PROG Holdings, Inc. (PRG) reported fourth‑quarter 2025 financial results that included consolidated revenue of $574.6 million, a 5.2% decline from the same period in 2024. Net earnings from continuing operations fell to $19.9 million, down from $58.3 million a year earlier, while adjusted EBITDA stood at $61.5 million, representing 10.7% of revenue. Progressive Leasing’s fourth‑quarter gross merchandise volume (GMV) dropped 10.6% to $534.0 million, whereas Four Technologies and PROG Marketplace continued to deliver strong growth, with Four Technologies reporting a 126% GMV increase and PROG Marketplace posting a 187% rise.
The company’s non‑GAAP diluted earnings per share (EPS) of $0.74 beat analyst estimates of $0.61 by $0.13, a 21% upside. The EPS beat was driven by disciplined cost management that preserved margin expansion, a favorable product mix shift toward higher‑margin digital segments, and the absence of significant one‑time charges. GAAP diluted EPS from continuing operations was $0.49, below the $0.59 estimate, but the non‑GAAP figure was the primary focus of the earnings call.
Revenue missed consensus expectations of approximately $584 million, reflecting a 5.2% year‑over‑year decline. The decline was largely attributable to the 10.6% fall in Progressive Leasing GMV, which is the company’s legacy leasing business. The impact of a large partner bankruptcy and a challenging retail environment further weighed on the leasing segment. However, the robust growth in Four Technologies and PROG Marketplace helped offset the decline and supported the company’s overall margin profile.
Segment performance highlights that Progressive Leasing’s GMV fell to $534.0 million, while Four Technologies achieved a 126% GMV increase, and PROG Marketplace grew 187%. The digital and emerging‑platform segments continue to drive the company’s growth trajectory, underscoring the strategic shift toward a multi‑product platform that balances legacy leasing with high‑growth digital offerings.
Management guided for 2026 revenue of $3.02 billion to $3.14 billion, above the consensus estimate of $2.853 billion, and non‑GAAP EPS guidance of $4.00 to $4.45, surpassing analyst expectations of $3.60. The guidance reflects confidence in the integration of the Purchasing Power acquisition, the continued expansion of digital segments, and the company’s ability to generate significant free cash flow that will support growth and deleverage initiatives.
"Q4 and full‑year 2025 were periods of disciplined execution that demonstrated the strength and resilience of PROG’s multi‑product platform," said President and CEO Steve Michaels. "Despite a challenging retail environment and the impact of a large partner bankruptcy on Progressive Leasing, we took proactive steps to protect portfolio performance, expand margins, and position the business for profitable growth." Michaels added, "As we move into 2026, we are confident that our three‑pillared strategy to grow, enhance, and expand across our product ecosystem, with a focus on increasing customer acquisition and lifetime value, will support sustainable growth. Our business is generating significant free cash flow, providing us with the flexibility to invest in growth, deleverage following the acquisition, and continue building long‑term value for our shareholders." He also noted, "We plan for an operating environment that remains challenging, but also sees higher expected tax refunds in 2026 should provide incremental liquidity and near‑term support for demand and repayment behavior." Investors reacted positively to the earnings release, citing the EPS beat and the robust 2026 guidance as key drivers of confidence in the company’s strategic direction.
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