Upbound Group (UPBD) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 2026 was $1.22 billion, up 3.7% year-over-year, with net income of $35.8 million, and GAAP diluted EPS of $0.61; non-GAAP diluted EPS was $1.08.

• Adjusted EBITDA reached $136.1 million, up 7.9% year-over-year, with operating profit of $77.4 million and net cash from operating activities of $170.7 million.

• Digital transformation advanced through data, analytics, and AI, with strengthened leadership including a new CTO.

• Disciplined growth, cost optimization, and portfolio quality remained priorities, with strong cash generation supporting debt paydown and liquidity over $460 million.

• CEO and CFO highlighted growth in Brigit, improved Acima charge-off rates, and positive Rent-A-Center same store sales.

Financial highlights

• Gross profit increased 6.6% to $586.5 million, with gross margin rising to 48.1%; adjusted EBITDA margin improved to 11.2%.

• Free cash flow reached $135.9 million, up from $127.2 million year-over-year.

• Net leverage ratio reduced to 2.6x, with net debt of $1.4 billion and liquidity of $465 million at quarter-end.

• Dividend of $0.39 per share paid, totaling $23.1 million for the quarter.

• Operating expenses rose 4.4% to $509.0 million, mainly due to higher non-labor costs in Brigit and Rent-A-Center.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue $4.70–$4.95 billion, adjusted EBITDA $500–$535 million, non-GAAP diluted EPS $4.00–$4.35, and free cash flow of ~$200 million.

• Q2 2026 guidance: revenue $1.10–$1.20 billion, adjusted EBITDA $120–$130 million, non-GAAP diluted EPS $1.00–$1.10.

• Management expects continued focus on expanding Acima’s retailer base, growing Brigit’s product portfolio, and accelerating Rent-A-Center’s e-commerce shift.

• Acima 2026 GMV and revenue expected to be flat to low single-digit growth; Brigit annualized revenue growth over 30%.

• Cash flow and ABL Credit Facility expected to be sufficient to fund operations over the next twelve months.