Purchasing Power Successfully Issues $225 Million ABS
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23 hours ago
0mins
Should l Buy PRG?
Source: Newsfilter
- Cost Reduction: Purchasing Power successfully issued $225 million in asset-backed securities (ABS) with a blended rate of 4.87%, achieving a reduction of over 180 basis points compared to the 2024 ABS transaction, significantly lowering the company's borrowing costs and enhancing financial flexibility.
- Market Entry Milestone: This transaction marks the first time a subsidiary of PROG Holdings has accessed the ABS market, reflecting the company's strategic decision to improve funding arrangements post-acquisition, thereby strengthening its competitive position.
- Strong Investor Demand: The multi-tranche offering received ratings from Kroll Bond Rating Agency, including AAA for Class A notes, indicating robust investor demand and further solidifying Purchasing Power's standing in the financial markets.
- Clear Use of Proceeds: Proceeds from the transaction will be used to repay existing facilities and fund originations across the Purchasing Power platform, ensuring the company has sufficient financial support for future business expansion.
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Analyst Views on PRG
Wall Street analysts forecast PRG stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 33.560
Low
31.00
Averages
39.67
High
50.00
Current: 33.560
Low
31.00
Averages
39.67
High
50.00
About PRG
PROG Holdings, Inc. is a fintech holding company that provides payment options and inclusive consumer financial products. Its Progressive Leasing segment is provider of e-commerce, app-based, in-store point-of-sale lease-to-own solutions provider. The segment provides consumers with lease-purchase solutions through its point-of-sale partner locations and e-commerce Website partners. Its Vive segment primarily serves customers that may not qualify for traditional prime lending offers who desire to purchase goods and services from participating merchants. Vive offers customized programs with services that include revolving loans through private label and Vive-branded credit cards. The Company also owns Four Technologies, provider of Buy Now, Pay Later payment options through its platform Four; Build, provider of personal credit building products, and Purchasing Power, a voluntary employee benefit program that enables workers to purchase brand-name products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Purchasing Power Successfully Issues $225 Million ABS with 4.87% Rate
- Cost Reduction: Purchasing Power successfully closed a $225 million asset-backed securities (ABS) issuance with a blended rate of 4.87%, achieving a reduction of over 180 basis points compared to the 2024 ABS transaction, which significantly lowers the company's borrowing costs and enhances financial flexibility.
- Market Entry Milestone: This transaction marks the first time a subsidiary of PROG Holdings has accessed the ABS market, reflecting the strategic decision to improve funding arrangements post-acquisition and bolstering market confidence in the company's financial health.
- Strong Investor Demand: The ABS transaction received multiple ratings from Kroll Bond Rating Agency, including AAA for Class A notes, indicating robust investor demand and further solidifying Purchasing Power's position in the financial markets.
- Clear Use of Proceeds: Proceeds from this transaction will be used to repay existing facilities and fund originations across the Purchasing Power platform, ensuring the company maintains adequate funding for future growth and drives ongoing business development.
See More
Purchasing Power Successfully Issues $225 Million ABS
- Cost Reduction: Purchasing Power successfully issued $225 million in asset-backed securities (ABS) with a blended rate of 4.87%, achieving a reduction of over 180 basis points compared to the 2024 ABS transaction, significantly lowering the company's borrowing costs and enhancing financial flexibility.
- Market Entry Milestone: This transaction marks the first time a subsidiary of PROG Holdings has accessed the ABS market, reflecting the company's strategic decision to improve funding arrangements post-acquisition, thereby strengthening its competitive position.
- Strong Investor Demand: The multi-tranche offering received ratings from Kroll Bond Rating Agency, including AAA for Class A notes, indicating robust investor demand and further solidifying Purchasing Power's standing in the financial markets.
- Clear Use of Proceeds: Proceeds from the transaction will be used to repay existing facilities and fund originations across the Purchasing Power platform, ensuring the company has sufficient financial support for future business expansion.
See More
PROG Holdings Declares Quarterly Dividend Increase
- Quarterly Dividend Increase: PROG Holdings declares a quarterly dividend of $0.14 per share, marking a 7.7% increase from the previous $0.13, reflecting the company's robust cash flow management and enhancing investor confidence.
- Stable Yield: The forward yield of 1.51% provides shareholders with a reliable return, attracting income-seeking investors and increasing the company's market appeal.
