PROG Holdings plans to enter into a $100 million accelerated share repurchase agreement as the fintech holding company increases the amount available under its broader stock repurchase authorization.
The accelerated share repurchase transactions are expected to be completed during the first quarter of 2027.
In connection with the planned transaction, PROG Holdings’ board replenished the company’s existing share repurchase program by adding $237 million of authorization.
That increases the total amount currently available for future common stock repurchases to $500 million.
The board also extended the program through the earlier of October 26, 2029, or the date PROG has completed an aggregate $500 million of repurchases under the authorization.
PROG said the planned accelerated share repurchase reflects its confidence in the company’s strategy, cash generation, and financial position.
The company’s capital allocation strategy continues to focus on reinvesting in its businesses, pursuing strategic mergers and acquisitions, and returning excess capital to shareholders.
PROG said it has strengthened its balance sheet and returned to its targeted net leverage range, providing flexibility to pursue all three priorities.
Beyond accelerated repurchase agreements, PROG may buy shares through open-market transactions, tender offers, Rule 10b5-1 trading plans, or other repurchase methods.
The timing and amount of future purchases will depend on market conditions and other considerations, and the board can suspend or discontinue the program.
PROG Holdings is the parent company of Progressive Leasing, Four Technologies, MoneyApp, and Purchasing Power.
Progressive Leasing provides e-commerce, mobile application, and in-store lease-to-own solutions. Four Technologies operates a buy-now-pay-later platform, MoneyApp provides short-term liquidity solutions through cash advances, and Purchasing Power offers employee purchasing benefits funded through payroll deductions or allotments.
KEY QUOTES:
“Today’s announcement reflects our continued confidence in PROG’s long-term strategy and the momentum we see across our product ecosystem. Our diversified model is performing as designed, and our consistent cash flow generation gives us the flexibility to return meaningful capital to shareholders without compromising our investments in growth.”
“Our capital allocation priorities remain unchanged: reinvest in the business, pursue strategic M&A, and return excess capital to shareholders. Having strengthened our balance sheet and returned to our targeted net leverage range, we are well positioned to act on all three, beginning with our anticipated accelerated share repurchase.”
Steve Michaels, Chairman, President And CEO Of PROG Holdings
