Upbound : UPBD 2026 Q1 Earnings Release FINAL
UPBD
Published on 04/30/2026 at 07:37 am EDT
Upbound Group, Inc. Earnings Release
April 30, 2026
First Quarter 2026 Results & Key Metrics
$1,220M
Total Revenue
$36M
Net Earnings
$136M
Adjusted EBITDA1
$0.61
GAAP
Diluted EPS
$1.08
Non-GAAP
Diluted EPS1
$0.39
Quarterly Dividend Per Share
Achieves Q1 2026 Targets for Revenue, Adjusted EBITDA, and Non-GAAP Diluted EPS
Brigit Momentum Propels Growth, Acima LCOs Below 9%, Rent-A-Center Positive Same Store Sales
CEO Commentary
"The first quarter represented a solid start to 2026 for Upbound. We executed well in a difficult operating environment, delivered results in line with our financial targets, and generated robust cash flow while continuing to strengthen the platform and advance key strategic initiatives," said CEO Fahmi Karam.
"Across our organization, we're advancing the priorities we outlined for the year - building a more connected, tech-enabled financial platform, reinforcing underwriting discipline, and investing in shared data and innovative digital capabilities that improve how we serve customers across our brands. Each of our segments plays a distinct role, and together they demonstrate the benefits of our diversified model."
"Looking ahead, our focus remains on executing growth initiatives while maintaining our prudent approach to underwriting and risk management. While the environment remains challenging for the non-prime consumer, we believe our approach positions us well to sustain strong profitability, scale capabilities thoughtfully, and drive long-term shareholder value," concluded Mr. Karam.
Consolidated revenue of $1,219.7 million increased $43.4 million, or 3.7%, year-over-year.
GAAP operating profit of $77.4 million and non-GAAP operating profit1 of $115.9 million, compared to $62.6 million of GAAP operating profit and $105.9 million of non-GAAP operating profit in the prior year period. First quarter 2026 GAAP operating profit margin was 6.3%, compared to 5.3% in the prior year period.
Net earnings on a GAAP basis of $35.8 million, compared to
$24.8 million in the prior year period, an $11.0 million increase. Net profit margin of 2.9% increased 80 bps year-over-year.
Adjusted EBITDA1 increased 7.9% year-over-year to $136.1 million.
Adjusted EBITDA margin1 of 11.2% increased 50 basis points compared to the prior year period.
GAAP diluted earnings per share was $0.61, compared to GAAP diluted earnings per share of $0.42 in the prior year period.
Non-GAAP diluted earnings per share1, which excludes the impact of special items described at the end of this release, was
$1.08 for the first quarter of 2026, compared to $1.00 in the prior year period.
Sequential improvement in lease-to-own charge-off performance, with Acima LCO rate decreasing 130 bps sequentially and Rent-A-Center LCO rate decreasing 20 bps sequentially. Acima LCO rate decreased 10 bps year-over-year while Rent-A-Center LCO rate increased 10 bps year-over-year.
Quarterly dividend per share of $0.39, or $1.56 annualized.
1
(1)Non-GAAP financial measure. Refer to definitions and reconciliations elsewhere in this release.
First Quarter Segment Highlights
Paying subscribers increased over 328k, or approximately 27%, y/y.
$67.7M
+40.7% y/y
1.56M
+26.7% y/y
Average monthly revenue per user (ARPU) increased 11.9% y/y, driven by increased shift towards Brigit's Premium tier, deeper engagement with marketplace offers, and higher expedited transfer revenue.
Net advance loss rate increased 110 bps y/y and remained
3.5%
+110 bps y/y
$14.41
+11.9% y/y
flat sequentially.
Net earnings of $18.6M with a net profit margin of 27.4%, and Adjusted EBITDA of $22.9M with an Adjusted EBITDA margin of 33.9%.
Revenue of $648.7M increased approximately 1.8% y/y.
GMV decreased approximately 6% y/y in the first quarter,
$648.7M
+1.8% y/y
$77.3M
+4.8% y/y
with GMV from the Acima direct-to-consumer marketplace increasing approximately 9% y/y.
Lease charge-off rate decreased 10 bps y/y and 130 bps
LCO Rate Adjusted EBITDA2
compared to the fourth quarter.
8.8%
-10 bps y/y
$88.6M
+4.3% y/y
Net earnings margin was 11.9%, an increase of 30 bps from the prior year period, and Adjusted EBITDA margin was 13.7%, an increase of 40 bps y/y.
Company-owned same store sales increased 0.4% y/y, while consolidated segment revenue of $481.6M
$481.6M
-1.5% y/y
4.7%
+10 bps y/y
$62.3M
-6.2% y/y
$67.4M
-6.5% y/y
decreased approximately 1.5% y/y.
Average portfolio value per store increased approximately 1.4% y/y.
Lease charge-offs for company-owned Rent-A-Center stores were 4.7%, increasing 10 bps y/y and decreasing 20 bps sequentially.
