Upbound Group (NASDAQ:UPBD) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Upbound Group (NASDAQ:UPBD) released its earnings results on Thursday. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.02, FiscalAI reports. Upbound Group had a return on equity of 35.56% and a net margin of 1.78%.The business had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period last year, the company earned $1.00 earnings per share. The business’s revenue for the quarter was up 3.7% compared to the same quarter last year. Upbound Group updated its Q2 2026 guidance to 1.000-1.100 EPS and its FY 2026 guidance to 4.000-4.350 EPS.

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

• Upbound delivered a solid Q1 with revenue of $1.2B (+3.7% YoY), adjusted EBITDA of $136M (+~8%), non‑GAAP EPS of $1.08 (+8%), and strong cash generation (FCF ~$136M) that reduced leverage to ~2.6x.
• Brigit showed robust user and monetization growth—paying users ~1.6M (+27% YoY), ARPU +12% to $14.41, revenue +40% YoY and adjusted EBITDA doubled (~$22.9M)—with a measured line‑of‑credit rollout planned later in the year.
• Acima’s GMV fell ~6% YoY largely due to deliberate underwriting tightening and softer demand, but loss performance improved materially (lease charge‑offs ~8.8%, -130bps sequential), supporting margin and a revised outlook of flat to low‑single‑digit GMV and slightly better loss rates for 2026.
• Rent‑A‑Center is stabilizing (second consecutive quarter of same‑store sales growth, +40bps) despite a slight revenue/EBITDA decline; the Amazon pickup/returns partnership rolling out to ~1,700 stores is an early growth and traffic catalyst.
• Management reiterated 2026 targets (revenue $4.7B–$4.95B, adj. EBITDA $500M–$535M, EPS $4.00–$4.35, FCF ≈ $200M), continues dividend and deleveraging priorities toward ~2x leverage, and notes the guide includes an estimated ~$70M of legal/regulatory payments.

Upbound Group Price Performance

UPBD opened at $19.19 on Friday. The business’s 50-day moving average is $19.14 and its two-hundred day moving average is $19.17. Upbound Group has a 1 year low of $15.82 and a 1 year high of $28.02. The company has a debt-to-equity ratio of 2.01, a current ratio of 2.92 and a quick ratio of 0.78. The firm has a market capitalization of $1.12 billion, a PE ratio of 15.48 and a beta of 1.83.

Upbound Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, April 28th. Shareholders of record on Tuesday, April 7th were paid a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 8.1%. The ex-dividend date was Tuesday, April 7th. Upbound Group’s payout ratio is 125.81%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen upgraded Upbound Group from a “hold” rating to a “buy” rating in a research note on Saturday, February 28th. TD Cowen restated a “buy” rating on shares of Upbound Group in a research note on Thursday, January 8th. Zacks Research upgraded Upbound Group from a “strong sell” rating to a “hold” rating in a research note on Monday, April 20th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Upbound Group in a research note on Friday, March 27th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Upbound Group has an average rating of “Moderate Buy” and an average price target of $31.33.

Insider Transactions at Upbound Group

In related news, Director Jeffrey J. Brown bought 2,329 shares of the business’s stock in a transaction on Tuesday, April 28th. The shares were bought at an average price of $19.41 per share, for a total transaction of $45,205.89. Following the completion of the purchase, the director directly owned 94,840 shares of the company’s stock, valued at approximately $1,840,844.40. This trade represents a 2.52% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Upbound Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Invesco Ltd. grew its stake in Upbound Group by 28.1% in the fourth quarter. Invesco Ltd. now owns 548,630 shares of the company’s stock valued at $9,634,000 after purchasing an additional 120,333 shares during the last quarter. Vident Advisory LLC grew its stake in Upbound Group by 33.2% in the fourth quarter. Vident Advisory LLC now owns 33,108 shares of the company’s stock valued at $581,000 after purchasing an additional 8,253 shares during the last quarter. State of Tennessee Department of Treasury grew its stake in Upbound Group by 40.3% in the fourth quarter. State of Tennessee Department of Treasury now owns 57,873 shares of the company’s stock valued at $1,094,000 after purchasing an additional 16,615 shares during the last quarter. Empowered Funds LLC grew its stake in Upbound Group by 9.5% in the fourth quarter. Empowered Funds LLC now owns 214,851 shares of the company’s stock valued at $3,773,000 after purchasing an additional 18,584 shares during the last quarter. Finally, Wellington Management Group LLP grew its stake 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 purchasing an additional 59,798 shares during the last quarter. Hedge funds and other institutional investors own 90.30% of the company’s stock.

Key Stories Impacting Upbound Group

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

• Positive Sentiment: Q1 EPS beat — Upbound reported $1.08 EPS vs. $1.06 consensus, driven by Brigit subscriber growth, margin expansion and stronger cash flow, which provides near-term earnings support. Read More.
• Positive Sentiment: Director insider buy — Director Jeffrey J. Brown purchased 2,329 shares at about $19.41, increasing his stake ~2.5%; an insider purchase can signal management confidence in the stock’s valuation. Read More.
• Neutral Sentiment: Modest revenue growth — Q1 revenue rose ~3.7% YoY to $1.22B, showing growth but not acceleration; net margin remains low (1.56%) despite improved ROE, tempering enthusiasm about top-line momentum. Read More.
• Neutral Sentiment: EPS guidance roughly in-line — FY2026 EPS guide of $4.00–$4.35 and Q2 guide of $1.00–$1.10 are close to consensus, providing some earnings visibility but not a clear upside catalyst. Read More.
• Negative Sentiment: Revenue and revenue guidance missed expectations — Management’s FY revenue range ($4.7B–$5.0B) and Q2 revenue guide ($1.1B–$1.2B) were modestly below Street midpoints, raising concern about near-term top-line momentum and prompting profit-taking. Read More.

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.