PROG Holdings Navigates Retail Slump with Fintech Growth, Key Acquisition

SALT LAKE CITY, UT – February 18, 2026 – By Daniel Thomas

PROG Holdings, Inc. (NYSE:PRG) today revealed fourth-quarter financial results that paint a picture of a company navigating significant market turbulence through strategic diversification and disciplined management. While consolidated revenues for the fourth quarter of 2025 dipped 5.2% year-over-year to $574.6 million, the fintech firm demonstrated resilience by offsetting weakness in its core leasing segment with explosive growth in its newer digital payment platforms and a major strategic acquisition designed to reshape its future.

The Salt Lake City-based company, which operates Progressive Leasing, Four Technologies, and MoneyApp, faced a challenging retail environment that directly impacted its primary lease-to-own business. However, management is positioning these results as a successful stress test of its evolving business model.

“Q4 and full-year 2025 were periods of disciplined execution that demonstrated the strength and resilience of PROG’s multi-product platform,” said PROG Holdings President and CEO Steve Michaels in a statement. “Despite a challenging retail environment and the impact of a large partner bankruptcy on Progressive Leasing, we took proactive steps to protect portfolio performance, expand margins, and position the business for profitable growth.”

Headwinds Hit Core Leasing Business

The primary source of pressure for PROG Holdings came from its largest segment, Progressive Leasing. The division’s Gross Merchandise Volume (GMV) fell 10.6% in the fourth quarter to $534.0 million compared to the prior year. The company attributed this decline to a combination of soft consumer demand for durable goods and, critically, the bankruptcy of a major retail partner, identified in industry reports as Big Lots. The fallout from this event highlighted the inherent risk in Progressive Leasing’s model, where a significant portion of revenue is concentrated with a few key retail partners.

In response to these market pressures, PROG Holdings tightened its lease decisioning posture throughout the year. This move, while contributing to the lower GMV, was a deliberate strategy to safeguard the quality of its lease portfolio. The effort proved successful, as the provision for lease merchandise write-offs was 7.6% of leasing revenues in the fourth quarter, remaining within the company's targeted annual range of 6% to 8%. This disciplined portfolio management helped protect the bottom line in a volatile market, though consolidated net earnings from continuing operations still fell to $19.9 million from $58.3 million in the year-ago period, which had benefited from a significant one-time deferred tax benefit.

Diversification Strategy Bears Fruit

While the legacy leasing business faced headwinds, PROG Holdings' strategic pivot toward a diversified fintech ecosystem showed significant momentum. The company’s newer ventures posted impressive results, validating the strategy to expand beyond its traditional lease-to-own roots.

Four Technologies, the company's Buy Now, Pay Later (BNPL) platform, was a standout performer. It marked its ninth consecutive quarter of triple-digit GMV and revenue growth. For the full year, Four’s GMV grew by 144% to approximately $736 million, while its revenue surged 170%. This growth translated into approximately $10 million of adjusted EBITDA for 2025, a substantial turnaround from a loss in 2024.

“We continued to build momentum across our ecosystem during the quarter,” Michaels noted, pointing to the success of the company's newer initiatives. “Four delivered its ninth consecutive quarter of triple-digit GMV and revenue growth, and MoneyApp approached breakeven adjusted EBITDA by year-end.”

Further demonstrating the power of its digital strategy, the company’s direct-to-consumer channel, PROG Marketplace, nearly tripled its GMV during the fourth quarter. These digital-first platforms not only represent new revenue streams but are also being leveraged to create a more integrated customer experience, with both Four and MoneyApp driving incremental leasing volume through cross-selling.

The Purchasing Power Play

The most significant element of PROG Holdings' forward-looking strategy is the recent acquisition of Purchasing Power, a leading provider of employee purchasing programs offered as a voluntary benefit. The deal, which closed on January 2, 2026, for $420 million in cash, fundamentally expands the company's market reach and customer acquisition channels.

Purchasing Power allows employees of participating companies to buy consumer products and services through automated payroll deductions. This model provides PROG Holdings with access to a new, largely untapped customer base of more than 7 million employees through existing partnerships with over 360 employers, including numerous Fortune 500 companies. This channel is highly complementary to PROG’s existing offerings and targets a consumer segment with limited overlap with its current customers, significantly diversifying its portfolio and reducing its dependence on traditional retail partners.

A Confident Outlook for 2026

Bolstered by the integration of Purchasing Power and the growth of its fintech arms, PROG Holdings issued a confident outlook for 2026. The company projects full-year revenues between $3.02 billion and $3.14 billion, with non-GAAP diluted earnings per share forecasted in the range of $4.00 to $4.45. This guidance assumes the continuation of a difficult operating environment but reflects the transformative impact of the company's strategic initiatives.

The forecast provides a clear view of the new, more balanced company structure. For 2026, the newly acquired Purchasing Power segment is expected to contribute between $680 million and $730 million in revenue and $50 million to $60 million in adjusted EBITDA. Meanwhile, Four Technologies is projected to continue its growth trajectory, with revenues expected between $125 million and $140 million.

As PROG Holdings moves into the new year, its focus is firmly on integrating its diverse set of payment solutions into a cohesive ecosystem that can capture greater lifetime value from a broad spectrum of consumers. “As we move into 2026, we are confident that our three-pillared strategy to grow, enhance, and expand across our product ecosystem, with a focus on increasing customer acquisition and lifetime value, will support sustainable growth,” Michaels concluded. “Our business is generating significant free cash flow, providing us with the flexibility to invest in growth, deleverage following the acquisition, and continue building long-term value for our shareholders.”