Upbound Group, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 30 July 2026: press release. Guidance figures: 1 lowered, 3 new, 2 kept. The quarter’s numbers.

Key takeaways

Consolidated results within guided ranges: Consolidated revenue was approximately $1.2 billion. The company stated that all consolidated results were within guided ranges for the quarter. Source
Charge-offs and margin both improved: Acima lease charge-off rate improved 50 basis points year-over-year to 8.8%. EBITDA margin expanded 117 basis points to 16.2%. Source
Paying subscribers and ARPU rose: Brigit paying subscribers grew approximately 30% to 1.7 million. Average monthly revenue per paying subscriber rose 6.3% to $14.30. Source
Operating cash flow of $123 million: Net cash provided by operating activities was approximately $123 million in the second quarter. Source
Full-year revenue range narrowed: Full-year revenue range is $4.70 - $4.85 billion, down from $4.70 - $4.95 billion. The top end was reduced, and the low end is unchanged. Source
Third-quarter revenue range given: The company expects third-quarter consolidated revenue of $1.05 - $1.15 billion. Source
Third-quarter EBITDA and EPS ranges given: The company expects third-quarter Adjusted EBITDA of $105 - $115 million and non-GAAP diluted EPS of $0.85 - $0.95. Source

“Robust Cash Flow Generation: Net cash provided by operating activities of approximately $123 million, while increasing free cash flow to $84 million.”
Upbound Group, Inc., press release

Guidance

Area	Period	Figure	Against last quarter
Consolidated revenue Source	Full year 2026	$4.70 - $4.85 billion	Lowered from $4.70 - $4.95 billion
Adjusted EBITDA Source	Full year 2026	$500 - $535 million	Kept
Non-GAAP diluted EPS Source	Full year 2026	$4.00 - $4.35	Kept
Consolidated revenue Source	Third quarter 2026	$1.05 - $1.15 billion	New
Adjusted EBITDA Source	Third quarter 2026	$105 - $115 million	New
Non-GAAP diluted EPS Source	Third quarter 2026	$0.85 - $0.95	New

What changed from last quarter

Guidance lowered: Full-year consolidated revenue range narrowed, with the top end reduced from $4.95 billion to $4.85 billion. Source
Guidance kept: Full-year Adjusted EBITDA and non-GAAP diluted EPS ranges reaffirmed at the same levels as the first-quarter release. Source
New guidance: Third-quarter 2026 ranges given for consolidated revenue, Adjusted EBITDA and non-GAAP diluted EPS. Source
New: Free cash flow is now defined as a non-GAAP measure. The first-quarter release defined only non-GAAP diluted EPS and Adjusted EBITDA. Source
New: The Acima lease charge-off rate now excludes fraudulent lease-to-own contract losses. The first-quarter release footnote did not include this exclusion. Source

Results and growth drivers

Consolidated results within guided ranges: Consolidated revenue was approximately $1.2 billion. The company stated that all consolidated results were within guided ranges for the quarter. Source
Acima revenue down, Brigit revenue up: Acima revenue was $604 million, down about 2.5% year-over-year. Brigit revenue rose 37% year-over-year to $71 million over the same period. Source
First-quarter revenue growth was 3.7%: In the first-quarter release, consolidated revenue increased 3.7% year-over-year to $1.2 billion, the comparison point for the second-quarter figures.

Rent-A-Center same-store sales

Same-store sales up, third straight quarter: Rent-A-Center same store sales increased approximately 160 basis points year-over-year, with $466 million of revenue, described as the third consecutive quarter of same-store sales growth. Source
First-quarter same-store sales were 0.4%: In the first-quarter release, Rent-A-Center same-store sales grew 0.4% year-over-year, alongside a 20 basis point sequential improvement in lease charge-off rate.
Third consecutive quarter of growth: The company headlined the Rent-A-Center result as its third consecutive quarter of same-store sales growth. Source

“Rent-A-Center Achieves Third Consecutive Quarter of Same-Store Sales Growth”
Upbound Group, Inc., press release

Acima portfolio quality and margin

Charge-offs and margin both improved: Acima lease charge-off rate improved 50 basis points year-over-year to 8.8%. EBITDA margin expanded 117 basis points to 16.2%. Source
Charge-off rate down sequentially in first quarter: In the first-quarter release, the Acima lease charge-off rate improved to 8.8%, a 130 basis point sequential decline.
First-quarter Acima revenue was $649 million: In the first-quarter release, Acima revenue increased approximately 1.8% year-over-year to $649 million. Second-quarter Acima revenue was $604 million.

