PRG

PROG Holdings, Inc.

Next est. report 2026-10-28 · BMO

Earned Wage Access '26: Low Income LiquidityNew Age Financing '26: Buy Now Pay Later

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Overview

PROG Holdings, Inc. provides financial services, primarily offering lease-to-own solutions through Progressive Leasing (76.5% of Q2 2026 revenue) for various co

PROG Holdings, Inc. provides financial services, primarily offering lease-to-own solutions through Progressive Leasing (76.5% of Q2 2026 revenue) for various consumer goods. It also delivers buy-now-pay-later services via its Four platform (4.9%) and employer-sponsored purchase programs through Purchasing Power (18.1%). The company serves individuals with limited credit access, enabling them to acquire essential products through its multi-channel ecosystem.

Search Keywords Brand Product

Progressive Leasing
Four Technologies
Purchasing Power
MoneyApp
PROG Marketplace
Vita AI assistant
lease-to-own
buy now pay later
BNPL
employee purchase program
alternative financing
fintech
consumer credit
payroll deduction

Search Keywords Event Phrases

PROG Holdings earnings
PRG Q2 2026 results

What They Do (Plain English & Analogies): PROG Holdings is like a financial safety net for shoppers who might not have access to traditional credit. They offer different ways for people to buy things they need, even if their credit score isn't perfect. Imagine you need a new refrigerator but don't have the cash or a credit card with enough limit. PROG Holdings steps in with solutions: 1. **Progressive Leasing:** This is like renting to own. You lease an item (like furniture or electronics) with the option to buy it later. You make regular payments, and if you decide to keep it, those payments go towards ownership. If your situation changes, you can return the item without further obligation. 2. **Four:** This is their 'Buy Now, Pay Later' (BNPL) service. Think of it as splitting a purchase into four smaller, interest-free payments over a short period. It's great for smaller, everyday items and is often used through a mobile app. 3. **Purchasing Power:** This program works through employers. Employees can buy products and services, and the payments are automatically deducted from their paycheck. It's a convenient way to get things without worrying about interest or traditional credit checks, often for larger purchases like appliances or even automotive services. Essentially, PROG Holdings helps people get the goods they need through flexible payment plans, bridging the gap for those underserved by conventional credit options.
Very Brief History: PROG Holdings, Inc. traces its roots back to Aaron's, which was founded in 1955. The company's current portfolio began to take shape with the acquisition of Progressive Leasing in 2014. In December 2020, the legacy Aaron's Company separated, and the remaining entity was renamed PROG Holdings, Inc.. Further expanding its fintech offerings, PROG Holdings acquired Four Technologies in 2021 and Purchasing Power in January 2026.
"Street Stereotype": PROG Holdings is generally perceived as a leading fintech company specializing in alternative consumer finance, particularly known for its lease-to-own solutions and its rapidly growing Buy Now, Pay Later (BNPL) platform. It's seen as a key player in serving the near-prime and subprime consumer segments, providing essential purchasing power to individuals who may not qualify for traditional credit.
Subsidiaries On Linked In*: PROG Holdings, Inc. — LinkedIn: progholdings
Progressive Leasing — LinkedIn: progressive-leasing
Four Technologies — LinkedIn: four-technologies
Purchasing Power — LinkedIn: purchasing-power
MoneyApp — LinkedIn: moneyapp
Customer Sectors & Example Clients: PROG Holdings serves customers primarily in the specialty retail, e-commerce, and employer benefits program sectors. Their financial solutions enable consumers to acquire a diverse range of merchandise, including furniture, household appliances, electronic gadgets, jewelry, mobile phones and accessories, mattresses, and automotive electronics and fittings. For its Progressive Leasing segment, the company partners with approximately 24,000 third-party retail partner locations and their e-commerce platforms. Past partners have included Big Lots, and current partners include companies like Voro Motors and Thecellphoneshoppe. Purchasing Power caters to employees of large companies, including Fortune 500s, associations, and government agencies, offering products and services through payroll deduction. The company recently added a new employer client with over 80,000 eligible employees to the Purchasing Power platform.
New Customers / Segments They'Re Targeting: PROG Holdings is actively targeting new customer segments and expanding its reach through several initiatives. They are focusing on growing their direct-to-consumer channels, particularly through the PROG Marketplace and enhanced e-commerce experiences. For their Four BNPL offering, they are attracting a broader consumer base, including prime customers, by taking market share from traditional credit card users and community banks. Additionally, the company is expanding Purchasing Power's reach by signing new employer clients, aiming to bring a significant number of new potential customers onto that platform. They are also broadening the merchandise categories available through Purchasing Power, including new automotive services like wheel alignment.
Supply Chain And Sourcing Geographies: PROG Holdings is primarily a financial services company that provides payment solutions for consumers to acquire merchandise from third-party retailers. As such, the company itself does not have a direct supply chain for manufacturing or sourcing physical products. Its 'supply chain' is related to its financial operations, technology infrastructure, and partnerships with retailers and employers. While Purchasing Power acts as an online retailer for consumer products and services, the transcript and available information do not specify the sourcing geographies for the merchandise offered through this program.
Sales Geographies And Expansion Plans: PROG Holdings currently operates primarily within the United States, offering its lease-purchase solutions across 49 U.S. states and the District of Columbia. While the company has a Global Capability Center for Purchasing Power in Chennai, India, this is for support and innovation, not direct sales expansion. Management has not indicated plans to expand sales into new international geographies. Instead, expansion efforts are focused on deepening penetration within the existing U.S. market through new retail partnerships, growing its direct-to-consumer platforms, and expanding its employer client base for Purchasing Power.
How Key Themes May Help/Hurt: The buildout of 'Buy Now, Pay Later' (BNPL) as a key theme significantly benefits PROG Holdings. The company's Four Technologies segment is a direct beneficiary, experiencing profitable triple-digit growth driven by robust consumer demand for flexible, interest-free installment payments. This trend not only boosts Four's GMV and subscriber base but also acts as a crucial entry point into PROG Holdings' broader ecosystem, fostering customer overlap and cross-sell opportunities across Progressive Leasing and Purchasing Power. The increasing normalization and acceptance of BNPL as a payment method expand the addressable market for PROG's offerings. However, the rapid growth of the BNPL market also intensifies competition, potentially leading to pressure on margins or requiring increased marketing spend to maintain market share. While not explicitly mentioned in the transcript as a current hurt, increased regulatory scrutiny on BNPL products could introduce new compliance requirements or operational restrictions in the future.

