PROG Holdings (PRG) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 1.87%
• Average Volume (3M): 439.53K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.07
• Revenue Growth: 3.71%
• EPS Growth: 9.14%
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.90
• Shares Outstanding: 39,545,593
• 10 Day Avg. Volume: 465,766
• 30 Day Avg. Volume: 439,526
• PEG Ratio: 0.17
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 13.82
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 1.11
• 1Y Price Target: $34.00
• Price Target Upside: 9.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.42
• Revenue Forecast (FY): $2.47B

• Rating: 71 Outperform
• Price Target: $31.00 ▼(-0.45% Downside)

PROG Holdings' strong financial performance and undervaluation are significant positives, supporting a solid investment case. However, technical indicators suggest bearish momentum, and mixed earnings call results highlight ongoing challenges. The strategic sale of the Vive portfolio is a positive development, but consumer pressures and declining GMV in Progressive Leasing remain concerns.

Positive Factors

Strong BNPL Business Performance

The sustained growth in the BNPL segment highlights the company's ability to capitalize on consumer financing trends, ensuring long-term revenue expansion and market leadership in the sector.

Improvement in Write-Offs

Improved write-offs indicate effective risk management, enhancing profitability and financial stability, which are crucial for sustained business operations and investor confidence.

Strategic Sale of Vive Financial Portfolio

The strategic divestiture enhances capital allocation and profitability, allowing the company to focus on core operations and strengthen its financial position.

Negative Factors

Decline in Progressive Leasing GMV

The decline in GMV suggests challenges in maintaining leasing volumes, potentially impacting revenue and market competitiveness if not addressed.

Continued Consumer Challenges

Economic pressures on consumers could reduce demand for financing solutions, affecting revenue growth and necessitating strategic adjustments to sustain business performance.

Consolidated Revenue Decline

A decline in consolidated revenue may indicate challenges in maintaining overall business growth, necessitating strategic initiatives to enhance revenue streams and market presence.

PROG Holdings Business Overview & Revenue Model

Company Description

PROG Holdings, Inc. (PRG) is a leading provider of financial services and a technology-driven platform that specializes in offering consumer financing solutions. The company operates primarily in the buy now, pay later (BNPL) sector, providing flexible payment options for consumers purchasing essential and non-essential goods. PROG Holdings supports a diverse range of retail partners and aims to enhance the buying experience through its innovative financing solutions, catering to a broad array of consumer needs.

How the Company Makes Money

PROG Holdings generates revenue through multiple key streams, primarily by offering point-of-sale financing solutions to consumers. The company earns interest from consumer loans and fees charged to retail partners for facilitating payment plans. Additionally, PROG Holdings benefits from partnerships with various retailers, which allows it to expand its customer base and enhance transaction volumes. The company also leverages technology to improve its services, driving customer acquisition and retention, which in turn contributes to its overall profitability.

PROG Holdings Financial Statement Overview

Summary

PROG Holdings demonstrates strong financial performance with significant revenue growth and improved profitability. The balance sheet reflects a prudent leverage strategy, while cash flow metrics indicate robust cash generation and management. The company is well-positioned for future growth, though there is potential to enhance operational efficiencies further.

Income Statement

PROG Holdings shows strong revenue growth in the TTM period with a 49.9% increase, indicating robust demand. The gross profit margin improved significantly to 49.5%, reflecting better cost management. Net profit margin also increased to 8.5%, showcasing enhanced profitability. However, the EBIT margin is relatively moderate at 9.3%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a stable debt-to-equity ratio of 0.90, indicating a balanced approach to leveraging. Return on equity is strong at 32.98%, demonstrating effective use of equity capital. However, the equity ratio is not explicitly calculated, which could provide further insights into financial stability.

