Consolidated revenues from continuing operations of $719.7 million, up 22.3%; Net earnings from continuing operations of $37.4 million
Adjusted EBITDA from continuing operations of $88.4 million, up 22.8%
Diluted EPS from continuing operations of $0.92; Non-GAAP Diluted EPS from continuing operations of $1.19, up 19.0%
Consolidated GMV of $902.0 million, up 60.1%
Net leverage ratio ended the quarter at 1.7x

PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Four Technologies, MoneyApp and Purchasing Power, today announced financial results for the second quarter ended June 30, 2026, which includes the results of Purchasing Power since January 2, 2026, the date the Company acquired Purchasing Power.

"PROG Holdings delivered a strong second quarter, with revenue toward the higher end of our outlook and both adjusted EBITDA and Non-GAAP EPS coming in above the top end of our April outlook ranges, a reflection of disciplined execution across the business," said PROG Holdings Chairman, President and CEO Steve Michaels. "Every product in our ecosystem contributed: consolidated GMV grew 60% year-over-year, Progressive Leasing returned to positive GMV growth of 3.4% with adjusted EBITDA margin at 12.7%, Four delivered its eleventh consecutive quarter of triple-digit GMV growth, and Purchasing Power's GMV grew double-digits."

"Equally important was our continued strengthening of the balance sheet. We used our strong cash flow to pay down debt, bringing our net leverage ratio to approximately 1.7 times, down from about 2.5 times right after the acquisition of Purchasing Power, and comfortably within our targeted range of 1.5 to 2.0 times. This deleveraging gave us the confidence to resume share repurchases during the quarter."

"Reflecting our second-quarter outperformance and the momentum we see across our product ecosystem, we are raising our full-year 2026 outlook. Our performance is a testament to the resilience of our platform and the discipline with which we run it," concluded Michaels.

Consolidated Results

Consolidated revenues for the second quarter of 2026 were $719.7 million, an increase of 22.3% from the same period in 2025.

Consolidated net earnings from continuing operations for the quarter were $37.4 million, compared with $37.6 million in the prior year period. The effective income tax rate was 26.4% in the second quarter of 2026, compared to 26.5% in the same period in the prior year. Adjusted EBITDA from continuing operations for the quarter was $88.4 million, or 12.3% of revenues, compared with $72.0 million, or 12.2% of revenues for the same period in 2025.

Diluted earnings per share from continuing operations for the second quarter of 2026 were $0.92, compared with $0.93 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were up 19.0% at $1.19 in the second quarter of 2026, compared with $1.00 for the same period in 2025.

Progressive Leasing Results

Progressive Leasing's second quarter GMV of $428.1 million was up 3.4% compared to the same period in 2025. Revenues were $550.6 million, down 3.4% from the prior year. The provision for lease merchandise write-offs for the quarter was 8.4% of leasing revenues. Earnings before taxes for the second quarter of 2026 were $45.4 million, down 11.9% from the second quarter of 2025. Adjusted EBITDA was $69.9 million, up 0.3% from the second quarter of 2025.

Four Results

Four's GMV for the second quarter of 2026 was $315.1 million, an increase of 110.6% compared to the same period in the prior year. Revenues were $35.1 million, up 118.2% from the year ago period. Four's earnings before taxes for the second quarter of 2026 were $7.1 million, up 139.9% from the second quarter of 2025. Adjusted EBITDA was $8.7 million, up 111.2% from the second quarter of 2025.

Purchasing Power Results

The Company acquired Purchasing Power on January 2, 2026. Purchasing Power's GMV, which is defined as the total value of merchandise and services purchased and delivered to customers through its platform, was $158.8 million, up 15.2% from the second quarter of 2025 on a standalone basis. Revenues were $130.4 million in the second quarter of 2026. Loss before taxes was $0.3 million and adjusted EBITDA was $10.6 million for the second quarter of 2026.