- Shareholder Record Date: The dividend will be payable on March 24, with a record date of March 12 and an ex-dividend date also on March 12, ensuring shareholders receive timely returns and bolstering their willingness to hold shares.
- Future Growth Outlook: PROG Holdings outlines a revenue target of $3 billion to $3.1 billion for 2026, indicating strong market prospects as the multi-product platform accelerates growth, further solidifying its position in the fintech sector.
See More
PROG Holdings Declares Quarterly Cash Dividend
- Dividend Increase: PROG Holdings has declared a quarterly cash dividend of $0.14 per share, reflecting a 7.7% increase from the previous $0.13, indicating sustained profitability and boosting investor confidence.
- Payment Schedule: The dividend will be payable on March 24, 2026, to shareholders of record as of March 12, 2026, ensuring timely returns for shareholders and reinforcing the company's relationship with its investors.
- Company Overview: PROG Holdings, based in Salt Lake City, is a fintech holding company that owns Progressive Leasing, Purchasing Power, Four Technologies, and MoneyApp, offering a diverse range of financial products to meet various consumer needs.
- Market Positioning: By providing transparent and competitive payment options, PROG Holdings has established a significant presence in the fintech sector, particularly in lease-to-own and installment payment solutions, driving the company's long-term growth potential.
See More
PROG Holdings Q4 2025 Earnings Call Insights
- Financial Performance Overview: In Q4 2025, PROG Holdings reported consolidated revenues of $574.6 million, with adjusted EBITDA at $61.5 million and non-GAAP EPS of $0.74, reflecting stable performance amidst retail challenges.
- Strategic Acquisition and Integration: The company completed the acquisition of Purchasing Power in January 2026, expected to contribute $680 million to $730 million in revenue for 2026, further expanding its business channels and enhancing growth platforms.
- Multi-Product Platform Growth: Four generated approximately $736 million in GMV in 2025, achieving a 144% year-over-year growth and contributing about $10 million in adjusted EBITDA, indicating its increasing importance within the company's ecosystem.
- Future Outlook and Challenges: Management anticipates consolidated revenues for 2026 to range between $3 billion and $3.1 billion, and while facing soft demand for consumer durables, they remain optimistic about increased tax refunds providing support for demand and repayment behavior.
See More
PROG Holdings Q4 Earnings Beat Expectations
- Earnings Beat Expectations: PROG Holdings reported a Q4 non-GAAP EPS of $0.74, exceeding estimates by $0.14, indicating strong profitability despite a slight decline in overall revenue.
- Revenue Decline: Q4 revenue was $574.59 million, down 5.2% year-over-year and missing market expectations by $7.23 million, reflecting increased market competition and fluctuations in consumer demand.
- Optimistic Future Outlook: The company projects total revenues for 2026 to range from $3.02 billion to $3.14 billion, surpassing the consensus estimate of $2.85 billion, demonstrating confidence in future growth, particularly in a recovering economic environment.
- Diverse Business Performance: Progressive Leasing's GMV reached $534 million, while PROG Marketplace GMV surged by 187%, highlighting the company's growth potential across different business lines, especially in rapidly evolving markets.
See More
Purchasing Power Successfully Issues $225 Million ABS with 4.87% Rate
- Cost Reduction: Purchasing Power successfully closed a $225 million asset-backed securities (ABS) issuance with a blended rate of 4.87%, achieving a reduction of over 180 basis points compared to the 2024 ABS transaction, which significantly lowers the company's borrowing costs and enhances financial flexibility.
- Market Entry Milestone: This transaction marks the first time a subsidiary of PROG Holdings has accessed the ABS market, reflecting the strategic decision to improve funding arrangements post-acquisition and bolstering market confidence in the company's financial health.
- Strong Investor Demand: The ABS transaction received multiple ratings from Kroll Bond Rating Agency, including AAA for Class A notes, indicating robust investor demand and further solidifying Purchasing Power's position in the financial markets.
- Clear Use of Proceeds: Proceeds from this transaction will be used to repay existing facilities and fund originations across the Purchasing Power platform, ensuring the company maintains adequate funding for future growth and drives ongoing business development.
See More
Purchasing Power Successfully Issues $225 Million ABS
- Cost Reduction: Purchasing Power successfully issued $225 million in asset-backed securities (ABS) with a blended rate of 4.87%, achieving a reduction of over 180 basis points compared to the 2024 ABS transaction, significantly lowering the company's borrowing costs and enhancing financial flexibility.
