PROG Holdings, Inc. (NYSE:PRG) saw its stock rise more than 2% in pre-market trading on Wednesday after posting third-quarter earnings that surpassed Wall Street forecasts, despite ongoing pressure on consumer spending.
The lease-to-own fintech company reported adjusted earnings of $0.90 per share, topping the analyst estimate of $0.74. Revenue reached $595.1 million, ahead of the $586.11 million consensus, though down 1.8% compared to the same quarter last year.
“Our third quarter results once again highlight the strength and consistency of our execution, even as consumers face ongoing economic pressures,” said Steve Michaels, President and CEO of PROG Holdings.
The company’s largest business unit, Progressive Leasing, recorded gross merchandise volume (GMV) of $410.9 million, down 10% year over year. By contrast, its Four Technologies division continued to deliver rapid expansion, with GMV surging 162.8% and marking its third consecutive quarter of positive adjusted EBITDA.
Profitability remained strong, with adjusted EBITDA of $67 million, or 11.3% of revenue, compared with $63.5 million (10.5%) in the prior-year period.
For the fourth quarter, PROG issued slightly softer guidance than expected, forecasting revenue of $575–$590 million versus the $599.5 million analyst consensus, and adjusted EPS of $0.55–$0.65, below the $0.67 estimate.
The company closed the quarter with $292.6 million in cash and $600 million in gross debt. It also announced the sale of its Vive Financial credit card portfolio, describing the transaction as “a meaningful step in improving our capital efficiency.”
“With a strong product portfolio, solid financial foundation, and continued investment in customer experience, we are well positioned to deliver sustainable growth in 2026 and beyond,” Michaels added.