PROG Holdings Reports First Quarter 2026 Results

Consolidated revenues from continuing operations of $742.7 million, up 11.1%; Net earnings from continuing operations of $36.2 million Adjusted EBITDA from continuing operations of $90.3 million, up 29.2% Diluted EPS from continuing operations of $0.89; Non-GAAP Diluted EPS from continuing operations of $1.24, up 37.8% Consolidated GMV of $805.6 million, up 54.4% $210 million of net recourse debt reduction since the acquisition of Purchasing Power, resulting in net leverage ratio of 2.0 SALT LAKE CITY--(BUSINESS WIRE)--Apr. 29, 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 first quarter ended March 31, 2026, which includes the results of Purchasing Power since January 2, 2026, the date the Company acquired Purchasing Power. "We delivered a strong start to 2026, with first quarter results exceeding the high end of our outlook for earnings, and non-GAAP EPS," said PROG Holdings President and CEO Steve Michaels. "This performance reflects disciplined execution across the organization and the benefits of our diversified model, with improving trends at Progressive Leasing, continued triple-digit growth and strong economics at Four, and growth at Purchasing Power. Importantly, Progressive Leasing returned to year-over-year GMV growth as we exited the quarter, reflecting the progress we've made on our initiatives and the lapping of prior headwinds. We also meaningfully improved the balance sheet, reducing our net leverage ratio to two times as we prioritized debt reduction following the Purchasing Power acquisition." "We saw continued momentum in our ecosystem with increasing engagement across products, which is driving higher customer lifetime value and improving acquisition efficiency. As our ecosystem scales, we are able to drive more efficient growth through cross-product connectivity." "Based on our strong first quarter and the momentum we are seeing in the business, we have increased our full-year 2026 outlook, providing a positive start towards the three-year 2028 compound annual growth targets we outlined at our Investor Day. These targets, inclusive of Purchasing Power on a pro forma 2025 basis, are to grow consolidated GMV 20% to 25%, revenue 5% to 8%, Adjusted EBITDA 13% to 16%, and non-GAAP EPS 17% to 20%. Despite a challenging macro environment, our model is performing as designed, and we remain focused on executing our Grow, Enhance, and Expand strategy that we believe will deliver durable, profitable growth and long-term shareholder value," concluded Michaels. Consolidated Results Consolidated revenues for the first quarter of 2026 were $742.7 million, an increase of 11.1% from the same period in 2025. Consolidated net earnings from continuing operations for the quarter were $36.2 million, compared with $34.6 million in the prior year period. The effective income tax rate was 23.9% in the first quarter of 2026, compared to 26.8% in the same period in the prior year. Adjusted EBITDA from continuing operations for the quarter was $90.3 million, or 12.2% of revenues, compared with $69.9 million, or 10.5% of revenues for the same period in 2025. Diluted earnings per share from continuing operations for the first quarter of 2026 were $0.89, compared with $0.83 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were up 37.8% at $1.24 in the first quarter of 2026, compared with $0.90 for the same period in 2025. Progressive Leasing Results Progressive Leasing's first quarter GMV of $393.0 million was down 2.2% compared to the same period in 2025. Revenues were $596.9 million, down 8.4% from the prior year. The provision for lease merchandise write-offs for the quarter was 7.3% of leasing revenues, approximately flat from the prior year, and within the Company's 6-8% targeted annual range. Earnings before taxes for the first quarter of 2026 were $52.0 million, up 6.9% from the first quarter of 2025. Adjusted EBITDA was $76.7 million, up 14.1% from the first quarter of 2025. Four Results Four's GMV for the first quarter of 2026 was $280.0 million, an increase of 133.6% compared to the same period in the prior year. Revenues were $35.0 million, up 142.3% from the year ago period. Four's earnings before taxes for the first quarter of 2026 were $11.4 million, up 478.2% from the first quarter of 2025. Adjusted EBITDA was $12.9 million, up 201.0% from the first quarter of 2025. Purchasing Power Results The Company acquired Purchasing Power on January 2, 2026. Accordingly, results for the first quarter 2026 reflect activity since the acquisition date. Purchasing Power's GMV, which is defined as the total value of merchandise and services purchased and delivered to customers through its platform, was $132.7 million, up 10.3% from the first quarter of 2025 on a standalone basis. Revenues