PROG Holdings (AZD) Q3 2026 Earnings Report
DE:AZD Q3 2026 EPS Results
- Actual EPS
- EUR 0.95
- Consensus EPS
- EUR 0.97
- Beat/Miss
- Missed by -EUR 0.02
- One Year Ago EPS
- EUR 0.81
DE:AZD Q3 2026 Revenue Results
- Actual Revenue
- EUR 650.86M
- Expected Revenue
- EUR 659.37M
- Beat/Miss
- Missed by -EUR 8.52M
- YoY Revenue Growth
- +21.96%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
DE:AZD Upcoming Earnings
PROG Holdings's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:AZD Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. The company delivered substantial consolidated GMV, revenue, and EPS growth; Four continued triple-digit growth with expanding profitability; Purchasing Power grew double digits and improved its margin; Progressive Leasing showed improving GMV and gross lease asset trends despite tighter underwriting; and the balance sheet supported debt reduction and significant capital returns. The principal negatives were persistent consumer pressure, leasing portfolio yield and write-off challenges, and reduced full-year revenue and earnings guidance. Management nevertheless maintained confidence in the long-term outlook and growth targets.
Company Guidance
The revised consolidated outlook for continuing operations in 2026 calls for revenue in the range of $3.015 billion-$3.05 billion, Adjusted EBITDA in the range of $345 million-$355 million, and non-GAAP EPS in the range of $4.70-$4.85, assuming current conditions, no material changes in the company's decisioning posture, no meaningful increase in unemployment rates for our customer base, and an effective tax rate for non-GAAP EPS of approximately 26%; the outlook also assumes a fourth-quarter $100 million ASR, with non-GAAP EPS reflecting only the initial delivery of approximately 80% of the shares to be repurchased. Full year 2026 leasing write-offs are expected to land near the high end of the targeted annual range of 6%-8%, Progressive Leasing revenue is expected to comp positively in the fourth quarter, and the company expects to operate within its 1.5-2 turns leverage range, with 2026 EBITDA margin at 11.6%, the midpoint of 11%-13%.
- Strong Consolidated Top-Line GrowthConsolidated GMV grew 59% year-over-year to $912 million, matching the pace set in the second quarter. Revenue from continuing operations grew roughly 26% year-over-year to $725.8 million, with every business contributing to growth.
- Adjusted EPS Growth and In-Range ResultsNon-GAAP diluted EPS was $1.06, up 21.8% year-over-year. Revenue and non-GAAP EPS landed near the midpoint of the third-quarter outlook ranges, while Adjusted EBITDA was within the range and came in toward its lower end.
- Progressive Leasing GMV Growth Despite TighteningProgressive Leasing GMV grew 2.3% year-over-year to $420.4 million despite tighter decisioning implemented late in the second quarter and again during the third quarter. September was the strongest month of the quarter, and management expects GMV growth in the fourth quarter and beyond.
- Progressive Leasing Gross Lease Asset Balance Turned PositiveProgressive Leasing's gross lease asset balance grew year-over-year at quarter end for the first time since April 2025. Management stated that revenue is expected to comp positively in the fourth quarter as the asset base rebuilds.
- Progressive Leasing Maintained Conservative Approval StandardsProgressive Leasing grew its book while approval rates were down nearly 300 basis points year-over-year in both the quarter and year to date. Management attributed growth to wider distribution, deeper retail-partner share, digital channels, and customer demand rather than relaxed standards.
- Progressive Leasing Gross Margin Remains Structurally StrongerProgressive Leasing gross margin was up on average more than 200 basis points versus the last inflation spike affecting its customers. Management said the current model is structurally stronger than the model that navigated the prior inflation shock.
- Progressive Leasing Customer Experience ImprovementsThe application process for returning customers was shortened by an average of 3-4 minutes while maintaining fulsome and transparent disclosures. Personalized language and messaging lifted application submissions by double digits.
- PROG Marketplace and E-Commerce MomentumPROG Marketplace GMV grew 85% year-over-year in the third quarter and approximately 128% year-to-date. E-commerce represented 26.4% of Progressive Leasing GMV, up from 23% a year ago.
- Four Delivered Continued Triple-Digit GrowthFour achieved its 12th consecutive quarter of triple-digit GMV growth, with GMV up nearly 103% year-over-year to $330.4 million. Revenue more than doubled, increasing 113.8% year-over-year to $37.2 million.
- Four Scaled ProfitablyFour generated $11.4 million of Adjusted EBITDA, representing a 30.6% margin that improved sequentially from the second quarter. Management stated that the business is scaling rapidly and profitably with healthy and improving unit economics.
