PROG (PRG) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded the high end of outlook for revenue and earnings, with consolidated revenue of $742.7 million (up 11.1% year-over-year), adjusted EBITDA of $90.3 million (up 29.2%), and non-GAAP EPS of $1.24 (up 37.8%), driven by strong performance at Four and the addition of Purchasing Power.

• Gross merchandise volume (GMV) surged 54.4% year-over-year to $805.6 million, reflecting triple-digit growth at Four, the addition of Purchasing Power, and a sequential improvement at Progressive Leasing.

• Net leverage ratio improved to 2.0x following $210 million in recourse debt reduction post-Purchasing Power acquisition.

• Outperformance attributed to disciplined execution, improved portfolio yield, lower early buyout utilization, and strong digital and marketing channels.

• Integration of Purchasing Power is progressing well, with new employer clients added and double-digit GMV growth.

Financial highlights

• Consolidated revenues: $742.7 million, up 11.1% year-over-year.

• Adjusted EBITDA: $90.3 million (12.2% margin), up 29.2% year-over-year.

• Non-GAAP EPS: $1.24, up 37.8% year-over-year.

• Net earnings from continuing operations: $36.2 million, up 3.8% year-over-year.

• GMV: $805.6 million, up 54.4% year-over-year.

Outlook and guidance

• Full-year 2026 revenue outlook raised to $3.0–$3.1 billion; adjusted EBITDA guidance increased to $343–$370 million; non-GAAP EPS projected at $4.40–$4.80.

• Q2 2026 revenue guidance: $700–$725 million; non-GAAP EPS: $0.85–$1.05.

• Three-year CAGR targets (to 2028): GMV 20–25%, revenue 5–8%, adjusted EBITDA 13–16%, non-GAAP EPS 17–20%.

• Full-year leased merchandise write-offs expected within 6%-8% range.

• Guidance assumes stable macro environment, no major changes in unemployment or decisioning posture.