Brigit subscribers and revenue

Paying subscribers and ARPU rose: Brigit paying subscribers grew approximately 30% to 1.7 million. Average monthly revenue per paying subscriber rose 6.3% to $14.30. Source
Brigit revenue reached $71 million: Brigit revenue increased 37% year-over-year to $71 million, supported by subscriber growth of approximately 30%. Source
First-quarter Brigit growth above 40%: In the first-quarter release, Brigit revenue grew more than 40% year-over-year, with double-digit growth in paying subscribers and ARPU.

Cash flow and free cash flow

Operating cash flow of $123 million: Net cash provided by operating activities was approximately $123 million in the second quarter. Source
Free cash flow increased to $84 million: Free cash flow rose to $84 million. The release defines free cash flow as operating cash flow less capital expenditures and customer cash advances. Source
First-quarter operating cash flow was $171 million: In the first-quarter release, net cash provided by operating activities was $171 million, an increase of $23 million year-over-year.

Full-year and third-quarter guidance

Full-year revenue range narrowed: Full-year revenue range is $4.70 - $4.85 billion, down from $4.70 - $4.95 billion. The top end was reduced, and the low end is unchanged. Source
Full-year EBITDA and EPS ranges reaffirmed: Full-year Adjusted EBITDA of $500 - $535 million and non-GAAP diluted EPS of $4.00 - $4.35 were reaffirmed. Source
Third-quarter revenue range given: The company expects third-quarter consolidated revenue of $1.05 - $1.15 billion. Source
Third-quarter EBITDA and EPS ranges given: The company expects third-quarter Adjusted EBITDA of $105 - $115 million and non-GAAP diluted EPS of $0.85 - $0.95. Source

Coming up, as management said on 30 July 2026

Third-quarter ranges given: Third-quarter 2026 ranges given for consolidated revenue, Adjusted EBITDA and non-GAAP diluted EPS. The release states no later update date. Source

Figures management reported

Figure	Reported
Brigit paying subscribers Source	1.7 million
Brigit ARPU Source	$14.30

Earlier plans management reported on

Met: The company stated that second-quarter consolidated results were within the ranges it had guided. Source
Not stated: Management reaffirmed the full-year Adjusted EBITDA and non-GAAP diluted EPS ranges set in the first-quarter release. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Upbound Group, Inc. Reports Second Quarter 2026 Results

PLANO, Texas--(BUSINESS WIRE) - July 30, 2026-- Upbound Group, Inc. (the "Company" or "Upbound") (NASDAQ:UPBD) today announced results for the quarter ended June 30, 2026. The earnings release, financial tables and related materials can be found on the Company's investor relations website at https://investor.upbound.com.

Today at 9 a.m. ET, Fahmi Karam, Chief Executive Officer, and Hal Khouri, Chief Financial Officer, will host a conference call to review the Company’s financial results. Interested parties can access a live webcast of the conference call via this link (Webcast Link) or through the Company's investor relations website.

Second Quarter 2026 Highlights

Consolidated Results All Within Guided Ranges: Consolidated revenue of approximately $1.2 billion.

Brigit Continues Strong Momentum: Brigit revenue increased 37% year-over-year to $71 million, supported by approximately 30% growth in paying subscribers² to 1.7 million and a 6.3% increase in ARPU³ to $14.30.

Acima Delivers Improved Portfolio Quality: Acima generated $604 million of revenue, down approximately 2.5% year-over-year, but saw lease charge-off rate⁴ improve 50 basis points year-over-year to 8.8% and EBITDA margin expanded 117 basis points to 16.2%.

Rent-A-Center Achieves Third Consecutive Quarter of Same-Store Sales Growth: Same store sales⁵ increased approximately 160 basis points year-over-year, while achieving $466 million in revenue.

Robust Cash Flow Generation: Net cash provided by operating activities of approximately $123 million, while increasing free cash flow to $84 million.

2026 Outlook: Full-year consolidated revenue range narrowed to $4.70 - $4.85 billion. Adjusted EBITDA⁶ range of $500 - $535 million and non-GAAP diluted EPS⁶ range of $4.00 - $4.35 reaffirmed. For the third quarter of 2026, the Company expects consolidated revenue of $1.05 - $1.15 billion, Adjusted EBITDA⁶ of $105 - $115 million, and non-GAAP diluted EPS⁶ of $0.85 - $0.95.

