PROG Holdings, Inc.

Q2 2026 consolidated GMV grew 60% year over year to $902 million. Revenue from continuing operations was $719.7 million, up 22.3% year over year. Consolidated adjusted EBITDA was $88.4 million, or a 12.3% margin, and non-GAAP diluted EPS was $1.19; both exceeded the high end of April guidance. By segment, Progressive Leasing GMV was $428.1 million and revenue was $550.3 million, down 3.4% year over year, with gross margin of 33.8% and adjusted EBITDA margin of 12.7%. Four GMV was $315 million, revenue was $35.1 million, and adjusted EBITDA was $8.7 million. Purchasing Power GMV was $158.8 million, revenue was $130.4 million, and adjusted EBITDA was $10.6 million. Management raised 2026 outlook to revenue of $3.025 billion to $3.1 billion, adjusted EBITDA of $355 million to $375 million, and non-GAAP EPS of $4.75 to $5.00. Leasing write-offs are expected to remain within the 6% to 8% annual range, near the high end.

Steven Michaels framed the quarter as a broad-based execution win, emphasizing that every product contributed and that the company is growing despite a stressed but resilient consumer. He highlighted strategic progress in the ecosystem, including cross-sell, AI-enabled product improvements, and stronger direct-to-consumer and e-commerce channels. His tone was confident and upbeat, repeatedly stressing discipline in portfolio management and saying the best chapters of PROG’s story are still ahead.

Brian Garner focused on the financial drivers behind the beat: Progressive Leasing gross margin improved to 33.8% from a year ago, adjusted EBITDA margin reached 12.7%, and write-offs were 8.4% of revenue, which he said was consistent with an intentionally dynamic portfolio approach. He noted that Four’s margin was 24.8% and Purchasing Power’s adjusted EBITDA improved from $800,000 in Q1 to $10.6 million in Q2, helped by operating leverage, mix, pricing, and lower interest expense on securitized debt. He also emphasized balance-sheet improvement, with unrestricted cash of about $85.2 million, total available liquidity of $435.2 million, recourse debt down to $600 million, and net leverage at 1.7x; the company repurchased 280,000 shares at an average price of $36.34 and continued paying a quarterly dividend of $0.14 per share.

Analysts pressed on whether the consumer is truly recovering, with management saying the customer remains stressed but resilient and that lower early buyout activity reflects liquidity pressure rather than a broad demand collapse. On Progressive write-offs, management said the higher rate was deliberate, driven by the tradeoff between portfolio yield and lower approval rates, and that the 6% to 8% target is an annual range, not a quarterly one. Questions on Four centered on who the customers are and how the business scales; management said the core is near-prime and below but includes some prime repeat users, and that AI-heavy operations are enabling strong growth without proportional headcount increases.