Upbound Group (NASDAQ:UPBD) Issues Earnings Results, Beats Expectations By $0.04 EPS

Upbound Group (NASDAQ:UPBD) posted its quarterly earnings results on Thursday. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.97 by $0.04, Zacks reports. The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.17 billion. Upbound Group had a net margin of 1.85% and a return on equity of 36.08%. The company’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.05 earnings per share. 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 Price Performance

Shares of UPBD traded up $1.67 during mid-day trading on Thursday, hitting $22.55. 586,029 shares of the company traded hands, compared to its average volume of 673,797. The company has a current ratio of 3.16, a quick ratio of 0.98 and a debt-to-equity ratio of 2.25. The stock has a market capitalization of $1.31 billion, a price-to-earnings ratio of 15.63 and a beta of 1.88. The business has a 50-day moving average of $18.99 and a 200 day moving average of $20.89. Upbound Group has a one year low of $15.82 and a one year high of $30.00.

Upbound Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Stockholders of record on Wednesday, December 17th were paid a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a dividend yield of 6.9%. The ex-dividend date of this dividend was Wednesday, December 17th. Upbound Group’s dividend payout ratio is 107.59%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on UPBD. Zacks Research cut Upbound Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 12th. TD Cowen reaffirmed a “buy” rating on shares of Upbound Group in a report on Thursday, January 8th. Wall Street Zen cut shares of Upbound Group from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Weiss Ratings restated a “hold (c-)” rating on shares of Upbound Group in a research report on Monday, December 29th. Finally, BTIG Research decreased their price objective on shares of Upbound Group from $40.00 to $28.00 and set a “buy” rating on the stock in a research note on Friday, October 31st. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $32.25.

Insider Transactions at Upbound Group

In other news, Director Jeffrey J. Brown acquired 2,502 shares of the firm’s stock in a transaction on Tuesday, January 6th. The shares were purchased at an average cost of $17.68 per share, for a total transaction of $44,235.36. Following the transaction, the director owned 92,972 shares of the company’s stock, valued at approximately $1,643,744.96. This represents a 2.77% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in UPBD. Quarry LP grew its stake in shares of Upbound Group by 913.1% during the third quarter. Quarry LP now owns 1,388 shares of the company’s stock worth $33,000 after purchasing an additional 1,251 shares during the period. Public Employees Retirement System of Ohio grew its position in shares of Upbound Group by 18.7% during the 4th quarter. Public Employees Retirement System of Ohio now owns 3,400 shares of the company’s stock worth $60,000 after buying an additional 535 shares during the period. Canada Pension Plan Investment Board acquired a new position in shares of Upbound Group during the 2nd quarter worth about $95,000. Tower Research Capital LLC TRC increased its stake in shares of Upbound Group by 47.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,891 shares of the company’s stock valued at $123,000 after acquiring an additional 1,574 shares during the last quarter. Finally, Virtus Advisers LLC bought a new position in Upbound Group during the 3rd quarter worth approximately $130,000. Institutional investors and hedge funds own 90.30% of the company’s stock.

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.