PROG Holdings Reports Fourth Quarter 2025 Results

SALT LAKE CITY--( BUSINESS WIRE)--PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Purchasing Power, Four Technologies and MoneyApp today announced financial results for the fourth quarter ended December 31, 2025.

“Q4 and full-year 2025 were periods of disciplined execution that demonstrated the strength and resilience of PROG’s multi-product platform,” said PROG Holdings 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.”

“At the same time, we continued to build momentum across our ecosystem during the quarter. Four delivered its ninth consecutive quarter of triple-digit GMV and revenue growth, and MoneyApp approached breakeven adjusted EBITDA by year-end. Both Four and MoneyApp drove incremental Leasing volume through cross-sell, and our direct-to-consumer Leasing channel, PROG Marketplace, nearly tripled GMV during the quarter. We also simplified and strengthened the business through the sale of the Vive portfolio and the announcement of the Purchasing Power acquisition.”

“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,” concluded Michaels.

Consolidated Results

Consolidated revenues for the fourth quarter of 2025 were $574.6 million, a decrease of 5.2% from the same period in 2024.

Consolidated net earnings from continuing operations for the quarter were $19.9 million, compared with $58.3 million in the prior year period. The prior year period included a $27.8 million deferred tax benefit related to an election to terminate a wholly-owned partnership for tax purposes. The effective income tax rate was 36.6% in the fourth quarter. Adjusted EBITDA from continuing operations for the quarter was $61.5 million, or 10.7% of revenues, compared with $64.1 million, or 10.6% of revenues for the same period in 2024.

Diluted earnings per share from continuing operations for the fourth quarter of 2025 were $0.49, compared with $1.36 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were down 5.1% at $0.74 in the fourth quarter of 2025, compared with $0.78 for the same period in 2024. The Company's diluted weighted average shares outstanding in the fourth quarter were 5.2% lower year-over-year.

Progressive Leasing Results

Progressive Leasing's fourth quarter GMV of $534.0 million was down 10.6% compared to the same period in 2024. The provision for lease merchandise write-offs for the quarter was 7.6% of leasing revenues, lower by 30 basis points from the prior year, and within the Company's 6-8% targeted annual range.

Liquidity and Capital Allocation

PROG Holdings ended the fourth quarter of 2025 with cash of $308.8 million and gross debt of $600.0 million. The Company did not repurchase any shares during the fourth quarter and maintains $309.6 million of repurchase capacity under its $500 million share repurchase program. Additionally, the Company paid a quarterly cash dividend of $0.13 per share.

2026 Outlook

The Company is issuing full year and Q1 2026 outlook from continuing operations for revenues, consolidated net earnings from continuing operations, segment earnings before taxes, adjusted EBITDA, GAAP diluted EPS, and non-GAAP diluted EPS. The outlook below includes almost a full year of ownership of the recently acquired Purchasing Power business, and assumes a difficult operating environment with soft demand for consumer durable goods, no material changes in the Company's current decisioning posture, an effective tax rate for Non-GAAP EPS of approximately 26%, and no impact from additional share repurchases.

Full Year 2026 Outlook

(In thousands, except per share amounts)

Low

High

PROG Holdings - Total Revenues from Continuing Operations

3,020,000

3,140,000

PROG Holdings - Net Earnings from Continuing Operations

132,000

155,000

PROG Holdings - Adjusted EBITDA from Continuing Operations

320,000

350,000

PROG Holdings - Diluted EPS from Continuing Operations

3.34

3.79

PROG Holdings - Diluted Non-GAAP EPS from Continuing Operations

4.00

4.45

Progressive Leasing - Total Revenues

2,202,500

2,253,000

Progressive Leasing - Earnings Before Taxes

182,000

193,000

Progressive Leasing - Adjusted EBITDA

254,000

266,000

Purchasing Power - Total Revenues

680,000

730,000

Purchasing Power - Earnings Before Taxes

13,000

22,000

Purchasing Power - Adjusted EBITDA

50,000

60,000

Four - Total Revenues

125,000

140,000

Four - Earnings Before Taxes

7,500

11,000

Four - Adjusted EBITDA

17,500

22,500

Other - Total Revenues

12,500

17,000

Other - Loss Before Taxes

(14,500

)