Liquidity and Capital Allocation

PROG Holdings ended the second quarter of 2026 with cash of $85.2 million and gross debt of $893.7 million. During the quarter, the Company repaid $50.0 million of debt related to the acquisition of Purchasing Power. Since the acquisition of Purchasing Power, the Company has reduced its total debt by $304.9 million. The Company repurchased $10.2 million of its stock in the quarter at an average price of $36.37 per share, leaving $299.4 million of repurchase capacity under its $500 million share repurchase program. Additionally, the Company paid a quarterly cash dividend of $0.14 per share.

2026 Outlook

Due to the strong start to the year and the momentum in the business, the Company is increasing its full year 2026 outlook for revenue and earnings as well as providing guidance for the third quarter of 2026. This outlook assumes an operating environment with no change in the current financial pressures and uncertainties for our customers, no material changes in the Company's decisioning posture, no meaningful increase in unemployment rates for our consumer base, an effective tax rate for non-GAAP EPS of approximately 26% and no impact from additional share purchases.

	Revised 2026 outlook						Previous 2026 outlook
(In thousands, except per share amounts)	Low			High			Low			High

PROG Holdings - Total revenues from continuing operations	$	3,025,000		$	3,100,000		$	3,000,000		$	3,100,000
PROG Holdings - Net earnings from continuing operations		155,000			164,500			150,500			166,000
PROG Holdings - Adjusted EBITDA from continuing operations		355,000			375,000			343,000			370,000
PROG Holdings - Diluted EPS from continuing operations		3.82			4.06			3.68			4.06
PROG Holdings - Diluted non-GAAP EPS from continuing operations		4.75			5.00			4.40			4.80

Progressive Leasing - Total revenues		2,247,500			2,285,000			2,227,500			2,285,000
Progressive Leasing - Earnings before taxes		188,500			193,000			191,000			198,500
Progressive Leasing - Adjusted EBITDA		272,500			279,500			269,500			279,500

Purchasing Power - Total revenues		620,000			640,000			620,000			640,000
Purchasing Power - Earnings before taxes		17,000			21,500			14,500			22,000
Purchasing Power - Adjusted EBITDA		54,000			60,000			50,000			60,000

Four - Total revenues		145,000			157,000			140,000			157,000
Four - Earnings before taxes		22,000			25,000			16,500			20,500
Four - Adjusted EBITDA		30,000			34,000			25,000			29,000

Other - Total revenues		12,500			18,000			12,500			18,000
Other - Loss before taxes		(13,500	)		(10,500	)		(14,500	)		(12,000	)
Other - Adjusted EBITDA		(1,500	)		1,500			(1,500	)		1,500

	Three months ended September 30, 2026 outlook
(In thousands, except per share amounts)	Low		High

PROG Holdings - Total revenues from continuing operations	$	715,000	$	750,000
PROG Holdings - Net earnings from continuing operations		36,000		42,500
PROG Holdings - Adjusted EBITDA from continuing operations		79,000		89,000
PROG Holdings - Diluted EPS from continuing operations		0.86		1.06
PROG Holdings - Diluted non-GAAP EPS from continuing operations		1.00		1.20

Conference Call and Webcast

The Company has scheduled a live webcast and conference call for Wednesday, July 29, 2026, at 8:30 A.M. ET to discuss its financial results for the second quarter of 2026. 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 inclusive, 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; Purchasing Power, a voluntary employee benefit program provider, allowing employees to purchase brand-name products and services through either automatic payroll deductions or allotments; 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 .