About Upbound Group, Inc.

Upbound Group, Inc. (NASDAQ: UPBD), is a technology and data-driven leader in accessible and inclusive financial solutions that address the evolving needs and aspirations of underserved consumers. The Company’s customer-facing operating units include industry-leading brands such as Acima®, Brigit™, and Rent-A-Center® that facilitate consumer transactions across a wide range of store-based and digital channels in the United States, Mexico and Puerto Rico. Upbound Group, Inc. is headquartered in Plano, Texas. For additional information about the Company, please visit our website Upbound.com.

(1) The selected highlights referenced herein do not provide a complete review of the Company’s results for the quarter or updated guidance and outlook. Please refer to the Company’s full earnings release and related materials, as noted in this release, for additional information.

(2) Brigit Paying Subscribers: 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.

(3) ARPU: Average monthly revenue per Brigit Paying Subscriber, where Brigit Paying Subscriber is defined in footnote 2 above.

(4) Lease Charge-Offs: 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 Franchisee-owned Rent-A-Center locations. For the Acima segment, LCO’s exclude fraudulent lease-to-own contract losses.

(5) 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.

(6) See “Non-GAAP Financial Measures” below for the definitions and other information regarding our non-GAAP financial measures included in this release.

Forward-Looking Statements

Forward-looking statements notice

This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our 2026 financial guidance, future same store sales expectations and other statements regarding our future outlook. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "predict," "continue," “maintain,” "should," "anticipate," "believe," or “confident,” or the negative thereof or variations thereon or similar terminology. Such forward-looking statements are based on particular assumptions that our management has made in light of its experience and its perception of expected future developments and other factors that it believes are appropriate under the circumstances, and are subject to various risks and uncertainties. Factors that could cause or contribute to material and adverse differences between actual and anticipated results include, but are not limited to, (1) the general strength of the economy and other economic conditions affecting consumer preferences, spending and payment behaviors, including the availability of credit to the Company's target consumers and to other consumers, impacts from continued inflation, central bank monetary policy initiatives to address inflation concerns and a possible recession or slowdown in economic growth, (2) risks described in our full second quarter 2026 earnings release and related materials, and (3) the other risks detailed from time to time in the reports filed by us with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026, and June 30, 2026, as well as subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release. Except as required by law, we are not obligated to, and do not undertake to, publicly release any revisions to these forward-looking statements to reflect any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures

This release contains certain financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including (1) Non-GAAP diluted earnings per share (net earnings or loss, as adjusted for special items (as defined below), net of taxes, divided by the number of shares of our common stock on a fully diluted basis), (2) Adjusted EBITDA (net earnings before interest, taxes, stock-based compensation, depreciation and amortization, as adjusted for special items) on a consolidated basis, and (3) Free Cash Flow (net cash provided by operating activities less capital expenditures and customer cash advances). “Special items” refers to certain gains and charges we view as extraordinary, unusual or non-recurring in nature or which we believe do not reflect our core business activities, and, for historical items, are reported as Other Gains and Charges in our Consolidated Statements of Operations. Because of the inherent uncertainty related to these special items, management does not believe it is able to provide a meaningful forecast of the comparable GAAP measures or reconciliation to forecasted non-GAAP measures without unreasonable effort.

These non-GAAP measures are additional tools intended to assist our management in comparing our performance on a more consistent basis for purposes of business decision-making by removing the impact of certain items management believes do not directly reflect our core operations. These measures are intended to assist management in evaluating operating performance and liquidity, comparing performance and liquidity across periods, planning and forecasting future business operations, helping determine levels of operating and capital investments and identifying and assessing additional trends potentially impacting our Company that may not be shown solely by comparisons of GAAP measures. Consolidated Adjusted EBITDA is also used as part of our incentive compensation program for our executive officers and others.

We believe these non-GAAP financial measures also provide supplemental information that is useful to investors, analysts and other external users of our consolidated financial statements in understanding our financial results and evaluating our performance and liquidity from period to period. However, non-GAAP financial measures have inherent limitations and are not substitutes for, or superior to, GAAP financial measures, and they should be read together with our consolidated financial statements prepared in accordance with GAAP. Further, because non-GAAP financial measures are not standardized, it may not be possible to compare such measures to the non-GAAP financial measures presented by other companies, even if they have the same or similar names.

Upbound Investor Relations:

investor.relations@upbound.com

972-801-1103