were $107.1 million in the first quarter of 2026. Loss before taxes was $7.5 million and adjusted EBITDA was $0.8 million for the first quarter of 2026. Liquidity and Capital Allocation PROG Holdings ended the first quarter of 2026 with cash of $69.4 million and gross debt of $943.7 million. During the quarter, the Company incurred a total of $260.0 million of new corporate debt related to the acquisition of Purchasing Power on January 2, 2026, and $338.6 million of non-recourse funding debt for Purchasing Power remained in place immediately following the acquisition. Since the acquisition of Purchasing Power, the Company has reduced debt by $254.9 million. The Company did not repurchase any shares during the first 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 $0.14 per share. 2026 Outlook Due to the strong start to the year and the momentum in the business, the Company is increasing its full year 2026 outlook for revenue and earnings as well as providing guidance for the second quarter of 2026. This outlook assumes an operating environment with no change in the current financial pressures and uncertainties for our customer, no material changes in the Company's decisioning posture, no meaningful increase in unemployment rates for our consumer base, an effective tax rate for non-GAAP EPS of approximately 26% and no impact from additional share purchases. Revised 2026 outlook Previous 2026 outlook (In thousands, except per share amounts) Low High Low High PROG Holdings - Total revenues from continuing operations $ 3,000,000 $ 3,100,000 $ 2,950,000 $ 3,070,000 PROG Holdings - Net earnings from continuing operations 150,500 166,000 132,000 155,000 PROG Holdings - Adjusted EBITDA from continuing operations 343,000 370,000 320,000 350,000 PROG Holdings - Diluted EPS from continuing operations 3.68 4.06 3.34 3.79 PROG Holdings - Diluted non-GAAP EPS from continuing operations 4.40 4.80 4.00 4.45 Progressive Leasing - Total revenues 2,227,500 2,285,000 2,202,500 2,253,000 Progressive Leasing - Earnings before taxes 191,000 198,500 182,000 193,000 Progressive Leasing - Adjusted EBITDA 269,500 279,500 254,000 266,000 Purchasing Power - Total revenues 620,000 640,000 610,000 660,000 Purchasing Power - Earnings before taxes 14,500 22,000 13,000 22,000 Purchasing Power - Adjusted EBITDA 50,000 60,000 50,000 60,000 Four - Total revenues 140,000 157,000 125,000 140,000 Four - Earnings before taxes 16,500 20,500 7,500 11,000 Four - Adjusted EBITDA 25,000 29,000 17,500 22,500 Other - Total revenues 12,500 18,000 12,500 17,000 Other - Loss before taxes (14,500) (12,000) (14,500) (12,000) Other - Adjusted EBITDA (1,500) 1,500 (1,500) 1,500 Three months ended June 30, 2026 outlook (In thousands, except per share amounts) Low High PROG Holdings - Total revenues from continuing operations $ 700,000 $ 725,000 PROG Holdings - Net earnings from continuing operations 29,000 38,000 PROG Holdings - Adjusted EBITDA from continuing operations 72,000 82,000 PROG Holdings - Diluted EPS from continuing operations 0.74 0.93 PROG Holdings - Diluted non-GAAP EPS from continuing operations 0.85 1.05 Conference Call and Webcast The Company has scheduled a live webcast and conference call for Wednesday, April 29, 2026, at 8:30 A.M. ET to discuss its financial results for the first quarter of 2026. 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 inclusive, 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; Purchasing Power, a voluntary employee benefit program provider, allowing employees to purchase brand-name products and services through either automatic payroll deductions or allotments; 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 "continued," "outlook," "targets," "believe," "guidance," and similar forward-looking terminology. These risks and uncertainties include (i) continued volatility and challenges in the macroeconomic environment, including due to the war in Iran and related geopolitical disruptions and increases in fuel and other prices, and their impact on: (a) consumer confidence and customer demand for the merchandise that our retail partners and Purchasing Power 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; and (c) 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, and/or Purchasing Power being unable to attract additional employer-clients and retain and grow its relationships with its existing clients, resulting in several aspects of our performance being materially and adversely affected; (v) our businesses being unable to attract new consumers and retain and grow their relationships with their 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; 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) improving performance trends in our Progressive Leasing business; (ii) continued growth of our Four business; (iii) our ability to improve customer acquisition efficiency and lifetime value; (iv) our ability to deliver sustainable, profitable growth and long-term shareholder value going forward; (v) our revised full year 2026 outlook and the guidance we provide for the second quarter of 2026; and (vi) our three-year CAGR targets for GMV, Revenue, Adjusted EBITDA and non-GAAP Earnings Per Share. 