PROG Holdings, Inc. functions as a multi-channel financial services firm, specializing in lease-to-own programs for individuals with limited credit access or those ...
PROG Holdings, Inc. (NYSE: PRG) is a consumer-finance company focused on expanding payment access for customers who may not qualify for conventional prime-credit products. The company’s historical roots trace to Aaron’s, founded in 1955, while Progressive Leasing was founded in 1999. PROG Holdings adopted its current name in December 2020 ...PROG Holdings, Inc. (NYSE: PRG) is a consumer-finance company focused on expanding payment access for customers who may not qualify for conventional prime-credit products. The company’s historical roots trace to Aaron’s, founded in 1955, while Progressive Leasing was founded in 1999. PROG Holdings adopted its current name in December 2020 after evolving into a broader financial-services holding company. Its headquarters are in Draper, Utah.
The company’s principal operating businesses include Progressive Leasing and Vive. Progressive Leasing provides lease-to-own and lease-purchase payment options for merchandise such as furniture, appliances, consumer electronics, jewelry, mobile phones and accessories, mattresses, and automotive electronics and accessories. Customers can access these offerings through participating physical retailers, retailer e-commerce sites, mobile channels, and point-of-sale integrations. The business model is designed to help retail partners increase conversion and reach customers who may have limited credit histories, while allowing consumers to acquire products through structured payment arrangements rather than a traditional installment loan.
Vive provides second-chance and revolving-credit products through proprietary and co-branded credit cards. These products target consumers who may have been declined for standard credit but still require financing for purchases. PROG’s lease-purchase solutions are available across 49 U.S. states and the District of Columbia through approximately 24,000 third-party retail partner locations and associated online platforms.
Unlike a conventional manufacturer, PROG does not primarily incur costs for raw materials, factory capacity, or a physical product bill of materials. Its major cost categories are funding and interest expense, credit losses, lease-related merchandise and residual-value exposure, customer acquisition, servicing, technology, employee compensation, compliance, and partner distribution. This creates a business whose profitability depends on underwriting quality, repayment behavior, portfolio mix, funding costs, and retail-partner activity.
The supplied trailing-twelve-month data indicates approximately $1.71 billion in market capitalization, a 5.8% net profit margin, a 9.2% EBIT margin, a 19.4% return on equity, and about $206.6 million of free cash flow to the firm. Reported valuation measures include a price-to-earnings ratio of approximately 11.7 and a price-to-free-cash-flow ratio of approximately 9.9. The company also reports a quarterly-equivalent trailing dividend of $0.54 per share and a dividend payout ratio of roughly 14.7%, although market values and financial ratios change over time.
Steven A. Michaels serves as President, Chief Executive Officer, and Chairman. Other disclosed leaders include Brian J. Garner, Chief Financial Officer, and Todd King, Chief Legal and Compliance Officer and Corporate Secretary. The supplied information estimates approximately 1,606 employees, placing PROG Holdings in the 1,001-2,000 employee category. Key strategic priorities for the company include expanding responsible access to consumer finance, strengthening merchant relationships, managing credit and regulatory risk, improving digital customer experiences, and sustaining profitable growth while maintaining disciplined funding and operating costs.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.4B
-2.2%
-17.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$146.8M
-25.6%
+2.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+33.0%
-67.0%
+24.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+9.9%
+25.0%
+57.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.1%
-23.9%
+24.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$324.9M
+149.5%
-126.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+13.5%
+155.2%
-132.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
81.6%
-19.0%
-8.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
11.22x
+88.9%
-59.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome to PROG Holdings Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press one-one on your telephone. You would then hear an automated message advising that your hand is raised. To withdraw your question, please press one-one again. I would now like to hand the conference over to John Allen Baugh. Sir, you may begin.
John Allen Baugh: Thank you, and good morning, everyone. Welcome to the PROG Holdings Second Quarter 2026 Earnings Call. Joining me this morning are Steven A. Michaels, PROG Holdings' Chairman, President, and Chief Executive Officer and Brian J. Garner, our chief financial officer. Many of you have already seen a copy of our earnings release issued this morning, which is available on our Investor Relations website investor.progholdings.com. During this call, certain statements we make will be forward-looking, including comments regarding our 2026 full-year outlook and our outlook for the third quarter of 2026. Listeners are cautioned not to place undue reliance on forward-looking statements, all of which are subject to risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. We undertake no obligation to update any such statements. On today's call, we will be referring to certain non-GAAP financial measures, including adjusted EBITDA and non-GAAP EPS, which have been adjusted for certain items, which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release. The company believes that these non-GAAP financial measures provide meaningful insight into the company's operational performance, and cash flows, and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding the company's ongoing operational performance. With that, I would like to turn the call over to Steven A. Michaels, PROG Holdings' President and Chief Executive Officer. Steven?
Steven A. Michaels: Thanks, John, and good morning, everyone. I appreciate you all joining us today. Let me begin with the headline. This is a strong quarter for PROG Holdings. Revenue came in toward the higher end of our outlook, while adjusted EBITDA and non-GAAP EPS exceeded the top of our range. Importantly, every product in our ecosystem contributed. At Progressive Leasing, GMV growth combined with fewer customers choosing to exercise their 90-day purchase option, drove higher gross margin and a 12.7% adjusted EBITDA margin. At Four, robust customer demand once again translated into profitable triple-digit growth. And at Purchasing Power, we delivered double-digit GMV growth with revenue and margin both ahead of …