3 Main Long-Term Bull Details

Diversified Fintech Ecosystem Serving Underserved Consumers: PROG Holdings' integrated ecosystem, comprising lease-to-own (Progressive Leasing), Buy Now, Pay Later (Four), and employer-based purchasing (Purchasing Power), allows it to cater to a broad range of financial needs for its target demographic of near-prime and below consumers. This diversification fosters cross-selling opportunities, enhances customer lifetime value, and provides resilience against demand fluctuations in any single product or category.
Rapid and Profitable Growth of Four Technologies (BNPL): The Four Technologies segment consistently delivers impressive triple-digit GMV growth with expanding profitability, driven by strong consumer demand for flexible payment options and an efficient, AI-native operational model. This segment is positioned as a significant growth engine and an important entry point for customers into the broader PROG Holdings ecosystem.
Disciplined Portfolio Management and AI-Driven Innovation: The company demonstrates a strong commitment to disciplined credit decisioning and active portfolio management, aiming to optimize absolute earnings while maintaining targeted write-off ranges. Extensive integration of AI across its businesses, from customer experience enhancements (e.g., Vita AI assistant) to operational efficiencies and improved decisioning, underpins long-term growth and strengthens unit economics.

3 Main Long-Term Bear Details

Vulnerability to Macroeconomic Headwinds and Consumer Stress: PROG Holdings' core customer base is highly sensitive to economic pressures such as inflation and rising costs (e.g., gas prices), which can impact their discretionary budgets and liquidity. This sensitivity can lead to elevated lease merchandise write-offs, reduced early purchase options, and fluctuating demand for larger ticket items, directly affecting profitability.
Dependence on Retail Partners and Competitive Landscape: The Progressive Leasing segment, historically the largest, relies heavily on a limited number of large retail partners. This creates risks associated with partner renewals, the financial health of these retailers, and intense competition from other lease-to-own providers and alternative financing solutions.
Credit Risk and Portfolio Performance Management: While the company emphasizes disciplined portfolio management, the inherent credit risk associated with serving underserved consumers means that write-off rates, particularly in the leasing segment, can be volatile and require constant, dynamic adjustments to decisioning posture. Sustained periods of high write-offs could pressure margins and investor confidence.

Competitors And Differentiation: PROG Holdings faces competition across its various business segments. In the lease-to-own space, key competitors include Acima, Rent-A-Center, and Aaron's Inc.. For its Buy Now, Pay Later (BNPL) offering, Four competes with players like Klarna Group and PayPal Holdings, as well as traditional credit card providers and community banks. Broader consumer finance competitors include companies such as Enova International (ENVA), Credit Acceptance (CACC), SLM (SLM), Nelnet (NNI), Bread Financial (BFH), OneMain Holdings Inc. (OMF), and Regional Management Corp. (RM). PROG Holdings differentiates itself through several key aspects: * **Diversified Ecosystem:** It offers a unique ecosystem of financial products—lease-to-own (Progressive Leasing), BNPL (Four), and employer-based purchasing (Purchasing Power)—all catering to a similar customer demographic with varied financial needs. * **Focus on Underserved Consumers:** The company specializes in providing transparent and competitive payment options to individuals with limited or non-prime credit, a segment often overlooked by traditional lenders. * **Technology and AI Integration:** PROG Holdings leverages a proprietary, technology-driven platform for instant credit decisioning and has embedded AI into its operations for product enhancements, improved customer experience (e.g., Vita AI shopping assistant), and operational efficiency. * **Unique Payment Mechanisms:** Purchasing Power's payroll deduction model offers a distinct and convenient payment method for employees, setting it apart in the market.
Recent Performance & What The Market'S Focused On: PROG Holdings delivered a strong second quarter of 2026, with consolidated revenue increasing 22.3% year-over-year to $719.7 million and consolidated Gross Merchandise Volume (GMV) surging 60% to $902 million, both exceeding expectations. Adjusted EBITDA and non-GAAP EPS also surpassed the high end of their outlook range. Progressive Leasing returned to year-over-year GMV growth of 3.4%, Four Technologies continued its impressive profitable triple-digit GMV growth of 111%, and Purchasing Power contributed double-digit GMV growth. The company also successfully deleveraged its balance sheet and resumed share repurchases. The market is currently focused on several key aspects: the Progressive Leasing segment's lease merchandise write-off rate, which was 8.4% of revenue in Q2 (above the 6-8% targeted annual range, but managed for overall portfolio yield and profitability); the ongoing health and resilience of the consumer in a pressured macroeconomic environment; and the continued rapid, profitable scaling of the Four BNPL business. Investors are also tracking the successful integration and growth momentum of the recently acquired Purchasing Power segment. The company has increased its full-year 2026 outlook for revenue, adjusted EBITDA, and non-GAAP EPS, reflecting confidence in its diversified business model and execution capabilities.