(12,000

)

Other - Adjusted EBITDA

(1,500

)

1,500

Three Months Ended

March 31, 2026 Outlook

(In thousands, except per share amounts)

Low

High

PROG Holdings - Total Revenues from Continuing Operations

715,000

745,000

PROG Holdings - Net Earnings from Continuing Operations

9,000

17,000

PROG Holdings - Adjusted EBITDA from Continuing Operations

65,000

75,000

PROG Holdings - Diluted EPS from Continuing Operations

0.22

0.42

PROG Holdings - Diluted Non-GAAP EPS from Continuing Operations

0.70

0.90

Conference Call and Webcast

The Company has scheduled a live webcast and conference call for Wednesday, February 18, 2026, at 8:30 A.M. ET to discuss its financial results for the fourth quarter of 2025. To access the live webcast, visit the Events and Presentations page of the Company’s Investor Relations website, https://investor.progholdings.com/.

About PROG Holdings, Inc.

PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides transparent and competitive payment options to consumers. The Company owns Progressive Leasing, a leading provider of e-commerce, app-based, and in-store point-of-sale lease-to-own solutions, Four Technologies, a provider of Buy Now, Pay Later payment options through its platform, Four, and MoneyApp, a mobile application that offers customers interest-free cash advances. More information on PROG Holdings and its companies can be found at https://investor.progholdings.com/.

Forward-Looking Statements:

Statements, estimates and projections in this press release regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as “belief,” “expect,” “continue,” “target,” “outlook,” “assumes,” and similar forward-looking terminology. These risks and uncertainties include (i) continued volatility and challenges in the macroeconomic environment and their impact on: (a) consumer confidence and customer demand for the merchandise that our retail partners sell, in particular consumer durables, such as home appliances, electronics and furniture; (b) our customers’ disposable income and their ability to make the lease and loan payments they owe the Company; (c) the availability of consumer credit; and (d) our overall financial performance and outlook; (ii) the impact of the uncertain macroeconomic environment on our proprietary algorithms and decisioning tools that we use to approve customers such that they are no longer indicative of our customers’ ability to perform, which in turn may limit the ability of our businesses to manage risk, avoid lease and loan charge-offs and may result in insufficient reserves to cover actual losses; (iii) a large percentage of Progressive Leasing's revenue being concentrated with several key retail partners, and the loss of any of these retail partner relationships materially and adversely affecting several aspects of our performance; (iv) Progressive Leasing being unable to attract additional retail partners and retain and grow its relationships with its existing retail partners, resulting in several aspects of our performance being materially and adversely affected; (v) Progressive Leasing being unable to attract new consumers and retain and grow its relationships with its existing customers materially and adversely affecting several aspects of our performance; (vi) Four’s and Purchasing Power's business models differing significantly from Progressive Leasing’s lease-to-own business, which means these businesses have different risk profiles; (vii) our efforts to modernize and enhance certain enterprise-wide information management systems and technologies adversely impacting our businesses and operations; (viii) the inability of our businesses to successfully operate in highly and increasingly competitive industries materially and adversely affecting several aspects of our performance; (ix) our business, results of operations, financial condition, and prospects being materially and adversely affected due to our businesses failing to maintain a consistently high level of consumer satisfaction and trust in its brands; (x) our businesses being subject to extensive federal, state and local laws and regulations, including certain laws and regulations unique to the industries in which our businesses operate, that may subject them to government investigations and significant monetary penalties, remediation expenses and compliance-related burdens that may result in them changing the manner in which they operate, which may be materially adverse to several aspects of our performance; (xi) our performance being materially and adversely affected due to the transactions offered to consumers by our businesses being negatively characterized by federal, state and local government officials, consumer advocacy groups and the media; (xii) our inability to protect confidential, proprietary, or sensitive information, including the confidential information of our customers, being adversely affected by cyber-attacks or similar disruptions, which may result in significant costs, litigation and reputational damage or otherwise have a material adverse impact on several aspects of our performance; (xiii) any significant disruption in our vendors' information technology systems, or disruptions in the information our businesses rely on in their lease and loan decisioning, materially and adversely affecting several aspects of our performance; (xiv) our capital allocation strategy and financial policies, including our current stock repurchase and dividend programs not being effective at enhancing shareholder value, or providing other benefits we expect; and (xv) the other risks and uncertainties discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 18, 2026. Statements, estimates and projections in this press release that are “forward-looking” include without limitation statements, estimates and projections about: (i) our ability to deliver sustainable, profitable growth going forward; (ii) our free cash flow in the future periods and the benefits we expect from it, including the ability to invest in growth, deleverage following our acquisition of Purchasing Power, and provide long-term value for our shareholders; (iii) the performance of our lease portfolio, including our annual write-offs; and (iv) our revised full year 2026 outlook and the guidance we provide for the first quarter of 2026. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this press release.

