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

Upbound Group (NASDAQ:UPBD) issued its quarterly earnings results on Thursday. The company reported $1.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.05 by $0.02, FiscalAI reports. Upbound Group had a return on equity of 34.53% and a net margin of 1.90%.The firm had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $1.16 billion. During the same quarter last year, the company posted $1.12 EPS. The company’s revenue for the quarter was up .5% on a year-over-year basis. Upbound Group updated its FY 2026 guidance to 4.000-4.350 EPS and its Q3 2026 guidance to 0.850-0.950 EPS.

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

• Brigit revenue rose 37% year over year to $71 million, with paying users up 30% to approximately 1.7 million. The new multi-year Experian partnership and expanding line-of-credit pilot could provide additional distribution and growth.
• Acima GMV declined 11% year over year, pressured by conservative underwriting, weaker discretionary demand, and cybersecurity incidents that contributed approximately $13 million in fraudulent contract losses. Management expects Acima GMV to be flat to down low double digits for 2026, with growth returning in the fourth quarter.
• Acima’s tighter risk controls improved portfolio performance, with lease charge-offs down 50 basis points to 8.8% and adjusted EBITDA margin expanding 117 basis points to 16.2%. The company now expects full-year Acima losses to remain below 9% and margins to improve versus 2025.
• Rent-A-Center delivered its third consecutive quarter of same-store sales growth, up 1.6%, but closed 69 underperforming stores and is evaluating further footprint optimization. The Amazon pickup-and-returns partnership is live at approximately 1,500 corporate-owned stores and has increased traffic, though its financial contribution remains early.
• Strong cash generation supported deleveraging and capital returns, with second-quarter free cash flow of $84 million versus negative $10 million a year ago. Full-year free-cash-flow guidance was raised to approximately $250 million, while the company reaffirmed adjusted EBITDA guidance of $500 million to $535 million and EPS guidance of $4.00 to $4.35.

Upbound Group Price Performance

Shares of UPBD stock traded down $0.73 during trading hours on Friday, hitting $19.39. 4,170,028 shares of the company’s stock were exchanged, compared to its average volume of 870,021. The company has a market capitalization of $1.13 billion, a PE ratio of 12.59 and a beta of 1.79. The company has a current ratio of 3.06, a quick ratio of 0.88 and a debt-to-equity ratio of 1.94. Upbound Group has a 12-month low of $15.82 and a 12-month high of $28.02. The business’s 50 day simple moving average is $19.81 and its 200-day simple moving average is $19.40.

Upbound Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 16th were paid a dividend of $0.39 per share. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $1.56 annualized dividend and a dividend yield of 8.0%. Upbound Group’s dividend payout ratio (DPR) is 101.30%.

Insider Activity

In other Upbound Group news, Director Jeffrey J. Brown bought 2,295 shares of Upbound Group stock in a transaction that occurred on Tuesday, July 7th. The shares were bought at an average price of $20.09 per share, with a total value of $46,106.55. Following the acquisition, the director owned 96,681 shares in the company, valued at approximately $1,942,321.29. This trade represents a 2.43% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 1.20% of the company’s stock.

Institutional Trading of Upbound Group

Institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. increased its holdings in shares of Upbound Group by 28.1% in the fourth quarter. Invesco Ltd. now owns 548,630 shares of the company’s stock worth $9,634,000 after buying an additional 120,333 shares during the period. Vident Advisory LLC grew its position in Upbound Group by 33.2% during the 4th quarter. Vident Advisory LLC now owns 33,108 shares of the company’s stock worth $581,000 after acquiring an additional 8,253 shares during the last quarter. State of Tennessee Department of Treasury increased its stake in Upbound Group by 40.3% in the 4th quarter. State of Tennessee Department of Treasury now owns 57,873 shares of the company’s stock worth $1,094,000 after purchasing an additional 16,615 shares during the period. Empowered Funds LLC increased its stake in Upbound Group by 9.5% in the 4th quarter. Empowered Funds LLC now owns 214,851 shares of the company’s stock worth $3,773,000 after purchasing an additional 18,584 shares during the period. Finally, Wellington Management Group LLP lifted its position 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. 90.30% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on UPBD shares. Wall Street Zen lowered shares of Upbound Group from a “buy” rating to a “hold” rating in a research report on Saturday. TD Cowen decreased their price target on shares of Upbound Group from $29.00 to $28.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Upbound Group in a report on Wednesday, June 24th. Zacks Research lowered shares of Upbound Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Finally, BTIG Research cut Upbound Group from a “buy” rating to a “neutral” rating and set a $28.00 target price on the stock. in a research note on Friday. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $30.67.

More Upbound Group News

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

• Positive Sentiment: Upbound reported second-quarter adjusted earnings of $1.07 per share and revenue of approximately $1.16 billion, both in line with analyst expectations. Revenue increased slightly year over year, while management highlighted growth at Brigit, digital expansion and disciplined portfolio management. Q2 Earnings Call Highlights
• Positive Sentiment: The company raised its 2026 free-cash-flow outlook to $250 million, supporting the investment case by indicating stronger cash generation and continued cost and portfolio discipline. Revenue and Free Cash Flow Outlook
• Positive Sentiment: TD Cowen maintained a Buy rating and lowered its price target modestly to $28 from $29, implying substantial potential upside from recent trading levels. TD Cowen Price Target
• Neutral Sentiment: Management reaffirmed a 2026 earnings range of $4.00 to $4.35 per share and revenue guidance of $4.7 billion to $4.9 billion, broadly consistent with expectations on earnings but reflecting a more measured sales outlook.
• Negative Sentiment: Third-quarter EPS guidance of $0.85 to $0.95 fell below the roughly $1.00 analyst consensus, and the full-year revenue range was narrowed to $4.7 billion-$4.85 billion. The revisions signal softer consumer demand and are likely the primary reason the stock has decreased. Q2 Earnings and Guidance
• Negative Sentiment: Upbound disclosed approximately $13 million in losses related to fraud at Acima, creating an additional near-term earnings and execution concern even as cash-flow guidance improved.

About Upbound Group

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.