Earnings release
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PROG Holdings Reports Third Quarter 2026 Results October 28, 2026 PDF Version Consolidated revenues from continuing operations of $725.8 million, up 25.6%; Net earnings from continuing operations of $37.5 million Adjusted EBITDA from continuing operations of $80.0 million, up 21.8% Diluted EPS from continuing operations of $0.92; Non-GAAP Diluted EPS from continuing operations of $1.06, up 21.8% Consolidated GMV of $912.0 million, up 58.9% Net leverage ratio ended the quarter at 1.5x Company announces intention to enter into $100 million accelerated share repurchase program during the fourth quarter, Board replenishes and extends current share repurchase program SALT LAKE CITY--(BUSINESS WIRE)--Oct. 28, 2026-- PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, Four Technologies, MoneyApp and Purchasing Power, today announced financial results for the third quarter ended September 30, 2026, which includes the results of Purchasing Power since January 2, 2026, the date the Company acquired Purchasing Power. "Our third-quarter results reflect the strength and resilience of our diversified platform and the discipline with which we run it, with consolidated GMV growth of 59% and continued profitability even against a more pressured consumer backdrop," said Steve Michaels, PROG Holdingsʼ Chairman, President and Chief Executive Officer. "We are taking a more cautious view of the consumer as we close out the year, but the fundamentals of our business remain strong, and our strategic progress is clear. Our growth engine is working, and we are improving portfolio metrics with our active management in the face of macro pressures. Every part of our ecosystem is contributing, with Four delivering profitable, triple-digit growth and Purchasing Power performing as expected as it enters its most important quarter of the year. Together with a healthy balance sheet, we believe this will continue to give us the flexibility to invest in the business while returning meaningful capital to shareholders. We continued repurchasing shares throughout the third quarter and we are announcing today our intention to enter into an accelerated share repurchase program, which reflects our deep conviction in the long-term value we are building. This keeps us on track to deliver against the multi-year growth targets we laid out at our Investor Day in March." Consolidated Results Consolidated revenues for the third quarter of 2026 were $725.8 million, an increase of 25.6% from the same period in 2025. Consolidated net earnings from continuing operations for the quarter were $37.5 million, compared with $32.3 million in the prior year period. The effective income tax rate was 28.4% in the third quarter of 2026, compared to 27.8% in the same period in the prior year. Adjusted EBITDA from continuing operations for the quarter was $80.0 million, or 11.0% of revenues, compared with $65.7 million, or 11.4% of revenues for the same period in 2025. Diluted earnings per share from continuing operations for the third quarter of 2026 were $0.92, compared with $0.80 in the year ago period. On a non-GAAP basis, diluted earnings per share from continuing operations were up 21.8% at $1.06 in the third quarter of 2026, compared with $0.87 for the same period in 2025. Progressive Leasing Results Progressive Leasing's third quarter GMV of $420.4 million was up 2.3% compared to the same period in 2025. Revenues were $552.7 million, down 0.7% from the prior year. The provision for lease merchandise write-offs for the quarter was 8.3% of leasing revenues. Earnings before taxes for the third quarter of 2026 were $40.8 million, down 12.7% from the third quarter of 2025. Adjusted EBITDA was $56.5 million, down 12.3% from the third quarter of 2025. Four Results Four's GMV for the third quarter of 2026 was $330.4 million, an increase of 102.6% compared to the same period in the prior year. Revenues were $37.2 million, up 113.8% from the year ago period. Four's earnings before taxes for the third quarter of 2026 were $10.0 million, up 683.6% from the third quarter of 2025. Adjusted EBITDA was $11.4 million, up 323.3% from the third 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 $161.2 million, up 12.3% from the third quarter of 2025 on a standalone basis. Revenues were $131.8 million in the third quarter of 2026. Earnings before taxes were $3.0 million and adjusted EBITDA was $12.9 million for the third quarter of 2026. Liquidity and Capital Allocation PROG Holdings ended the third quarter of 2026 with cash of $108.9 million and gross debt of $872.0 million. Since the acquisition of Purchasing Power, the Company has reduced its total debt by $326.6 million. The Company repurchased $36.7 million of its stock in the quarter at an average price of $41.47 per share. In connection with the Companyʼs intention to enter into an accelerated share repurchase ("ASR") program announced today, the Companyʼs Board of Directors replenished its current share repurchase program, adding an additional $237.3 million to bring the total amount available for future repurchases to $500.0 million. The term of the Companyʼs share repurchase program, which was set to expire on February 21, 2027, was also extended through October 26, 2029. Additionally, the Company paid a quarterly cash dividend of $0.14 per share. 2026 Outlook Given the ongoing macroeconomic pressures on many of our consumers, the Company is reducing its revenues and earnings outlook ranges for the Fiscal Year ending December 31, 2026 as well as providing outlook for the fourth quarter of 2026. This outlook assumes an operating environment for the remainder of the year that is consistent with current conditions including 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, and an effective tax rate for non- GAAP EPS of approximately 26%. This outlook also assumes we enter into the ASR program during the fourth quarter of 2026 to repurchase $100.0 million of our common stock, with our non-GAAP EPS outlook reflecting only the initial delivery of approximately 80% of the shares to be repurchased, and excluding the remaining shares, if any, delivered at final settlement. However, there can be no assurance that we will enter into the ASR program as anticipated or at all.