PROG Holdings, Inc.

Consolidated Statement of Earnings

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

REVENUES:

Lease Revenues and Fees

544,940

592,872

2,322,754

2,366,489

Other Revenues

29,646

13,504

86,469

32,592

574,586

606,376

2,409,223

2,399,081

COSTS AND EXPENSES:

Depreciation of Lease Merchandise

366,191

403,661

1,590,240

1,621,101

Provision for Lease Merchandise Write-offs

41,427

46,678

173,115

178,338

Operating Expenses

135,091

105,163

445,747

404,917

542,709

555,502

2,209,102

2,204,356

Gain on Sale of Receivables

6,652

—

6,652

—

OPERATING PROFIT

38,529

50,874

206,773

194,725

Interest Expense, Net

(7,124

)

(8,316

)

(32,254

)

(31,289

)

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT)

31,405

42,558

174,519

163,436

INCOME TAX EXPENSE (BENEFIT)

11,491

(15,747

)

50,167

(33,875

)

NET EARNINGS FROM CONTINUING OPERATIONS

19,914

58,305

124,352

197,311

EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX

20,552

(758

)

22,436

(62

)

NET EARNINGS

40,466

57,547

146,788

197,249

BASIC EARNINGS PER SHARE:

Continuing Operations

0.50

1.41

3.10

4.63

Discontinued Operations

0.52

(0.02

)

0.56

0.00

TOTAL BASIC EARNINGS PER SHARE

1.02

1.39

3.66

4.63

DILUTED EARNINGS PER SHARE:

Continuing Operations

0.49

1.36

3.04

4.53

Discontinued Operations

0.51

(0.02

)

0.55

0.00

TOTAL DILUTED EARNINGS PER SHARE

1.00

1.34

3.59

4.53

CASH DIVIDENDS DECLARED PER SHARE:

Common Stock

0.13

0.12

0.52

0.48

WEIGHTED AVERAGE SHARES OUTSTANDING:

Basic

39,708

41,438

40,091

42,584

Diluted

40,577

42,796

40,863

43,549

PROG Holdings, Inc.

Consolidated Balance Sheets

(In thousands, except share data)

December 31,

2025

December 31,

2024

ASSETS:

Cash and Cash Equivalents

308,774

90,920

Accounts Receivable (net of allowances of $68,806 in 2025 and $71,607 in 2024)

74,228

80,206

Lease Merchandise (net of accumulated depreciation and allowances of $407,104 in 2025 and $440,831 in 2024)

609,009

680,242

Loans Receivable (net of allowances and unamortized fees of $18,246 in 2025 and $10,264 in 2024)

90,648

39,128

Property and Equipment, Net

19,526

20,044

Operating Lease Right-of-Use Assets

2,740

3,879

Goodwill

296,061

Other Intangibles, Net

57,774

73,775

Income Tax Receivable

47,894

10,644

Deferred Income Tax Assets

19,561

9,206

Prepaid Expenses and Other Assets

70,643

73,193

Assets of Discontinued Operations

13,550

136,469

Total Assets

1,610,408

1,513,767

LIABILITIES & SHAREHOLDERS’ EQUITY:

Accounts Payable and Accrued Expenses

96,471

89,570

Deferred Income Tax Liabilities

121,152

74,320

Customer Deposits and Advance Payments

37,413

40,917

Operating Lease Liabilities

7,263

11,307

Debt, Net

594,861

643,563

Liabilities of Discontinued Operations

6,831

3,809

Total Liabilities

863,991

863,486

SHAREHOLDERS' EQUITY:

Common Stock, Par Value $0.50 Per Share: Authorized: 225,000,000 Shares at December 31, 2025 and December 31, 2024; Shares Issued: 82,078,654 at December 31, 2025 and December 31, 2024

41,039

Additional Paid-in Capital

363,583

358,538

Retained Earnings

1,594,685

1,469,450

1,999,307

1,869,027

Less: Treasury Shares at Cost

Common Stock: 42,502,844 Shares at December 31, 2025 and 41,262,901 at December 31, 2024

(1,252,890

)

(1,218,746

)

Total Shareholders’ Equity

746,417

650,281

Total Liabilities & Shareholders’ Equity

1,610,408

1,513,767

PROG Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

Twelve Months Ended December 31,

2025

2024

OPERATING ACTIVITIES:

Net Earnings

146,788

197,249

Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities:

Depreciation of Lease Merchandise

1,590,240

1,621,101

Other Depreciation and Amortization

24,456

26,977

Provisions for Accounts Receivable and Loan Losses

408,090

386,558

Stock-Based Compensation

28,807

29,179

Deferred Income Taxes

51,072

(56,030

)

Gain on Sale of Receivables

(43,683

)

—

Impairment of Assets

3,248

6,018

Income Tax Benefit from Reversal of Uncertain Tax Position

—

(51,443

)

Non-Cash Lease Expense

(2,939

)

(3,632

)

Other Changes, Net

(2,054

)

(2,640

)

Changes in Operating Assets and Liabilities:

Additions to Lease Merchandise

(1,696,573

)

(1,850,425

)

Book Value of Lease Merchandise Sold or Disposed

177,567

182,509

Accounts Receivable

(324,030

)

(342,954

)

Prepaid Expenses and Other Assets

8,980

(25,394

)

Income Tax Receivable and Payable

(39,697

)

24,743

Accounts Payable and Accrued Expenses

8,194

(8,495

)

Customer Deposits and Advance Payments

(3,504

)

5,204

Cash Provided by Operating Activities

334,962

138,525

INVESTING ACTIVITIES:

Investments in Loans Receivable

(920,318

)

(459,463

)

Proceeds from Loans Receivable

784,569

388,437

Proceeds from Sale of Loans Receivable

152,436

—

Outflows on Purchases of Property and Equipment

(10,042

)

(8,316

)

Proceeds from Sale of Property and Equipment

—

131

Other Proceeds

—

Cash Provided by (Used in) Investing Activities

6,645

(79,170

)

FINANCING ACTIVITIES:

Borrowings (Repayments) on Revolving Facility

(50,000

)

50,000

Dividends Paid

(20,767

)

(20,393

)

Acquisition of Treasury Stock

(51,775

)

(138,651

)

Issuance of Stock Under Stock Option and Employee Purchase Plans

1,630

2,364

Cash Paid for Shares Withheld for Employee Taxes

(7,492

)

(9,660

)

Debt Issuance Costs

(84

)

(2,776

)

Cash Used in Financing Activities

(128,488

)

(119,116

)

Increase (Decrease) in Cash and Cash Equivalents

213,119

(59,761

)

Cash and Cash Equivalents at Beginning of Period

95,655

155,416

Cash and Cash Equivalents at End of Period

308,774

95,655

Net Cash Paid During the Period:

Interest

37,432

37,033

Income Taxes

45,793

49,840

PROG Holdings, Inc.