Revenue Segments And Estimated Mix: Progressive Leasing — Mix: ~76.5%; Source: Q2 2026 revenue of $550.3 million out of $719.7 million consolidated revenue; Trend: Revenue down 3.4% year-over-year in Q2, but expected to return to positive comps in H2 2026 as portfolio rebuilds behind improving GMV
Purchasing Power — Mix: ~18.1%; Source: Q2 2026 revenue of $130.4 million out of $719.7 million consolidated revenue; Trend: Acquired Jan 2026; strong sequential adjusted EBITDA improvement from Q1 to Q2
Four Technologies — Mix: ~4.9%; Source: Q2 2026 revenue of $35.1 million out of $719.7 million consolidated revenue; Trend: Revenue up 118% year-over-year, continuing triple-digit growth
Product Brands: Progressive Leasing
Four
Purchasing Power
PROG Marketplace
Vita
MoneyApp
Vive

Bull / Bear Details

PROG Holdings, a multi-channel financial services firm, demonstrates resilience and growth potential despite a stressed consumer environment. Its diversified ec

Thesis

PROG Holdings, a multi-channel financial services firm, demonstrates resilience and growth potential despite a stressed consumer environment. Its diversified ecosystem, comprising Progressive Leasing, Four (BNPL), and Purchasing Power, is driving profitable GMV expansion and strong EBITDA margins. Strategic AI adoption, effective capital allocation, and a return to Progressive Leasing GMV growth underpin a compelling long-term investment case as of August 26, 2026.

Bull case

PROG's diversified ecosystem, encompassing Progressive Leasing, Four, and Purchasing Power, is delivering profitable growth across all segments. Four continues its impressive triple-digit GMV growth, Purchasing Power shows robust double-digit GMV growth with significant new employer client wins, and Progressive Leasing has returned to positive GMV growth, signaling broad-based momentum and reduced reliance on any single product line.
The company reported strong Q2 2026 adjusted EBITDA and non-GAAP EPS, exceeding its outlook. Progressive Leasing achieved its highest Q2 adjusted EBITDA margin since exiting COVID, demonstrating strong underlying earnings power. Rapid deleveraging, with the net leverage ratio falling to 1.7x, enabled the resumption of share repurchases, highlighting disciplined financial management and a commitment to returning capital to shareholders.
PROG is strategically leveraging AI across its operations, driving product enhancements, improving customer experience, and enhancing operational efficiency, particularly within the 'AI-native' Four segment. This technological advantage, coupled with Four's buy-now-pay-later offering actively gaining market share from traditional credit card users, positions PROG for continued expansion and competitive differentiation in the evolving financial services landscape.

Bear case

The core consumer base remains 'stressed but resilient' due to prolonged inflation and higher costs, which continue to act as a headwind for discretionary budgets. This pressure is evidenced by lower 90-day early buyout options and Progressive Leasing's Q2 write-off rate of 8.4%, which, while a deliberate management decision, is above the long-term annual target range.
Despite overall GMV growth, demand for large-ticket consumer durables, a significant category for Progressive Leasing, remains soft. This persistent softness could pressure future GMV growth in the largest segment if macroeconomic conditions do not improve, requiring continuous reliance on growth initiatives and the performance of e-commerce channels and the PROG Marketplace.
While management asserts the higher write-off rate in Progressive Leasing is a deliberate choice to optimize for earnings, there is inherent execution risk in managing credit quality in a challenging environment. Failure to keep full-year write-offs within the 6-8% target range, or a significant deterioration in roll rates from delinquency to charge-off, could negatively impact overall profitability and investor confidence.