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 March 31, 2026 2025 Revenues Lease revenues and fees $ 596,864 $ 651,557 Product and service revenues 106,406 — Other revenue 39,404 16,871 742,674 668,428 Costs and expenses Depreciation of lease merchandise 409,010 460,443 Cost of product sales 62,506 — Provision for lease merchandise write-offs 43,651 48,018 Operating expenses 150,200 98,124 Provision for credit losses 24,167 5,501 689,534 612,086 Gain on sale of lease receivables 6,457 — Gain on change in fair value of receivables 5,712 — Operating profit 65,309 56,342 Interest expense (18,389 ) (9,963 ) Interest income 643 873 Earnings from continuing operations before income tax expense 47,563 47,252 Income tax expense 11,345 12,662 Net earnings from continuing operations 36,218 34,590 (Loss) earnings from discontinued operations, net of tax (164 ) 128 Net earnings $ 36,054 $ 34,718 Basic earnings per share Continuing operations $ 0.91 $ 0.85 Discontinued operations — — Total basic earnings per share $ 0.91 $ 0.85 Diluted earnings per share Continuing operations $ 0.89 $ 0.83 Discontinued operations — — Total diluted earnings per share $ 0.89 $ 0.83 Cash dividend declared per share Common Stock $ 0.14 $ 0.13 Weighted average shares outstanding Basic 39,898 40,841 Diluted 40,810 41,851 PROG Holdings, Inc. Consolidated Balance Sheets (In thousands, except share data) March 31, 2026 December 31, 2025 Assets Cash and cash equivalents $ 69,386 $ 308,774 Restricted cash 10,116 — Receivables (net of allowances and unearned interest income of $80,638 in 2026 and $68,806 in 2025; includes $203,043 recorded at fair value in 2026)1 387,586 74,228 Other receivables (net of allowances and unearned interest income of $3,344 in 2026 and $0 in 2025; includes $20,891 recorded at fair value in 2026)1 34,588 — Lease merchandise (net of accumulated depreciation and allowances of $412,002 in 2026 and $407,104 in 2025) 531,292 609,009 Loans receivable (net of allowances and unamortized fees of $18,055 in 2026 and $18,246 in 2025) 71,000 90,648 Property and equipment, net 21,817 19,526 Goodwill and other intangibles, net 771,676 353,835 Income tax receivable 26,601 47,894 Deferred income tax assets 19,311 19,561 Prepaid expenses and other assets 86,649 73,383 Assets of discontinued operations 12,490 13,550 Total assets $ 2,042,512 $ 1,610,408 Liabilities and shareholders' equity Accounts payable and accrued expenses $ 136,967 $ 96,471 Debt, net1 936,122 594,861 Deferred income tax liabilities 147,922 121,152 Other liabilities 43,759 44,676 Liabilities of discontinued operations 3,387 6,831 Total liabilities 1,268,157 863,991 Shareholders' equity Common stock, par value $0.50 per share: authorized: 225,000,000 shares at March 31, 2026 and December 31, 2025; shares issued: 82,078,654 at March 31, 2026 and December 31, 2025 41,039 41,039 Additional paid-in capital 348,486 363,583 Retained earnings 1,624,879 1,594,685 2,014,404 1,999,307 Less: treasury shares at cost Common Stock: 42,014,857 shares at March 31, 2026 and 42,502,844 at December 31, 2025 (1,240,049) (1,252,890) Total shareholders' equity 774,355 746,417 Total liabilities and shareholders' equity $ 2,042,512 $ 1,610,408 1 As of March 31, 2026, receivables included $375.1 million of contractual amounts outstanding of consolidated VIEs that can only be used to settle their obligations, and debt included $293.7 million of liabilities of consolidated VIEs for which creditors have no recourse to the Company. PROG Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) Three months ended March 31, 2026 2025 Operating activities (in thousands) Net earnings $ 36,054 $ 34,718 Adjustments to reconcile net earnings to cash provided by operating activities: Depreciation of lease merchandise 409,010 460,443 Other depreciation and amortization 14,150 6,122 Provisions for accounts receivable and credit losses 100,150 98,958 Stock-based compensation 7,642 7,902 Gain on change in fair value of receivables (5,712 ) — Deferred income taxes 7,756 (9,928 ) Gain on sale of receivables (7,030 ) — Non-cash lease expense (732 ) (1,025 ) Other changes, net 964 (15 ) Changes in operating assets and liabilities: Additions to lease merchandise (389,976 ) (385,254 ) Book value of lease merchandise sold or disposed 58,682 49,654 Accounts receivable (32,901 ) (70,947 ) Prepaid expenses and other assets (802 ) 5,533 Income tax receivable and payable 21,269 