Cash Flow

Operating cash flow to net income ratio is healthy at 1.77, indicating strong cash generation relative to earnings. Free cash flow growth is positive at 7.07%, showing improved cash management. The free cash flow to net income ratio is high at 0.96, reflecting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.91B	2.46B	2.41B	2.60B	2.68B	2.48B
Gross Profit	650.75M	815.42M	831.96M	807.92M	823.68M	699.86M
EBITDA	1.47B	1.85B	1.83B	1.98B	2.19B	2.06B
Net Income	163.87M	197.25M	138.84M	98.71M	243.56M	-61.47M
Balance Sheet
Total Assets	1.55B	1.51B	1.49B	1.49B	1.62B	1.32B
Cash, Cash Equivalents and Short-Term Investments	292.61M	95.66M	155.42M	131.88M	170.16M	36.65M
Total Debt	0.00	655.06M	608.11M	612.09M	615.06M	79.52M
Total Liabilities	843.04M	863.49M	899.92M	921.45M	942.35M	331.27M
Stockholders Equity	703.56M	650.28M	591.33M	570.46M	679.41M	986.14M
Cash Flow
Free Cash Flow	295.65M	130.21M	194.62M	232.81M	236.41M	391.62M
Operating Cash Flow	305.38M	138.53M	204.24M	242.48M	245.96M	455.96M
Investing Cash Flow	-112.56M	-79.17M	-38.83M	-53.53M	-82.17M	-114.53M
Financing Cash Flow	-121.93M	-119.12M	-141.87M	-227.22M	-30.28M	-362.55M

PROG Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRG, the sentiment is Negative. The current price of 31.14 is above the 20-day moving average (MA) of 30.03, below the 50-day MA of 32.22, and above the 200-day MA of 30.73, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRG.

PROG Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRG	71 Outperform	$1.08B	6.95	24.56%	1.87%	3.71%	9.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WLFC	62 Neutral	$828.74M	7.28	18.91%	0.84%	27.90%	19.25%
MPU	55 Neutral	$63.93M	-4.84	-61.26%	―	126.27%	-51.95%
CTOS	53 Neutral	$1.30B	―	-3.00%	―	7.39%	34.57%
ALTG	45 Neutral	$188.12M	-2.85	-160.65%	4.73%	-3.95%	-47.70%
FPAY	39 Underperform	$150.23K	-0.05	―	―	19.51%	29.43%

PROG Holdings Corporate Events

PROG Holdings Reports Strong Q3 2025 Results

PROG Holdings, Inc., a fintech holding company based in Salt Lake City, specializes in providing transparent and competitive payment options through its subsidiaries, including Progressive Leasing, Four Technologies, and Build. The company operates primarily in the financial technology sector, offering lease-to-own solutions and Buy Now, Pay Later (BNPL) services.

Prog Holdings’ Earnings Call: Mixed Sentiment and Strategic Moves

Prog Holdings, Inc. recently held its earnings call, presenting a mixed sentiment. While the company exceeded expectations in revenue and earnings, and its Buy Now, Pay Later (BNPL) business showed robust growth, there were challenges such as a decline in Progressive Leasing GMV and consumer pressures. The strategic sale of the Vive portfolio was highlighted as a positive move towards enhancing capital efficiency.

PROG Holdings Sells Vive Receivables for $150 Million

On October 20, 2025, PROG Holdings‘ subsidiary Vive Financial LLC sold approximately $165 million in receivables to Fortiva Funding LLC, a subsidiary of Atlanticus Holdings Corporation, for about $150 million in cash. This transaction is part of PROG Holdings’ strategy to improve capital efficiency and focus on its core businesses, including Progressive Leasing and the BNPL platform, Four Technologies. The company reported third-quarter 2025 revenues of $595.1 million and net earnings of $33.1 million, highlighting strong performance in its Progressive Leasing segment despite economic pressures. The sale of Vive’s portfolio is expected to enhance PROG Holdings’ financial flexibility and support its long-term growth strategy.

The most recent analyst rating on (PRG) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on PROG Holdings stock, see the PRG Stock Forecast page.

PROG Holdings Declares Quarterly Cash Dividend

On August 6, 2025, PROG Holdings‘ Board of Directors declared a quarterly cash dividend of $0.13 per share of common stock, payable on September 4, 2025, to shareholders recorded by August 19, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may positively influence its market positioning by demonstrating financial stability and shareholder confidence.

The most recent analyst rating on (PRG) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on PROG Holdings stock, see the PRG Stock Forecast page.