Upbound Group (NASDAQ:UPBD) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Q1 earnings beat: Upbound reported adjusted EPS of $1.08 vs. $1.06 consensus and revenue +3.7% YoY, and guided Q2 EPS to $1.00–$1.10 and FY 2026 EPS to $4.00–$4.35 while reiterating 2026 targets that account for an estimated ~$70M of legal/regulatory payments.
• Brigit is the growth driver: Brigit posted ~1.6M paying users (+27% YoY), ARPU +12% and revenue +40% with adjusted EBITDA roughly doubling (~$22.9M), supporting strong cash generation and deleveraging (FCF ≈ $136M, leverage down to ~2.6x).
• Corporate/financial cautions: the company declared a quarterly dividend ($0.39; annualized yield ~7.9%) but has a payout ratio of ~125.8%, a low net margin (~1.6%) and relatively high leverage (debt/equity ~2.26), which could concern income- or credit-focused investors.

Upbound Group (NASDAQ:UPBD - Get Free Report) issued its earnings results on Thursday. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.06 by $0.02, FiscalAI reports. Upbound Group had a net margin of 1.56% and a return on equity of 35.23%. The firm's quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.00 earnings per share. Upbound Group updated its Q2 2026 guidance to 1.000-1.100 EPS and its FY 2026 guidance to 4.000-4.350 EPS.

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

• Upbound delivered a solid Q1 with revenue of $1.2B (+3.7% YoY), adjusted EBITDA of $136M (+~8%), non‑GAAP EPS of $1.08 (+8%), and strong cash generation (FCF ~$136M) that reduced leverage to ~2.6x.
• Brigit showed robust user and monetization growth—paying users ~1.6M (+27% YoY), ARPU +12% to $14.41, revenue +40% YoY and adjusted EBITDA doubled (~$22.9M)—with a measured line‑of‑credit rollout planned later in the year.
• Acima’s GMV fell ~6% YoY largely due to deliberate underwriting tightening and softer demand, but loss performance improved materially (lease charge‑offs ~8.8%, -130bps sequential), supporting margin and a revised outlook of flat to low‑single‑digit GMV and slightly better loss rates for 2026.
• Rent‑A‑Center is stabilizing (second consecutive quarter of same‑store sales growth, +40bps) despite a slight revenue/EBITDA decline; the Amazon pickup/returns partnership rolling out to ~1,700 stores is an early growth and traffic catalyst.
• Management reiterated 2026 targets (revenue $4.7B–$4.95B, adj. EBITDA $500M–$535M, EPS $4.00–$4.35, FCF ≈ $200M), continues dividend and deleveraging priorities toward ~2x leverage, and notes the guide includes an estimated ~$70M of legal/regulatory payments.

Upbound Group Stock Up 4.3%

NASDAQ UPBD traded up $0.82 on Thursday, reaching $19.76. The company had a trading volume of 1,790,572 shares, compared to its average volume of 762,888. The company's fifty day moving average is $19.14 and its 200-day moving average is $19.17. Upbound Group has a 1-year low of $15.82 and a 1-year high of $28.02. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.78 and a current ratio of 2.92. The firm has a market capitalization of $1.15 billion, a price-to-earnings ratio of 15.94 and a beta of 1.85.

Upbound Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, April 28th. Investors of record on Tuesday, April 7th were paid a $0.39 dividend. The ex-dividend date of this dividend was Tuesday, April 7th. This represents a $1.56 dividend on an annualized basis and a yield of 7.9%. Upbound Group's dividend payout ratio is presently 125.81%.

Insider Activity at Upbound Group

In other Upbound Group news, Director Jeffrey J. Brown acquired 2,329 shares of Upbound Group stock in a transaction dated Tuesday, April 28th. The stock was bought at an average cost of $19.41 per share, for a total transaction of $45,205.89. Following the purchase, the director directly owned 94,840 shares in the company, valued at approximately $1,840,844.40. This represents a 2.52% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 2.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Upbound Group

A number of large investors have recently modified their holdings of UPBD. AQR Capital Management LLC boosted its stake in shares of Upbound Group by 15.9% during the 1st quarter. AQR Capital Management LLC now owns 48,276 shares of the company's stock worth $1,157,000 after buying an additional 6,623 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Upbound Group by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,891 shares of the company's stock worth $764,000 after buying an additional 1,376 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Upbound Group by 73.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 532,809 shares of the company's stock worth $12,766,000 after buying an additional 224,811 shares during the last quarter. Jane Street Group LLC boosted its stake in shares of Upbound Group by 286.3% during the 1st quarter. Jane Street Group LLC now owns 86,450 shares of the company's stock worth $2,071,000 after buying an additional 64,073 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Upbound Group during the 2nd quarter worth about $440,000. 90.30% of the stock is currently owned by institutional investors and hedge funds.

Key Upbound Group News

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

• Positive Sentiment: Q1 earnings beat — EPS $1.08 vs. $1.06 consensus; management cited Brigit subscriber growth, margin expansion and strong cash flow, which underpinned the rally. Upbound Q1 Earnings Beat on Brigit Subscriber Growth
• Positive Sentiment: Insider buying — Director Jeffrey J. Brown purchased 2,329 shares (~$19.41 avg), increasing his stake ~2.5%, a bullish insider signal for some investors. SEC Form 4
• Neutral Sentiment: Guidance roughly in line — Q2 EPS guided to $1.00–$1.10 (consensus ~$1.05) and FY EPS $4.00–$4.35 (consensus ~$4.18); revenue ranges span consensus levels, so guidance is not a major surprise but lacks a clear upside signal. Press Release / Slide Deck
• Neutral Sentiment: Market coverage noted the mixed print — multiple outlets highlighted the EPS beat but flagged the revenue shortfall, which produced a measured intraday move rather than a decisive gap up. Upbound Group stock edges up on earnings beat despite revenue miss
• Negative Sentiment: Revenue miss / cautious revenue tone — quarterly revenue growth was modest (+3.7% YoY) and Q2 revenue was guided to a range whose low end is below consensus, which may keep investors cautious about near-term top-line momentum. Upbound Group (UPBD) Q1 Earnings Top Estimates
• Negative Sentiment: Structural/financial considerations — reported net margin was low (~1.6%) and debt-to-equity is relatively high (~2.26), which could concern investors focused on leverage and profitability despite the EPS beat.

Analyst Upgrades and Downgrades

A number of analysts recently commented on UPBD shares. TD Cowen restated a "buy" rating on shares of Upbound Group in a research report on Thursday, January 8th. Wall Street Zen upgraded shares of Upbound Group from a "hold" rating to a "buy" rating in a research report on Saturday, February 28th. Weiss Ratings restated a "hold (c-)" rating on shares of Upbound Group in a research report on Friday, March 27th. Finally, Zacks Research upgraded shares of Upbound Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Upbound Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $32.25.

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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