Quarterly Revenues by Segment

(In thousands)

(Unaudited)

Three Months Ended

December 31, 2025

Progressive Leasing

Four

Other

Consolidated Total

Lease Revenues and Fees

544,940

—

544,940

Other Revenues

—

25,803

3,843

29,646

Total Revenues

544,940

25,803

3,843

574,586

(Unaudited)

Three Months Ended

December 31, 2024

Progressive Leasing

Four

Other

Consolidated Total

Lease Revenues and Fees

592,872

—

592,872

Other Revenues

—

11,121

2,383

13,504

Total Revenues

592,872

11,121

2,383

606,376

PROG Holdings, Inc.

Annual Revenues by Segment

(In thousands)

Twelve Months Ended

December 31, 2025

Progressive Leasing

Four

Other

Consolidated Total

Lease Revenues and Fees

2,322,754

—

2,322,754

Other Revenues

—

73,722

12,747

86,469

Total Revenues

2,322,754

73,722

12,747

2,409,223

Twelve Months Ended

December 31, 2024

Progressive Leasing

Four

Other

Consolidated Total

Lease Revenues and Fees

2,366,489

—

2,366,489

Other Revenues

—

27,351

5,241

32,592

Total Revenues

2,366,489

27,351

5,241

2,399,081

PROG Holdings, Inc.

Quarterly Gross Merchandise Volume by Segment

(In thousands)

(Unaudited)

Three Months Ended December 31,

2025

2024

Progressive Leasing

534,004

597,493

Four

303,966

134,580

Total GMV

837,970

732,073

Use of Non-GAAP Financial Information:

Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations per share, and adjusted EBITDA are supplemental measures of our performance that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Non-GAAP diluted earnings per share from continuing operations for the full year 2026 and first quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, and also excludes Vive as its normal operations have been discontinued as a result of the sale of its credit card portfolio in October 2025. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings per share from continuing operations for the three and twelve months ended December 31, 2025 exclude intangible amortization expense, transaction-related costs, restructuring costs, write-off of assets due to a retail partner bankruptcy, and costs related to the cybersecurity incident, net of insurance recoveries. Non-GAAP net earnings from continuing operations and non-GAAP diluted earnings from continuing operations per share for the three and twelve months ended December 31, 2024 exclude intangible amortization expense, restructuring expenses, costs related to the cybersecurity incident, net of insurance recoveries and reversal of the uncertain tax position related to Progressive Leasing's $175 million settlement with the FTC in 2020. The amount for the after-tax non-GAAP adjustment, which is tax effected using our statutory tax rate, can be found in the reconciliation of net earnings and diluted earnings per share to non-GAAP net earnings and diluted earnings per share table in this press release.

The Adjusted EBITDA figures presented in this press release are calculated as the Company’s earnings from continuing operations before interest expense, net, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and first quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, and the operations of Vive. Adjusted EBITDA for the full year and first quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three and twelve months ended December 31, 2025 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, write-off of assets due to a retail partner bankruptcy, and transaction-related costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three and twelve months ended December 31, 2024 also excludes stock-based compensation expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. The amounts for these pre-tax non-GAAP adjustments can be found in the segment EBITDA tables in this press release.

Management believes that non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA provide relevant and useful information, and are widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated and business unit performance.

Non-GAAP net earnings from continuing operations, non-GAAP diluted earnings from continuing operations, and adjusted EBITDA provide management and investors with an understanding of the results from the primary operations of our business by excluding the effects of certain items that generally arose from larger, one-time transactions that are not reflective of the ordinary earnings activity of our operations or transactions that have variability and volatility of the amount. We believe the exclusion of stock-based compensation expense provides for a better comparison of our operating results with our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. We believe interest expense on Purchasing Power's asset-backed secured borrowings represents a direct operating cost required to generate revenue; therefore, the Company is including this interest expense when calculating consolidated and Purchasing Power's adjusted EBITDA beginning in 2026. This measure may be useful to an investor in evaluating the underlying operating performance of our business.