Bull / Bear Case

Bear Case: The primary concern for PROG Holdings is its core consumer base, which remains 'stressed but resilient' due to prolonged inflation (3.4% in July 2026) and elevated costs, particularly gas prices, impacting discretionary budgets. This pressure is reflected in Progressive Leasing's Q2 write-off rate of 8.4%, which, while a deliberate management decision, is above the long-term annual target range of 6-8%. Demand for large-ticket consumer durables, a significant category for Progressive Leasing, remains soft, potentially pressuring future GMV growth in its largest segment. There is inherent execution risk in dynamically managing credit quality in this challenging macroeconomic environment. The stock's significant underperformance relative to the S&P 500 since earnings also indicates investor caution regarding these headwinds.
Bull Case: PROG Holdings presents a compelling investment case driven by its diversified fintech ecosystem, which includes Progressive Leasing, Four (BNPL), and Purchasing Power, all contributing to profitable growth. The company reported strong Q2 2026 adjusted EBITDA and non-GAAP EPS, exceeding its outlook, with Progressive Leasing returning to positive GMV growth. Four Technologies continues its impressive triple-digit GMV growth with expanding profitability, leveraging AI-native operations and gaining market share from traditional credit cards. Purchasing Power is also demonstrating robust double-digit GMV growth and securing significant new employer clients. Furthermore, PROG's disciplined financial management is evident in its rapid deleveraging, with the net leverage ratio falling to 1.7x, enabling the resumption of share repurchases and strategic investments in AI-driven innovation across its platforms.
More Compelling & Why: Bear. The stock's significant underperformance since earnings, coupled with a P/E ratio of approximately 10.75x, which is slightly above its 5-year average of ~10.5x, suggests the market is not fully discounting the ongoing risks. The strongest argument for the bear case is the persistent 'stressed but resilient' consumer environment, which continues to impact credit quality and demand for large-ticket items. A sustained improvement in consumer discretionary spending and Progressive Leasing's write-off rates consistently returning within the 6-8% annual target range without sacrificing portfolio yield would flip my view.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Consolidated Net Leverage Ratio and Share Repurchases	A strong balance sheet and disciplined capital allocation, including deleveraging post-acquisition and returning capital to shareholders through repurchases, enhance financial flexibility and shareholder value. This supports future growth and M&A opportunities.	Net leverage ratio (Q2 2026 was 1.7x, target 1.5x to 2x) and the volume/value of share repurchases in subsequent quarters.	Bullish if the net leverage ratio remains comfortably within or below the 1.5x to 2x target range, allowing for sustained share repurchases and potential strategic M&A.	Company's quarterly earnings releases, 10-Q filings, and conference calls (e.g., Q3 2026 earnings call and 10-Q).	Financial news coverage of company debt and capital allocation announcements.	Bloomberg Terminal/Refinitiv Eikon: Detailed debt schedules, credit ratings, and share repurchase program updates.
