PROG (PRG) Q4 2025 earnings summary

Executive summary

• 2025 results met or exceeded guidance despite a challenging retail environment and the bankruptcy of a major retail partner, with deliberate tightening in leasing to protect portfolio health resulting in an 8.6% year-over-year decline in leasing GMV.

• Strategic actions included the sale of the Vive portfolio and the acquisition of Purchasing Power to expand offerings and simplify the business.

• Four Technologies (BNPL) delivered triple-digit GMV and revenue growth for the ninth consecutive quarter, and MoneyApp approached breakeven adjusted EBITDA by year-end.

• Direct-to-consumer and e-commerce channels, including PROG Marketplace, saw strong growth, with PROG Marketplace GMV nearly tripling.

• The business is now managed as a multiproduct ecosystem, with consolidated GMV up 12.1% in 2025, driven by Four's 144% growth.

Financial highlights

• Q4 2025 consolidated revenues were $574.6 million, down 5.2% year-over-year, with gross margin up 284 bps to 36.3%.

• Full-year consolidated adjusted EBITDA from continuing operations was $269 million, flat year-over-year and above the high end of guidance.

• Non-GAAP diluted EPS from continuing operations was $3.51, exceeding both October and original February guidance.

• Progressive Leasing Q4 GMV declined 10.6% year-over-year, but digital channels and PROG Marketplace GMV grew 187%.

• Four generated $736 million GMV in 2025 (144% growth) and $10 million adjusted EBITDA, a turnaround from a loss in 2024.

Outlook and guidance

• 2026 consolidated revenue expected at $3.02–$3.14 billion, adjusted EBITDA at $320–$350 million, and non-GAAP EPS at $4.00–$4.45.

• Progressive Leasing faces revenue headwinds in H1 2026 due to a 9.4% smaller lease portfolio, but trends are expected to improve in H2.

• Purchasing Power is expected to contribute $680–$730 million in revenue and $50–$60 million in adjusted EBITDA, with Q1 seasonally breakeven.

• Four Technologies 2026 revenue: $125M–$140M; adjusted EBITDA: $17.5M–$22.5M.

• Q1 2026 revenue outlook: $715M–$745M; non-GAAP diluted EPS: $0.70–$0.90.