.49; Non-GAAP Diluted EPS
from Continuing Operations of $0.74
-- Progressive Leasing GMV of $534 million, PROG Marketplace GMV up 187%
-- Four Technologies grows GMV 126%
SALT LAKE CITY--(BUSINESS WIRE)--February 18, 2026--
PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Purchasing Power, Four Technologies and MoneyApp today announced financial results for the fourth quarter ended December 31, 2025.
"Q4 and full-year 2025 were periods of disciplined execution that demonstrated the strength and resilience of PROG's multi-product platform," said PROG Holdings President and CEO Steve Michaels. "Despite a challenging retail environment and the impact of a large partner bankruptcy on Progressive Leasing, we took proactive steps to protect portfolio performance, expand margins, and position the business for profitable growth."
"At the same time, we continued to build momentum across our ecosystem during the quarter. Four delivered its ninth consecutive quarter of triple-digit GMV and revenue growth, and MoneyApp approached breakeven adjusted EBITDA by year-end. Both Four and MoneyApp drove incremental Leasing volume through cross-sell, and our direct-to-consumer Leasing channel, PROG Marketplace, nearly tripled GMV during the quarter. We also simplified and strengthened the business through the sale of the Vive portfolio and the announcement of the Purchasing Power acquisition."
"As we move into 2026, we are confident that our three-pillared strategy to grow, enhance, and expand across our product ecosystem, with a focus on increasing customer acquisition and lifetime value, will support sustainable growth. Our business is generating significant free cash flow, providing us with the flexibility to invest in growth, deleverage following the acquisition, and continue building long-term value for our shareholders," concluded Michaels.
Consolidated Results
Consolidated revenues for the fourth quarter of 2025 were $574.6 million, a decrease of 5.2% from the same period in 2024.
Consolidated net earnings from continuing operations for the quarter were $19.9 million, compared with $58.3 million in the prior year period. The prior year period included a $27.8 million deferred tax benefit related to an election to terminate a wholly-owned partnership for tax purposes. The effective income tax rate was 36.6% in the fourth quarter. Adjusted EBITDA from continuing operations for the quarter was $61.5 million, or 10.7% of revenues, compared with $64.1 million, or 10.6% of revenues for the same period in 2024.
Diluted earnings per share from continuing operations for the fourth quarter of 2025 were $0.49, compared with $1.36 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were down 5.1% at $0.74 in the fourth quarter of 2025, compared with $0.78 for the same period in 2024. The Company's diluted weighted average shares outstanding in the fourth quarter were 5.2% lower year-over-year.
Progressive Leasing Results
Progressive Leasing's fourth quarter GMV of $534.0 million was down 10.6% compared to the same period in 2024. The provision for lease merchandise write-offs for the quarter was 7.6% of leasing revenues, lower by 30 basis points from the prior year, and within the Company's 6-8% targeted annual range.
Liquidity and Capital Allocation
PROG Holdings ended the fourth quarter of 2025 with cash of $308.8 million and gross debt of $600.0 million. The Company did not repurchase any shares during the fourth quarter and maintains $309.6 million of repurchase capacity under its $500 million share repurchase program. Additionally, the Company paid a quarterly cash dividend of $0.13 per share.
2026 Outlook
The Company is issuing full year and Q1 2026 outlook from continuing operations for revenues, consolidated net earnings from continuing operations, segment earnings before taxes, adjusted EBITDA, GAAP diluted EPS, and non-GAAP diluted EPS. The outlook below includes almost a full year of ownership of the recently acquired Purchasing Power business, and assumes a difficult operating environment with soft demand for consumer durable goods, no material changes in the Company's current decisioning posture, an effective tax rate for Non-GAAP EPS of approximately 26%, and no impact from additional share repurchases.
