Upbound Group (NASDAQ:UPBD) Issues Earnings Results

Key Points

• Upbound Group met second-quarter expectations, reporting adjusted EPS of $1.07 and revenue of $1.16 billion; revenue rose 0.5% year over year, supported by 37% growth in Brigit revenue.
• Acima GMV fell 11% amid conservative underwriting, weaker discretionary demand and approximately $13 million in fraud losses, though tighter controls improved charge-offs and margins. Rent-A-Center posted 1.6% same-store sales growth but continued closing underperforming stores.
• Management maintained full-year EPS guidance of $4.00–$4.35 and raised free-cash-flow guidance to about $250 million, but third-quarter EPS guidance of $0.85–$0.95 was below the $1.00 analyst consensus and the full-year revenue outlook was cautious.

Upbound Group (NASDAQ:UPBD - Get Free Report) announced its earnings results on Thursday. The company reported $1.07 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.07, FiscalAI reports. Upbound Group had a return on equity of 35.56% and a net margin of 1.78%.The firm had revenue of $1.16 billion during the quarter, compared to analysts' expectations of $1.16 billion. During the same quarter in the prior year, the business earned $1.12 earnings per share. The company's revenue was up .5% on a year-over-year basis. Upbound Group updated its FY 2026 guidance to 4.000-4.350 EPS and its Q3 2026 guidance to 0.850-0.950 EPS.

Here are the key takeaways from Upbound Group's conference call:

• Brigit revenue rose 37% year over year to $71 million, with paying users up 30% to approximately 1.7 million. The new multi-year Experian partnership and expanding line-of-credit pilot could provide additional distribution and growth.
• Acima GMV declined 11% year over year, pressured by conservative underwriting, weaker discretionary demand, and cybersecurity incidents that contributed approximately $13 million in fraudulent contract losses. Management expects Acima GMV to be flat to down low double digits for 2026, with growth returning in the fourth quarter.
• Acima’s tighter risk controls improved portfolio performance, with lease charge-offs down 50 basis points to 8.8% and adjusted EBITDA margin expanding 117 basis points to 16.2%. The company now expects full-year Acima losses to remain below 9% and margins to improve versus 2025.
• Rent-A-Center delivered its third consecutive quarter of same-store sales growth, up 1.6%, but closed 69 underperforming stores and is evaluating further footprint optimization. The Amazon pickup-and-returns partnership is live at approximately 1,500 corporate-owned stores and has increased traffic, though its financial contribution remains early.
• Strong cash generation supported deleveraging and capital returns, with second-quarter free cash flow of $84 million versus negative $10 million a year ago. Full-year free-cash-flow guidance was raised to approximately $250 million, while the company reaffirmed adjusted EBITDA guidance of $500 million to $535 million and EPS guidance of $4.00 to $4.35.

Upbound Group Stock Performance

Shares of UPBD stock traded down $0.83 during trading hours on Thursday, reaching $20.12. 1,379,028 shares of the company's stock were exchanged, compared to its average volume of 868,392. Upbound Group has a fifty-two week low of $15.82 and a fifty-two week high of $28.02. The stock has a market capitalization of $1.17 billion, a P/E ratio of 14.07 and a beta of 1.79. The business has a fifty day moving average price of $19.73 and a 200-day moving average price of $19.40. The company has a quick ratio of 0.88, a current ratio of 3.06 and a debt-to-equity ratio of 2.01.

Upbound Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 16th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 7.8%. The ex-dividend date of this dividend was Tuesday, June 16th. Upbound Group's payout ratio is currently 109.09%.

More Upbound Group News

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Upbound reported second-quarter adjusted earnings of $1.07 per share and revenue of approximately $1.16 billion, both in line with analyst estimates. Revenue increased 0.5% year over year, while growth in Brigit and solid execution helped offset softer demand. Upbound Q2 Earnings Meet Estimates, FY26 Revenue Outlook Down
• Positive Sentiment: The company’s profitability metrics remained strong, including a reported return on equity of 35.56%, and its full-year EPS outlook of $4.00 to $4.35 remains broadly consistent with the analyst forecast of $4.19. Upbound Group Earnings Report
• Neutral Sentiment: Brokerages assigned Upbound a consensus price target of $31.00, suggesting analysts see potential upside, although the report did not indicate a change in ratings or targets. Upbound Group Receives $31 Consensus Target Price
• Negative Sentiment: Third-quarter EPS guidance of $0.85 to $0.95 is below the $1.00 consensus estimate. Revenue guidance of $1.1 billion to $1.2 billion also falls short of the $1.2 billion consensus at the midpoint, pointing to near-term earnings pressure. Upbound Group Matches Q2 Earnings Estimates
• Negative Sentiment: Although full-year EPS guidance was maintained at $4.00 to $4.35, the full-year revenue outlook of $4.7 billion to $4.9 billion reflects a more cautious sales outlook, with softer consumer demand weighing on investor sentiment. Second-quarter EPS also declined from $1.12 a year earlier. Upbound Group Reports Second Quarter 2026 Results

Insider Buying and Selling at Upbound Group

In related news, Director Jeffrey J. Brown acquired 2,295 shares of the stock in a transaction dated Tuesday, July 7th. The shares were acquired at an average price of $20.09 per share, for a total transaction of $46,106.55. Following the completion of the purchase, the director owned 96,681 shares in the company, valued at approximately $1,942,321.29. The trade was a 2.43% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Upbound Group

A number of hedge funds have recently bought and sold shares of UPBD. Invesco Ltd. grew its position in Upbound Group by 28.1% in the 4th quarter. Invesco Ltd. now owns 548,630 shares of the company's stock worth $9,634,000 after purchasing an additional 120,333 shares during the last quarter. Vident Advisory LLC raised its position in shares of Upbound Group by 33.2% during the fourth quarter. Vident Advisory LLC now owns 33,108 shares of the company's stock valued at $581,000 after buying an additional 8,253 shares during the last quarter. State of Tennessee Department of Treasury lifted its stake in shares of Upbound Group by 40.3% in the fourth quarter. State of Tennessee Department of Treasury now owns 57,873 shares of the company's stock valued at $1,094,000 after buying an additional 16,615 shares during the period. Empowered Funds LLC grew its position in Upbound Group by 9.5% during the fourth quarter. Empowered Funds LLC now owns 214,851 shares of the company's stock worth $3,773,000 after buying an additional 18,584 shares in the last quarter. Finally, Wellington Management Group LLP grew its position in Upbound Group by 4.8% during the fourth quarter. Wellington Management Group LLP now owns 1,315,672 shares of the company's stock worth $23,103,000 after buying an additional 59,798 shares in the last quarter. 90.30% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on UPBD. Zacks Research cut shares of Upbound Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. TD Cowen lifted their target price on shares of Upbound Group from $28.00 to $29.00 and gave the stock a "buy" rating in a report on Tuesday, July 7th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Upbound Group in a research report on Wednesday, June 24th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $31.00.

Upbound Group Company Profile

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It offers furniture comprising mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.

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