Upbound Group (NASDAQ:UPBD) Issues Earnings Results

Upbound Group (NASDAQ:UPBD) released its quarterly earnings data on Thursday. The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.97 by $0.04, Zacks reports. Upbound Group had a return on equity of 35.23% and a net margin of 1.56%.The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the previous year, the business earned $1.05 earnings per share. The company’s quarterly revenue was up 10.8% on a year-over-year basis. Upbound Group updated its Q1 2026 guidance to 1.050-1.150 EPS and its FY 2026 guidance to 4.000-4.350 EPS.

Here are the key takeaways from Upbound Group’s conference call:

• Record 2025 results: Consolidated revenue was about $4.7B (up 8.7%), adjusted EBITDA nearly $510M (up 7.5%), non‑GAAP EPS $4.13, and free cash flow improved to ~$180M, signaling stronger cash generation heading into 2026.
• Brigit is a growth engine: Brigit finished Q4 with ~1.6M paid subscribers, $14.15 monthly ARPU, $64.6M Q4 revenue (up 41.5% YoY) and $405M in originated advances, and management expects >30% annual revenue growth in 2026 (guidance $265M–$285M).
• Brigit guidance was trimmed and some product rollouts delayed — pilot of a line‑of‑credit and slower bank‑partner approvals (and macro caution) pushed certain higher‑growth initiatives into 2026–2027, reducing near‑term upside.
• Acima momentum and marketplace traction: Q4 GMV (~$550M) was the highest since acquisition, the direct‑to‑consumer marketplace grew >100% YoY to ~10% of GMV, revenue was up 8.6% and management expects mid‑single‑digit GMV/revenue growth in 2026 with loss rates stabilizing around ~9.5%.
• Liquidity and capital priorities: year‑end liquidity was ~$358M and net leverage ~2.9x with a long‑term target near 2x, the company is prioritizing deleveraging and maintaining its dividend (opportunistic buybacks deferred), and guidance includes a $72M legal/regulatory settlement accrual.

Upbound Group Stock Up 2.6%

Shares of NASDAQ:UPBD opened at $22.78 on Monday. The company has a quick ratio of 0.98, a current ratio of 3.16 and a debt-to-equity ratio of 2.26. The firm has a market cap of $1.32 billion, a P/E ratio of 18.37 and a beta of 1.88. Upbound Group has a 12 month low of $15.82 and a 12 month high of $28.13. The company’s 50-day moving average price is $19.15 and its two-hundred day moving average price is $20.90.

Upbound Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Wednesday, December 17th were issued a dividend of $0.39 per share. The ex-dividend date of this dividend was Wednesday, December 17th. This represents a $1.56 dividend on an annualized basis and a yield of 6.8%. Upbound Group’s dividend payout ratio is currently 125.81%.

Insider Activity

In related news, Director Jeffrey J. Brown bought 2,502 shares of Upbound Group stock in a transaction dated Tuesday, January 6th. The shares were bought at an average cost of $17.68 per share, for a total transaction of $44,235.36. Following the completion of the transaction, the director owned 92,972 shares of the company’s stock, valued at approximately $1,643,744.96. This trade represents a 2.77% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. State Street Corp boosted its position in Upbound Group by 11.4% in the 4th quarter. State Street Corp now owns 2,410,524 shares of the company’s stock valued at $43,220,000 after buying an additional 246,146 shares during the last quarter. Wellington Management Group LLP boosted its holdings in Upbound Group by 4.8% in the fourth quarter. Wellington Management Group LLP now owns 1,315,672 shares of the company’s stock valued at $23,103,000 after acquiring an additional 59,798 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Upbound Group by 8.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,235,539 shares of the company’s stock valued at $21,696,000 after acquiring an additional 91,245 shares during the last quarter. Bragg Financial Advisors Inc increased its position in Upbound Group by 12.1% in the fourth quarter. Bragg Financial Advisors Inc now owns 1,105,047 shares of the company’s stock worth $19,405,000 after purchasing an additional 119,158 shares during the period. Finally, Qube Research & Technologies Ltd raised its holdings in Upbound Group by 27.3% during the 2nd quarter. Qube Research & Technologies Ltd now owns 783,997 shares of the company’s stock worth $19,678,000 after purchasing an additional 168,113 shares during the last quarter. Institutional investors and hedge funds own 90.30% of the company’s stock.

Analyst Ratings Changes

UPBD has been the topic of several recent analyst reports. Wall Street Zen lowered Upbound Group from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Upbound Group in a report on Monday, December 29th. BTIG Research dropped their target price on shares of Upbound Group from $40.00 to $28.00 and set a “buy” rating for the company in a research report on Friday, October 31st. TD Cowen reissued a “buy” rating on shares of Upbound Group in a report on Thursday, January 8th. Finally, Zacks Research cut shares of Upbound Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 12th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Upbound Group presently has an average rating of “Moderate Buy” and a consensus target price of $32.25.

Upbound Group Company Profile

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It offers furniture comprising mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.