PROG (PRG) investor relations material

Executive summary

• Consolidated revenues rose 22.3% year-over-year to $719.7 million, with adjusted EBITDA and non-GAAP EPS exceeding guidance, driven by strong growth at Four, the acquisition of Purchasing Power, and disciplined execution across all segments.

• All segments contributed to growth: Progressive Leasing returned to positive GMV growth, Four achieved its eleventh consecutive quarter of triple-digit GMV growth, and Purchasing Power posted double-digit GMV growth.

• The acquisition of Purchasing Power for $424.2 million expanded the platform and added $130.4 million in quarterly revenue.

• Net leverage ratio improved to 1.7x, enabling resumption of share repurchases and strengthening the balance sheet.

• Strategic focus remains on growth, customer experience, and ecosystem expansion, leveraging AI for operational efficiency.

Financial highlights

• Q2 2026 consolidated revenues were $719.7 million (+22.3% YoY); consolidated GMV reached $902.0 million (+60.1% YoY).

• Adjusted EBITDA was $88.4 million (12.3% margin), and non-GAAP EPS was $1.19, both above guidance.

• Progressive Leasing revenue was $550.3 million (down 3.4% YoY), with GMV up 3.4%; Four revenue grew 118% to $35.1 million, with adjusted EBITDA of $8.7 million (24.8% margin); Purchasing Power revenue was $130.4 million, adjusted EBITDA $10.6 million.

• Net earnings from continuing operations were $37.4 million; diluted EPS was $0.92; operating cash flow for the first six months was $283 million.

• Cash at quarter-end was $85.2 million; gross debt was $893.7 million.

Outlook and guidance

• Full-year 2026 revenue outlook raised to $3.025–$3.1 billion; adjusted EBITDA to $355–$375 million; non-GAAP EPS to $4.75–$5.00.

• Q3 2026 revenue guidance set at $715–$750 million; adjusted EBITDA at $79–$89 million; non-GAAP EPS at $1.00–$1.20.

• Guidance assumes continued macro pressures, stable unemployment, and no major changes in decisioning posture.

• Leasing write-offs expected within 6%-8% annual range, near the high end.

• Progressive Leasing is tightening credit decisioning to support portfolio quality, which may constrain growth.