Upbound Group Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue reached $1.15B, while adjusted EBITDA and EPS beat guidance; free cash flow more than doubled YoY and leverage fell to 2.4x. Brigit growth and stronger Acima profitability offset pressure on Acima GMV and a challenging consumer backdrop.
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Q2 2026 saw modest revenue growth, strong cash flow, and stable portfolio health despite macro headwinds and a cyber incident in Acima. Brigit and Rent-A-Center delivered growth, while Acima managed losses and improved margins. Full-year guidance was narrowed, with free cash flow expectations raised.
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Q1 2026 results met targets with 3.7% revenue growth and strong cash flow, despite macro headwinds. Brigit and Acima showed robust performance, while Rent-A-Center stabilized. Guidance for 2026 is reaffirmed, with continued focus on digital transformation and disciplined capital allocation.
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The group is transforming to serve non-prime consumers through three main segments, with Brigit driving the fastest growth and Acima expanding digitally. Strong cash flow from Rent-A-Center supports investments in technology, debt reduction, and potential M&A, while regulatory and macro conditions are improving.
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A unified financial platform is leveraging digital transformation, data integration, and cross-brand synergies to serve non-prime consumers with flexible products. Recent leadership changes and acquisitions support innovation, omnichannel growth, and a resilient business model.
Fiscal Year 2025
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Record 2025 revenue and EBITDA growth were driven by the Brigit acquisition, digital innovation, and strong segment execution. 2026 guidance projects continued revenue and cash flow growth, with a focus on disciplined risk management and technology investment.
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Q3 saw 9% revenue growth and 5.7% higher adjusted EBITDA, led by Acima and Brigit, despite macro headwinds. Acima’s GMV rose 11% but faced higher loss rates, while Brigit’s revenue jumped 40%. Guidance for 2025 remains strong, with a focus on innovation, risk management, and capital discipline.
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Q2 2025 saw 7.5% revenue and 7% adjusted EBITDA growth, led by Acima and Brigit, while Rent-A-Center faced a 4% same-store sales decline due to underwriting changes. Guidance was raised, legal accruals addressed, and digital innovation continued to drive segment performance.
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Q1 2025 saw strong revenue and EBITDA growth, led by Acima and the addition of Brigit, with improved margins and lower charge-offs. Guidance for 2025 was raised, reflecting confidence in continued growth despite macro and tariff uncertainties.
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The company is advancing its digital transformation with strong growth in Acima and the integration of Brigit, enhancing underwriting and customer engagement. Despite ongoing consumer pressure, diversified products and prudent capital allocation support stable margins and future growth.
Fiscal Year 2024
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Q4 and full-year 2024 saw strong revenue and EBITDA growth, led by Acima's double-digit gains and stable Rent-A-Center performance despite macro headwinds. The Brigit acquisition expands digital offerings, and 2025 guidance anticipates further top-line growth, margin improvement, and robust free cash flow.
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Upbound is acquiring Brigit for up to $460 million to expand its fintech offerings for underserved consumers, leveraging Brigit’s AI-driven technology and subscription model. The deal is expected to be accretive to EBITDA, with significant cross-selling and innovation opportunities, and will close in early Q1 2025 pending regulatory approval.
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Q3 saw 9% revenue growth and 10% EBITDA growth, led by Acima's 19% revenue increase and Rent-A-Center's margin expansion. Guidance for 2024 remains strong, with digital and AI initiatives fueling future growth and a focus on deleveraging and risk management.
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Q2 2024 saw nearly $1.1B in revenue, 9.9% growth, and strong segment results, with Acima up 19% and Rent-A-Center up 1.9%. Guidance for revenue, adjusted EBITDA, and EPS was raised, supported by robust GMV growth, digital investments, and resilient risk management.
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Non-prime consumers remain stable but under stress, with digital investments and tighter underwriting supporting growth. Acima’s strong GMV gains are driven by new merchants and improved productivity, while integration with Rent-A-Center enhances operational efficiency and customer experience.