Purchasing Power New Employer Client Onboarding and GMV Contribution	Purchasing Power is a recent acquisition. Successful integration and ramp-up of new large employer clients, like the one with 80,000+ employees, are critical for realizing its growth potential and cross-sell opportunities within the PROG ecosystem.	Management commentary on the progress of onboarding the new 80,000+ employee client, its penetration rate, and its contribution to Purchasing Power's double-digit GMV growth in upcoming quarters.	Bullish if management reports accelerated onboarding, higher-than-expected penetration, or significant GMV contribution from new large employer clients, indicating strong execution and market acceptance.	Company's quarterly earnings releases and conference calls (e.g., Q3 2026 earnings call).	News releases from large employers regarding new employee benefits programs; industry reports on employer-sponsored purchase programs.	Thinknum: Job postings data for large employers (as a proxy for employee base growth); HR/benefits industry surveys on adoption of employee purchase programs.
Progressive Leasing Lease Merchandise Write-off Rate	This metric directly reflects the credit quality of the Progressive Leasing portfolio and is a key indicator of risk management and profitability, especially in a stressed consumer environment. While management aims for a 6-8% annual range, Q2 was 8.4%.	The write-off rate in Q3 and Q4 2026 relative to the 6% to 8% annual target range. Q2 2026 was 8.4%, and management expects the full year to be near the high end of the range.	Bearish if the write-off rate consistently exceeds 8% in subsequent quarters without a corresponding increase in portfolio yield or adjusted EBITDA margin, indicating deteriorating credit quality.	Company's quarterly earnings releases and 10-Q filings (e.g., Q3 2026 10-Q, expected mid-November 2026).	Federal Reserve consumer credit reports, EIA gas price data (as a proxy for consumer discretionary budget pressure).	TransUnion/Experian: Subprime consumer delinquency rates; Consumer card data: Delinquency trends for similar income demographics.
Progressive Leasing Gross Merchandise Volume (GMV) Year-over-Year Growth	Progressive Leasing is the largest segment. Its return to positive GMV growth (3.4% in Q2 2026) after a Q1 decline signals successful growth initiatives and a healthier core business, crucial for overall revenue and profitability.	Progressive Leasing GMV growth rate year-over-year in subsequent quarters. Management expects positive revenue comps in the second half of 2026, implying continued GMV growth.	Bullish if Progressive Leasing GMV growth remains positive and accelerates from Q2's 3.4% year-over-year, or if it consistently stays in the low single-digit positive range.	Company's quarterly earnings releases and conference calls (e.g., Q3 2026 earnings call, expected late October/early November 2026).	Publicly available sales data from major retail partners (e.g., furniture, electronics retailers) that utilize Progressive Leasing.	Earnest Research: Consumer spending data on lease-to-own products; Placer.ai: Foot traffic trends for key Progressive Leasing retail partners.
Four Technologies GMV Growth and Adjusted EBITDA Margin	Four is the fastest-growing and most profitable segment, demonstrating strong operating leverage and serving as a key entry point to the broader ecosystem. Sustained performance is vital for future earnings and overall ecosystem expansion.	Four's GMV growth rate (Q2 2026 was 111% YoY) and Adjusted EBITDA margin (Q2 2026 was 24.8%). Management targets north of 30% adjusted EBITDA margins long-term.	Bullish if Four's GMV growth remains robust (e.g., above 100% YoY) and its Adjusted EBITDA margin continues to expand towards or exceeds 30%, driven by AI-driven efficiencies and customer engagement.	Company's quarterly earnings releases and conference calls (e.g., Q3 2026 earnings call).	App download and usage trends for BNPL apps (e.g., via App Annie or Sensor Tower free tiers), BNPL industry news and growth reports.	Sensor Tower/Apptopia: App downloads, active users, and engagement metrics for Four; SimilarWeb: Web traffic and conversion rates for Four's platform.

