PROG Holdings, Inc.PRG
PROG Holdings, Inc. Segments Disclosure
SEGMENTS
Description of Products and Services of Reportable Segments
As of December 31, 2025, the Company has two reportable segments: Progressive Leasing and Four.
Progressive Leasing partners with traditional and e-commerce retailers, mainly in the consumer residential electronics, furniture and appliance, mobile phones and accessories, jewelry, mattresses, and automobile electronics and accessories industries to offer a lease-purchase solution primarily for customers who may not have access to traditional credit-based financing options. It does so by offering leases with weekly, bi-weekly, semi-monthly, and monthly payment frequencies.
Four is a buy-now, pay-later company that allows shoppers to pay for merchandise through four interest-free installments. As of December 31, 2025, Four is a reportable segment, as its financial results are considered significant to the Company's consolidated financial results. Prior year segment information has been recast for comparability to reflect Four as a reportable segment for the years ended December 31, 2024 and 2023. For periods prior to becoming a reportable segment, the revenues, loss before income taxes, and assets of Four were included within Other, along with the Company's other strategic initiatives.
Vive is no longer presented as a reportable segment as it is included in discontinued operations in the consolidated financial statements of the Company. See Note 2 for further information.
While we are currently evaluating the impact of our acquisition of Purchasing Power on our reportable segments, we anticipate that Purchasing Power will become a reportable segment in the first quarter of 2026. Refer to Note 16 for further information about the Purchasing Power acquisition.
Factors Used by Management to Identify the Reportable Segments
The Company's reportable segments are based on the operations of the Company that the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources among business units of the Company. The Company's CODM is its President and CEO.
Segment Assets and Segment Profit or Loss
The CODM evaluates operating segment performance and decides how to allocate resources based on segment revenues and earnings (loss) before income tax (benefit) expense. The Company determines earnings (loss) before income tax (benefit) expense for all reportable segments in accordance with U.S. GAAP. The CODM uses this information to evaluate the profitability of the Company's reportable segments and make decisions on future business plans.
The Company incurred various corporate overhead expenses for certain executive management, legal, human resources, finance, facilities, audit, risk management, technology, and other overhead functions during the years ended December 31, 2025, 2024, and 2023. Corporate overhead expenses incurred are primarily reflected as expenses of the Progressive Leasing segment and an immaterial amount was allocated to the Four segment and Other based on functional identification. The
allocation of corporate overhead costs to Progressive Leasing, Four and Other was consistent with how the CODM analyzed performance and allocated resources among the segments of the Company.
The following is a summary of total assets by segment:
| December 31, | |||||||||||
| (In Thousands) | 2025 | 2024 | |||||||||
| Assets: | |||||||||||
| Progressive Leasing | $ | 1,444,367 | $ | 1,283,878 | |||||||
Four | 132,337 | 85,885 | |||||||||
| Other | 20,154 | 7,535 | |||||||||
Total Assets from Continuing Operations | $ | 1,596,858 | $ | 1,377,298 | |||||||
Following is a summary of capital expenditures by segment:
Year Ended December 31, | |||||||||||||||||
| (In Thousands) | 2025 | 2024 | 2023 | ||||||||||||||
Capital Expenditures:1 | |||||||||||||||||
| Progressive Leasing | $ | 7,397 | $ | 5,615 | $ | 6,160 | |||||||||||
Four | 179 | 135 | 254 | ||||||||||||||
| Other | 2,402 | 2,268 | 2,601 | ||||||||||||||
Total Capital Expenditures from Continuing Operations | $ | 9,978 | $ | 8,018 | $ | 9,015 | |||||||||||
1 Capital expenditures primarily consists of internal-use software, as well as computer hardware and furniture and equipment.
The following tables present a summary of segment revenues, significant segment expenses, other segment items, and profit and loss information from continuing operations for the years ended December 31, 2025, 2024, and 2023.