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Revised 2026 outlook Previous 2026 outlook (In thousands, except per share amounts) Low High Low High PROG Holdings - Total revenues from continuing operations $ 3,015,000 $ 3,050,000 $ 3,025,000 $ 3,100,000 PROG Holdings - Net earnings from continuing operations 152,000 158,500 155,000 164,500 PROG Holdings - Adjusted EBITDA from continuing operations 345,000 355,000 355,000 375,000 PROG Holdings - Diluted EPS from continuing operations 3.78 3.93 3.82 4.06 PROG Holdings - Diluted non-GAAP EPS from continuing operations 4.70 4.85 4.75 5.00 Progressive Leasing - Total revenues 2,252,500 2,260,000 2,247,500 2,285,000 Progressive Leasing - Earnings before taxes 178,500 179,000 188,500 193,000 Progressive Leasing - Adjusted EBITDA 261,500 264,000 272,500 279,500 Purchasing Power - Total revenues 605,000 615,000 620,000 640,000 Purchasing Power - Earnings before taxes 14,000 18,500 17,000 21,500 Purchasing Power - Adjusted EBITDA 51,000 55,500 54,000 60,000 Four - Total revenues 145,000 157,000 145,000 157,000 Four - Earnings before taxes 28,000 30,000 22,000 25,000 Four - Adjusted EBITDA 35,000 37,500 30,000 34,000 Other - Total revenues 12,500 18,000 12,500 18,000 Other - Loss before taxes (13,500) (13,000) (13,500) (10,500) Other - Adjusted EBITDA (2,500) (2,000) (1,500) 1,500 Three months ended December 31, 2026 outlook (In thousands, except per share amounts) Low High PROG Holdings - Total revenues from continuing operations $ 827,000$ 862,000 PROG Holdings - Net earnings from continuing operations 40,000 45,500 PROG Holdings - Adjusted EBITDA from continuing operations 86,000 96,000 PROG Holdings - Diluted EPS from continuing operations 1.04 1.16 PROG Holdings - Diluted non-GAAP EPS from continuing operations 1.20 1.32 Conference Call and Webcast The Company has scheduled a live webcast and conference call for Wednesday, October 28, 2026, at 8:30 A.M. ET to discuss its financial results for the third quarter of 2026. To access the live webcast, visit the Events and Presentations page of the Companyʼs 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 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 "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 customersʼ 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 customersʼ 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) Fourʼs and Purchasing Power's business models differing significantly from Progressive Leasingʼs 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 their 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
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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; (xv) the possibility that the Company does not enter into the ASR program as anticipated or at all; and (xvi) the other risks and uncertainties discussed under "Risk Factors" in the Companyʼs 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 fourth quarter of 2026, including as it relates to our intention to enter into the ASR program. 