PROG Holdings Reports Mixed Q3 Results with Revenue Decline and Significant Net Earnings Drop

PROG Holdings, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a mixed performance amid challenging market conditions. The company generated total revenues of $595.1 million for the third quarter, a decrease of 1.8% from $606.1 million in the same period last year. This decline was primarily attributed to a smaller gross leased asset balance, which was impacted by the bankruptcy of a key partner, Big Lots, and a tightening of decision-making processes in response to elevated customer payment delinquencies. For the nine months ended September 30, 2025, total revenues increased by 2.4% to $1.88 billion, driven by a significant rise in interest and fees on loans receivable, which surged 59.3% to $106.0 million.

The company's net earnings for the third quarter fell to $33.1 million, down 60.6% from $84.0 million in the prior year, reflecting a substantial increase in income tax expense and a decrease in lease revenues. The effective tax rate for the quarter was 27.4%, compared to a benefit of 100.6% in the same period last year, which had included a significant non-cash reversal of an uncertain tax position. For the nine-month period, net earnings decreased by 23.9% to $106.3 million, influenced by increased provisions for loan losses and operating expenses.

In terms of operational metrics, PROG Holdings reported a decrease in its active customer count for the Progressive Leasing segment, which fell to approximately 784,848 as of September 30, 2025, down from 800,000 a year earlier. This decline was attributed to the aforementioned tightening of decision-making and the impact of Big Lots' bankruptcy. Conversely, the Vive segment saw an increase in active customers, reflecting growth in loan originations. The company also noted a significant increase in gross merchandise volume (GMV) for its Other operations, which includes its Buy Now, Pay Later service, Four, which rose by 162.8% year-over-year.

Strategically, PROG Holdings completed the sale of substantially all assets of its Vive segment on October 20, 2025, for approximately $149 million. This divestiture is expected to significantly impact the company's operations and financial results moving forward, with the Vive segment to be classified as discontinued operations in future financial statements. The company anticipates recognizing a pretax gain of about $30 million from this transaction in the fourth quarter of 2025. Looking ahead, PROG Holdings aims to continue focusing on its Progressive Leasing operations while managing the impacts of macroeconomic challenges, including inflation and consumer confidence, on its business performance.