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 "continued," "targeted," and "outlook," and similar forward-looking terminology. These risks and uncertainties include (i) continued volatility and challenges in the macroeconomic environment, including due to the war in Iran and related geopolitical disruptions and increases in fuel and other prices, and their impact on: (a) consumer confidence and customer demand for the merchandise that our retail partners and Purchasing Power 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; and (c) 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, and/or Purchasing Power being unable to attract additional employer-clients and retain and grow its relationships with its existing clients, resulting in several aspects of our performance being materially and adversely affected; (v) our businesses being unable to attract new consumers and retain and grow their relationships with their 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; 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) the strength of our balance sheet; (ii) our net leverage ratio; and (iii) our revised full year 2026 outlook and the guidance we provide for the third 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						(Unaudited) Six months ended
	June 30,						June 30,
	2026			2025			2026			2025
Revenues
Lease revenues and fees	$	549,830		$	569,674		$	1,146,694		$	1,221,231
Product and service revenues		128,507			—			234,913			—
Other revenue		41,378			18,829			80,782			35,700
		719,715			588,503			1,462,389			1,256,931
Costs and expenses
Depreciation of lease merchandise		364,311			385,107			773,321			845,550
Cost of product sales		75,702			—			138,208			—
Provision for lease merchandise write-offs		46,499			42,633			90,150			90,651
Operating expenses		143,417			93,409			293,617			191,533
Provision for credit losses		30,667			8,043			54,834			13,544
		660,596			529,192			1,350,130			1,141,278
Gain on sale of lease receivables		4,701			—			11,158			—
Gain on change in fair value of receivables		1,810			—			7,522			—
Operating profit		65,630			59,311			130,939			115,653
Interest expense		(15,217	)		(9,794	)		(33,606	)		(19,757	)
Interest income		394			1,645			1,037			2,518
Earnings from continuing operations before income tax expense		50,807			51,162			98,370			98,414
Income tax expense		13,429			13,581			24,774			26,243
Net earnings from continuing operations		37,378			37,581			73,596			72,171
(Loss) earnings from discontinued operations, net of tax		(349	)		902			(513	)		1,030
Net earnings	$	37,029		$	38,483		$	73,083		$	73,201
Basic earnings per share
Continuing operations	$	0.93		$	0.94		$	1.84		$	1.78
Discontinued operations		(0.01	)		0.02			(0.01	)		0.03
Total basic earnings per share	$	0.92		$	0.96		$	1.83		$	1.81
Diluted earnings per share
Continuing operations	$	0.92		$	0.93		$	1.81		$	1.75
Discontinued operations		(0.01	)		0.02			(0.01	)		0.03
Total diluted earnings per share	$	0.91		$	0.95		$	1.80		$	1.78

Cash dividend declared per share
Common stock	$	0.14		$	0.13		$	0.28		$	0.26
Weighted average shares outstanding
Basic		40,177			40,130			40,038			40,484
Diluted		40,734			40,559			40,772			41,203


PROG Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share data)

	(Unaudited)
	June 30, 2026			December 31, 2025
Assets
Cash and cash equivalents	$	85,201		$	308,774
Restricted cash		7,168			—
Receivables (net of allowances and unearned interest income of $94,401 in 2026 and $68,806 in 2025; includes $106,069 recorded at fair value in 2026)¹		374,522			74,228
Other receivables (net of allowances and unearned interest income of $7,137 in 2026 and $— in 2025; includes $10,063 recorded at fair value in 2026)¹		39,777			—
Lease merchandise (net of accumulated depreciation and allowances of $429,925 in 2026 and $407,104 in 2025)		531,071			609,009
Loans receivable (net of allowances and unamortized fees of $19,808 in 2026 and $18,246 in 2025)		74,312			90,648
Property and equipment, net		24,414			19,526
Goodwill and other intangibles, net		763,089			353,835
Income tax receivable		25,150			47,894
Deferred income tax assets		18,852			19,561
Prepaid expenses and other assets		93,827			73,383
Assets of discontinued operations		10,683			13,550
Total assets	$	2,048,066		$	1,610,408
Liabilities and shareholders' equity
Accounts payable and accrued expenses	$	148,668		$	96,471
Debt, net¹		887,064			594,861
Deferred income tax liabilities		157,177			121,152
Other liabilities		47,012			44,676
Liabilities of discontinued operations		2,805			6,831
Total liabilities		1,242,726			863,991
Shareholders' equity
Common stock, par value $0.50 per share: authorized: 225,000,000 shares at June 30, 2026 and December 31, 2025; shares issued: 82,078,654 at June 30, 2026 and December 31, 2025		41,039			41,039
Additional paid-in capital		357,133			363,583
Retained earnings		1,656,044			1,594,685
		2,054,216			1,999,307
Less: treasury shares at cost
Common stock: 42,247,309 shares at June 30, 2026 and 42,502,844 at December 31, 2025		(1,248,876	)		(1,252,890	)
Total shareholders' equity		805,340			746,417
Total liabilities and shareholders' equity	$	2,048,066		$	1,610,408

¹	As of June 30, 2026 receivables included $381.4 million of contractual amounts outstanding of consolidated VIEs that can only be used to settle their obligations, and debt included $293.7 million of liabilities of consolidated VIEs for which creditors have no recourse to the Company.