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| (In Thousands) | Progressive Leasing | Four | Other | Total | |||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
Lease Revenues and Fees1 | $ | 2,322,754 | $ | — | $ | — | $ | 2,322,754 | |||||||||||||||
Other Revenues2 | — | 73,722 | 12,747 | 86,469 | |||||||||||||||||||
| Total Revenues | 2,322,754 | 73,722 | 12,747 | 2,409,223 | |||||||||||||||||||
Significant Segment Expenses3 | |||||||||||||||||||||||
| Depreciation of Lease Merchandise | 1,590,240 | — | — | 1,590,240 | |||||||||||||||||||
| Provision for Lease Merchandise Write-Offs | 173,115 | — | — | 173,115 | |||||||||||||||||||
| Selling, General and Administrative | 331,783 | 31,989 | 14,806 | 378,578 | |||||||||||||||||||
| Provision for Loan Losses | — | 32,819 | 7,520 | 40,339 | |||||||||||||||||||
| Total | 2,095,138 | 64,808 | 22,326 | 2,182,272 | |||||||||||||||||||
| Other Segment Items: | |||||||||||||||||||||||
Depreciation and Amortization4 | 20,600 | 1,137 | 2,295 | 24,032 | |||||||||||||||||||
| Restructuring Expenses | 589 | — | 2,209 | 2,798 | |||||||||||||||||||
Gain on Sale of Receivables | (6,652) | — | — | (6,652) | |||||||||||||||||||
Interest Expense5 | 40,269 | 5,272 | 3,726 | 49,267 | |||||||||||||||||||
Interest Income5 | (16,064) | (330) | (619) | (17,013) | |||||||||||||||||||
| Total | 38,742 | 6,079 | 7,611 | 52,432 | |||||||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Tax Expense | $ | 188,874 | $ | 2,835 | $ | (17,190) | $ | 174,519 | |||||||||||||||
1 Revenue within the scope of ASC 842, "Leases." | |||||||||||||||||||||||
2 Revenue within the scope of ASC 310, "Receivables." Also included within Other Revenues in the Four category is $21.5 million of subscription fee revenue within the scope of ASC 606, "Revenue from Contracts with Customers." | |||||||||||||||||||||||
3 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||||||||||||||||||
4 Excludes depreciation of lease merchandise, which is not included in the CODM's measure of depreciation and amortization. | |||||||||||||||||||||||
5 Intersegment interest income and expense of $9.9 million are included within the amounts shown. | |||||||||||||||||||||||
Year Ended December 31, 2024 | |||||||||||||||||||||||
| (In Thousands) | Progressive Leasing | Four | Other | Total | |||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
Lease Revenues and Fees1 | $ | 2,366,489 | $ | — | $ | — | $ | 2,366,489 | |||||||||||||||
Other Revenues2 | — | 27,351 | 5,241 | 32,592 | |||||||||||||||||||
| Total Revenues | 2,366,489 | 27,351 | 5,241 | 2,399,081 | |||||||||||||||||||
Significant Segment Expenses3 | |||||||||||||||||||||||
| Depreciation of Lease Merchandise | 1,621,101 | — | — | 1,621,101 | |||||||||||||||||||
| Provision for Lease Merchandise Write-Offs | 178,338 | — | — | 178,338 | |||||||||||||||||||
| Selling, General and Administrative | 309,859 | 18,236 | 11,011 | 339,106 | |||||||||||||||||||
| Provision for Loan Losses | — | 13,433 | 5,206 | 18,639 | |||||||||||||||||||
| Total | 2,109,298 | 31,669 | 16,217 | 2,157,184 | |||||||||||||||||||
| Other Segment Items: | |||||||||||||||||||||||
Depreciation and Amortization4 | 23,546 | 1,417 | 1,371 | 26,334 | |||||||||||||||||||
| Restructuring Expenses | 18,210 | — | 2,628 | 20,838 | |||||||||||||||||||
Interest Expense5 | 38,816 | 750 | (114) | 39,452 | |||||||||||||||||||
Interest Income5 | (8,163) | — | — | (8,163) | |||||||||||||||||||
| Total | 72,409 | 2,167 | 3,885 | 78,461 | |||||||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Tax Benefit | $ | 184,782 | $ | (6,485) | $ | (14,861) | $ | 163,436 | |||||||||||||||
1 Revenue within the scope of ASC 842, "Leases." | |||||||||||||||||||||||
2 Revenue within the scope of ASC 310, "Receivables." Also included within Other Revenues in the Four category is $6.2 million of subscription fee revenue within the scope of ASC 606, "Revenue from Contracts with Customers." | |||||||||||||||||||||||