Adjusted EBITDA also provides management and investors with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. These measures may be useful to an investor in evaluating our operating performance because the measures:

Non-GAAP financial measures, however, should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, such as the Company’s GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Company’s segments, which are also presented in the press release. Further, we caution investors that amounts presented in accordance with our definitions of non-GAAP net earnings, non-GAAP diluted earnings per share, and adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner.

PROG Holdings, Inc.

Reconciliation of Net Earnings and Diluted Earnings Per Share to

Non-GAAP Net Earnings and Diluted Earnings Per Share

(In thousands, except per share amounts)

(Unaudited)

Twelve Months

Three Months Ended

Ended

Mar 31,

Jun 30,

Sept 30,

Dec 31,

2025

Net Earnings from Continuing Operations

34,733

37,438

32,267

19,914

124,352

Add: Intangible Amortization Expense

4,001

4,000

3,999

4,001

16,001

Add: Restructuring Expense

—

2,798

Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

(18

)

127

(255

)

(88

)

Add: Transaction-related Costs

—

2,179

Add: Write-off of Assets due to Retailer Bankruptcy

—

4,996

Less: Tax Impact of Adjustments (1)

(1,036

)

(1,073

)

(1,055

)

(3,567

)

(6,731

)

Non-GAAP Net Earnings from Continuing Operations

37,680

40,492

35,269

30,066

143,507

Diluted Earnings Per Share from Continuing Operations

0.83

0.92

0.80

0.49

3.04

Add: Intangible Amortization Expense

0.10

0.39

Add: Restructuring Expense

—

0.07

Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

—

(0.01

)

—

Add: Transaction-related Costs

—

0.05

Add: Write-off of Assets due to Retailer Bankruptcy

—

0.12

Less: Tax Impact of Adjustments (1)

(0.02

)

(0.03

)

(0.03

)

(0.09

)

(0.16

)

Non-GAAP Diluted Earnings Per Share from Continuing Operations (2)

0.90

1.00

0.87

0.74

3.51

Diluted Weighted Average Shares Outstanding

41,851

40,559

40,481

40,577

40,863

(1)

Adjustments are tax-effected using an assumed statutory tax rate of 26%.

(2)

In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings, Inc.

Reconciliation of Net Earnings and Diluted Earnings Per Share to

Non-GAAP Net Earnings and Diluted Earnings Per Share

(In thousands, except per share amounts)

(Unaudited)

Twelve Months

Three Months Ended

Ended

Mar 31,

Jun 30,

Sept 30,

Dec 31,

2024

Net Earnings from Continuing Operations

21,099

33,117

84,790

58,305

197,311

Add: Intangible Amortization Expense

5,650

4,239

4,000

17,889

Add: Restructuring Expense

18,014

2,886

(68

)

20,838

Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

116

114

(61

)

285

Less: Tax Impact of Adjustments (1)

(6,183

)

(1,883

)

(1,072

)

(1,006

)

(10,144

)

Less: Reversal of Uncertain Tax Position

—

(53,599

)

—

(53,599

)

Less: Tax Benefit from Partnership Deemed Liquidation

—

(27,767

)

(27,767

)

Add: Accrued Interest on Uncertain Tax Position

1,078

—

2,156

Non-GAAP Net Earnings from Continuing Operations

39,774

39,553

34,239

33,403

146,969

Diluted Earnings Per Share from Continuing Operations

0.47

0.76

1.96

1.36

4.53

Add: Intangible Amortization Expense

0.13

0.10

0.09

0.41

Add: Restructuring Expense

0.40

0.07

—

0.48

Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

—

0.01

Less: Tax Impact of Adjustments (1)

(0.14

)

(0.04

)

(0.02

)

(0.02

)

(0.23

)

Less: Reversal of Uncertain Tax Position

—

(1.24

)

—

(1.23

)

Less: Tax Benefit from Partnership Deemed Liquidation

—

(0.65

)

(0.64

)

Add: Accrued Interest on Uncertain Tax Position

0.02

—

0.05

Non-GAAP Diluted Earnings Per Share from Continuing Operations (2)

0.89

0.90

0.79

0.78

3.37

Diluted Weighted Average Shares Outstanding

44,528

43,721

43,169

42,796

43,549

(1)

Adjustments are tax-effected using an assumed statutory tax rate of 26%.

