PROG Holdings reported third quarter 2026 results that fell short of analyst estimates on both the top and bottom lines, leading management to lower full-year guidance. While consolidated Gross Merchandise Volume (GMV) surged 58.9% year-over-year due to high growth in the Four segment and the integration of Purchasing Power, core leasing performance was impacted by persistent macroeconomic headwinds facing low-income consumers. In response to the results, the company announced an intention to execute a $100 million accelerated share repurchase program in the fourth quarter.
Key Highlights
- Consolidated revenue of $725.8 million missed the $737.83 million consensus, while non-GAAP diluted EPS of $1.06 was below the $1.09 estimate.
- Core Progressive Leasing GMV grew 2.3% year-over-year to $420.4 million, though segment revenues declined 0.7% to $552.7 million.
- The provision for lease merchandise write-offs reached 8.3% of leasing revenues, exceeding the company's full-year target range of 6% to 8%.
- Full-year 2026 revenue guidance was lowered to a midpoint of $3.033 billion, down from the previous midpoint of $3.063 billion.
- Four Technologies segment GMV surged 102.6% to $330.4 million, reflecting triple-digit growth in the company's buy-now-pay-later platform.