PROG Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)

	(Unaudited)
	Six months ended June 30,
	2026			2025
Operating activities
Net earnings	$	73,083		$	73,201
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation of lease merchandise		773,321			845,550
Other depreciation and amortization		25,208			12,111
Provisions for accounts receivable and credit losses		213,345			198,650
Stock-based compensation		16,842			14,536
Gain on change in fair value of receivables		(7,522	)		—
Deferred income taxes		17,746			(20,049	)
Gain on sale of receivables		(11,706	)		—
Non-cash lease expense		(1,284	)		(1,642	)
Other changes, net		1,513			(943	)
Changes in operating assets and liabilities, net of effects of the acquisition:
Additions to lease merchandise		(814,049	)		(784,951	)
Book value of lease merchandise sold or disposed		118,665			93,340
Accounts receivable		(109,136	)		(147,179	)
Prepaid expenses and other assets		(1,989	)		5,480
Income tax receivable and payable		22,722			1,749
Accounts payable and accrued expenses		(37,179	)		(4,620	)
Customer deposits and advance payments		(1,644	)		(5,413	)
Cash provided by operating activities		277,936			279,820
Investing activities
Investments in loans receivable		(599,515	)		(370,099	)
Proceeds from loans receivable		592,456			339,206
Funding of other receivables		(45,919	)		—
Collections from other receivables		38,565			—
Purchases of property and equipment		(8,194	)		(3,896	)
Proceeds from sale of property and equipment		234			—
Acquisition of business, net of cash acquired		(391,845	)		—
Cash used in investing activities		(414,218	)		(34,789	)
Financing activities
Proceeds from debt		546,178			—
Repayments on debt		(591,108	)		(50,000	)
Dividends paid		(11,218	)		(10,443	)
Acquisition of treasury stock		(10,185	)		(51,775	)
Issuance of stock under stock option and employee purchase plans		1,135			1,028
Cash paid for shares withheld for employee taxes		(10,297	)		(7,385	)
Debt issuance costs		(4,628	)		(84	)
Cash used in financing activities		(80,123	)		(118,659	)
(Decrease) increase in cash, cash equivalents and restricted cash		(216,405	)		126,372
Cash, cash equivalents and restricted cash at beginning of period		308,774			95,655
Cash, cash equivalents and restricted cash at end of period	$	92,369		$	222,027
Net cash (received) paid during the period:
Interest	$	31,774		$	18,795
Income taxes	$	(15,643	)	$	45,044


PROG Holdings, Inc.
Quarterly Revenues by Segment
(In thousands)

	(Unaudited)
	Three months ended
	June 30, 2026
	Progressive Leasing		Purchasing Power		Four		Other		Consolidated total
Lease revenues and fees	$	549,830	$	—	$	—	$	—	$	549,830
Product and service revenues		—		128,507		—		—		128,507
Other revenue		724		1,877		35,085		3,692		41,378
Total revenues	$	550,554	$	130,384	$	35,085	$	3,692	$	719,715

	(Unaudited)
	Three months ended
	June 30, 2025
	Progressive Leasing		Purchasing Power		Four		Other		Consolidated total
Lease revenues and fees	$	569,674	$	—	$	—	$	—	$	569,674
Product and service revenues		—		—		—		—		—
Other revenue		—		—		16,076		2,753		18,829
Total revenues	$	569,674	$	—	$	16,076	$	2,753	$	588,503


PROG Holdings, Inc.
Six Month Revenues by Segment
(In thousands)

	(Unaudited)
	Six months ended
	June 30, 2026
	Progressive Leasing		Purchasing Power		Four		Other		Consolidated total
Lease revenues and fees	$	1,146,694	$	—	$	—	$	—	$	1,146,694
Product and service revenues		—		234,913		—		—		234,913
Other revenue		724		2,606		70,052		7,400		80,782
Total revenues	$	1,147,418	$	237,519	$	70,052	$	7,400	$	1,462,389

