Upbound Group, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 29 October 2026: press release. Guidance figures: 1 raised, 1 lowered, 4 new, 1 kept. The quarter’s numbers.

Key takeaways

GAAP earnings rose year over year: GAAP net earnings were $34 million, up $21 million year over year, and GAAP diluted EPS was $0.58. Source
Acima profitability rose on underwriting: Management attributes Acima profitability to underwriting discipline. Acima GAAP net earnings rose 17.3% to $74.7 million; Adjusted EBITDA rose about 15% to $86 million. Source
Brigit revenue grew 37 percent: Brigit revenue grew 37% year over year to $79 million, and Brigit GAAP net earnings rose 93.8% to $8.9 million. Source
Same store sales up four quarters: Same store sales rose about 180 basis points year over year, extending growth to four consecutive quarters; revenue of $459 million was essentially flat. Source
Free cash flow more than doubled: Operating cash flow rose 81% to about $163 million, and free cash flow more than doubled to about $121 million. Source
Debt cut by over $225 million: The company has reduced debt by more than $225 million since year-end, lowering the overall net leverage ratio. Source
Preferred lease-to-own deal with Boost Mobile: Acima will serve as a preferred lease-to-own solution across about 5,000 Boost Mobile stores under an integration agreement. Source
Full-year EPS midpoint raised: The full-year non-GAAP diluted EPS range was narrowed to $4.15-$4.30, which raises the midpoint compared with the prior range. Source

“Consolidated revenue of $1.15 billion came in at the high end of the Company’s outlook.”
Upbound Group, Inc., press release

Guidance

Area	Period	Figure	Against last quarter
Consolidated revenue Source	Full year 2026	$4.68-$4.78 billion	Lowered from $4.70-$4.85 billion
Adjusted EBITDA Source	Full year 2026	$510-$525 million	Kept
Non-GAAP diluted EPS Source	Full year 2026	$4.15-$4.30	Raised from $4.00-$4.35
Consolidated revenue Source	Fourth quarter 2026	$1.15-$1.25 billion	New
Adjusted EBITDA Source	Fourth quarter 2026	$125-$135 million	New
Non-GAAP diluted EPS Source	Fourth quarter 2026	$1.00-$1.10	New
Share repurchase Source	Not stated	up to $50 million	New

What changed from last quarter

Guidance lowered: Full-year revenue range narrowed, with both ends below the prior range. Source
Guidance raised: Full-year non-GAAP diluted EPS midpoint raised from $4.175 to $4.225. Source
Guidance kept: Full-year adjusted EBITDA midpoint unchanged; the range was narrowed. Source
New guidance: Fourth-quarter guidance given for consolidated revenue, adjusted EBITDA and non-GAAP diluted EPS. Source
New: Acima entered an integration agreement with Boost Mobile as a preferred lease-to-own solution. Source
New: Scott Young welcomed as Chief Operating Officer; Dev Chakraborty welcomed as Head of Brigit. Source
New: Share repurchase of up to $50 million under the existing program announced as an intention. Source

Consolidated results against guidance

GAAP earnings rose year over year: GAAP net earnings were $34 million, up $21 million year over year, and GAAP diluted EPS was $0.58. Source
Revenue at high end of guided range: Consolidated revenue of $1.15 billion was at the high end of the range guided for the quarter. Source
Adjusted EBITDA and EPS above ranges: Adjusted EBITDA of $123 million and non-GAAP diluted EPS of $1.01 were above the top of their guided ranges. Source

Acima segment

Acima profitability rose on underwriting: Management attributes Acima profitability to underwriting discipline. Acima GAAP net earnings rose 17.3% to $74.7 million; Adjusted EBITDA rose about 15% to $86 million. Source
Charge-off rate and margin improved: The lease charge-off rate improved more than 100 basis points to 8.7%, and Adjusted EBITDA margin widened about 270 basis points to 14.7%. Source
Acima revenue declined year over year: Acima revenue was $585 million, down about 6.5% year over year. Source
Margin label differs from second quarter: The second-quarter release reported Acima EBITDA margin at 16.2%; this release reports Adjusted EBITDA margin at 14.7%, with the labels differing.

“Net cash provided by operating activities increased by 81% to approximately $163 million, and free cash flow more than doubled year-over-year to approximately $121 million.”
Upbound Group, Inc., press release

Brigit growth

Brigit revenue grew 37 percent: Brigit revenue grew 37% year over year to $79 million, and Brigit GAAP net earnings rose 93.8% to $8.9 million. Source
Paying Users grew about 27 percent: Brigit Paying Users rose about 27% to 1.84 million, and ARPU rose 4.7% to $14.39 per month. Source
Paying Users replaced paying subscribers: The footnote now uses Paying Users where the second-quarter release used Paying Subscribers; the definition wording is otherwise unchanged. Source
Brigit adjusted EBITDA up 59 percent: Brigit adjusted EBITDA grew 59% year over year to $14.7 million. Source

Rent-A-Center same store sales

Same store sales up four quarters: Same store sales rose about 180 basis points year over year, extending growth to four consecutive quarters; revenue of $459 million was essentially flat. Source
Prior-quarter same store sales growth: In the second quarter, same store sales rose about 160 basis points on $466 million of revenue.