Key Reported Metrics, Reratings Triggers & Results3 rows

Four Technologies is a high-growth, profitable segment that is diversifying PROG Holdings' revenue streams and acting as a key entry point to its ecosystem. Sus

Upcoming print · 2026-10-28

Key reported metrics
Metric	Last period	Why it matters
Four Technologies GMV Growth	111%	Four Technologies is a high-growth, profitable segment that is diversifying PROG Holdings' revenue streams and acting as a key entry point to its ecosystem. Sustained triple-digit growth is vital for future expansion.
Progressive Leasing Lease Merchandise Write-off Rate	8.4%	This rate is a key indicator of credit quality and risk management within the Progressive Leasing segment. Investors closely monitor it, especially given the 'stressed but resilient' consumer environment and its impact on profitability.
Progressive Leasing GMV Growth	3.4%	This metric indicates the health and growth trajectory of PROG Holdings' largest segment. Positive growth signals a rebound from prior headwinds and successful growth initiatives, crucial for overall company performance.

Key Questions

Can PROG Holdings maintain Progressive Leasing's adjusted EBITDA margins (Q2: 12.7%) while keeping full-year write-offs within the 6-8% target range, demonstrat

Can PROG Holdings maintain Progressive Leasing's adjusted EBITDA margins (Q2: 12.7%) while keeping full-year write-offs within the 6-8% target range, demonstrating effective dynamic portfolio management despite ongoing consumer stress?

Question 2: Will Four Technologies sustain its triple-digit GMV growth and expand its adjusted EBITDA margin towards the 30%+ target, and will Purchasing Power's new employer clients significantly accelerate its GMV contribution, diversifying PROG's revenue streams?
Question 3: How will the 'stressed but resilient' consumer environment, particularly prolonged inflation and high gas prices, impact overall demand for PROG's products and the portfolio performance (e.g., GMV growth, write-offs, early buyouts) across all segments in the next quarter?