	(Unaudited)
	Six months ended
	June 30, 2025
	Progressive Leasing		Purchasing Power		Four		Other		Consolidated total
Lease revenues and fees	$	1,221,231	$	—	$	—	$	—	$	1,221,231
Product and service revenues		—		—		—		—		—
Other revenue		—		—		30,505		5,195		35,700
Total revenues	$	1,221,231	$	—	$	30,505	$	5,195	$	1,256,931


PROG Holdings, Inc.
Quarterly Gross Merchandise Volume by Segment
(In thousands)

	(Unaudited)
	Three months ended June 30,				Change
	2026		2025		$		%
Progressive Leasing	$	428,116	$	413,872	$	14,244	3.4	%
Purchasing Power		158,794		—		158,794	nmf
Four		315,107		149,632		165,475	110.6
Total GMV	$	902,017	$	563,504	$	338,513	60.1	%

nmf - Calculation is not meaningful

	(Unaudited)
	Purchasing Power
	Pre-Acquisition Gross Merchandise Volume
	Three months ended								Twelve months ended
	March 31, 2025		June 30, 2025		September 30, 2025		December 31, 2025		December 31, 2025
Gross merchandise volume	$	120,287	$	137,890	$	143,516	$	247,641	$	649,334

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 third quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction-related costs, legal settlement 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 six months ended June 30, 2026 exclude intangible amortization expense, transaction and integration costs, restructuring costs, legal settlement, 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 six months ended June 30, 2025 exclude intangible amortization expense, restructuring expenses, and costs related to the cybersecurity incident, net of insurance recoveries. 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 third quarter 2026 outlook also excludes stock-based compensation expense, transaction-related costs for the acquisition of Purchasing Power, restructuring charges, legal settlement, and the operations of Vive. Adjusted EBITDA for the full year and third quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three and six months ended June 30, 2026 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, legal settlement, and transaction and integration costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three and six months ended June 30, 2025 also excludes stock-based compensation expense 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. 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:

Are widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors.
Are used by rating agencies, lenders and other parties to evaluate our creditworthiness.
Are used by our management for various purposes, including as a measure of performance of our operating entities and as a basis for strategic planning and forecasting.

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)						(Unaudited)
	Three months ended						Six months ended
	June 30,						June 30,
	2026			2025			2026			2025
Net earnings from continuing operations	$	37,378		$	37,581		$	73,596		$	72,171
Add: Intangible amortization expense		8,588			4,000			20,400			8,001
Add: Restructuring expense		44			—			3,916			—
Add: Costs related to the cybersecurity incident, net of insurance recoveries		—			127			9			109
Add: Transaction and integration costs		1,872			—			11,563			—
Add: Legal settlement		4,750			—			4,750			—
Less: Gain on change in fair value of receivables		—			—			(5,712	)		—
Less: Tax impact of adjustments⁽¹⁾		(3,966	)		(1,073	)		(9,081	)		(2,109	)
Non-GAAP net earnings from continuing operations	$	48,666		$	40,635		$	99,441		$	78,172
Diluted earnings per share from continuing operations		0.92			0.93			1.81			1.75
Add: Intangible amortization expense		0.21			0.10			0.50			0.20
Add: Restructuring expense		—			—			0.10			—
Add: Costs related to the cybersecurity incident, net of insurance recoveries		—			—			—			—
Add: Transaction and integration costs		0.05			—			0.28			—
Add: Legal settlement		0.12			—			0.12			—
Less: Gain on change in fair value of receivables		—			—			(0.14	)		—
Less: Tax impact of adjustments⁽¹⁾		(0.10	)		(0.03	)		(0.22	)		(0.05	)
Non-GAAP diluted earnings per share from continuing operations⁽²⁾	$	1.19		$	1.00		$	2.44		$	1.90
Diluted weighted average shares outstanding		40,734			40,559			40,772			41,203