22,200 Accounts payable and accrued expenses (44,499 ) (3,761 ) Customer deposits and advance payments (2,326 ) (4,671 ) Cash provided by operating activities 171,699 209,929 Investing activities Investments in loans receivable (284,863 ) (165,883 ) Proceeds from loans receivable 293,997 163,753 Funding of other receivables (19,419 ) — Collections from other receivables 18,821 — Purchases of property and equipment (3,149 ) (1,962 ) Proceeds from sale of property and equipment 584 — Acquisition of business, net of cash acquired (391,845 ) — Cash used in investing activities (385,874 ) (4,092 ) Financing activities Proceeds from debt 546,178 — Repayments on debt (541,108 ) (50,000 ) Dividends paid (5,609 ) (5,265 ) Acquisition of treasury stock — (26,119 ) Issuance of stock under stock option and employee purchase plans 187 325 Cash paid for shares withheld for employee taxes (10,117 ) (7,048 ) Debt issuance costs (4,628 ) (84 ) Cash used in financing activities (15,097 ) (88,191 ) (Decrease) increase in cash, cash equivalents and restricted cash (229,272 ) 117,646 Cash, cash equivalents and restricted cash at beginning of period 308,774 95,655 Cash, cash equivalents and restricted cash at end of period $ 79,502 $ 213,301 Net cash (received) paid during the period: Interest $ 8,722 $ 509 Income taxes $ (17,687 ) $ 300 PROG Holdings, Inc. Quarterly Revenues by Segment (In thousands) (Unaudited) Three months ended March 31, 2026 Progressive Leasing Purchasing Power Four Other Consolidated total Lease revenues and fees $ 596,864 $ — $ — $ — $ 596,864 Product and service revenues — 106,406 — — 106,406 Other revenues — 729 34,967 3,708 39,404 Total revenues $ 596,864 $ 107,135 $ 34,967 $ 3,708 $ 742,674 (Unaudited) Three months ended March 31, 2025 Progressive Leasing Purchasing Power Four Other Consolidated total Lease revenues and fees $ 651,557 $ — $ — $ — $ 651,557 Product and service revenues — — — — — Other revenues — — 14,429 2,442 16,871 Total revenues $ 651,557 $ — $ 14,429 $ 2,442 $ 668,428 PROG Holdings, Inc. Quarterly Gross Merchandise Volume by Segment (In thousands) (Unaudited) Three months ended March 31, Change 2026 2025 $ % Progressive Leasing $ 392,970 $ 401,962 $ (8,992 ) (2.2 )% Purchasing Power 132,678 — — 132,678 nmf Four 279,990 119,863 160,127 133.6 Total GMV $ 805,638 $ 521,825 $ 283,813 54.4 % nmf - Calculation is not meaningful (Unaudited) Purchasing Power Pre-Acquisition Gross Merchandise Volume Three months ended Twelve months ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 December 31, 2025 Gross merchandise volume $ 120,287 $ 137,890 $ 143,516 $ 247,641 $ 649,334 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 second quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, gain on changes in fair value of receivables 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 months ended March 31, 2026 exclude intangible amortization expense, transaction-related costs, restructuring costs, gain on changes in fair value of receivables, 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 months ended March 31, 2025 exclude intangible amortization expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. 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 second quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, gain on changes in fair value of receivables, and the operations of Vive. Adjusted EBITDA for the full year and second quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three months ended March 31, 2026 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, gain on changes in fair value of receivables, and transaction-related costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three months ended March 31, 2025 also excludes stock-based compensation expense 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. 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) (Unaudited) Three months ended March 31, 2026 2025 Net earnings from continuing operations $ 36,218 $ 34,590 Add: Intangible amortization expense 11,812 4,001 Add: Restructuring expense 3,872 — Add: Costs related to the cybersecurity incident, net of insurance recoveries 9 (18 ) Add: Transaction-related costs 9,691 — Less: Gain on changes in fair value of receivables (5,712 ) — Less: Tax impact of adjustments(1) (5,115 ) (1,036 ) Non-GAAP net earnings from continuing operations $ 50,775 $ 37,537 Diluted earnings per share from continuing operations 0.89 0.83 Add: Intangible amortization expense 0.29 0.10 Add: Restructuring expense 0.09 — Add: Costs related to the cybersecurity incident, net of insurance recoveries — — Add: Transaction-related costs 0.24 — Less: Gain on changes in fair value of receivables (0.14 ) — Less: Tax impact of adjustments(1) (0.13 ) (0.02 ) Non-GAAP diluted earnings per share from continuing operations(2) $ 