Earnings Transcript SummaryTable

2026-07-29 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Profitable Growth Across All Businesses: Management emphasized strong performance across Progressive Leasing (returning to GMV growth), Four (profitable triple-digit growth), and Purchasing Power (double-digit GMV growth and improved margins), highlighting that this growth stems from expanded distribution, share gains, and genuine customer demand, rather than relaxed decisioning. 2. Disciplined Portfolio Risk Management: Despite a stressed consumer environment and Progressive Leasing's write-offs reaching 8.4% of revenue, management stressed this was a 'deliberate decision' to optimize for absolute earnings and maintain the 6% to 8% annual write-off target. They continuously monitor payment behavior and dynamically adjust their decisioning posture. 3. Strategic Investments and Capital Allocation: Management is focused on investing in technology (AI-driven product enhancements, improved customer experience, operational efficiency), integrating Purchasing Power, and returning capital to shareholders through debt paydown and share repurchases, while maintaining a healthy balance sheet.	Call Takeaway & ToneThe overall takeaway of the call was that PROG Holdings delivered a strong second quarter, surpassing its outlooks, with all segments contributing to profitable growth despite a challenging consumer environment. Management emphasized disciplined execution, strategic investments, and a healthy balance sheet. The tone was confident and optimistic about the company's trajectory and its ability to manage risks, while acknowledging ongoing macroeconomic pressures on the consumer.	Prior Quarter'S Y/Y Growth By SegmentIn Q1 2026, Progressive Leasing revenue declined 8.4% year-over-year, indicating an acceleration in Q2 2026. Four Technologies revenue grew 142% year-over-year in Q1 2026, indicating a deceleration in Q2 2026. Purchasing Power revenue was $107.1 million in Q1 2026, with no direct year-over-year comparison provided for that quarter either.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Health of the Consumer: Analysts questioned the balance between lower early buyout activity and strong demand recovery. Management responded that the consumer is 'stressed but resilient,' with lower 90-day buyouts signaling liquidity concerns, which sometimes led to delinquencies. However, they noted robust demand in Four and Purchasing Power, and Progressive Leasing's GMV rebound due to lapping headwinds and growth initiatives. 2. Progressive Leasing Write-offs: Analysts pressed on the 8.4% write-off rate, which exceeded the 6-8% annual target range. Management clarified that this was a 'deliberate management of the portfolio' to optimize for higher gross margins and absolute EBITDA, not a loss of control. They expressed confidence in achieving the annual range, noting Q2 and Q3 are seasonally higher write-off periods and that higher portfolio yield from longer lease durations is offsetting delinquencies. 3. Four Technologies' Growth, Investments, and Consumer Profile: Analysts inquired about investments, the path to higher margins, and the consumer profile. Management highlighted Four's 'very efficient operation with a very lean team' leveraging AI for product innovation and efficiency, driving strong growth and margin expansion. They stated the core Four customer is 'near-prime and below,' but also includes prime customers, and the business is gaining market share from credit card users.	Revenue SegmentsConsolidated revenue grew 22% year-over-year. Progressive Leasing revenue declined 3.4% year-over-year. Four Technologies revenue grew 118% year-over-year. Purchasing Power revenue was $130.4 million; it was acquired at the start of the year, so no direct year-over-year comparison for revenue is provided, but its GMV grew double-digit year-over-year against its pre-acquisition base.