(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
	June 30, 2026
	Progressive Leasing		Purchasing Power			Four		Other			Consolidated total
Net earnings from continuing operations											$	37,378
Income tax expense⁽¹⁾												13,429
Earnings (loss) from continuing operations before income tax expense	$	45,430	$	(291	)	$	7,059	$	(1,391	)		50,807
Interest expense, net		9,238		259			1,140		74			10,711
Depreciation		1,653		225			26		566			2,470
Amortization		545		7,813			230		—			8,588
EBITDA from continuing operations		56,866		8,006			8,455		(751	)		72,576
Stock-based compensation		8,294		638			244		1			9,177
Transaction and integration costs		—		1,872			—		—			1,872
Restructuring expense		—		44			—		—			44
Legal settlement		4,750		—			—		—			4,750
Adjusted EBITDA from continuing operations	$	69,910	$	10,560		$	8,699	$	(750	)	$	88,419

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

	(Unaudited)
	Three months ended
	June 30, 2025
	Progressive Leasing		Four			Other			Consolidated total
Net earnings from continuing operations									$	37,581
Income tax expense⁽¹⁾										13,581
Earnings (loss) from continuing operations before income tax expense	$	51,546	$	2,943		$	(3,327	)		51,162
Interest expense, net		6,424		945			780			8,149
Depreciation		1,301		19			530			1,850
Amortization		3,771		229			—			4,000
EBITDA from continuing operations		63,042		4,136			(2,017	)		65,161
Stock-based compensation		6,565		(18	)		193			6,740
Costs related to the cybersecurity incident, net of insurance recoveries		127		—			—			127
Adjusted EBITDA from continuing operations	$	69,734	$	4,118		$	(1,824	)	$	72,028

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


PROG Holdings, Inc.
Non-GAAP Financial Information
Six Month Segment Adjusted EBITDA
(In thousands)

	(Unaudited)
	Six months ended
	June 30, 2026
	Progressive Leasing		Purchasing Power			Four		Other			Consolidated total
Net earnings from continuing operations											$	73,596
Income tax expense⁽¹⁾												24,774
Earnings (loss) from continuing operations before income tax expense	$	97,390	$	(7,791	)	$	18,449	$	(9,678	)		98,370
Interest expense, net		20,841		682			2,213		77			23,813
Depreciation		3,193		498			50		1,067			4,808
Amortization		4,316		15,625			459		—			20,400
EBITDA from continuing operations		125,740		9,014			21,171		(8,534	)		147,391
Stock-based compensation		15,581		1,052			433		(277	)		16,789
Transaction and integration costs		—		3,653			—		7,910			11,563
Restructuring expense		526		3,387			—		3			3,916
Gain on change in fair value of receivables		—		(5,712	)		—		—			(5,712	)
Costs related to the cybersecurity incident, net of insurance recoveries		9		—			—		—			9
Legal settlement		4,750		—			—		—			4,750
Adjusted EBITDA from continuing operations	$	146,606	$	11,394		$	21,604	$	(898	)	$	178,706

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


PROG Holdings, Inc.
Non-GAAP Financial Information
Six Month Segment Adjusted EBITDA
(In thousands)

	(Unaudited)
	Six months ended
	June 30, 2025
	Progressive Leasing		Four		Other			Consolidated total
Net earnings from continuing operations								$	72,171
Income tax benefit⁽¹⁾									26,243
Earnings (loss) from continuing operations before income tax benefit	$	100,171	$	4,913	$	(6,670	)		98,414
Interest expense, net		13,587		2,178		1,474			17,239
Depreciation		2,658		181		985			3,824
Amortization		7,542		459		—			8,001
EBITDA from continuing operations		123,958		7,731		(4,211	)		127,478
Stock-based compensation		12,872		674		784			14,330
Restructuring expense		—		—		—			—
Costs related to the cybersecurity incident, net of insurance recoveries		109		—		—			109
Adjusted EBITDA from continuing operations	$	136,939	$	8,405	$	(3,427	)	$	141,917