Full Year 2026 Outlook
--------------------------
(In thousands, except per share amounts) Low High
----------- -------------
PROG Holdings - Total Revenues from
Continuing Operations $3,020,000 $3,140,000
PROG Holdings - Net Earnings from Continuing
Operations 132,000 155,000
PROG Holdings - Adjusted EBITDA from
Continuing Operations 320,000 350,000
PROG Holdings - Diluted EPS from Continuing
Operations 3.34 3.79
PROG Holdings - Diluted Non-GAAP EPS from
Continuing Operations 4.00 4.45
Progressive Leasing - Total Revenues 2,202,500 2,253,000
Progressive Leasing - Earnings Before Taxes 182,000 193,000
Progressive Leasing - Adjusted EBITDA 254,000 266,000
Purchasing Power - Total Revenues 680,000 730,000
Purchasing Power - Earnings Before Taxes 13,000 22,000
Purchasing Power - Adjusted EBITDA 50,000 60,000
Four - Total Revenues 125,000 140,000
Four - Earnings Before Taxes 7,500 11,000
Four - Adjusted EBITDA 17,500 22,500
Other - Total Revenues 12,500 17,000
Other - Loss Before Taxes (14,500) (12,000)
Other - Adjusted EBITDA (1,500) 1,500
Three Months Ended
March 31, 2026 Outlook
(In thousands, except per share amounts) Low High
-------------- -----------
PROG Holdings - Total Revenues from
Continuing Operations $ 715,000 $ 745,000
PROG Holdings - Net Earnings from
Continuing Operations 9,000 17,000
PROG Holdings - Adjusted EBITDA from
Continuing Operations 65,000 75,000
PROG Holdings - Diluted EPS from Continuing
Operations 0.22 0.42
PROG Holdings - Diluted Non-GAAP EPS from
Continuing Operations 0.70 0.90
Conference Call and Webcast
The Company has scheduled a live webcast and conference call for Wednesday, February 18, 2026, at 8:30 A.M. ET to discuss its financial results for the fourth quarter of 2025. To access the live webcast, visit the Events and Presentations page of the Company's Investor Relations website, https://investor.progholdings.com/.
About PROG Holdings, Inc.
PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides transparent and competitive payment options to consumers. The Company owns Progressive Leasing, a leading provider of e-commerce, app-based, and in-store point-of-sale lease-to-own solutions, Four Technologies, a provider of Buy Now, Pay Later payment options through its platform, Four, and MoneyApp, a mobile application that offers customers interest-free cash advances. More information on PROG Holdings and its companies can be found at https://investor.progholdings.com/.
Forward-Looking Statements:
Statements, estimates and projections in this press release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "belief," "expect," "continue," "target," "outlook," "assumes," and similar forward-looking terminology. These risks and uncertainties include (i) continued volatility and challenges in the macroeconomic environment and their impact on: (a) consumer confidence and customer demand for the merchandise that our retail partners sell, in particular consumer durables, such as home appliances, electronics and furniture; (b) our customers' disposable income and their ability to make the lease and loan payments they owe the Company; (c) the availability of consumer credit; and (d) our overall financial performance and outlook; (ii) the impact of the uncertain macroeconomic environment on our proprietary algorithms and decisioning tools that we use to approve customers such that they are no longer indicative of our customers' ability to perform, which in turn may limit the ability of our businesses to manage risk, avoid lease and loan charge-offs and may result in insufficient reserves to cover actual losses; (iii) a large percentage of Progressive Leasing's revenue being concentrated with several key retail partners, and the loss of any of these retail partner relationships materially and adversely affecting several aspects of our performance; (iv) Progressive Leasing being unable to attract additional retail partners and retain and grow its relationships with its existing retail partners, resulting in several aspects of our performance being materially and adversely
affected; (v) Progressive Leasing being unable to attract new consumers and retain and grow its relationships with its existing customers materially and adversely affecting several aspects of our performance; (vi) Four's and Purchasing Power's business models differing significantly from Progressive Leasing's lease-to-own business, which means these businesses have different risk profiles; (vii) our efforts to modernize and enhance certain enterprise-wide information management systems and technologies adversely impacting our businesses and operations; (viii) the inability of our businesses to successfully operate in highly and increasingly competitive industries materially and adversely affecting several aspects of our performance; (ix) our business, results of operations, financial condition, and prospects being materially and adversely affected due to our businesses failing to maintain a consistently high level of consumer satisfaction and trust in its brands; (x) our businesses being subject to extensive federal, state and local laws and regulations, including certain laws and regulations unique to the industries in which our businesses operate, that may subject them to government investigations and significant monetary penalties, remediation expenses and compliance-related burdens that may result in them changing the manner in which they operate, which may be materially adverse to several aspects of our performance; (xi) our performance being materially and adversely affected due to the transactions offered to consumers by our businesses being negatively characterized by federal, state and local government officials, consumer advocacy groups and the media; (xii) our inability to protect confidential, proprietary, or sensitive information, including the confidential information of our customers, being adversely affected by cyber-attacks or similar disruptions, which may result in significant costs, litigation and reputational damage or otherwise have a material adverse impact on several aspects of our performance; (xiii) any significant disruption in our vendors' information technology systems, or disruptions in the information our businesses rely on in their lease and loan decisioning, materially and adversely affecting several aspects of our performance; (xiv) our capital allocation strategy and financial policies, including our current stock repurchase and dividend programs not being effective at enhancing shareholder value, or providing other benefits we expect; and (xv) the other risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 18, 2026. Statements, estimates and projections in this press release that are "forward-looking" include without limitation statements, estimates and projections about: (i) our ability to deliver sustainable, profitable growth going forward; (ii) our free cash flow in the future periods and the benefits we expect from it, including the ability to invest in growth, deleverage following our acquisition of Purchasing Power, and provide long-term value for our shareholders; (iii) the performance of our lease portfolio, including our annual write-offs; and (iv) our revised full year 2026 outlook and the guidance we provide for the first quarter of 2026. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this press release.