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) Nine months ended September 30, September 30, 2026 2025 2026 2025 Revenues Lease revenues and fees $ 552,266 $ 556,583 $ 1,698,960 $ 1,777,814 Product and service revenues 128,941 — 363,854 — Other revenue 44,572 21,123 125,354 56,823 725,779 577,706 2,188,168 1,834,637 Costs and expenses Depreciation of lease merchandise 376,821 378,499 1,150,142 1,224,049 Cost of product sales 75,826 — 214,034 — Provision for lease merchandise write-offs 45,977 41,037 136,127 131,688 Operating expenses 135,007 95,588 428,624 287,121 Provision for credit losses 30,526 9,991 85,360 23,535 664,157 525,115 2,014,287 1,666,393 Gain on sale of lease receivables 2,881 — 14,039 — Gain on change in fair value of receivables 1,478 — 9,000 — Operating profit 65,981 52,591 196,920 168,244 Interest expense (14,172) (9,790) (47,778) (29,547) Interest income 501 1,899 1,538 4,417 Earnings from continuing operations before income tax expense 52,310 44,700 150,680 143,114 Income tax expense 14,832 12,433 39,606 38,676 Net earnings from continuing operations 37,478 32,267 111,074 104,438 (Loss) earnings from discontinued operations, net of tax (236) 854 (749) 1,884 Net earnings $ 37,242 $ 33,121 $ 110,325 $ 106,322 Basic earnings per share Continuing operations $ 0.95 $ 0.81 $ 2.78 $ 2.60 Discontinued operations (0.01) 0.02 (0.02) 0.05 Total basic earnings per share $ 0.94 $ 0.83 $ 2.76 $ 2.65 Diluted earnings per share Continuing operations $ 0.92 $ 0.80 $ 2.73 $ 2.55 Discontinued operations (0.01) 0.02 (0.02) 0.05 Total diluted earnings per share $ 0.91 $ 0.82 $ 2.71 $ 2.60 Cash dividend declared per share Common stock $ 0.14 $ 0.13 $ 0.42 $ 0.39 Weighted average shares outstanding Basic 39,627 39,700 39,900 40,220 Diluted 40,550 40,481 40,697 40,960
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PROG Holdings, Inc. Consolidated Balance Sheets (In thousands, except share data) (Unaudited) September 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 108,917 $ 308,774 Restricted cash1 9,663 — Receivables (net of allowances and unearned interest income of $113,841 in 2026 and $68,806 in 2025; includes $39,633 recorded at fair value in 2026)1 374,630 74,228 Other receivables (net of allowances and unearned interest income of $9,098 in 2026 and $0 in 2025; includes $3,494 recorded at fair value in 2026)1 40,415 — Lease merchandise (net of accumulated depreciation and allowances of $442,115 in 2026 and $407,104 in 2025) 511,293 609,009 Loans receivable (net of allowances and unamortized fees of $20,701 in 2026 and $18,246 in 2025) 74,383 90,648 Property and equipment, net 26,482 19,526 Goodwill and other intangibles, net 755,308 353,835 Income tax receivable 22,791 47,894 Deferred income tax assets 18,423 19,561 Prepaid expenses and other assets 104,812 73,383 Assets of discontinued operations 8,483 13,550 Total assets $ 2,055,600 $ 1,610,408 Liabilities and shareholders' equity Accounts payable and accrued expenses $ 159,727 $ 96,471 Debt, net1 865,841 594,861 Deferred income tax liabilities 167,562 121,152 Other liabilities 52,410 44,676 Liabilities of discontinued operations 2,063 6,831 Total liabilities 1,247,603 863,991 Shareholders' equity Common stock, par value $0.50 per share: authorized: 225,000,000 shares at September 30, 2026 and December 31, 2025; shares issued: 82,078,654 at September 30, 2026 and December 31, 2025 41,039 41,039 Additional paid-in capital 363,836 363,583 Retained earnings 1,687,514 1,594,685 2,092,389 1,999,307 Less: treasury shares at cost Common stock: 43,081,978 shares at September 30, 2026 and 42,502,844 at December 31, 2025 (1,284,392) (1,252,890) Total shareholders' equity 807,997 746,417 Total liabilities and shareholders' equity $ 2,055,600 $ 1,610,408 1 As of September 30, 2026, consolidated VIE assets included $356.7 million of receivables and $8.1 million of restricted cash that can only be used to settle their obligations, and consolidated VIE liabilities included $272.0 million of debt for which creditors have no recourse to the Company. See Note 1.