Net earnings of $62.3M and Adjusted EBITDA of $67.4M decreased 6.2% and 6.5% y/y, respectively.
Note: Definitions of certain key performance metrics are available on page five of this release.
(1) Upbound acquired Brigit on January 31, 2025. The figure provided for Q1 2026 revenue reflects the full quarter, while the percentage change reflects only February and March 2026 relative to the corresponding prior year period.
(2) Non-GAAP financial measure. Refer to definitions and reconciliations elsewhere in this release.
CFO Commentary
"Upbound delivered a solid first quarter, achieving our guidance targets with year-over-year growth in revenue,
adjusted EBITDA, and non-GAAP diluted EPS, reflecting strong execution across the business," said CFO Hal Khouri.
"At the segment level, disciplined underwriting resulted in Acima's lease charge-off rate improving to below 9 percent. At Brigit, momentum continued, with double-digit growth in paying subscribers alongside higher average revenue per user, reflecting deeper engagement across the platform.
Additionally, Rent-A-Center delivered positive same store sales for the second consecutive quarter."
"I am particularly pleased with Upbound's cash generation during the quarter, with operating cash flow exceeding $170 million. That cash generation supported meaningful debt paydown and resulted in liquidity of over $460 million at quarter-end. Net leverage ratio was 2.6x at quarter-end, down from 2.9x at
year-end."
"Our capital allocation framework remains consistent as we move through 2026: invest in the business, continue strengthening the balance sheet, and return capital to shareholders while maintaining flexibility to support
long-term value creation," concluded Mr. Khouri.
Full Year and Q2 2026 Guidance
The Company reaffirms the following guidance, provided during
Non-GAAP Diluted Earnings Per Share3
$4.00 - $4.35
$1.00 - $1.10
Consolidated includes Acima, Brigit, Rent-A-Center, Mexico, and Corporate Segments.
Due to the inherent uncertainty related to the special items identified in the tables below, management does not believe it is able to provide a meaningful forecast of the comparable GAAP measures or reconciliation to any forecasted GAAP measure without unreasonable effort. The actual amount of these items during 2026 may have a significant impact on our future GAAP results.
Non-GAAP financial measure. See descriptions below in this release.
our Q4 earnings call on February 19, 2026, for its 2026 fiscal year. The Company is also providing guidance for Q2 2026.
Table 1
Consolidated Guidance1,2
Full Year 2026
Second Quarter 2026
Revenues ($B)
$4.70 - $4.95
$1.10 - $1.20
Adj. EBITDA Excluding SBC ($M)3
$500 - $535
$120 - $130
Conference Call and Webcast Information
Upbound Group, Inc. will host a conference call to discuss first quarter 2026 results, guidance and other operational matters on the morning of Thursday, April 30, 2026, at 9:00 a.m. ET. For a live webcast of the call, visit https://investor.upbound.com. Certain financial and other statistical information that will be discussed during the conference call will also be provided on the same website.
Financial Highlights
Key Metrics
Table 2
Metrics ($'s Millions - except per share and ARPU)
Q1 2026
Q1 2025
Q4 2025
Consolidated
Revenue
$ 1,219.7
$ 1,176.4
$ 1,196.4
Revenue Y/Y % Change
3.7 %
7.3 %
10.9 %
GAAP Operating Profit
$ 77.4
$ 62.6
$ 57.2
Net Earnings
$ 35.8
$ 24.8
$ 19.7
Net Profit Margin
2.9 %
2.1 %
1.7 %
Adj. EBITDA (1)
$ 136.1
$ 126.1
$ 125.9
Adj. EBITDA Margin (1)
11.2 %
10.7 %
10.5 %
GAAP Operating Expenses as % of Total Revenue
41.7 %
41.4 %
44.3 %
GAAP Diluted EPS
$ 0.61
$ 0.42
$ 0.34
Non-GAAP Diluted EPS (1)
$ 1.08
$ 1.00
$ 1.01
On-Rent Rental Merchandise, Net
$ 1,099.1
$ 1,056.6
$ 1,202.3
Net Cash Provided by Operating Activities
$ 170.7
$ 148.0
$ 41.6
Free Cash Flow (1)
$ 135.9
$ 127.2
$ 13.5
Acima Segment
GMV (2)
$ 427.1
$ 454.1
$ 549.8
GMV (Y/Y % Change) (2)
(5.9)%
8.8 %
0.4 %
Revenue
$ 648.7
$ 637.3
$ 631.0
Revenue Y/Y % Change
1.8 %
13.5 %
8.6 %
GAAP Operating Profit/GAAP Net Earnings
$ 77.3
$ 73.7
$ 75.6
Net Profit Margin
11.9 %
11.6 %
12.0 %
Adj. EBITDA (1)
$ 88.6
$ 85.0
$ 86.9
Adj. EBITDA Margin (1)
13.7 %
13.3 %
13.8 %
On-Rent Rental Merchandise, Net
$ 623.0
$ 638.8
$ 710.8
Lease Charge-Off Rate (3)
8.8 %
8.9 %
10.1 %
60+ Day Past Due Rate (4)
12.8 %
12.9 %
13.0 %