PROG Holdings, Inc.
Consolidated Statement of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------------
2025 2024 2025 2024
---------------- ------- ------- --------- ---------
REVENUES:
Lease
Revenues and
Fees $544,940 $592,872 $2,322,754 $2,366,489
Other
Revenues 29,646 13,504 86,469 32,592
------- ------- --------- ---------
574,586 606,376 2,409,223 2,399,081
COSTS AND
EXPENSES:
Depreciation
of Lease
Merchandise 366,191 403,661 1,590,240 1,621,101
Provision for
Lease
Merchandise
Write-offs 41,427 46,678 173,115 178,338
Operating
Expenses 135,091 105,163 445,747 404,917
------- ------- --------- ---------
542,709 555,502 2,209,102 2,204,356
Gain on Sale
of
Receivables 6,652 -- 6,652 --
------- ------- --------- ---------
OPERATING PROFIT 38,529 50,874 206,773 194,725
Interest
Expense,
Net (7,124) (8,316) (32,254) (31,289)
------- ------- --------- ---------
EARNINGS FROM
CONTINUING
OPERATIONS
BEFORE INCOME
TAX EXPENSE
(BENEFIT) 31,405 42,558 174,519 163,436
INCOME TAX
EXPENSE
(BENEFIT) 11,491 (15,747) 50,167 (33,875)
------- ------- --------- ---------
NET EARNINGS
FROM CONTINUING
OPERATIONS 19,914 58,305 124,352 197,311
EARNINGS (LOSS)
FROM
DISCONTINUED
OPERATIONS, NET
OF INCOME TAX 20,552 (758) 22,436 (62)
------- ------- --------- ---------
NET EARNINGS $ 40,466 $ 57,547 $ 146,788 $ 197,249
======= ======= ========= =========
BASIC EARNINGS
PER SHARE:
Continuing
Operations $ 0.50 $ 1.41 $ 3.10 $ 4.63
Discontinued
Operations 0.52 (0.02) 0.56 0.00
------- ------- --------- ---------
TOTAL BASIC
EARNINGS PER
SHARE $ 1.02 $ 1.39 $ 3.66 $ 4.63
======= ======= ========= =========
DILUTED EARNINGS
PER SHARE:
Continuing
Operations $ 0.49 $ 1.36 $ 3.04 $ 4.53
Discontinued
Operations 0.51 (0.02) 0.55 0.00
------- ------- --------- ---------
TOTAL DILUTED
EARNINGS PER
SHARE $ 1.00 $ 1.34 $ 3.59 $ 4.53
======= ======= ========= =========
CASH DIVIDENDS
DECLARED PER
SHARE:
Common Stock $ 0.13 $ 0.12 $ 0.52 $ 0.48
WEIGHTED AVERAGE
SHARES
OUTSTANDING:
Basic 39,708 41,438 40,091 42,584
Diluted 40,577 42,796 40,863 43,549
PROG Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
December 31, December 31,
2025 2024
------------------------------------- ------------ --------------
ASSETS:
Cash and Cash Equivalents $ 308,774 $ 90,920
Accounts Receivable (net of
allowances of $68,806 in 2025 and
$71,607 in 2024) 74,228 80,206
Lease Merchandise (net of
accumulated depreciation and
allowances of $407,104 in 2025 and
$440,831 in 2024) 609,009 680,242
Loans Receivable (net of allowances
and unamortized fees of $18,246 in
2025 and $10,264 in 2024) 90,648 39,128
Property and Equipment, Net 19,526 20,044
Operating Lease Right-of-Use Assets 2,740 3,879
Goodwill 296,061 296,061
Other Intangibles, Net 57,774 73,775
Income Tax Receivable 47,894 10,644
Deferred Income Tax Assets 19,561 9,206
Prepaid Expenses and Other Assets 70,643 73,193
Assets of Discontinued Operations 13,550 136,469
---------- ----------
Total Assets $ 1,610,408 $ 1,513,767
========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY:
Accounts Payable and Accrued
Expenses $ 96,471 $ 89,570
Deferred Income Tax Liabilities 121,152 74,320
Customer Deposits and Advance
Payments 37,413 40,917
Operating Lease Liabilities 7,263 11,307
Debt, Net 594,861 643,563
Liabilities of Discontinued
Operations 6,831 3,809
---------- ----------
Total Liabilities 863,991 863,486
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per
Share: Authorized: 225,000,000
Shares at December 31, 2025 and
December 31, 2024; Shares Issued:
82,078,654 at December 31, 2025
and December 31, 2024 41,039 41,039
Additional Paid-in Capital 363,583 358,538
Retained Earnings 1,594,685 1,469,450
---------- ----------
1,999,307 1,869,027
Less: Treasury Shares at Cost
Common Stock: 42,502,844 Shares at
