Purchasing Power Successfully Issues $225 Million ABS with 4.87% Rate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy PRG?
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PRG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 28.690
Low
31.00
Averages
39.67
High
50.00
Current: 28.690
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.
PROG Holdings Unveils Strategic Vision at Investor Day
- Strategic Transformation: At the 2026 Investor Day, PROG Holdings announced its shift from a leasing-centric model to a multi-product consumer access platform, with projected GMV growth of 20-25% over the next three years, significantly enhancing its competitive position in the fintech sector.
- Technology Modernization: The company is achieving structural cost savings through core system modernization and AI deployment, which is expected to accelerate service delivery and improve customer experiences, thereby enhancing customer loyalty and overall operational efficiency.
- Data-Driven Marketing: PROG is leveraging years of accumulated customer behavioral and payment performance data to drive personalized marketing and decision precision, which is anticipated to improve marketing effectiveness and enhance product appeal, further expanding its customer base.
- Capital Allocation Strategy: The company reiterated its commitment to prioritizing investments in high-ROI growth initiatives while focusing on deleveraging post-Purchasing Power acquisition, and returning excess capital to shareholders through quarterly cash dividends and opportunistic share repurchases to ensure financial stability.
See More
PROG Lowers 2026 Revenue Outlook Amid Economic Uncertainty
- Revenue Outlook Revision: PROG has revised its Purchasing Power business revenue outlook down by approximately $70 million, with new sales expectations set at $610 million to $660 million, reflecting the impact of the ASC 606 revenue recognition standard, which may lead to greater financial pressure in the future.
- Overall Sales Guidance Decline: The company has lowered its overall sales guidance for 2026 from $3.020 billion to $3.140 billion down to $2.950 billion to $3.070 billion, indicating a challenging market environment amid economic uncertainties and soft demand for consumer durable goods.
- Technical Analysis Signals: Despite a 21.41% increase in stock price over the past 12 months, the current trading price is 8.5% below the 20-day simple moving average, indicating short-term downward pressure, prompting investors to monitor the key support level at $32.00.
- Analyst Ratings and Expectations: PROG's stock carries a
See More
Prog Holdings Lowers 2026 Revenue Guidance
- Revenue Guidance Cut: Prog Holdings has lowered its 2026 revenue guidance from a previous range of $3.02B to $3.14B down to $2.95B to $3.07B, indicating a cautious outlook on future market conditions.
- Purchasing Power Revenue Impact: The shift to net reporting for travel and service revenue is expected to reduce total Purchasing Power revenue by approximately $70M at both ends of the 2026 guidance range, affecting the company's overall revenue structure.
- Limited Margin Impact: Despite the revenue guidance cut, the company anticipates no material effect on gross margins, pre-tax earnings, or adjusted EBITDA, suggesting that its profitability remains stable.
- Stock Price Reaction: Following the guidance adjustment, Prog Holdings' stock price dropped about 7% during premarket trading on Tuesday, reflecting market concerns regarding the company's future prospects.
See More
PROG Holdings Updates 2026 Outlook Ahead of Investor Day
- Purchasing Power Revenue Adjustment: The adoption of ASC 606 revenue recognition standard in 2026 is expected to reduce Purchasing Power's Travel and Service product category revenue by approximately $70 million, impacting overall revenue reporting but not materially affecting gross margin, earnings before taxes, or adjusted EBITDA.
- 2026 Revenue Expectations: Despite the revenue adjustments for Purchasing Power, PROG Holdings continues to expect low double-digit growth in Purchasing Power's revenue for 2026, reflecting the company's confidence in future market conditions, even amid challenges of soft demand for consumer durable goods.
- Investor Day Event Arrangement: The company will hold its Investor Day in New York City on March 10, 2026, providing a live webcast and supporting materials to ensure that investors unable to attend in person can access the latest information, enhancing transparency and investor relations.
- Market Environment Assumptions: The company's outlook for 2026 remains unchanged, anticipating continued challenges in the operating environment, particularly with soft demand for consumer durable goods, and does not assume a material economic slowdown due to current Iran-related hostilities.