Transcript TidbitsTable

2026-07-29

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketPurchasing Power signed several new employer clients, including one large client with over 80,000 eligible employees, which is expected to ramp over a two-to-three-year cycle. The company also broadened Purchasing Power's merchandise categories to include new automotive services like wheel alignment. PROG Marketplace achieved a GMV CAGR of nearly 200% from 2022 to 2025 and expanded GMV roughly 13-fold over the past three years on a Q2 basis. The e-commerce channel for Progressive Leasing reached 25.6% of total GMV in Q2, up from 20.9% a year ago. MoneyApp, a cash advance product, saw revenue increase by 34% year-over-year and is an important engagement and cross-sell driver within the ecosystem. Customer overlap deepened in Q2, driven by cross-product marketing, with Four's growth serving as a primary entry point to the broader ecosystem, and the relationship between Progressive Leasing and Four customers representing the strongest and fastest-growing overlap.	About CompetitionThe Four product and the broader Buy Now Pay Later (BNPL) industry are actively taking market share from traditional credit card users, community banks, and other sources of payment plans.	About The Broader IndustryThe consumer is described as 'stressed but resilient,' facing ongoing challenges from prolonged inflation and recent increases in gas prices, which act as a headwind for discretionary budgets. Demand for large-ticket consumer durables remains soft. The company's diversified ecosystem provides flexibility to capitalize on robust demand in some areas while exercising prudence in others. The company's outlook assumes no change in current financial pressures for customers and no meaningful increase in the unemployment rate for its consumer base.	Where Things Are HeadedThe company anticipates consolidated GMV momentum to continue through the remainder of 2026, driven by a rebuilding Progressive Leasing GMV, ongoing growth at Four, and Purchasing Power's seasonally strong fourth quarter. Full-year 2026 leasing write-offs are expected to remain within the 6% to 8% targeted annual range, albeit near the high end. The revised consolidated outlook for 2026 projects revenues between $3.025 billion and $3.1 billion, adjusted EBITDA between $355 million and $375 million, and non-GAAP EPS between $4.75 and $5.00. Capital allocation priorities include reinvesting in the business, pursuing strategic M&A, and returning excess capital to shareholders through share repurchases and dividends. The company remains focused on profitable growth and portfolio performance amidst a challenging macroeconomic environment, believing 'the best chapters of PROG's story are still ahead of us.'	Broader Themes EmergingAI Adoption and Efficiency: AI is deeply integrated across the company's operations, driving product enhancements, improving customer experience (e.g., AI shopping assistant Vita, AI-powered search doubling site conversion), and enhancing operational efficiency. The Four team, described as 'AI-native' and 'AI-forward,' leverages AI to release new product innovations, improve customer service, and reduce headcount in that department while achieving significant growth.	Bullish-Leaning Quotes (Short)This is a strong quarter for PROG Holdings. Importantly, every product in our ecosystem contributed. We believe we are firmly back on a growth footing at leasing. Four's GMV more than doubled year-over-year. Extending its remarkable run of triple-digit growth to 11 quarters. This is the benefit of a diversified ecosystem. PROG Marketplace was a particular standout with its exceptional trajectory since inception. Progressive Leasing segment delivered an adjusted EBITDA margin of 12.7%, our highest second quarter margin since exiting COVID. I firmly believe the best chapters of PROG's story are still ahead of us.	Bearish-Leaning Quotes (Short)Producing results like these while the consumer is under pressure is a testament to how we have built this business over the years and the discipline with which we run it today. Our customer is feeling the effects of prolonged inflation and the recent increases in gas prices, which remains a headwind for discretionary budgets. The sequential increase from the first quarter was modestly above our normal seasonal step-up, and we believe that was caused by cost pressures, including gas prices, which weigh on the budgets of our core customer. I would not say necessarily that the demand has rebounded from the post-COVID lows of the demand pull forward. I think we are still facing a soft demand environment for the large-ticket consumer durables. We expect full-year 2026 leasing write-offs to remain within our targeted annual range of 6% to 8% albeit near the high end of that range.	HiringThe Four Technologies team is described as a 'very lean team' comprising employees and global contractors. Despite significant business growth, the team is expanding at a much lower rate due to their 'AI-native, AI-forward' approach, which enables them to achieve efficiencies. They are able to release new product innovations, improve customer service, and reduce headcount in that department through the effective use of AI, serving as a model for the rest of the organization.

Upcoming EventsTable

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
PRG_32485d95	within the next kind of 75 days	2026-07-29	2026-10-12	Potential securing of new large retail partners for Progressive Leasing through ongoing business development efforts.	Successful new partnerships could drive increased GMV and market share for Progressive Leasing, contributing to overall revenue growth and strengthening its competitive position.	Ticker	2026-07-29	earnings_transcript