December 31, 2025 and 41,262,901
at December 31, 2024 (1,252,890) (1,218,746)
---------- ----------
Total Shareholders' Equity 746,417 650,281
---------- ----------
Total Liabilities & Shareholders'
Equity $ 1,610,408 $ 1,513,767
========== ==========
PROG Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Twelve Months Ended December 31,
--------------------------------------
2025 2024
-------------------------------- -------------- -------------
OPERATING ACTIVITIES:
Net Earnings $ 146,788 $ 197,249
Adjustments to Reconcile Net
Earnings to Cash Provided by
Operating Activities:
Depreciation of Lease
Merchandise 1,590,240 1,621,101
Other Depreciation and
Amortization 24,456 26,977
Provisions for Accounts
Receivable and Loan
Losses 408,090 386,558
Stock-Based Compensation 28,807 29,179
Deferred Income Taxes 51,072 (56,030)
Gain on Sale of
Receivables (43,683) --
Impairment of Assets 3,248 6,018
Income Tax Benefit from
Reversal of Uncertain Tax
Position -- (51,443)
Non-Cash Lease Expense (2,939) (3,632)
Other Changes, Net (2,054) (2,640)
Changes in Operating Assets
and Liabilities:
Additions to Lease
Merchandise (1,696,573) (1,850,425)
Book Value of Lease
Merchandise Sold or
Disposed 177,567 182,509
Accounts Receivable (324,030) (342,954)
Prepaid Expenses and Other
Assets 8,980 (25,394)
Income Tax Receivable and
Payable (39,697) 24,743
Accounts Payable and
Accrued Expenses 8,194 (8,495)
Customer Deposits and
Advance Payments (3,504) 5,204
-------------- -------------
Cash Provided by Operating
Activities 334,962 138,525
-------------- -------------
INVESTING ACTIVITIES:
Investments in Loans
Receivable (920,318) (459,463)
Proceeds from Loans
Receivable 784,569 388,437
Proceeds from Sale of Loans
Receivable 152,436 --
Outflows on Purchases of
Property and Equipment (10,042) (8,316)
Proceeds from Sale of
Property and Equipment -- 131
Other Proceeds -- 41
-------------- -------------
Cash Provided by (Used in)
Investing Activities 6,645 (79,170)
-------------- -------------
FINANCING ACTIVITIES:
Borrowings (Repayments) on
Revolving Facility (50,000) 50,000
Dividends Paid (20,767) (20,393)
Acquisition of Treasury Stock (51,775) (138,651)
Issuance of Stock Under Stock
Option and Employee Purchase
Plans 1,630 2,364
Cash Paid for Shares Withheld
for Employee Taxes (7,492) (9,660)
Debt Issuance Costs (84) (2,776)
-------------- -------------
Cash Used in Financing
Activities (128,488) (119,116)
-------------- -------------
Increase (Decrease) in Cash
and Cash Equivalents 213,119 (59,761)
Cash and Cash Equivalents at
Beginning of Period 95,655 155,416
-------------- -------------
Cash and Cash Equivalents at
End of Period $ 308,774 $ 95,655
============== =============
Net Cash Paid During the
Period:
Interest $ 37,432 $ 37,033
Income Taxes $ 45,793 $ 49,840
PROG Holdings, Inc.
Quarterly Revenues by Segment
(In thousands)
(Unaudited)
Three Months Ended
December 31, 2025
------------------------------------------------------
Progressive
Leasing Four Other Consolidated Total
---------------- ------- ------ -------------------
Lease
Revenues
and Fees $ 544,940 $ -- $ -- $ 544,940
Other
Revenues -- 25,803 3,843 29,646
--- ----------- ------ ----- --- --------------
Total
Revenues $ 544,940 $25,803 $3,843 $ 574,586
=== =========== ====== ===== === ==============
(Unaudited)
Three Months Ended
December 31, 2024
-----------------------------------------------------
Progressive Consolidated
Leasing Four Other Total
----------------- ------- ------ -----------------
Lease
Revenues and
Fees $ 592,872 $ -- $ -- $ 592,872
Other
Revenues -- 11,121 2,383 13,504
--- ------------ ------ ----- --- ------------
Total
Revenues $ 592,872 $11,121 $2,383 $ 606,376
=== ============ ====== ===== === ============
PROG Holdings, Inc.
