The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how PROG (NYSE: PRG) and the rest of the specialty finance stocks fared in Q1.

Specialty finance companies provide targeted lending or financial services for specific industries or needs. They benefit from expertise in particular sectors, often reduced competition in specialized niches, and tailored underwriting that can yield higher margins. Challenges include concentration risk in specific industries, difficulty achieving scale efficiencies, and potential vulnerability during sector-specific downturns affecting their specialized markets.

The 9 specialty finance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 2.1%.

While some specialty finance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.

PROG (NYSE: PRG)

Evolving from its origins as Aaron's, Inc. before rebranding in 2020, PROG Holdings (NYSE: PRG) provides alternative payment solutions including lease-to-own options and second-look credit products for consumers who may not qualify for traditional financing.

PROG reported revenues of $742.7 million, up 11.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.

"We delivered a strong start to 2026, with first quarter results exceeding the high end of our outlook for earnings, and non-GAAP EPS," said PROG Holdings President and CEO Steve Michaels.

Interestingly, the stock is up 28.7% since reporting and currently trades at $37.16.

Is now the time to buy PROG? Access our full analysis of the earnings results here, it’s free.

Best Q1: Encore Capital Group (NASDAQ: ECPG)

Operating in the often misunderstood world of debt collection since 1999, Encore Capital Group (NASDAQ: ECPG) purchases portfolios of defaulted consumer debt at deep discounts and works with individuals to recover these obligations while helping them toward financial recovery.

Encore Capital Group reported revenues of $475.4 million, up 21% year on year, outperforming analysts’ expectations by 6.5%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5% since reporting. It currently trades at $80.

Is now the time to buy Encore Capital Group? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Sixth Street Specialty Lending (NYSE: TSLX)

Originally launched as TPG Specialty Lending before rebranding in 2020, Sixth Street Specialty Lending (NYSE: TSLX) is a business development company that provides customized financing solutions to middle-market companies across various industries.

Sixth Street Specialty Lending reported revenues of $93.4 million, down 19.7% year on year, falling short of analysts’ expectations by 9.3%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Sixth Street Specialty Lending delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 13.3% since the results and currently trades at $16.99.

Read our full analysis of Sixth Street Specialty Lending’s results here.

HA Sustainable Infrastructure Capital (NYSE: HASI)

With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE: HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.

HA Sustainable Infrastructure Capital reported revenues of $142.7 million, up 31.3% year on year. This number topped analysts’ expectations by 43.8%. It was an exceptional quarter as it also produced an impressive beat of analysts’ revenue and EPS estimates.

HA Sustainable Infrastructure Capital delivered the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is down 10% since reporting and currently trades at $38.21.

Read our full, actionable report on HA Sustainable Infrastructure Capital here, it’s free.

Hercules Capital (NYSE: HTGC)

Named after the mythological hero known for his strength, Hercules Capital (NYSE: HTGC) is a business development company that provides debt financing to venture capital-backed and growth-stage technology and life sciences companies.

Hercules Capital reported revenues of $141.5 million, up 18.4% year on year. This print was in line with analysts’ expectations. However, it was a mixed quarter as it underperformed in some other aspects of the business.

The stock is down 6.5% since reporting and currently trades at $15.50.

Read our full, actionable report on Hercules Capital here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.