Purchasing Power Successfully Issues $225 Million ABS with 4.87% Rate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Source: Yahoo Finance
- 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.
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Analyst Views on PRG
Wall Street analysts forecast PRG stock price to fall
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 43.250
Low
31.00
Averages
39.67
High
50.00
Current: 43.250
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.
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- Live Webcast Discussion: The company will host a live webcast at 8:30 A.M. ET on the same day to discuss its financial results, allowing investors to engage directly through the company’s website or the provided link, enhancing investor relations and communication.
- Company Overview: PROG Holdings is a fintech holding company based in Salt Lake City, owning brands like Progressive Leasing, which offers diverse payment options including lease-to-own solutions, thereby strengthening its competitive position in the market.
- Diversified Business Model: Through subsidiaries like Four Technologies and MoneyApp, PROG Holdings not only meets consumer demand for flexible payment solutions but also expands its market reach and customer base by providing employee benefits through Purchasing Power.
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- Earnings Release Schedule: PROG Holdings, Inc. is set to announce its Q2 2026 financial results on July 29, 2026, prior to market open, reflecting the company's commitment to transparency and timely information disclosure aimed at bolstering investor confidence.
- Live Webcast Discussion: The company will host a live webcast at 8:30 A.M. ET on the same day to discuss its financial results, allowing investors to engage directly through the company’s website or the provided link, enhancing investor relations and communication.
- Company Overview: PROG Holdings is a fintech holding company based in Salt Lake City, owning brands like Progressive Leasing, which offers diverse payment options including lease-to-own solutions, thereby strengthening its competitive position in the market.
- Diversified Business Model: Through subsidiaries like Four Technologies and MoneyApp, PROG Holdings not only meets consumer demand for flexible payment solutions but also expands its market reach and customer base by providing employee benefits through Purchasing Power.
See More
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- Quarterly Cash Dividend: PROG Holdings has declared a cash dividend of $0.14 per share of common stock, payable on June 2, 2026, to shareholders of record as of May 19, 2026, reflecting the company's commitment to returning value to its shareholders.
- Company Overview: Headquartered in Salt Lake City, PROG Holdings is a fintech holding company that owns Progressive Leasing, Four Technologies, MoneyApp, and Purchasing Power, providing diverse payment solutions that enhance its competitive position in the market.
- Business Diversification: The company offers e-commerce and in-store lease-to-own solutions through Progressive Leasing, 'Buy Now, Pay Later' options via Four, and interest-free cash advances through MoneyApp, showcasing its innovative capabilities in the fintech sector.
- Employee Benefits: Purchasing Power serves as a voluntary employee benefit provider, allowing employees to purchase brand-name products through automatic payroll deductions or allotments, further enhancing the company's influence in the employee benefits market.
See More
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- Strong Performance: PROG's Q1 revenue reached $742.7 million, an 11.1% year-over-year increase that exceeded expectations, reflecting the company's robust market performance despite challenging macroeconomic conditions, showcasing the resilience of its business model.
- Significant GMV Growth: Consolidated GMV hit $806 million, up 54% year-over-year, primarily driven by the newly acquired Purchasing Power and triple-digit growth at the Four platform, indicating substantial progress in expanding the company's ecosystem.
- Margin Improvement: Progressive Leasing's gross margin rose 210 basis points year-over-year to 31.5%, attributed to customers opting to extend their lease agreements, demonstrating positive shifts in consumer behavior that enhance overall profitability.
- Optimistic Outlook: Management raised the 2026 revenue guidance to $3.0 billion to $3.1 billion, reflecting Q1 outperformance and confidence in execution, indicating strong growth momentum despite consumer pressures.
See More
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- Significant Revenue Growth: PROG Holdings reported an 11.1% year-over-year revenue increase to $742.7 million in Q1, exceeding market expectations and demonstrating the company's resilience and strong market demand amid economic challenges.
- Strong Performance of Four: Four's GMV surged 134% year-over-year, not only enhancing overall profitability but also establishing a solid foundation for future growth, indicating its increasing competitiveness in the market.
- Integration and Expansion: Purchasing Power's GMV grew by 10.3% in Q1, with the addition of several new employer clients bringing tens of thousands of new eligible employees, further expanding the platform's market reach and strengthening its customer base.
- Optimistic Outlook: The company raised its 2026 adjusted EBITDA forecast to between $343 million and $370 million, with non-GAAP EPS expectations increased to $4.40 to $4.80, reflecting management's confidence in future performance.
See More
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See More
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- Significant Revenue Growth: The company achieved revenues of $742.7 million in Q1, an 8.6% year-over-year increase, surpassing market expectations by $10 million, demonstrating sustained competitiveness in the market.
- Debt Reduction: Since acquiring Purchasing Power, PROG has reduced net recourse debt by $210 million, resulting in a net leverage ratio of 2.0, showcasing effective financial management that enhances investor confidence.
- 2026 Outlook: The company revised its 2026 revenue forecast to between $3 billion and $3.1 billion, reflecting a strategic focus on accelerating growth through a multiproduct platform, which is expected to drive future performance.
See More