Annual Revenues by Segment
(In thousands)
Twelve Months Ended
December 31, 2025
------------------------------------------------------
Progressive
Leasing Four Other Consolidated Total
---------------- ------- ------- ------------------
Lease
Revenues
and Fees $ 2,322,754 $ -- $ -- $ 2,322,754
Other
Revenues -- 73,722 12,747 86,469
------------ ------ ------ --------------
Total
Revenues $ 2,322,754 $73,722 $12,747 $ 2,409,223
============ ====== ====== ==============
Twelve Months Ended
December 31, 2024
-----------------------------------------------------
Progressive Consolidated
Leasing Four Other Total
----------------- ------- ------ -----------------
Lease
Revenues and
Fees $ 2,366,489 $ -- $ -- $ 2,366,489
Other
Revenues -- 27,351 5,241 32,592
------------- ------ ----- -------------
Total
Revenues $ 2,366,489 $27,351 $5,241 $ 2,399,081
============= ====== ===== =============
PROG Holdings, Inc.
Quarterly Gross Merchandise Volume by Segment
(In thousands)
(Unaudited)
Three Months Ended December 31,
-----------------------------------
2025 2024
--- -------------- -------------
Progressive Leasing $ 534,004 $ 597,493
Four 303,966 134,580
--- -------------- -------------
Total GMV $ 837,970 $ 732,073
=== ============== =============
Use of Non-GAAP Financial Information:
Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP diluted earnings per share from continuing operations for the full year 2026 and first quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, and also excludes Vive as its normal operations have been discontinued as a result of the sale of its credit card portfolio in October 2025. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings per share from continuing operations for the three and twelve months ended December 31, 2025 exclude intangible amortization expense, transaction-related costs, restructuring costs, write-off of assets due to a retail partner bankruptcy, and costs related to the cybersecurity incident, net of insurance recoveries. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three and twelve months ended December 31, 2024 exclude intangible amortization expense, restructuring expenses, costs related to the cybersecurity incident, net of insurance recoveries and reversal of the uncertain tax position related to Progressive Leasing's $175 million settlement with the FTC in 2020. The amount for the after-tax non-GAAP adjustment, which is tax effected using our statutory tax rate, can be found in the reconciliation of net earnings and diluted earnings per share to non-GAAP net earnings and diluted earnings per share table in this press release.
The Adjusted EBITDA figures presented in this press release are calculated as the Company's earnings from continuing operations before interest expense, net, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and first quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, and the operations of Vive. Adjusted EBITDA for the full year and first quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three and twelve months ended December 31, 2025 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, write-off of assets due to a retail partner bankruptcy, and transaction-related costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three and twelve months ended December 31, 2024 also excludes stock-based compensation expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. The amounts for these pre-tax non-GAAP adjustments can be found in the segment EBITDA tables in this press release.
Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance.
Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations, and adjusted EBITDA provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. We believe interest expense on Purchasing Power's asset-backed secured borrowings represents a direct operating cost required to generate revenue; therefore, the Company is including this interest expense when calculating consolidated and Purchasing Power's adjusted EBITDA beginning in 2026. This measure may be useful to an investor in evaluating the underlying operating performance of our business.
Adjusted EBITDA also provides management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures:
-- Are widely used by investors to measure a company's operating
performance without regard to items excluded from the calculation of such
measure, which can vary substantially from company to company depending
upon accounting methods, book value of assets, capital structure and the
method by which assets were acquired, among other factors.
-- Are used by rating agencies, lenders and other parties to evaluate our
creditworthiness.
-- Are used by our management for various purposes, including as a measure
of performance of our operating entities and as a basis for strategic
planning and forecasting.
Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company's GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Company's segments, which are also presented in the press release. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner.
PROG Holdings, Inc.