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


PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Revised 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					$155,000 - $164,500
Income tax expense⁽¹⁾					59,000 - 61,000
Projected earnings (loss) from continuing operations before income tax expense	$188,500 - $193,000	$17,000 - $21,500	$22,000 - $25,000	$(13,500) - $(10,500)	214,000 - 225,500
Interest expense, net	38,000	1,000 - 2,000	5,500 - 6,000	500	45,000 - 47,500
Depreciation	6,500 - 7,500	1,000	500	3,000	11,000 - 12,000
Amortization	4,000	32,000	1,000	—	37,000
Projected EBITDA from continuing operations	237,000 - 242,500	51,000 - 56,500	29,000 - 32,500	(10,000) - (7,000)	307,000 - 322,000
Stock-based compensation	30,500 - 31,500	2,000 - 2,500	1,000 - 1,500	500	34,000 - 38,000
Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements	5,000 - 5,500	1,000	—	8,000	14,000 - 15,000
Projected adjusted EBITDA from continuing operations	$272,500 - 279,500	$54,000 - $60,000	$30,000 - $34,000	$(1,500) - $1,500	$355,000 - $375,000

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


PROG Holdings, Inc.
Non-GAAP Financial Information
Reconciliation of Previous 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					$150,500 - $166,000
Income tax expense⁽¹⁾					57,000 - 63,000
Projected earnings (loss) from continuing operations before income tax expense	$191,000 - $198,500	$14,500 - $22,000	$16,500 - $20,500	$(14,500) - $(12,000)	207,500 - 229,000
Interest expense, net	38,000	1,500 - 2,000	5,500	1,500 - 2,000	46,500 - 47,500
Depreciation	6,500 - 7,500	5,500 - 6,000	500	3,000	15,500 - 17,000
Amortization	4,000	32,000	1,000	—	37,000
Projected EBITDA from continuing operations	239,500 - 248,000	53,500 - 62,000	23,500 - 27,500	(10,000) - (7,000)	306,500 - 330,500
Stock-based compensation	29,500 - 30,500	2,000 - 3,000	1,500	500	33,500 - 35,500
Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements	500 - 1,000	(5,500) - (5,000)	—	8,000	3,000 - 4,000
Projected adjusted EBITDA from continuing operations	$269,500 - $279,500	$50,000 - $60,000	$25,000 - $29,000	$(1,500) - $1,500	$343,000 - $370,000

(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 September 30, 2026 Outlook for Adjusted EBITDA
(In thousands)

	Three months ended September 30, 2026
	Consolidated total
Estimated net earnings from continuing operations	$36,000 - $42,500
Income tax expense⁽¹⁾	14,000 - 16,500
Projected earnings from continuing operations before income tax expense	50,000 - 59,000
Interest expense, net	9,500
Depreciation	3,000 - 4,000
Amortization	8,000
Projected EBITDA from continuing operations	70,500 - 80,500
Stock-based compensation	8,500
Restructuring/transaction costs/legal settlements	-
Projected adjusted EBITDA from continuing operations	$79,000 - $89,000

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


PROG Holdings, Inc.
Reconciliation of Revised 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	$	3.82		$	4.06
Add: Projected intangible amortization expense		0.91			0.91
Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements		0.35			0.37
Subtract: Tax effect on non-GAAP adjustments⁽¹⁾		(0.32	)		(0.33	)
Projected non-GAAP diluted earnings per share from continuing operations⁽²⁾	$	4.75		$	5.00

(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 Previous 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	$	3.68		$	4.06
Add: Projected intangible amortization expense		0.90			0.90
Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements		0.07			0.10
Subtract: Tax effect on non-GAAP adjustments⁽¹⁾		(0.25	)		(0.26	)
Projected non-GAAP diluted earnings per share from continuing operations⁽²⁾	$	4.40		$	4.80

(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 September 30, 2026 Outlook for Diluted
Earnings Per Share to Non-GAAP Diluted Earnings Per Share

	Three months ended September 30, 2026
	Low			High
Projected diluted earnings per share from continuing operations	$	0.86		$	1.06
Add: Projected intangible amortization expense		0.20			0.20
Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements		—			—
Subtract: Tax effect on non-GAAP adjustments⁽¹⁾		(0.05	)		(0.05	)
Projected non-GAAP diluted earnings per share from continuing operations⁽²⁾	$	1.00		$	1.20

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260729683184/en/

Investor Contact

John A. Baugh, CFA

Vice President, Investor Relations

john.baugh@progholdings.com