$PRG

PROG Holdings, Inc.

CIK:0001808834|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Total revenues	$ 719,715	$ 588,503	$ 1,462,389	$ 1,256,931
Costs and expenses
Depreciation of lease merchandise	364,311	385,107	773,321	845,550
Cost of product sales	75,702	0	138,208	0
Provision for lease merchandise write-offs	46,499	42,633	90,150	90,651
Operating expenses	143,417	93,409	293,617	191,533
Provision for credit losses	30,667	8,043	54,834	13,544
Costs and expenses	660,596	529,192	1,350,130	1,141,278
Gain on sale of lease receivables	4,701	0	11,158	0
Gain on change in fair value of receivables	1,810	0	7,522	0
Operating profit	65,630	59,311	130,939	115,653
Interest expense	(15,217)	(9,794)	(33,606)	(19,757)
Interest income	394	1,645	1,037	2,518
Earnings from continuing operations before income tax expense	50,807	51,162	98,370	98,414
Income tax expense	13,429	13,581	24,774	26,243
Net earnings from continuing operations	37,378	37,581	73,596	72,171
(Loss) earnings from discontinued operations, net of tax	(349)	902	(513)	1,030
Net earnings	$ 37,029	$ 38,483	$ 73,083	$ 73,201
Basic earnings per share
Continuing operations (in dollars per share)	$ 0.93	$ 0.94	$ 1.84	$ 1.78
Discontinued operations (in dollars per share)	(0.01)	0.02	(0.01)	0.03
Total basic earnings per share (in dollars per share)	0.92	0.96	1.83	1.81
Diluted earnings per share
Continuing operations (in dollars per share)	0.92	0.93	1.81	1.75
Discontinued operations (in dollars per share)	(0.01)	0.02	(0.01)	0.03
Total diluted earnings per share (in dollars per share)	0.91	0.95	1.80	1.78
Cash dividend declared per share
Common Stock (in dollars per share)	$ 0.14	$ 0.13	$ 0.28	$ 0.26
Weighted average shares outstanding
Basic (in shares)	40,177	40,130	40,038	40,484
Diluted (in shares)	40,734	40,559	40,772	41,203
Lease revenues and fees
Revenues
Total revenues	$ 549,830	$ 569,674	$ 1,146,694	$ 1,221,231
Product and service revenues
Revenues
Total revenues	128,507	0	234,913	0
Other revenue
Revenues
Total revenues	$ 41,378	$ 18,829	$ 80,782	$ 35,700

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net earnings	$ 73,083	$ 73,201
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation of lease merchandise	773,321	845,550
Other depreciation and amortization	25,208	12,111
Provisions for accounts receivable and credit losses	213,345	198,650
Stock-based compensation	16,842	14,536
Gain on change in fair value of receivables	(7,522)	0
Deferred income taxes	17,746	(20,049)
Gain on sale of receivables	(11,706)	0
Non-cash lease expense	(1,284)	(1,642)
Other changes, net	1,513	(943)
Changes in operating assets and liabilities, net of effects of the acquisition:
Additions to lease merchandise	(814,049)	(784,951)
Book value of lease merchandise sold or disposed	118,665	93,340
Accounts receivable	(109,136)	(147,179)
Prepaid expenses and other assets	(1,989)	5,480
Income tax receivable and payable	22,722	1,749
Accounts payable and accrued expenses	(37,179)	(4,620)
Customer deposits and advance payments	(1,644)	(5,413)
Cash provided by operating activities	277,936	279,820
Investing activities
Investments in loans receivable	(599,515)	(370,099)
Proceeds from loans receivable	592,456	339,206
Funding of other receivables	(45,919)	0
Collections from other receivables	38,565	0
Purchases of property and equipment	(8,194)	(3,896)
Proceeds from sale of property and equipment	234	0
Acquisition of business, net of cash acquired	(391,845)	0
Cash used in investing activities	(414,218)	(34,789)
Financing activities
Proceeds from debt	546,178	0
Repayments on debt	(591,108)	(50,000)
Dividends paid	(11,218)	(10,443)
Acquisition of treasury stock	(10,185)	(51,775)
Issuance of stock under stock option and employee purchase plans	1,135	1,028
Cash paid for shares withheld for employee taxes	(10,297)	(7,385)
Debt issuance costs	(4,628)	(84)
Cash used in financing activities	(80,123)	(118,659)
(Decrease) increase in cash, cash equivalents and restricted cash	(216,405)	126,372
Cash, cash equivalents and restricted cash at beginning of period	308,774	95,655
Cash, cash equivalents and restricted cash at end of period	92,369	222,027
Net cash (received) paid during the period:
Interest	31,774	18,795
Income taxes	$ (15,643)	$ 45,044

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Assets

Cash and cash equivalents

$ 85,201

$ 308,774

Restricted cash

7,168

Receivables (net of allowances and unearned interest income of $0 in 2026 and $68,806 in 2025; includes $— recorded at fair value in 2026)

^[1]

374,522

74,228

Other receivables (net of allowances and unearned interest income of $— in 2026 and $— in 2025; includes $— recorded at fair value in 2026)

^[1]

39,777

Lease merchandise (net of accumulated depreciation and allowances of $429,925 in 2026 and $407,104 in 2025)

531,071

609,009

Loans receivable (net of allowances and unamortized fees of $19,808 in 2026 and $18,246 in 2025)

74,312

90,648

Property and equipment, net

24,414

19,526

Goodwill and other intangibles, net

763,089

353,835

Income tax receivable

25,150

47,894

Deferred income tax assets

18,852

19,561

Prepaid expenses and other assets

93,827

73,383

Assets of discontinued operations

10,683

13,550

Total assets

2,048,066

1,610,408

Liabilities and shareholders' equity

Accounts payable and accrued expenses

148,668

96,471

Debt, net

^[1]

887,064

594,861

Deferred income tax liabilities

157,177

121,152

Other liabilities

47,012

44,676

Liabilities of discontinued operations

2,805

6,831

Total liabilities

1,242,726

863,991

Commitments and contingencies (note 8)

Shareholders' equity

Common stock, par value $0.50 per share: authorized: 225,000,000 shares at June 30, 2026 and December 31, 2025; shares issued: 82,078,654 at June 30, 2026 and December 31, 2025

41,039

Additional paid-in capital

357,133

363,583

Retained earnings

1,656,044

1,594,685

Shareholders' Equity, before treasury shares at cost

2,054,216

1,999,307

Less: treasury shares at cost

Common stock: 42,247,309 shares at June 30, 2026 and 42,502,844 at December 31, 2025

(1,248,876)

(1,252,890)

Total shareholders' equity

805,340

746,417

Total liabilities and shareholders' equity

$ 2,048,066

$ 1,610,408

[1]	As of June 30, 2026, receivables included $381.4 million of contractual amounts outstanding of consolidated VIEs that can only be used to settle their obligations, and debt included $293.7 million of liabilities of consolidated VIEs for which creditors have no recourse to the Company. See Note 1.