“The Company has reduced debt by more than $225 million since year-end, reducing the overall net leverage ratio.”
Upbound Group, Inc., press release

Cash flow and debt

Free cash flow more than doubled: Operating cash flow rose 81% to about $163 million, and free cash flow more than doubled to about $121 million. Source
Debt cut by over $225 million: The company has reduced debt by more than $225 million since year-end, lowering the overall net leverage ratio. Source
Free cash flow definition changed: The free cash flow definition now nets originations and collections of customer cash advances; the second-quarter definition deducted customer cash advances alone. Source
Adjusted EBITDA now segment-based: Adjusted EBITDA is now reported on a consolidated and segment basis, and net leverage is debt less cash over trailing twelve-month Adjusted EBITDA. Source

Partnerships and leadership

Preferred lease-to-own deal with Boost Mobile: Acima will serve as a preferred lease-to-own solution across about 5,000 Boost Mobile stores under an integration agreement. Source
Two executives welcomed to roles: Scott Young joins as Chief Operating Officer and Dev Chakraborty as Head of Brigit. Source

Full-year and fourth-quarter guidance

Full-year EPS midpoint raised: The full-year non-GAAP diluted EPS range was narrowed to $4.15-$4.30, which raises the midpoint compared with the prior range. Source
Full-year revenue range lowered: The full-year revenue range was narrowed, and both its low and high ends are below the prior range. Source
Full-year adjusted EBITDA midpoint held: The full-year adjusted EBITDA range was narrowed; its midpoint is unchanged from the prior range. Source
Fourth-quarter ranges first given: Fourth-quarter ranges were given for consolidated revenue, adjusted EBITDA and non-GAAP diluted EPS for the first time in these documents. Source

Coming up, as management said on 29 October 2026

Buyback timing set by management: Timing and amount of any repurchases will depend on market conditions, share price, capital needs and other factors. Source

Figures management reported

Figure	Reported
Brigit Paying Users Source	1.84 million
Brigit ARPU Source	$14.39
Acima lease charge-off rate Source	8.7%
Rent-A-Center same store sales growth Source	approximately 180 basis points

Earlier plans management reported on

Met: Third-quarter revenue reported at the high end of the guided range. Source
Ahead: Adjusted EBITDA and non-GAAP diluted EPS were reported above the top of their guided ranges. 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 Third Quarter 2026 Results

PLANO, Texas--(BUSINESS WIRE) - October 29, 2026-- Upbound Group, Inc. (the "Company" or "Upbound") (NASDAQ:UPBD) today announced results for the quarter ended September 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.

Third Quarter 2026 Highlights

Consolidated Results at or Above Guided Ranges: Consolidated revenue of $1.15 billion came in at the high end of the Company’s outlook. GAAP net earnings were $34 million, up $21 million year-over-year, and GAAP diluted EPS was $0.58. Adjusted EBITDA⁶ of $123 million and non-GAAP diluted EPS⁶ of $1.01 exceeded the top of their respective guided ranges.

Underwriting Discipline Drives Acima Profitability: Acima GAAP net earnings increased 17.3% to $74.7 million. Acima Adjusted EBITDA⁶ increased approximately 15% year-over-year to $86 million, with Adjusted EBITDA⁶ margin expanding approximately 270 basis points to 14.7%. Lease charge-off rate⁴ improved more than 100 basis points year-over-year to 8.7%. Acima revenue was $585 million, down approximately 6.5% year-over-year.

Brigit Delivers Double-Digit Growth Across Key Metrics: Brigit revenue grew 37% year-over-year to $79 million. Paying Users² rose approximately 27% to 1.84 million, and ARPU³ increased 4.7% to $14.39. Brigit GAAP net earnings increased 93.8% to $8.9 million, and adjusted EBITDA⁶ grew 59% year-over-year to $14.7 million.

Rent-A-Center Extends Same Store Sales Growth to Four Consecutive Quarters: Same store sales⁵ increased approximately 180 basis points year-over-year, and revenue of $459 million was essentially flat to the prior year.

Expanding Reach and Strengthening Leadership: Acima entered an integration agreement with Boost Mobile to serve as a preferred lease-to-own solution across approximately 5,000 Boost Mobile stores nationwide. The Company also welcomed Scott Young as Chief Operating Officer and Dev Chakraborty as Head of Brigit.

Share Repurchase: The Company intends to repurchase up to $50 million of its common stock under its existing share repurchase program, originally authorized by the Board of Directors in December 2021, with the timing and amount of any repurchases to be determined by management based on market conditions, share price, capital needs and other factors.

Strong Cash Generation Supports Deleveraging: Net cash provided by operating activities increased by 81% to approximately $163 million, and free cash flow more than doubled year-over-year to approximately $121 million. The Company has reduced debt by more than $225 million since year-end, reducing the overall net leverage ratio.

2026 Outlook: Full-year consolidated revenue range narrowed to $4.68-$4.78 billion. Adjusted EBITDA range also narrowed to $510-$525 million and non-GAAP diluted EPS⁶ range narrowed to $4.15-$4.30, increasing the midpoint. For the fourth quarter of 2026, the Company expects consolidated revenue of $1.15-$1.25 billion, adjusted EBITDA of $125-$135 million, and non-GAAP diluted EPS of $1.00-$1.10.

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 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.

(3) ARPU: Average monthly revenue per Brigit Paying User, where Brigit Paying User 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 Franchise-owned Rent-A-Center locations. For the Acima segment, LCOs 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) Non-GAAP financial measures. See “Non-GAAP Financial Measures” and reconciliation tables in the Earnings Release and 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 or renewed 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 third 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 Report on Form 10-Q for the quarter ended September 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) and (2) Adjusted EBITDA (net earnings before interest, taxes, stock-based compensation, depreciation and amortization, as adjusted for special items) on a consolidated and segment basis., (3) Free Cash Flow (net cash provided by operating activities less capital expenditures and net originations and collections of customer cash advances) and (4) Net Leverage Ratio (outstanding debt less cash and cash equivalents divided by trailing twelve months Adjusted EBITDA). “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 any 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

972-624-6571