1.24 $ 0.90 Diluted weighted average shares outstanding 40,810 41,851 (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 March 31, 2026 Progressive Leasing Purchasing Power Four Other Consolidated total Net earnings from continuing operations $ 36,218 Income tax expense(1) 11,345 Earnings (loss) from continuing operations before income tax expense $ 51,960 $ (7,500 ) $ 11,390 $ (8,287 ) 47,563 Interest expense, net 11,603 423 1,073 3 13,102 Depreciation 1,540 273 24 501 2,338 Amortization 3,771 7,812 229 — 11,812 EBITDA from continuing operations 68,874 1,008 12,716 (7,783 ) 74,815 Stock-based compensation 7,287 414 189 (278 ) 7,612 Transaction-related costs — 1,781 — 7,910 9,691 Restructuring expense 526 3,343 — 3 3,872 Gain on changes in fair value of receivables — (5,712 ) — — (5,712 ) Costs related to the cybersecurity incident, net of insurance recoveries 9 — — — 9 Adjusted EBITDA from continuing operations $ 76,696 $ 834 $ 12,905 $ (148 ) $ 90,287 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment. (Unaudited) Three months ended March 31, 2025 Progressive Leasing Four Other Consolidated total Net earnings from continuing operations $ 34,590 Income tax expense(1) 12,662 Earnings (loss) from continuing operations before income tax expense $ 48,625 $ 1,970 $ (3,343 ) 47,252 Interest expense, net 7,163 1,233 694 9,090 Depreciation 1,357 162 455 1,974 Amortization 3,771 230 — 4,001 EBITDA from continuing operations 60,916 3,595 (2,194 ) 62,317 Stock-based compensation 6,307 692 591 7,590 Costs related to the cybersecurity incident, net of insurance recoveries (18 ) — — (18 ) Adjusted EBITDA from continuing operations $ 67,205 $ 4,287 $ (1,603 ) $ 69,889 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment. PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA (In thousands) Fiscal year 2026 ranges Progressive Leasing Purchasing Power Four Other Consolidated total Estimated net earnings from continuing operations $150,500 - $166,000 Income tax expense(1) 57,000 - 63,000 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 Interest expense, net 38,000 1,500 - 2,000 5,500 1,500 - 2,000 46,500 - 47,500 Depreciation 6,500 - 7,500 5,500 - 6,000 500 3,000 15,500 - 17,000 Amortization 4,000 32,000 1,000 — 37,000 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 Stock-based compensation 29,500 - 30,500 2,000 - 3,000 1,500 500 33,500 - 35,500 Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables/ acquisition-related transaction-costs 500 - 1,000 (5,500) - (5,000) — 8,000 3,000 - 4,000 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 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment. PROG Holdings, Inc. Non-GAAP Financial Information Reconciliation of Revised Full Year 2026 Outlook for Adjusted EBITDA (In thousands) Fiscal year 2026 ranges Progressive Leasing Purchasing Power Four Other Consolidated 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 June 30, 2026 Outlook for Adjusted EBITDA (In thousands) Three months ended June 30, 2026 Consolidated total Estimated net earnings from continuing operations $29,000 - $38,000 Income tax expense(1) 14,000 Projected earnings from continuing operations before income tax expense 43,000 - 52,000 Interest expense, net 10,500 Depreciation 4,000 - 5,000 Amortization 8,500 Projected EBITDA from continuing operations 66,000 - 76,000 Stock-based compensation 9,000 Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables (3,000) Projected adjusted EBITDA from continuing operations $72,000 - $82,000 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment. PROG Holdings, Inc. Reconciliation of Revised 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 $ 3.68 $ 4.06 Add: Projected intangible amortization expense 0.90 0.90 Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables 0.07 0.10 Subtract: Tax effect on non-GAAP adjustments(1) (0.25 ) (0.26 ) Projected non-GAAP diluted earnings per share from continuing operations(2) $ 4.40 $ 4.80 (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 Previous 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 June 30, 2026 Outlook for Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share Three months ended June 30, 2026 Low High Projected diluted earnings per share from continuing operations $ 0.74 $ 0.93 Add: Projected intangible amortization expense 0.22 0.22 Add: Restructuring/ regulatory insurance recoveries/ cyber/ change in fair value of receivables (0.07 ) (0.07 ) Subtract: Tax effect on non-GAAP adjustments(1) (0.04 ) (0.04 ) Projected non-GAAP diluted earnings per share from continuing operations(2) $ 0.85 $ 1.05 (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/20260429712300/en/ Investor Contact John A. Baugh, CFA Vice President, Investor Relations [email protected] Source: PROG Holdings, Inc.