PROG Holdings Inc
NYSE:PRG
PROG Holdings Inc
PROG Holdings Inc. has crafted a business model centered around empowering consumers by offering flexible financial solutions without the traditional constraints of credit. At its core is Progressive Leasing, the company's largest segment, which specializes in offering lease-to-own purchase options for customers who may not have access to traditional financing. This service is particularly popular with major retail partners, including furniture and electronics stores, allowing them to reach a broader customer base. By providing a path to ownership over time, PROG Holdings helps consumers acquire necessary items like appliances, electronics, and furniture, while simultaneously driving sales for its retail partners. The company's revenue is generated principally through rental payments from its customers, offering a financial service that aligns the interests of the retailer, consumer, and PROG Holdings itself.
In addition to Progressive Leasing, PROG Holdings Inc. fosters a holistic approach through Vive Financial, its second growth engine. Vive Financial extends its reach by providing a range of credit products to consumers that bolster the entire purchase journey—beyond what traditional credit cards offer. This dual approach allows PROG Holdings to tap into varied market segments, thereby cushioning the company from economic fluctuations and keeping its pipeline diversified. By integrating data and technology, PROG Holdings enhances decision-making and risk assessment, maintaining a robust framework that has evolved with shifting market demands. The company capitalizes on both in-store and online retail ecosystems, capitalizing on consumer trends and preferences, which drives its financial performance and strengthens its market position in the dynamic world of consumer finance.
PROG Holdings Inc. has crafted a business model centered around empowering consumers by offering flexible financial solutions without the traditional constraints of credit. At its core is Progressive Leasing, the company's largest segment, which specializes in offering lease-to-own purchase options for customers who may not have access to traditional financing. This service is particularly popular with major retail partners, including furniture and electronics stores, allowing them to reach a broader customer base. By providing a path to ownership over time, PROG Holdings helps consumers acquire necessary items like appliances, electronics, and furniture, while simultaneously driving sales for its retail partners. The company's revenue is generated principally through rental payments from its customers, offering a financial service that aligns the interests of the retailer, consumer, and PROG Holdings itself.
In addition to Progressive Leasing, PROG Holdings Inc. fosters a holistic approach through Vive Financial, its second growth engine. Vive Financial extends its reach by providing a range of credit products to consumers that bolster the entire purchase journey—beyond what traditional credit cards offer. This dual approach allows PROG Holdings to tap into varied market segments, thereby cushioning the company from economic fluctuations and keeping its pipeline diversified. By integrating data and technology, PROG Holdings enhances decision-making and risk assessment, maintaining a robust framework that has evolved with shifting market demands. The company capitalizes on both in-store and online retail ecosystems, capitalizing on consumer trends and preferences, which drives its financial performance and strengthens its market position in the dynamic world of consumer finance.
Outlook Beat: PROG Holdings' 2025 results met or exceeded the guidance provided in October, with both adjusted EBITDA and non-GAAP EPS beating the high end of their outlook.
Segment Dynamics: Progressive Leasing faced headwinds, with GMV down 8.6% YoY due to the Big Lots bankruptcy and tightened decisioning, but underlying GMV excluding these factors grew in the mid-single digits.
Four Technologies Growth: The Buy Now, Pay Later platform, Four, delivered triple-digit GMV and revenue growth, scaling quickly and improving unit economics.
Strategic Moves: PROG sold its Vive portfolio for capital efficiency and acquired Purchasing Power, adding a differentiated channel to its offerings.
2026 Guidance: Management expects 2026 revenues of $3B to $3.1B, adjusted EBITDA of $320M–$350M, and non-GAAP EPS of $4.00–$4.45, reflecting anticipated improvements as headwinds subside.
Margin Expansion: Gross margin improved due to better portfolio yield and longer lease duration, with full-year write-offs within the 6%–8% targeted range.
Capital Allocation: The company prioritized debt reduction after the Purchasing Power acquisition, with a near-term net leverage goal of 1.5x–2.0x.