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PROG Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Nine months ended September 30, 2026 2025 Operating activities Net earnings $ 110,325 $ 106,322 Adjustments to reconcile net earnings to cash provided by operating activities: Depreciation of lease merchandise 1,150,142 1,224,049 Other depreciation and amortization 35,522 18,253 Provisions for accounts receivable and credit losses 338,270 305,613 Stock-based compensation 24,963 21,633 Gain on change in fair value of receivables (9,000) — Deferred income taxes 28,560 33,417 Gain on sale of receivables (14,525) — Non-cash lease expense (1,698) (2,280) Other changes, net 1,055 (2,450) Changes in operating assets and liabilities, net of effects of the acquisition: Additions to lease merchandise (1,231,076) (1,180,200) Book value of lease merchandise sold or disposed 178,650 135,240 Accounts receivable (214,787) (236,707) Prepaid expenses and other assets (3,318) 8,742 Income tax receivable and payable 25,763 (40,460) Accounts payable and accrued expenses (28,622) 6,275 Customer deposits and advance payments (4,073) (7,582) Cash provided by operating activities 386,151 389,865 Investing activities Funding of loans receivable (916,128) (596,455) Collections from loans receivable 896,871 534,863 Funding of other receivables (68,810) — Collections from other receivables 60,283 — Purchases of property and equipment (13,013) (7,449) Proceeds from sale of property and equipment 415 — Acquisition of business, net of cash acquired (391,845) — Cash used in investing activities (432,227) (69,041) Financing activities Proceeds from debt 546,178 — Repayments on debt (612,786) (50,000) Dividends paid (16,726) (15,625) Acquisition of treasury stock (46,885) (51,775) Issuance of stock under stock option and employee purchase plans 1,135 1,028 Cash paid for shares withheld for employee taxes (10,406) (7,413) Debt issuance costs (4,628) (84) Cash used in financing activities (144,118) (123,869) (Decrease) increase in cash, cash equivalents and restricted cash (190,194) 196,955 Cash, cash equivalents and restricted cash at beginning of period 308,774 95,655 Cash, cash equivalents and restricted cash at end of period $ 118,580 $ 292,610 Net cash (received) paid during the period: Interest $ 36,414 $ 19,119 Income taxes $ (14,614) $ 46,068 PROG Holdings, Inc. Quarterly Revenues by Segment (In thousands) (Unaudited) Three months ended September 30, 2026 Progressive Leasing Purchasing Power Four Other Consolidated total Lease revenues and fees $ 552,266$ —$ —$ —$ 552,266 Product and service revenues — 128,941 — — 128,941 Other revenue 464 2,855 37,239 4,014 44,572 Total revenues $ 552,730$ 131,796$ 37,239$ 4,014$ 725,779
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(Unaudited) Three months ended September 30, 2025 Progressive Leasing Purchasing Power Four Other Consolidated total Lease revenues and fees $ 556,583$ —$ —$ —$ 556,583 Product and service revenues — — — — — Other revenue — — 17,414 3,709 21,123 Total revenues $ 556,583$ —$ 17,414$ 3,709$ 577,706 PROG Holdings, Inc. Nine Month Revenues by Segment (In thousands) (Unaudited) Nine months ended September 30, 2026 Progressive Leasing Purchasing Power Four Other Consolidated total Lease revenues and fees $ 1,698,960$ —$ —$ —$ 1,698,960 Product and service revenues — 363,854 — — 363,854 Other revenue 1,188 5,461 107,291 11,414 125,354 Total revenues $ 1,700,148$ 369,315$ 107,291$ 11,414$ 2,188,168 (Unaudited) Nine months ended September 30, 2025 Progressive Leasing Purchasing Power Four Other Consolidated total Lease revenues and fees $ 1,777,814$ —$ —$ —$ 1,777,814 Product and service revenues — — — — — Other revenue — — 47,919 8,904 56,823 Total revenues $ 1,777,814$ —$ 47,919$ 8,904$ 1,834,637 PROG Holdings, Inc. Quarterly Gross Merchandise Volume by Segment (In thousands) (Unaudited) Three months ended September 30, Change 2026 2025 $ % Progressive Leasing $ 420,437 $ 410,943 $ 9,494 2.3% Purchasing Power 161,174 — 161,174nmf Four 330,421 163,086 167,335 102.6 Total GMV $ 912,032 $ 574,029 $ 338,003 58.9% 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 fourth quarter 2026 outlook excludes intangible amortization expense, restructuring expenses, transaction and integration costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, 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 nine months ended September 30, 2026 exclude intangible amortization expense, transaction and integration costs, restructuring expenses, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, 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 nine months ended September 30, 2025 exclude intangible amortization expense 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 Companyʼs earnings from continuing operations before interest expense, net on non-asset-backed security borrowings, depreciation on property and equipment, amortization of intangible assets and income taxes. Adjusted EBITDA for the full year and fourth quarter 2026 outlook also excludes stock-based compensation expense, transaction and integration-related costs for the acquisition of Purchasing Power, restructuring charges, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, and the
