Financial technology company PROG Holdings (NYSE: PRG) reported Q3 CY2025 results exceeding the market’s revenue expectations, but sales fell by 1.8% year on year to $595.1 million. On the other hand, the company’s full-year revenue guidance of $2.42 billion at the midpoint came in 2.1% below analysts’ estimates. Its non-GAAP profit of $0.90 per share was 21.6% above analysts’ consensus estimates.

Is now the time to buy PROG? Find out by accessing our full research report, it’s free for active Edge members.

"Our third quarter results once again highlight the strength and consistency of our execution, even as consumers face ongoing economic pressures," said Steve Michaels, President and CEO of PROG Holdings.

Company Overview

Evolving from its origins as Aaron's, Inc. before rebranding in 2020, PROG Holdings (NYSE: PRG) provides alternative payment solutions including lease-to-own options and second-look credit products for consumers who may not qualify for traditional financing.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, PROG struggled to consistently increase demand as its $2.51 billion of revenue for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and suggests it’s a low quality business.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. PROG’s annualized revenue growth of 1.3% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, PROG’s revenue fell by 1.8% year on year to $595.1 million but beat Wall Street’s estimates by 1.5%.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Key Takeaways from PROG’s Q3 Results

It was good to see PROG beat analysts’ EPS expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. On the other hand, its full-year revenue guidance missed. Overall, this print had some key positives. The stock traded up 1.7% to $33.33 immediately after reporting.

PROG had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.