(2)

In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings, Inc.

Non-GAAP Financial Information

Quarterly Segment Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months Ended

December 31, 2025

Progressive Leasing

Four

Other

Consolidated Total

Net Earnings from Continuing Operations

19,914

Income Tax Expense (1)

11,491

Earnings (Loss) from Continuing Operations Before Income Tax Expense

41,965

(3,352

)

(7,208

)

31,405

Interest Expense, Net

4,697

1,751

676

7,124

Depreciation

1,512

665

2,202

Amortization

3,772

229

—

4,001

EBITDA from Continuing Operations

51,946

(1,347

)

(5,867

)

44,732

Stock-Based Compensation

6,658

195

244

7,097

Restructuring Expense

589

—

2,209

2,798

Write-off of Assets due to Retailer Bankruptcy

4,996

—

4,996

Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

(255

)

—

(255

)

Transaction-related Costs

—

2,179

Adjusted EBITDA from Continuing Operations

63,934

(1,152

)

(1,235

)

61,547

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.

Non-GAAP Financial Information

Quarterly Segment Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months Ended

December 31, 2024

Progressive Leasing

Four

Other

Consolidated Total

Net Earnings from Continuing Operations

58,305

Income Tax Benefit (1)

(15,747

)

Earnings (Loss) from Continuing Operations Before Income Tax Benefit

48,186

(3,206

)

(2,422

)

42,558

Interest Expense, Net

6,731

1,080

505

8,316

Depreciation

1,494

139

408

2,041

Amortization

3,771

229

—

4,000

EBITDA from Continuing Operations

60,182

(1,758

)

(1,509

)

56,915

Stock-Based Compensation

5,760

1,173

376

7,309

Restructuring Expense

(68

)

—

(68

)

Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

(61

)

—

(61

)

Adjusted EBITDA from Continuing Operations

65,813

(585

)

(1,133

)

64,095

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.

Non-GAAP Financial Information

Twelve Month Segment Adjusted EBITDA

(In thousands)

Twelve Months Ended

December 31, 2025

Progressive Leasing

Four

Other

Consolidated Total

Net Earnings from Continuing Operations

124,352

Income Tax Expense (1)

50,167

Earnings (Loss) from Continuing Operations Before Income Tax Expense

188,874

2,835

(17,190

)

174,519

Interest Expense, Net

24,205

4,942

3,107

32,254

Depreciation

5,516

220

2,295

8,031

Amortization

15,084

917

—

16,001

EBITDA from Continuing Operations

233,679

8,914

(11,788

)

230,805

Stock-Based Compensation

26,168

1,028

1,281

28,477

Restructuring Expense

589

—

2,209

2,798

Write-off of Assets due to Retailer Bankruptcy

4,996

—

4,996

Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

(88

)

—

(88

)

Transaction-related Costs

—

2,179

Adjusted EBITDA from Continuing Operations

265,344

9,942

(6,119

)

269,167

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.

Non-GAAP Financial Information

Twelve Month Segment Adjusted EBITDA

(In thousands)

Twelve Months Ended

December 31, 2024

Progressive Leasing

Four

Other

Consolidated Total

Net Earnings from Continuing Operations

197,311

Income Tax Benefit (1)

(33,875

)

Earnings (Loss) from Continuing Operations Before Income Tax Benefit

184,782

(6,485

)

(14,861

)

163,436

Interest Expense, Net

30,653

750

(114

)

31,289

Depreciation

6,574

500

1,371

8,445

Amortization

16,972

917

—

17,889

EBITDA from Continuing Operations

238,981

(4,318

)

(13,604

)

221,059

Stock-Based Compensation

22,665

2,823

2,357

27,845

Restructuring Expense

18,210

—

2,628

20,838

Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries

285

—

285

Adjusted EBITDA from Continuing Operations

280,141

(1,495

)

(8,619

)

270,027

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.