Reconciliation of Net Earnings and Diluted Earnings Per Share to
Non-GAAP Net Earnings and Diluted Earnings Per Share
(In thousands, except per share amounts)
Twelve
(Unaudited) Months
Three Months Ended Ended
Mar 31, Jun 30, Sept 30, Dec 31, Dec 31,
-------- -------- -------- -------- -----------
2025
---------------------------------------------------
Net Earnings from
Continuing Operations $34,733 $37,438 $32,267 $19,914 $124,352
Add: Intangible
Amortization
Expense 4,001 4,000 3,999 4,001 16,001
Add: Restructuring
Expense -- -- -- 2,798 2,798
Add: Costs Related
to the
Cybersecurity
Incident, Net of
Insurance
Recoveries (18) 127 58 (255) (88)
Add:
Transaction-related
Costs -- -- -- 2,179 2,179
Add: Write-off of
Assets due to
Retailer
Bankruptcy -- -- -- 4,996 4,996
Less: Tax Impact of
Adjustments(1) (1,036) (1,073) (1,055) (3,567) (6,731)
------ ------ ------ ------ -------
Non-GAAP Net Earnings
from Continuing
Operations $37,680 $40,492 $35,269 $30,066 $143,507
====== ====== ====== ====== =======
Diluted Earnings Per
Share from Continuing
Operations $ 0.83 $ 0.92 $ 0.80 $ 0.49 $ 3.04
Add: Intangible
Amortization
Expense 0.10 0.10 0.10 0.10 0.39
Add: Restructuring
Expense -- -- -- 0.07 0.07
Add: Costs Related
to the
Cybersecurity
Incident, Net of
Insurance
Recoveries -- -- -- (0.01) --
Add:
Transaction-related
Costs -- -- -- 0.05 0.05
Add: Write-off of
Assets due to
Retailer
Bankruptcy -- -- -- 0.12 0.12
Less: Tax Impact of
Adjustments(1) (0.02) (0.03) (0.03) (0.09) (0.16)
------ ------ ------ ------ -------
Non-GAAP Diluted
Earnings Per Share
from Continuing
Operations(2) $ 0.90 $ 1.00 $ 0.87 $ 0.74 $ 3.51
====== ====== ====== ====== =======
Diluted Weighted
Average Shares
Outstanding 41,851 40,559 40,481 40,577 40,863
(1) Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
PROG Holdings, Inc.
Reconciliation of Net Earnings and Diluted Earnings Per Share to
Non-GAAP Net Earnings and Diluted Earnings Per Share
(In thousands, except per share amounts)
Twelve
(Unaudited) Months
Three Months Ended Ended
Mar 31, Jun 30, Sept 30, Dec 31, Dec 31,
-------- -------- --------- --------- -----------
2024
-----------------------------------------------------
Net Earnings from
Continuing
Operations $21,099 $33,117 $ 84,790 $ 58,305 $197,311
Add: Intangible
Amortization
Expense 5,650 4,239 4,000 4,000 17,889
Add:
Restructuring
Expense 18,014 2,886 6 (68) 20,838
Add: Costs
Related to the
Cybersecurity
Incident, Net
of Insurance
Recoveries 116 116 114 (61) 285
Less: Tax
Impact of
Adjustments(1) (6,183) (1,883) (1,072) (1,006) (10,144)
Less: Reversal
of Uncertain
Tax Position -- -- (53,599) -- (53,599)
Less: Tax
Benefit from
Partnership
Deemed
Liquidation -- -- -- (27,767) (27,767)
Add: Accrued
Interest on
Uncertain Tax
Position 1,078 1,078 -- -- 2,156
------ ------ ------- ------- -------
Non-GAAP Net
Earnings from
Continuing
Operations $39,774 $39,553 $ 34,239 $ 33,403 $146,969
====== ====== ======= ======= =======
Diluted Earnings
Per Share from
Continuing
Operations $ 0.47 $ 0.76 $ 1.96 $ 1.36 $ 4.53
Add: Intangible
Amortization
Expense 0.13 0.10 0.09 0.09 0.41
Add:
Restructuring
Expense 0.40 0.07 -- -- 0.48
Add: Costs
Related to the
Cybersecurity
Incident, Net
of Insurance
Recoveries -- -- -- -- 0.01
Less: Tax
Impact of
Adjustments(1) (0.14) (0.04) (0.02) (0.02) (0.23)
Less: Reversal
of Uncertain
Tax Position -- -- (1.24) -- (1.23)
Less: Tax
Benefit from
Partnership
Deemed
Liquidation -- -- -- (0.65) (0.64)
Add: Accrued
Interest on
Uncertain Tax
Position 0.02 0.02 -- -- 0.05
------ ------ ------- ------- -------
Non-GAAP Diluted
Earnings Per
Share from
Continuing
Operations(2) $ 0.89 $ 0.90 $ 0.79 $ 0.78 $ 3.37
====== ====== ======= ======= =======
Diluted Weighted
Average Shares
Outstanding 44,528 43,721 43,169 42,796 43,549
(1) Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
PROG Holdings, Inc.
