Upbound Group (NASDAQ:UPBD) Announces Quarterly Earnings Results

Upbound Group (NASDAQ:UPBD) released its quarterly earnings data on Thursday. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.91 by $0.10, Zacks reports. The business had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.12 billion. Upbound Group had a net margin of 1.90% and a return on equity of 34.53%. The business’s revenue was down 1.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.00 EPS.

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

• Upbound exceeded Q3 guidance, reporting $1.15 billion in revenue, $123 million in adjusted EBITDA, and $1.01 in non-GAAP EPS. Management narrowed full-year guidance and raised the midpoint of its EPS outlook to $4.23.
• Acima prioritized profitability over volume; GMV fell 11% and revenue declined 6.5%, but adjusted EBITDA rose 15% to $86 million as lease charge-offs improved to 8.7% and margins expanded 270 basis points. Management expects Q4 GMV to be roughly flat year over year, supported by improving monthly trends and the planned Boost Mobile integration.
• Brigit remained a major growth driver, with revenue up 37%, paying users up 27% to 1.84 million, and adjusted EBITDA up 59% to $15 million. The Experian partnership is gaining users, while the company is cautiously expanding its line-of-credit pilot.
• Rent-A-Center delivered its fourth consecutive quarter of positive same-store sales growth, up 1.8%, and sequential EBITDA improved 4.9%. However, adjusted EBITDA remained down year over year, and store optimization is expected to keep full-year revenue flat to down low single digits.
• Cash generation and balance-sheet improvement were strong, with Q3 free cash flow more than doubling to $121 million, leverage falling to 2.4x, and more than $225 million of debt repaid since year-end. Upbound also plans to repurchase up to $50 million of shares, although expected legal settlement payments will reduce full-year free cash flow relative to operating cash flow.

Upbound Group Stock Performance

Shares of NASDAQ UPBD opened at $20.36 on Friday. The company has a debt-to-equity ratio of 1.94, a quick ratio of 0.97 and a current ratio of 3.22. Upbound Group has a 1 year low of $14.98 and a 1 year high of $23.98. The company’s fifty day moving average price is $17.19 and its 200 day moving average price is $18.87. The company has a market capitalization of $1.19 billion, a PE ratio of 12.99 and a beta of 1.78.

Upbound Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, October 27th. Stockholders of record on Tuesday, October 6th were paid a dividend of $0.39 per share. The ex-dividend date of this dividend was Tuesday, October 6th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 7.7%. Upbound Group’s dividend payout ratio (DPR) is presently 101.30%.

Upbound Group News Summary

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Quarterly results beat estimates: Upbound reported adjusted earnings of $1.01 per share, ahead of consensus expectations of approximately $0.89–$0.91. Revenue reached $1.15 billion, exceeding estimates near $1.12 billion. EPS also improved from $1.00 in the year-earlier quarter. Upbound Group Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management emphasized cash and growth opportunities: During the earnings call, executives discussed the company’s cash position, operating initiatives and potential growth while outlining how Upbound is managing business risks. This provides investors with additional context beyond the headline earnings beat. Upbound Group Q3 2026 Earnings Call Transcript
• Positive Sentiment: Insider buying offers a modest confidence signal: Director Jeffrey Brown purchased 2,764 shares for roughly $47,016, increasing his direct ownership by 2.88%. Insider purchases do not guarantee future gains but can reinforce sentiment after a strong report. Upbound Group Director Stock Purchase
• Neutral Sentiment: Analyst views remain mixed: Upbound has an average “Hold” rating and an average price target of $27.50, with some firms maintaining positive views and others recently reducing ratings or targets. This suggests potential upside is recognized, but conviction is limited.
• Negative Sentiment: Revenue declined year over year: Quarterly revenue fell 1.3%, indicating that the earnings beat was driven without overall top-line growth. Upbound also carries a debt-to-equity ratio of 1.94, while its dividend payout ratio exceeds 100%, factors that could constrain financial flexibility.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Upbound Group from a “buy” rating to a “hold” rating in a report on Saturday, October 24th. BTIG Research downgraded Upbound Group from a “buy” rating to a “neutral” rating and set a $28.00 price objective for the company. in a report on Friday, July 31st. TD Cowen reduced their price target on Upbound Group from $28.00 to $27.00 and set a “buy” rating for the company in a research report on Tuesday, October 6th. Zacks Research upgraded shares of Upbound Group from a “strong sell” rating to a “hold” rating in a research note on Monday, September 28th. Finally, Weiss Ratings lowered Upbound Group from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $27.50.

Insider Buying and Selling at Upbound Group

In related news, Director Jeffrey Brown bought 2,764 shares of the company’s stock in a transaction dated Tuesday, October 27th. The shares were acquired at an average price of $17.01 per share, for a total transaction of $47,015.64. Following the completion of the transaction, the director directly owned 98,898 shares in the company, valued at $1,682,254.98. This trade represents a 2.88% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Anthony Blasquez sold 10,000 shares of Upbound Group stock in a transaction on Friday, August 21st. The stock was sold at an average price of $18.85, for a total transaction of $188,500.00. Following the sale, the executive vice president directly owned 43,717 shares in the company, valued at approximately $824,065.45. This trade represents a 18.62% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.20% of the company’s stock.

Upbound Group Company Profile

Upbound Group, Inc is a provider of consumer leasing and retail solutions, operating primarily through its Rent-A-Center and Acima brands. The company enables customers to obtain merchandise through flexible lease-to-own agreements and related payment options, serving consumers who may prefer alternatives to traditional retail financing.

Its Rent-A-Center business operates company-owned and franchised locations, as well as digital channels, offering furniture, appliances, electronics, computers, smartphones and other household goods.