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operations of Vive. Adjusted EBITDA for the nine months and third quarter 2026 includes estimated interest expense on Purchasing Power's asset-backed secured borrowings. Adjusted EBITDA for the three and nine months ended September 30, 2026 also excludes stock-based compensation expense, costs related to the cybersecurity incident, net of insurance recoveries, restructuring costs, legal settlement, gain on change in fair value of receivables during the first quarter of 2026, and transaction and integration costs for the acquisition of Purchasing Power. Adjusted EBITDA for the three and nine months ended September 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 whose amounts are variable and volatile. 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 companyʼs 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 Companyʼs GAAP basis net earnings and diluted earnings per share and the GAAP revenues and earnings before income taxes of the Companyʼs 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 Nine months ended September 30, September 30, 2026 2025 2026 2025 Net earnings from continuing operations $ 37,478 $ 32,267 $ 111,074 $ 104,438 Add: Intangible amortization expense 7,814 3,999 28,214 12,000 Add: Restructuring expense (798) — 3,118 — Add: Costs related to the cybersecurity incident, net of insurance recoveries — 58 9 167 Add: Transaction and integration costs 388 — 11,951 — Add: Legal settlement — — 4,750 — Less: Gain on change in fair value of receivables — — (5,712) — Less: Tax impact of adjustments(1) (1,925) (1,055) (11,006) (3,164) Non-GAAP net earnings from continuing operations $ 42,957 $ 35,269 $ 142,398 $ 113,441 Diluted earnings per share from continuing operations 0.92 0.80 2.73 2.55 Add: Intangible amortization expense 0.19 0.10 0.69 0.29 Add: Restructuring expense (0.02) — 0.08 — Add: Costs related to the cybersecurity incident, net of insurance recoveries — — — — Add: Transaction and integration costs 0.01 — 0.29 — Add: Legal settlement — — 0.12 — Less: Gain on change in fair value of receivables — — (0.14) — Less: Tax impact of adjustments(1) (0.05) (0.03) (0.27) (0.08) Non-GAAP diluted earnings per share from continuing operations(2) $ 1.06 $ 0.87 $ 3.50 $ 2.77 Diluted weighted average shares outstanding 40,550 40,481 40,697 40,960 (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.
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PROG Holdings, Inc. Non-GAAP Financial Information Quarterly Segment Adjusted EBITDA (In thousands) (Unaudited) Three months ended September 30, 2026 Progressive Leasing Purchasing Power Four Other Consolidated total Net earnings from continuing operations $ 37,478 Income tax expense(1) 14,832 Earnings (loss) from continuing operations before income tax expense $ 40,824 $ 2,963$ 9,983$ (1,460) 52,310 Interest expense, net 8,254 149 1,187 39 9,629 Depreciation 1,601 272 4 623 2,500 Amortization — 7,814 — — 7,814 EBITDA from continuing operations 50,679 11,198 11,174 (798) 72,253 Stock-based compensation 7,472 469 208 4 8,153 Transaction and integration costs — 388 — — 388 Restructuring expense (1,628) 830 — — (798) Adjusted EBITDA from continuing operations $ 56,523 $ 12,885$ 11,382$ (794) $ 79,996 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment. (Unaudited) Three months ended September 30, 2025 Progressive Leasing Four Other Consolidated total Net earnings from continuing operations $ 32,267 Income tax expense(1) 12,433 Earnings (loss) from continuing operations before income tax expense $ 46,738$ 1,274$ (3,312) 44,700 Interest expense, net 5,921 1,013 957 7,891 Depreciation 1,346 14 645 2,005 Amortization 3,770 229 — 3,999 EBITDA from continuing operations 57,775 2,530 (1,710) 58,595 Stock-based compensation 6,638 159 253 7,050 Costs related to the cybersecurity incident, net of insurance recoveries 58 — — 58 Adjusted EBITDA from continuing operations $ 64,471$ 2,689$ (1,457) $ 65,703 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment. PROG Holdings, Inc. Non-GAAP Financial Information Nine Month Segment Adjusted EBITDA (In thousands) (Unaudited) Nine months ended September 30, 2026 Progressive Leasing Purchasing Power Four Other Consolidated total Net earnings from continuing operations $ 111,074 Income tax expense(1) 39,606 Earnings (loss) from continuing operations before income tax expense $ 138,214 $ (4,828) $ 28,432$ (11,138) 150,680 Interest expense, net 29,095 831 3,400 116 33,442 Depreciation 4,794 770 54 1,690 7,308 Amortization 4,316 23,439 459 — 28,214 EBITDA from continuing operations 176,419 20,212 32,345 (9,332) 219,644 Stock-based compensation 23,053 1,521 641 (273) 24,942 Transaction and integration costs — 4,041 — 7,910 11,951 Restructuring expense (1,102) 4,217 — 3 3,118 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 $ 203,129 $ 24,279 $ 32,986$ (1,692) $ 258,702 (1) Taxes are calculated on a consolidated basis and are not identifiable by Company segment.
