Open the filing on EDGARPROG Holdings Reports Fourth Quarter 2025 Results
- Consolidated revenues from Continuing Operations of $574.6 million; Net earnings of $40.5 million
- Adjusted EBITDA from Continuing Operations of $61.5 million
- Diluted EPS from Continuing Operations of $0.49; Non-GAAP Diluted EPS from Continuing Operations of $0.74
- Progressive Leasing GMV of $534 million, PROG Marketplace GMV up 187%
- Four Technologies grows GMV 126%
SALT LAKE CITY, February 18, 2026 - 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 EndedMarch 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:
Forward-looking statements notice
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.
Consolidated Statement of Earnings
(In thousands, except per share data)
| (Unaudited) Three Months Ended | Year Ended |
|---|
| December 31, | 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 | |
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 | 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 | 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 |
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 | - | | 41 | |
| 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 | |
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 |
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 |
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:
- 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.
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) | |
|---|
| Three Months Ended | Twelve Months Ended |
|---|
| Mar 31, | Jun 30, | Sept 30, | Dec 31, | 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 | 2,798 | |
| Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries | (18) | 127 | 58 | (255) | (88) | |
| Add: Transaction-related Costs | - | - | - | 2,179 | 2,179 | |
| Add: Write-off of Assets due to Retailer Bankruptcy | - | - | - | 4,996 | 4,996 | |
| Less: Tax Impact of Adjustments | (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 | 0.10 | 0.10 | 0.10 | 0.39 | |
| Add: Restructuring Expense | - | - | - | 0.07 | 0.07 | |
| Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries | - | - | - | (0.01) | - | |
| Add: Transaction-related Costs | - | - | - | 0.05 | 0.05 | |
| Add: Write-off of Assets due to Retailer Bankruptcy | - | - | - | 0.12 | 0.12 | |
| Less: Tax Impact of Adjustments | (0.02) | (0.03) | (0.03) | (0.09) | (0.16) | |
| Non-GAAP Diluted Earnings Per Share from Continuing Operations | $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 | |
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.
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) | |
|---|
| Three Months Ended | Twelve Months Ended |
|---|
| Mar 31, | Jun 30, | Sept 30, | Dec 31, | 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 | 4,000 | 17,889 | |
| Add: Restructuring Expense | 18,014 | 2,886 | 6 | (68) | 20,838 | |
| Add: Costs Related to the Cybersecurity Incident, Net of Insurance Recoveries | 116 | 116 | 114 | (61) | 285 | |
| Less: Tax Impact of Adjustments | (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 | 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 | 0.09 | 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 | (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 | 0.02 | - | - | 0.05 | |
| Non-GAAP Diluted Earnings Per Share from Continuing Operations | $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 | |
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.
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 | | | | 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 | 25 | 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 | 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.
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 | | | | (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.
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 | | | | 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 | 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.
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 | | | | (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.
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 | | | | | 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.
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 | 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.
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 | 0.29 |
| Subtract: Tax Effect on Non-GAAP Adjustments | (0.22) | (0.22) |
| Projected Non-GAAP Diluted Earnings Per Share from Continuing Operations | $4.00 | $4.45 |
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.
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 | 0.22 |
| Add: Restructuring/ Regulatory Insurance Recoveries/ Cyber/ Transaction-related Costs | 0.42 | 0.42 |
| Subtract: Tax Effect on Non-GAAP Adjustments | (0.17) | (0.17) |
| Projected Non-GAAP Diluted Earnings Per Share from Continuing Operations | $0.70 | $0.90 |
(2)In some cases, the sum of individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.
Contacts
John A. Baugh, CFA
Vice President, Investor Relations john.baugh@progholdings.com