Non-GAAP Financial Information

Reconciliation of Full Year 2026 Outlook for Adjusted EBITDA

(In thousands)

Fiscal Year 2026 Ranges

Progressive

Leasing

Purchasing

Power

Four

Other

Consolidated

Total

Estimated Net Earnings from Continuing Operations

$132,000 - $155,000

Income Tax Expense (1)

56,000 - 59,000

Projected Earnings (Loss) from Continuing Operations Before Income Tax Expense

$182,000 - $193,000

$13,000 - $22,000

$7,500 - $11,000

$(14,500) - $(12,000)

188,000 - 214,000

Interest Expense, Net

36,000 - 35,000

1,000

8,000 - 9,000

1,500 - 2,000

46,500 - 47,000

Depreciation

5,000 - 6,000

9,000

—

2,500

16,500 - 17,500

Amortization

4,000

18,000 - 19,000

1,000

—

23,000 - 24,000

Projected EBITDA from Continuing Operations

227,000 - 238,000

41,000 - 51,000

16,500 - 21,000

(10,500) - (7,500)

274,000 - 302,500

Stock-Based Compensation

27,000 - 28,000

1,000

1,000 - 1,500

—

29,000 - 30,500

Restructuring/ Regulatory Insurance Recoveries/ Cyber/ Transaction-related Costs

—

8,000

—

9,000

17,000

Projected Adjusted EBITDA from Continuing Operations

$254,000 - $266,000

$50,000 - $60,000

$17,500 - $22,500

$(1,500) - $1,500

$320,000 - $350,000

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.

Non-GAAP Financial Information

Reconciliation of the Three Months Ended March 31, 2026 Outlook for Adjusted EBITDA

(In thousands)

Three Months Ended

March 31, 2026

Consolidated Total

Estimated Net Earnings from Continuing Operations

$9,000 - $17,000

Income Tax Expense (1)

6,000

Projected Earnings from Continuing Operations Before Income Tax Expense

15,000 - 23,000

Interest Expense, Net

13,000

Depreciation

4,000 - 5,000

Amortization

9,000

Projected EBITDA from Continuing Operations

41,000 - 50,000

Stock-Based Compensation

7,000 - 8,000

Restructuring/ Regulatory Insurance Recoveries/ Cyber/ Transaction-related Costs

17,000

Projected Adjusted EBITDA from Continuing Operations

$65,000 - $75,000

(1)

Taxes are calculated on a consolidated basis and are not identifiable by Company segment.

PROG Holdings, Inc.

Reconciliation of Full Year 2026 Outlook for Diluted Earnings Per Share

to Non-GAAP Diluted Earnings Per Share

Full Year 2026

Low

High

Projected Diluted Earnings Per Share from Continuing Operations

3.34

3.79

Add: Projected Intangible Amortization Expense

0.58

0.59

Add: Restructuring/ Regulatory Insurance Recoveries/ Cyber/ Transaction-related Costs

0.29

Subtract: Tax Effect on Non-GAAP Adjustments (1)

(0.22

)

(0.22

)

Projected Non-GAAP Diluted Earnings Per Share from Continuing Operations (2)

4.00

4.45

(1)

Adjustments are tax-effected using an assumed statutory tax rate of 26%.

(2)

In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

PROG Holdings, Inc.

Reconciliation of the Three Months Ended March 31, 2026 Outlook for Diluted

Earnings Per Share to Non-GAAP Diluted Earnings Per Share

Three Months Ended

March 31, 2026

Low

High

Projected Diluted Earnings Per Share from Continuing Operations

0.22

0.42

Add: Projected Intangible Amortization Expense

0.22

Add: Restructuring/ Regulatory Insurance Recoveries/ Cyber/ Transaction-related Costs

0.42

Subtract: Tax Effect on Non-GAAP Adjustments (1)

(0.17

)

(0.17

)

Projected Non-GAAP Diluted Earnings Per Share from Continuing Operations (2)

0.70

0.90

(1)

Adjustments are tax-effected using an assumed statutory tax rate of 26%.

(2)

In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.