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
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
PROG Holdings Unveils Strategic Vision at Investor Day
- Strategic Transformation: At the 2026 Investor Day, PROG Holdings announced its shift from a leasing-centric model to a multi-product consumer access platform, with projected GMV growth of 20-25% over the next three years, significantly enhancing its competitive position in the fintech sector.
- Technology Modernization: The company is achieving structural cost savings through core system modernization and AI deployment, which is expected to accelerate service delivery and improve customer experiences, thereby enhancing customer loyalty and overall operational efficiency.
- Data-Driven Marketing: PROG is leveraging years of accumulated customer behavioral and payment performance data to drive personalized marketing and decision precision, which is anticipated to improve marketing effectiveness and enhance product appeal, further expanding its customer base.
- Capital Allocation Strategy: The company reiterated its commitment to prioritizing investments in high-ROI growth initiatives while focusing on deleveraging post-Purchasing Power acquisition, and returning excess capital to shareholders through quarterly cash dividends and opportunistic share repurchases to ensure financial stability.
See More
PROG Lowers 2026 Revenue Outlook Amid Economic Uncertainty
- Revenue Outlook Revision: PROG has revised its Purchasing Power business revenue outlook down by approximately $70 million, with new sales expectations set at $610 million to $660 million, reflecting the impact of the ASC 606 revenue recognition standard, which may lead to greater financial pressure in the future.
- Overall Sales Guidance Decline: The company has lowered its overall sales guidance for 2026 from $3.020 billion to $3.140 billion down to $2.950 billion to $3.070 billion, indicating a challenging market environment amid economic uncertainties and soft demand for consumer durable goods.
- Technical Analysis Signals: Despite a 21.41% increase in stock price over the past 12 months, the current trading price is 8.5% below the 20-day simple moving average, indicating short-term downward pressure, prompting investors to monitor the key support level at $32.00.
- Analyst Ratings and Expectations: PROG's stock carries a
See More
Prog Holdings Lowers 2026 Revenue Guidance
- Revenue Guidance Cut: Prog Holdings has lowered its 2026 revenue guidance from a previous range of $3.02B to $3.14B down to $2.95B to $3.07B, indicating a cautious outlook on future market conditions.
- Purchasing Power Revenue Impact: The shift to net reporting for travel and service revenue is expected to reduce total Purchasing Power revenue by approximately $70M at both ends of the 2026 guidance range, affecting the company's overall revenue structure.
- Limited Margin Impact: Despite the revenue guidance cut, the company anticipates no material effect on gross margins, pre-tax earnings, or adjusted EBITDA, suggesting that its profitability remains stable.
- Stock Price Reaction: Following the guidance adjustment, Prog Holdings' stock price dropped about 7% during premarket trading on Tuesday, reflecting market concerns regarding the company's future prospects.
See More
PROG Holdings Updates 2026 Outlook Ahead of Investor Day
- Purchasing Power Revenue Adjustment: The adoption of ASC 606 revenue recognition standard in 2026 is expected to reduce Purchasing Power's Travel and Service product category revenue by approximately $70 million, impacting overall revenue reporting but not materially affecting gross margin, earnings before taxes, or adjusted EBITDA.
- 2026 Revenue Expectations: Despite the revenue adjustments for Purchasing Power, PROG Holdings continues to expect low double-digit growth in Purchasing Power's revenue for 2026, reflecting the company's confidence in future market conditions, even amid challenges of soft demand for consumer durable goods.
- Investor Day Event Arrangement: The company will hold its Investor Day in New York City on March 10, 2026, providing a live webcast and supporting materials to ensure that investors unable to attend in person can access the latest information, enhancing transparency and investor relations.
- Market Environment Assumptions: The company's outlook for 2026 remains unchanged, anticipating continued challenges in the operating environment, particularly with soft demand for consumer durable goods, and does not assume a material economic slowdown due to current Iran-related hostilities.
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
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