- Four Customer Engagement and Loyalty MetricsFour's active shoppers grew roughly 68% year-over-year, average purchase frequency held at roughly five transactions per quarter, and returning customers represented the large majority of orders. Average order value rose more than 10% year-over-year as shoppers purchased across newly added categories.
- Four+ and Catalog ExpansionFour+ subscribers contributed approximately 80% of total GMV. Four's catalog expanded past 37 million items, supported by investments in engagement and more flexible payment options.
- Four Credit and Underwriting ImprovementsFour's provision as a percentage of GMV decreased approximately 100 basis points year-over-year. An enhanced underwriting model built on a deeper set of applicant attributes caught more potential credit loss in testing without declining additional business.
- Four AI Customer Support ProgressFourBot now handles Four+ cancellations and refunds end-to-end, including automatically issuing refunds within defined eligibility rules. In early September, FourBot resolved approximately 90% of refund claims without human intervention.
- Four Acquisition and Marketing MomentumFour continued to benefit from organic, word-of-mouth, and referral acquisition while increasing paid acquisition and App Store placement activity. Management reported good results from data-driven social marketing and said marketing spending was higher this year than last year while returns on ad spend remained strong.
- Purchasing Power Double-Digit GrowthPurchasing Power generated $161.2 million of GMV, up 12.3% year-over-year, and revenue of $131.8 million. The business is entering its seasonally strongest period.
- Purchasing Power Sequential Profitability ImprovementPurchasing Power Adjusted EBITDA increased sequentially to $12.9 million, or 9.8% of revenue, from 8.1% in the second quarter. The improvement was attributed to operating leverage, favorable product mix, efficiencies, and lower interest expense on securitized debt.
- Purchasing Power Client Pipeline and IntegrationPurchasing Power signed a new client with more than 50,000 eligibles after quarter end, expected to launch in the first quarter. A previously announced employer with 80,000 eligibles is expected to launch in the fourth quarter. Management said it is ahead of schedule on operational efficiencies and on track with systems integration and process streamlining.
- Ecosystem and Multi-Product Customer GrowthThe number of customers actively engaged with more than one PROG product has grown since January, and these customers now represent a more meaningful percentage of the total active base. Management said multi-product customers tend to transact more frequently and stay longer.
- Balance Sheet and Deleveraging ProgressThe company ended the quarter with $108.9 million of unrestricted cash and $458.9 million of total available liquidity. Since the Purchasing Power acquisition, it has repaid $260 million of recourse debt, reducing net leverage to 1.5x trailing-twelve-month Adjusted EBITDA and keeping leverage within the long-term 1.5x-2.0x target range for three consecutive quarters.
- Capital Returns and Accelerated Share RepurchaseThe company paid its quarterly dividend of $0.14 per share and repurchased 885,000 shares for $36.7 million at an average price of $41.47. It announced its intent to enter a $100 million accelerated share repurchase program, with an expected initial delivery of approximately 2.7 million shares. The share repurchase authorization was replenished to $500 million.
- Confidence in Long-Term Growth TargetsManagement said the company remains on track to achieve the three-year compound annual growth targets presented at its March investor day. The intended accelerated share repurchase program is expected to be accretive to 2027 earnings per share, and management stated that its long-term earnings power and cash-flow generation remain strong.
DE:AZD Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 1.13- | 0.66 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.970.95 | 0.81 | 17.78% (+0.14) | |
| Jul 29, 2026 | 2026 (Q2) | 0.851.07 | 0.91 | 16.67% (+0.15) | |
| Apr 29, 2026 | 2026 (Q1) | 0.711.11 | 0.81 | 37.78% (+0.30) | |
| Feb 18, 2026 | 2025 (Q4) | 0.530.66 | 0.72 | -7.50% (-0.05) | |
| Oct 22, 2025 | 2025 (Q3) | 0.680.81 | 0.69 | 16.88% (+0.12) | |
| Jul 23, 2025 | 2025 (Q2) | 0.710.91 | 0.83 | 10.87% (+0.09) | |
| Apr 23, 2025 | 2025 (Q1) | 0.740.81 | 0.82 | -1.10% (-0.01) | |
| Feb 19, 2025 | 2024 (Q4) | 0.690.72 | 0.65 | 11.11% (+0.07) | |
| Oct 23, 2024 | 2024 (Q3) | 0.710.69 | 0.81 | -14.44% (-0.12) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
