Aaron’s (NYSE:PRG) Issues Earnings Results, Beats Expectations By $0.14 EPS

Aaron’s (NYSE:PRG) issued its quarterly earnings data on Wednesday. The company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.14, FiscalAI reports. Aaron’s had a net margin of 6.54% and a return on equity of 22.36%. The company had revenue of $525.36 million during the quarter, compared to the consensus estimate of $581.82 million. During the same quarter last year, the company earned $0.80 earnings per share. Aaron’s’s revenue for the quarter was down 5.2% on a year-over-year basis. Aaron’s updated its Q1 2026 guidance to 0.700-0.900 EPS and its FY 2026 guidance to 4.000-4.450 EPS.

Here are the key takeaways from Aaron’s’ conference call:

• PROG beat guidance for 2025 with consolidated adjusted EBITDA of $269 million and non‑GAAP EPS of $3.51, delivering strong free cash flow to invest and return capital.
• Progressive Leasing faced material headwinds—leasing GMV fell ~8.6% y/y and the leased portfolio started 2026 down 9.4% after intentional tightening and the Big Lots bankruptcy, pressuring near‑term revenue.
• Four Technologies (BNPL) scaled rapidly—~144% GMV growth in 2025 with improved unit economics and roughly $10M adjusted EBITDA, signaling strong growth and margin expansion potential.
• The Jan 2026 acquisition of Purchasing Power adds projected 2026 revenue of $680–$730M and $50–$60M adjusted EBITDA but raised net leverage to ~2.5x, creating integration upside alongside near‑term leverage risk.
• Technology and DTC progress is accelerating—PROG Marketplace nearly doubled to ~$82M GMV, e‑commerce comprised ~30% of Q4 leasing GMV, and AI/modernization (e.g., Piper Plus, faster decisioning) is improving efficiency and conversion.

Aaron’s Stock Up 1.7%

Shares of NYSE:PRG traded up $0.57 during trading on Wednesday, hitting $34.44. 113,177 shares of the company’s stock traded hands, compared to its average volume of 408,758. The company has a 50-day moving average price of $31.80 and a 200-day moving average price of $31.73. Aaron’s has a 52 week low of $23.50 and a 52 week high of $37.58. The company has a current ratio of 4.74, a quick ratio of 2.65 and a debt-to-equity ratio of 0.85. The company has a market cap of $1.36 billion, a price-to-earnings ratio of 8.73 and a beta of 1.73.

Analysts Set New Price Targets

A number of brokerages have commented on PRG. Weiss Ratings restated a “hold (c)” rating on shares of Aaron’s in a research report on Thursday, January 22nd. TD Cowen decreased their target price on shares of Aaron’s from $41.00 to $38.00 and set a “buy” rating for the company in a research note on Thursday, January 8th. Wall Street Zen lowered Aaron’s from a “buy” rating to a “hold” rating in a report on Saturday, January 10th. BTIG Research upgraded Aaron’s from a “sell” rating to a “neutral” rating and set a $31.00 price objective on the stock in a report on Friday, November 21st. Finally, B. Riley Financial assumed coverage on shares of Aaron’s in a research report on Tuesday, December 16th. They set a “buy” rating and a $50.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $38.83.

Institutional Trading of Aaron’s

Institutional investors and hedge funds have recently modified their holdings of the business. Quarry LP lifted its holdings in shares of Aaron’s by 82.8% in the fourth quarter. Quarry LP now owns 1,117 shares of the company’s stock valued at $33,000 after purchasing an additional 506 shares in the last quarter. WealthCollab LLC grew its stake in shares of Aaron’s by 28.1% during the third quarter. WealthCollab LLC now owns 2,680 shares of the company’s stock valued at $87,000 after buying an additional 588 shares during the last quarter. Swiss National Bank grew its position in shares of Aaron’s by 0.9% in the 3rd quarter. Swiss National Bank now owns 78,200 shares of the company’s stock worth $2,531,000 after buying an additional 700 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Aaron’s by 5.0% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,363 shares of the company’s stock worth $648,000 after purchasing an additional 1,162 shares in the last quarter. Finally, Vident Advisory LLC grew its position in Aaron’s by 7.7% during the 3rd quarter. Vident Advisory LLC now owns 18,880 shares of the company’s stock valued at $611,000 after purchasing an additional 1,349 shares during the last quarter. 97.92% of the stock is currently owned by institutional investors.

About Aaron’s

PROG Holdings, Inc (NYSE: PRG), formerly known as Aaron’s, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron’s Business Solutions and Progressive Financial Services. Through Aaron’s Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.