Brigit Segment (Q1 2025 figures represent February and March 2025 only)(5)
Cash Advance Volume (6)
$ 404.9
$ 218.4
$ 404.7
Paying Users (7)
1,558,451
1,230,158
1,550,718
ARPU (8)
$ 14.41
$ 12.88
$ 14.15
Revenue
$ 67.7
$ 31.9
$ 64.6
GAAP Operating Profit/GAAP Net Earnings
$ 18.6
$ 8.8
$ 6.8
Net Profit Margin
27.4 %
27.7 %
10.5 %
Adj. EBITDA (1)
$ 22.9
$ 11.4
$ 11.1
Adj. EBITDA Margin (1)
33.9 %
35.9 %
17.2 %
Net Advance Loss Rate (9)
3.5 %
2.4 %
3.5 %
Rent-A-Center Segment
Lease Portfolio - Monthly Value (as of period end) (10)
$ 131.4
$ 129.9
$ 137.4
Same Store Lease Portfolio Value (Y/Y % Change - as of period end) (11)
1.4 %
(3.2)%
0.7 %
Same Store Sales (Y/Y % Change) (12)
0.4 %
(2.0)%
0.8 %
Revenue
$ 481.6
$ 489.0
$ 479.9
Revenue Y/Y % Change
(1.5)%
(4.9)%
- %
GAAP Operating Profit/GAAP Net Earnings
$ 62.3
$ 66.4
$ 63.7
Net Profit Margin
12.9 %
13.6 %
13.3 %
Adj. EBITDA (1)
$ 67.4
$ 72.1
$ 69.2
Adj. EBITDA Margin (1)
14.0 %
14.7 %
14.4 %
On-Rent Rental Merchandise, Net
$ 450.8
$ 396.6
$ 465.1
Lease-Charge Off Rate (3)
4.7 %
4.6 %
4.9 %
30+ Day Past Due Rate (13)
3.6 %
3.3 %
3.3 %
Corporate Owned Store Count (U.S. & PR - as of period end)
1,720
1,725
1,722
*Please see footnotes on page 5.
Financial Highlights (continued)
(1) Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release.
(2) Gross Merchandise Volume (GMV): The Company defines Gross Merchandise Volume as the retail value in U.S. dollars of merchandise acquired by the Acima segment that is leased to customers through a transaction that occurs within a defined period, net of estimated cancellations as of the measurement date.
(3) Lease Charge-Offs (LCOs): Represents charge-offs of the net book value of unrecoverable on-rent merchandise with lease-to-own customers who are past due. This is typically expressed as a percentage of revenues for the applicable period. For the Rent-A-Center segment, LCOs exclude Get It Now, Home Choice, and Franchise-owned Rent-A-Center locations.
(4) 60+ Day Past Due Rate: Defined as the average number of accounts 60+ days past due as a % of total open leases.
(5) Upbound acquired Brigit on January 31, 2025.
(6) Cash Advance Volume: Defined as total advance originations during the period.
(7) Brigit Paying Users: Represents Brigit customers who have an active Plus or Premium account, not delinquent (not 45 days past due) on a cash advance, and made at least 1 of the last 2 subscription payments.
(8) ARPU: Average monthly revenue per Brigit Paying User, where Brigit Paying User is defined as in footnote 7 above.
(9) Net Advance Loss: Represents charge-offs of customer cash advances that are 45+ days past due as a percentage of total cash advances originated in the period.
(10) Lease Portfolio Value: Represents the aggregate dollar value of the expected monthly rental income associated with current active lease agreements from our Company-owned Rent-A-Center lease-to-own stores and e-commerce platform at the end of any given period.
(11) Same Store Lease Portfolio Value: Represents the aggregate dollar value of the expected monthly rental income associated with current active lease agreements from our Company-owned Rent-A-Center lease-to-own stores that were operated by us for 13 months or more at the end of any given period. The Company excludes from the same store base any store that receives a certain level of customer accounts from closed stores or acquisitions. The receiving store will be eligible for inclusion in the same store base in the 30th full month following account transfer.
(12) Same Store Sales (SSS): Same store sales generally represents revenue earned in Company-owned Rent-A-Center stores that were operated by us for 13 months
or more and are reported on a constant currency basis as a percentage of total revenue earned in stores of the segment during the indicated period. The Company excludes from the same store sales base any store that receives a certain level of customer accounts from closed stores or acquisitions. The receiving store will be eligible for inclusion in the same store sales base in the 30th full month following account transfer.
(13) 30+ Day Past Due Rate: Defined as the average number of accounts 30+ days past due as a % of total open leases for our Company-owned Rent-A-Center locations.
Disclaimer
Upbound Group Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:32 UTC.