Analysis PRG
PROG's lower forecast already counts on its $100 million buyback
PROG executed a $100 million buyback after lowering adjusted earnings guidance that already included its initial share-count benefit.
Ticker Byline
PROG Holdings, Inc.
PROG has executed a $100 million share repurchase after lowering a forecast that already includes its initial share-count benefit, while its largest leasing business remains under pressure.
- Ticker
- PRG
- Exchange
- XNYS
- SEC CIK
- 0001808834
PROG Holdings (NYSE: PRG) provides consumer payment options. Progressive Leasing offers lease-to-own arrangements, Four offers buy-now-pay-later payments, and Purchasing Power lets employees buy goods through payroll deductions. PROG also operates MoneyApp for cash advances.
A new business changes the comparison
PROG completed its $424.2 million cash purchase of Purchasing Power on January 2, 2026. The acquired business’s receivable-backed borrowing remained in place. That acquisition is a major reason consolidated revenue grew much faster than Progressive Leasing’s revenue.
The table covers continuing operations in the three months ended September 30. Amounts are USD millions, except per-share figures. Prior-year totals exclude Purchasing Power.
| Results | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | 725.8 | 577.7 |
| Net earnings, GAAP | 37.5 | 32.3 |
| Diluted EPS, GAAP | $0.92 | $0.80 |
| Progressive Leasing revenue | 552.7 | 556.6 |
| Four revenue | 37.2 | 17.4 |
Purchasing Power contributed $131.8 million of revenue. Progressive Leasing’s adjusted EBITDA fell 12.3%, while Four grew and received a higher annual profit forecast.
Lower forecasts already include buyback shares
On October 28, PROG cut 2026 adjusted EPS guidance to $4.70 to $4.85 from July’s $4.75 to $5.00. Adjusted EBITDA guidance fell to $345 million to $355 million from $355 million to $375 million. Adjusted EPS removes specified acquisition and accounting items; adjusted EBITDA also excludes interest, tax, certain asset-cost charges and stock-based compensation.
The revised per-share outlook already assumed the initial delivery under a $100 million buyback. PROG paid that amount on October 29 using cash and credit borrowings and received about 2.59 million shares initially. Final settlement is expected by the end of Q1 2027.
Cash and borrowing before the purchase
At September 30, cash was $108.9 million and gross debt was $872 million. Debt comprised $600 million of senior notes due in 2029 and $272 million of financing secured by Purchasing Power receivables, generally without recourse to the parent’s other assets. These are balances before the buyback borrowing.
Operating cash flow for the first nine months was $386.2 million, compared with $389.9 million a year earlier.
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