UPBD · Upbound Group, Inc.

Upbound Group reported solid first-quarter 2026 results, with consolidated revenue of $1.22 billion, up 3.7% year-over-year, driven by strong performance at Brigit (revenue +40.7% to $67.7M) and disciplined execution at Acima (revenue +1.8% to $648.7M). Rent-A-Center revenue declined 1.5% to $481.6M but same-store sales turned positive at 0.4%. GAAP net income rose to $35.8M from $24.8M a year ago, while Adjusted EBITDA grew 7.9% to $136.1M, with margin expanding 50 bps to 11.2%. Non-GAAP diluted EPS of $1.08 beat the prior year's $1.00. Management highlighted robust cash generation of $170.7M from operations, which supported debt paydown and a net leverage ratio improvement to 2.6x from 2.9x at year-end. The company reaffirmed its full-year 2026 guidance: revenue $4.70B-$4.95B, Adjusted EBITDA $500M-$535M, and non-GAAP diluted EPS $4.00-$4.35. For Q2 2026, guidance calls for revenue of $1.10B-$1.20B, Adjusted EBITDA $120M-$130M, and non-GAAP EPS $1.00-$1.10. CEO Fahmi Karam noted the quarter was a solid start to 2026, with execution in a difficult operating environment and progress on strategic initiatives. CFO Hal Khouri emphasized disciplined underwriting, with Acima's lease charge-off rate improving to below 9% and Brigit's double-digit subscriber and ARPU growth. Overall, the results demonstrate the benefits of Upbound's diversified model and prudent risk management, positioning the company for sustained profitability and long-term shareholder value.