- Market Entry Milestone: This transaction marks the first time a subsidiary of PROG Holdings has accessed the ABS market, reflecting the company's strategic decision to improve funding arrangements post-acquisition, thereby strengthening its competitive position.
- Strong Investor Demand: The multi-tranche offering received ratings from Kroll Bond Rating Agency, including AAA for Class A notes, indicating robust investor demand and further solidifying Purchasing Power's standing in the financial markets.
- Clear Use of Proceeds: Proceeds from the transaction will be used to repay existing facilities and fund originations across the Purchasing Power platform, ensuring the company has sufficient financial support for future business expansion.
See More
PROG Holdings Declares Quarterly Dividend Increase
- Quarterly Dividend Increase: PROG Holdings declares a quarterly dividend of $0.14 per share, marking a 7.7% increase from the previous $0.13, reflecting the company's robust cash flow management and enhancing investor confidence.
- Stable Yield: The forward yield of 1.51% provides shareholders with a reliable return, attracting income-seeking investors and increasing the company's market appeal.
- Shareholder Record Date: The dividend will be payable on March 24, with a record date of March 12 and an ex-dividend date also on March 12, ensuring shareholders receive timely returns and bolstering their willingness to hold shares.
- Future Growth Outlook: PROG Holdings outlines a revenue target of $3 billion to $3.1 billion for 2026, indicating strong market prospects as the multi-product platform accelerates growth, further solidifying its position in the fintech sector.
See More
PROG Holdings Declares Quarterly Cash Dividend
- Dividend Increase: PROG Holdings has declared a quarterly cash dividend of $0.14 per share, reflecting a 7.7% increase from the previous $0.13, indicating sustained profitability and boosting investor confidence.
- Payment Schedule: The dividend will be payable on March 24, 2026, to shareholders of record as of March 12, 2026, ensuring timely returns for shareholders and reinforcing the company's relationship with its investors.
- Company Overview: PROG Holdings, based in Salt Lake City, is a fintech holding company that owns Progressive Leasing, Purchasing Power, Four Technologies, and MoneyApp, offering a diverse range of financial products to meet various consumer needs.
- Market Positioning: By providing transparent and competitive payment options, PROG Holdings has established a significant presence in the fintech sector, particularly in lease-to-own and installment payment solutions, driving the company's long-term growth potential.
See More
PROG Holdings Q4 2025 Earnings Call Insights
- Financial Performance Overview: In Q4 2025, PROG Holdings reported consolidated revenues of $574.6 million, with adjusted EBITDA at $61.5 million and non-GAAP EPS of $0.74, reflecting stable performance amidst retail challenges.
- Strategic Acquisition and Integration: The company completed the acquisition of Purchasing Power in January 2026, expected to contribute $680 million to $730 million in revenue for 2026, further expanding its business channels and enhancing growth platforms.
- Multi-Product Platform Growth: Four generated approximately $736 million in GMV in 2025, achieving a 144% year-over-year growth and contributing about $10 million in adjusted EBITDA, indicating its increasing importance within the company's ecosystem.
- Future Outlook and Challenges: Management anticipates consolidated revenues for 2026 to range between $3 billion and $3.1 billion, and while facing soft demand for consumer durables, they remain optimistic about increased tax refunds providing support for demand and repayment behavior.
See More
PROG Holdings Q4 Earnings Beat Expectations
- Earnings Beat Expectations: PROG Holdings reported a Q4 non-GAAP EPS of $0.74, exceeding estimates by $0.14, indicating strong profitability despite a slight decline in overall revenue.
- Revenue Decline: Q4 revenue was $574.59 million, down 5.2% year-over-year and missing market expectations by $7.23 million, reflecting increased market competition and fluctuations in consumer demand.
- Optimistic Future Outlook: The company projects total revenues for 2026 to range from $3.02 billion to $3.14 billion, surpassing the consensus estimate of $2.85 billion, demonstrating confidence in future growth, particularly in a recovering economic environment.
- Diverse Business Performance: Progressive Leasing's GMV reached $534 million, while PROG Marketplace GMV surged by 187%, highlighting the company's growth potential across different business lines, especially in rapidly evolving markets.
See More