Non-GAAP Financial Information
Quarterly Segment Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended
December 31, 2025
-----------------------------------------------------
Progressive Consolidated
Leasing Four Other Total
--------------- -------- -------- ----------------
Net Earnings from
Continuing Operations $ 19,914
Income Tax
Expense(1) 11,491
------- ---
Earnings (Loss) from
Continuing Operations
Before Income Tax
Expense $ 41,965 $(3,352) $(7,208) 31,405
Interest Expense,
Net 4,697 1,751 676 7,124
Depreciation 1,512 25 665 2,202
Amortization 3,772 229 -- 4,001
------- ------ ------ ------- ---
EBITDA from Continuing
Operations 51,946 (1,347) (5,867) 44,732
Stock-Based
Compensation 6,658 195 244 7,097
Restructuring
Expense 589 -- 2,209 2,798
Write-off of Assets
due to Retailer
Bankruptcy 4,996 -- -- 4,996
Costs Related to the
Cybersecurity
Incident, Net of
Insurance
Recoveries (255) -- -- (255)
Transaction-related
Costs -- -- 2,179 2,179
------- ------ ------ ------- ---
Adjusted EBITDA from
Continuing Operations $ 63,934 $(1,152) $(1,235) $ 61,547
======= ====== ====== ======= ===
(1) Taxes are calculated on a consolidated basis and are not identifiable by
Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Quarterly Segment Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended
December 31, 2024
-----------------------------------------------------
Progressive Consolidated
Leasing Four Other Total
--------------- -------- -------- ----------------
Net Earnings from
Continuing
Operations $ 58,305
Income Tax
Benefit(1) (15,747)
--- -------
Earnings (Loss)
from Continuing
Operations
Before Income
Tax Benefit $ 48,186 $(3,206) $(2,422) 42,558
Interest
Expense, Net 6,731 1,080 505 8,316
Depreciation 1,494 139 408 2,041
Amortization 3,771 229 -- 4,000
--- ------ ------ ------ --- -------
EBITDA from
Continuing
Operations 60,182 (1,758) (1,509) 56,915
Stock-Based
Compensation 5,760 1,173 376 7,309
Restructuring
Expense (68) -- -- (68)
Costs Related
to the
Cybersecurity
Incident, Net
of Insurance
Recoveries (61) -- -- (61)
--- ------ ------ ------ --- -------
Adjusted EBITDA
from Continuing
Operations $ 65,813 $ (585) $(1,133) $ 64,095
=== ====== ====== ====== === =======
(1) Taxes are calculated on a consolidated basis and are not identifiable by
Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Twelve Month Segment Adjusted EBITDA
(In thousands)
Twelve Months Ended
December 31, 2025
----------------------------------------------------
Progressive Consolidated
Leasing Four Other Total
--------------- ------ --------- ----------------
Net Earnings from
Continuing Operations $ 124,352
Income Tax
Expense(1) 50,167
--------
Earnings (Loss) from
Continuing Operations
Before Income Tax
Expense $ 188,874 $2,835 $(17,190) 174,519
Interest Expense,
Net 24,205 4,942 3,107 32,254
Depreciation 5,516 220 2,295 8,031
Amortization 15,084 917 -- 16,001
------- ----- ------- --------
EBITDA from Continuing
Operations 233,679 8,914 (11,788) 230,805
Stock-Based
Compensation 26,168 1,028 1,281 28,477
Restructuring
Expense 589 -- 2,209 2,798
Write-off of Assets
due to Retailer
Bankruptcy 4,996 -- -- 4,996
Costs Related to the
Cybersecurity
Incident, Net of
Insurance
Recoveries (88) -- -- (88)
Transaction-related
Costs -- -- 2,179 2,179
------- ----- ------- --------
Adjusted EBITDA from
Continuing Operations $ 265,344 $9,942 $ (6,119) $ 269,167
======= ===== ======= ========
(1) Taxes are calculated on a consolidated basis and are not identifiable by
Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Twelve Month Segment Adjusted EBITDA
(In thousands)
Twelve Months Ended
December 31, 2024
---------------------------------------------------
Progressive Consolidated
Leasing Four Other Total
------------ -------- --------- ----------------
Net Earnings from
Continuing
Operations $ 197,311
Income Tax
Benefit(1) (33,875)
--------
Earnings (Loss)
from Continuing
Operations
Before Income
Tax Benefit $ 184,782 $(6,485) $(14,861) 163,436
Interest
Expense, Net 30,653 750 (114) 31,289
Depreciation 6,574 500 1,371 8,445
Amortization 16,972 917 -- 17,889
----------- ------ ------- --------
EBITDA from
Continuing
Operations 238,981 (4,318) (13,604) 221,059
Stock-Based
Compensation 22,665 2,823 2,357 27,845
Restructuring
Expense 18,210 -- 2,628 20,838
Costs Related
to the
Cybersecurity
Incident, Net
of Insurance
Recoveries 285 -- -- 285
----------- ------ ------- --------
Adjusted EBITDA
from Continuing
Operations $ 280,141 $(1,495) $ (8,619) $ 270,027
=========== ====== ======= ========
(1) Taxes are calculated on a consolidated basis and are not identifiable by
Company segment.
PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Full Year 2026 Outlook for Adjusted EBITDA
(In thousands)
Fiscal Year 2026 Ranges
-----------------------------------------------------------------------------------------------------
Progressive Purchasing Consolidated
Leasing Power Four Other Total
------------------- ----------------- ----------------- --------------------- -------------------
Estimated Net Earnings
from Continuing
Operations $132,000 - $155,000
Income Tax
Expense(1) 56,000 - 59,000
-------------------
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
Interest Expense,
Net 36,000 - 35,000 1,000 8,000 - 9,000 1,500 - 2,000 46,500 - 47,000
Depreciation 5,000 - 6,000 9,000 -- 2,500 16,500 - 17,500
Amortization 4,000 18,000 - 19,000 1,000 -- 23,000 - 24,000
------------------- ----------------- ----------------- --------------------- -------------------
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
Stock-Based
Compensation 27,000 - 28,000 1,000 1,000 - 1,500 -- 29,000 - 30,500
Restructuring/
Regulatory
Insurance
Recoveries/ Cyber/
Transaction-related
Costs -- 8,000 -- 9,000 17,000
------------------- ----------------- ----------------- --------------------- -------------------
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
=================== ================= ================= ===================== ===================
(1) Taxes are calculated on a consolidated basis and are not identifiable by
Company segment.
PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of the Three
Months Ended March 31, 2026 Outlook for Adjusted EBITDA (In thousands)
Three Months Ended
March 31, 2026
------------------
Consolidated Total
------------------
Estimated Net Earnings from Continuing Operations $9,000 - $17,000
Income Tax Expense(1) 6,000
------------------
Projected Earnings from Continuing Operations Before
Income Tax Expense 15,000 - 23,000
Interest Expense, Net 13,000
Depreciation 4,000 - 5,000
Amortization 9,000
------------------
Projected EBITDA from Continuing Operations 41,000 - 50,000
Stock-Based Compensation 7,000 - 8,000
Restructuring/ Regulatory Insurance Recoveries/ Cyber/
Transaction-related Costs 17,000
------------------
Projected Adjusted EBITDA from Continuing Operations $65,000 - $75,000
==================
(1) Taxes are calculated on a consolidated basis and are not identifiable by
Company segment.
PROG Holdings, Inc. Reconciliation of Full Year 2026 Outlook for Diluted
Earnings Per Share to Non-GAAP Diluted Earnings Per Share
Full Year 2026
------------------
Low High
------- ---------
Projected Diluted Earnings Per Share from Continuing
Operations $ 3.34 $ 3.79
Add: Projected Intangible Amortization Expense 0.58 0.59
Add: Restructuring/ Regulatory Insurance
Recoveries/ Cyber/ Transaction-related Costs 0.29 0.29
Subtract: Tax Effect on Non-GAAP Adjustments(1) (0.22) (0.22)
----- -----
Projected Non-GAAP Diluted Earnings Per Share from
Continuing Operations(2) $ 4.00 $ 4.45
===== =====
(1) Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
PROG Holdings, Inc. Reconciliation of the Three Months Ended March 31,
2026 Outlook for Diluted Earnings Per Share to Non-GAAP Diluted Earnings
Per Share
Three Months Ended
March 31, 2026
-------------------------
Low High
-------------- ---------
Projected Diluted Earnings Per Share from
Continuing Operations $ 0.22 $ 0.42
Add: Projected Intangible Amortization Expense 0.22 0.22
Add: Restructuring/ Regulatory Insurance Recoveries/
Cyber/ Transaction-related Costs 0.42 0.42
Subtract: Tax Effect on Non-GAAP Adjustments(1) (0.17) (0.17)
----- -----
Projected Non-GAAP Diluted Earnings Per Share
from Continuing Operations(2) $ 0.70 $ 0.90
====== ===== =====
(1) Adjustments are tax-effected using an assumed statutory tax rate of 26%.
(2) In some cases, the sum of individual EPS amounts may not equal total
non-GAAP EPS calculations due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218359934/en/
CONTACT: Investor Contact
John A. Baugh, CFA
Vice President, Investor Relations
john.baugh@progholdings.com
(END) Dow Jones Newswires
February 18, 2026 07:30 ET (12:30 GMT)
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