3 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||||||||||||||||||
4 Excludes depreciation of lease merchandise, which is not included in the CODM's measure of depreciation and amortization. | |||||||||||||||||||||||
5 Intersegment interest income and expense of $0.6 million are included within the amounts shown. | |||||||||||||||||||||||
Year Ended December 31, 2023 | |||||||||||||||||||||||
| (In Thousands) | Progressive Leasing | Four | Other | Total | |||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
Lease Revenues and Fees1 | $ | 2,333,588 | $ | — | $ | — | $ | 2,333,588 | |||||||||||||||
Other Revenues2 | — | 5,694 | 70 | 5,764 | |||||||||||||||||||
| Total Revenues | 2,333,588 | 5,694 | 70 | 2,339,352 | |||||||||||||||||||
Significant Segment Expenses3 | |||||||||||||||||||||||
| Depreciation of Lease Merchandise | 1,576,303 | — | — | 1,576,303 | |||||||||||||||||||
| Provision for Lease Merchandise Write-Offs | 155,250 | — | — | 155,250 | |||||||||||||||||||
| Selling, General and Administrative | 315,088 | 14,761 | 10,762 | 340,611 | |||||||||||||||||||
| Provision for Loan Losses | — | 3,930 | 730 | 4,660 | |||||||||||||||||||
| Total | 2,046,641 | 18,691 | 11,492 | 2,076,824 | |||||||||||||||||||
| Other Segment Items: | |||||||||||||||||||||||
Depreciation and Amortization4 | 29,165 | 1,440 | 682 | 31,287 | |||||||||||||||||||
| Restructuring Expenses | 12,533 | — | — | 12,533 | |||||||||||||||||||
Interest Expense5 | 38,859 | — | 593 | 39,452 | |||||||||||||||||||
Interest Income5 | (9,881) | — | (165) | (10,046) | |||||||||||||||||||
| Total | 70,676 | 1,440 | 1,110 | 73,226 | |||||||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Tax Expense | $ | 216,271 | $ | (14,437) | $ | (12,532) | $ | 189,302 | |||||||||||||||
1 Revenue within the scope of ASC 842, "Leases." | |||||||||||||||||||||||
2 Revenue within the scope of ASC 310, "Receivables." | |||||||||||||||||||||||
3 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||||||||||||||||||
4 Excludes depreciation of lease merchandise, which is not included in the CODM's measure of depreciation and amortization. | |||||||||||||||||||||||
5 Intersegment interest income and expense of $0.8 million are included within the amounts shown. | |||||||||||||||||||||||
In 2025, the results of the Company's operating segments were impacted by the following items:
•Progressive Leasing earnings before income tax (benefit) expense were impacted by a $6.7 million gain on sale of a portfolio of charged-off receivables.
In 2024, the results of the Company's operating segments were impacted by the following items:
•Progressive Leasing earnings before income tax (benefit) expense were impacted by $18.2 million related primarily to early contract termination costs, operating lease right-of-use asset and other fixed asset impairment charges related to a reduction of office workspace, and employee severance costs associated with the Company's restructuring activities.
•Other loss before income tax (benefit) expense was impacted by $2.6 million of restructuring costs, which consisted of early contract termination costs and employee severance costs.
In 2023, the results of the Company's operating segments were impacted by the following items:
•Progressive Leasing earnings before income tax expense were impacted by $12.5 million related primarily to early contract termination costs and employee severance costs associated with the Company's restructuring activities.
•Progressive Leasing earnings before income tax expense were impacted by $2.8 million related to costs associated with the cybersecurity incident that occurred during the third quarter of 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 26, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.