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PROG Holdings, Inc. Non-GAAP Financial Information Nine Month Segment Adjusted EBITDA (In thousands) (Unaudited) Nine months ended September 30, 2025 Progressive Leasing Four Other Consolidated total Net earnings from continuing operations $ 104,438 Income tax expense(1) 38,676 Earnings (loss) from continuing operations before income tax benefit $ 146,909$ 6,187$ (9,982) 143,114 Interest expense, net 19,508 3,191 2,431 25,130 Depreciation 4,004 195 1,630 5,829 Amortization 11,312 688 — 12,000 EBITDA from continuing operations 181,733 10,261 (5,921) 186,073 Stock-based compensation 19,510 833 1,037 21,380 Costs related to the cybersecurity incident, net of insurance recoveries 167 — — 167 Adjusted EBITDA from continuing operations $ 201,410$ 11,094$ (4,884) $ 207,620 (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 $152,000 - $158,500 Income tax expense(1) 55,000 - 56,000 Projected earnings (loss) from continuing operations before income tax expense $178,500 - $179,000 $14,000 - $18,500 $28,000 - $30,000 $(13,500) - $(13,000) 207,000 - 214,500 Interest expense, net 38,000 - 39,000 1,000 5,000 50044,500 - 45,500 Depreciation 6,000 1,000 500 2,500 10,000 Amortization 4,500 31,000 500 — 36,000 Projected EBITDA from continuing operations 227,000 - 228,500 47,000 - 51,500 34,000 - 36,000 (10,500) - (10,000) 297,500 - 306,000 Stock-based compensation 30,500 - 31,500 2,0001,000 - 1,500 —33,500 - 35,000 Restructuring / change in fair value of receivables / acquisition-related transaction- costs / legal settlements 4,000 2,000 — 8,000 14,000 Projected adjusted EBITDA from continuing operations $261,500 - 264,000 $51,000 - $55,500 $35,000 - $37,500 $(2,500) - $(2,000) $345,000 - $355,000 (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 $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 38,0001,000 - 2,000 5,500 - 6,000 50045,000 - 47,500 Depreciation 6,500 - 7,500 1,000 500 3,00011,000 - 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 50034,000 - 38,000 Restructuring / change in fair value of receivables / acquisition-related transaction- costs / legal settlements 5,000 - 5,500 1,000 — 8,00014,000 - 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
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(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 December 31, 2026 Outlook for Adjusted EBITDA (In thousands) Three months ended December 31, 2026 Consolidated total Estimated net earnings from continuing operations $40,000 - $45,500 Income tax expense(1) 16,000 - 17,500 Projected earnings from continuing operations before income tax expense 56,000 - 63,000 Interest expense, net 11,000 - 12,500 Depreciation 3,000 Amortization 8,000 Projected EBITDA from continuing operations 78,000 - 86,500 Stock-based compensation 8,000 - 9,500 Restructuring / transaction costs / legal settlements — Projected adjusted EBITDA from continuing operations $86,000 - $96,000 (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 $ 3.78 $ 3.93 Add: Projected intangible amortization expense 0.90 0.90 Add: Restructuring / change in fair value of receivables / acquisition-related transaction-costs / legal settlements 0.35 0.35 Subtract: Tax effect on non-GAAP adjustments(1) (0.32) (0.32) Projected non-GAAP diluted earnings per share from continuing operations(2) $ 4.70 $ 4.85 (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 $ 3.82 $ 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 the Three Months Ended December 31, 2026 Outlook for Diluted Earnings Per Share to Non-GAAP Diluted Earnings Per Share Three months ended December 31, 2026 Low High Projected diluted earnings per share from continuing operations $ 1.04 $ 1.16 Add: Projected intangible amortization expense 0.21 0.21 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) $ 1.20 $ 1.32
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(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/20261028827291/en/ Investor Contact John A. Baugh, CFA Vice President, Investor Relations john.baugh@progholdings.com Source: PROG Holdings, Inc. Source investors.progholdings.com Captured 28 okt. 2026 12:32 https://investors.progholdings.com/news-releases/news-release-details/prog-holdings-reports-third-quarter-2026-results