PROG (NYSE:PRG) Releases Earnings Results, Misses Expectations By $0.03 EPS

PROG (NYSE:PRG) released its earnings results on Wednesday. The fintech holding company reported $1.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.03), Zacks reports. The firm had revenue of $725.78 million for the quarter, compared to analyst estimates of $737.83 million.

Here are the key takeaways from PROG’s conference call:

• Consolidated growth remained strong: Third-quarter GMV increased 59% year over year, revenue rose approximately 26%, and non-GAAP EPS increased 21.8% to $1.06, with results within the company’s outlook ranges.
• Consumer pressure is weighing on Progressive Leasing. The company tightened approval standards again as inflation and higher fuel prices affected customer liquidity; leasing write-offs reached 8.3% of revenue, and full-year results are expected near the high end of the 6%-8% target range.
• Four and Purchasing Power continued to expand profitably. Four delivered its 12th consecutive quarter of triple-digit GMV growth, with GMV up 103% and a 30.6% adjusted EBITDA margin, while Purchasing Power GMV grew 12.3% and adjusted EBITDA margin improved sequentially to 9.8%.
• Full-year guidance was reduced to revenue of $3.015 billion-$3.05 billion, adjusted EBITDA of $345 million-$355 million, and non-GAAP EPS of $4.70-$4.85, reflecting expectations that customer financial pressures will persist through year-end.
• Management announced a planned $100 million accelerated share repurchase. The company expects an initial delivery of approximately 2.7 million shares, supported by debt reduction since the Purchasing Power acquisition and a net leverage ratio of 1.5 times.

PROG Stock Performance

Shares of PRG stock traded up $0.23 on Wednesday, hitting $29.84. 507,643 shares of the stock traded hands, compared to its average volume of 546,768. PROG has a twelve month low of $25.18 and a twelve month high of $47.73. The firm’s 50-day moving average price is $34.47 and its two-hundred day moving average price is $35.61. The stock has a market capitalization of $1.19 billion, a PE ratio of 8.22 and a beta of 1.78.

PROG Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Tuesday, August 18th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $0.56 annualized dividend and a dividend yield of 1.9%. PROG’s payout ratio is presently 15.47%.

Key PROG News

Here are the key news stories impacting PROG this week:

• Positive Sentiment: PROG announced plans to repurchase $100 million of common stock through an accelerated share-repurchase agreement, with the transactions expected to be completed in the first quarter of 2027. The buyback signals management’s confidence in the company’s long-term outlook and could support earnings per share by reducing the share count. PROG Holdings Announces Intention to Enter into $100 Million Accelerated Share Repurchase Program
• Positive Sentiment: Third-quarter revenue was approximately $725.8 million, with some coverage indicating that sales exceeded estimates. Earnings per share increased from $0.90 in the year-earlier quarter to $1.06, reflecting continued earnings growth and contributions from the Purchasing Power acquisition. PROG’s Q3 2026 sales top estimates but stock drops 12%

Insider Activity

In other news, CAO George M. Sewell sold 2,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $45.53, for a total value of $91,060.00. Following the completion of the sale, the chief accounting officer owned 28,385 shares of the company’s stock, valued at $1,292,369.05. This represents a 6.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Michael King sold 1,070 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $46.00, for a total transaction of $49,220.00. Following the sale, the insider owned 60,825 shares of the company’s stock, valued at $2,797,950. This represents a 1.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 4,000 shares of company stock valued at $183,060. 3.72% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. KeyCorp boosted their price target on shares of PROG from $45.00 to $50.00 and gave the stock an “overweight” rating in a research report on Thursday, July 30th. Zacks Research cut shares of PROG from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Weiss Ratings upgraded shares of PROG from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. Jefferies Financial Group cut their price objective on shares of PROG from $60.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday, October 7th. Finally, TD Cowen upped their price target on PROG from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Tuesday, July 7th. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $47.81.

About PROG

PROG Holdings, Inc is a financial technology company that provides consumer payment and lease-to-own solutions through its operating businesses. Its services are designed to help consumers acquire household goods and other merchandise through retail stores, e-commerce websites and other merchant channels.

The company’s primary business is Progressive Leasing, a lease-to-own provider that gives consumers an alternative to traditional credit when purchasing products such as furniture, appliances, electronics, mattresses and other household merchandise.