What happened?
Shares of financial technology company PROG Holdings (NYSE: PRG) jumped 7.2% in the afternoon session after the company reported third-quarter revenue and gross merchandise volume growth and said it intends to repurchase $100 million of stock through an accelerated share repurchase. According to a company press release, PROG Holdings reported continuing-operations revenue of $725.8 million, up 25.6%, and net earnings from continuing operations of $37.5 million. Non-GAAP diluted earnings per share rose 21.8% to $1.06 from 87 cents. Adjusted EBITDA rose 21.8% to $80.0 million. Consolidated gross merchandise volume rose 58.9% to $912.0 million, and net leverage ended the quarter at 1.5 times. The company repurchased $36.7 million of stock in the quarter at an average price of $41.47. It intends to enter a $100 million accelerated share repurchase in the fourth quarter, with completion expected in the first quarter of 2027. The board added $237.3 million to the repurchase authorization, bringing the amount available to $500 million through October 26, 2029. Citing pressure on consumers, the company reduced its 2026 outlook. It now expects non-GAAP diluted earnings per share of $4.70 to $4.85, compared with a prior range of $4.75 to $5.00.
The shares closed the day at $33.48, up 8.4% from the previous close.
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What is the market telling us
PROG’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock gained 11.9% on the news that the company reported fourth-quarter results that beat profit estimates and issued a strong financial outlook for 2026. Although revenue for the quarter fell short of Wall Street's expectations and declined 7.8% compared to the previous year, investors appeared to focus on the company's profitability and positive forecast. PROG Holdings reported a non-GAAP profit of $0.74 per share, which was 24.37% higher than what analysts had anticipated. The main driver for the stock's jump was the company's guidance for the upcoming year. Its full-year revenue forecast was 8% above analysts' estimates at the midpoint, and its adjusted earnings guidance beat consensus estimates by 17.5%. This strong outlook suggested confidence from management about the company's future performance, overshadowing the mixed results of the reported quarter.
PROG is up 14% since the beginning of the year, but at $33.48 per share, it is still trading 29.6% below its 52-week high of $47.53 from July 2026. Despite the year-to-date gain, investors who bought $1,000 worth of PROG’s shares 5 years ago would now be looking at only $827.56.
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