Upbound Group (NASDAQ:UPBD) Posts Earnings Results

Upbound Group (NASDAQ:UPBD) issued its quarterly earnings results on Thursday. The company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.02, FiscalAI reports. Upbound Group had a net margin of 1.56% and a return on equity of 35.23%. The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the prior year, the firm posted $1.00 EPS. The firm’s quarterly revenue was up 3.7% on a year-over-year basis. 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 Stock Down 3.9%

Shares of NASDAQ:UPBD traded down $0.77 during midday trading on Friday, hitting $18.99. 272,085 shares of the company’s stock were exchanged, compared to its average volume of 815,797. The company has a debt-to-equity ratio of 2.26, a current ratio of 2.92 and a quick ratio of 0.78. Upbound Group has a 12 month low of $15.82 and a 12 month high of $28.02. The company has a market cap of $1.11 billion, a PE ratio of 15.34 and a beta of 1.85. The stock has a 50 day moving average price of $19.14 and a 200-day moving average price of $19.17.

Upbound Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, April 28th. Stockholders of record on Tuesday, April 7th were given a dividend of $0.39 per share. The ex-dividend date of this dividend was Tuesday, April 7th. This represents a $1.56 annualized dividend and a dividend yield of 8.2%. Upbound Group’s payout ratio is presently 125.81%.

Analyst Ratings Changes

UPBD has been the subject of several research reports. Wall Street Zen raised shares of Upbound Group from a “hold” rating to a “buy” rating in a research note on Saturday, February 28th. TD Cowen reissued a “buy” rating on shares of Upbound Group in a research note on Thursday, January 8th. Zacks Research raised shares of Upbound Group from a “strong sell” rating to a “hold” rating in a research note on Monday, April 20th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Upbound Group in a research note on Friday, March 27th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $32.25.

Upbound Group News Roundup

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

• Positive Sentiment: Q1 EPS beat driven by Brigit subscriber growth, margin expansion and stronger cash flow — reported $1.08 vs. $1.06 consensus, which supports earnings momentum and valuation. Read More.
• Positive Sentiment: Insider purchase — Director Jeffrey J. Brown bought 2,329 shares at ~$19.41, increasing his stake ~2.5%, a signal of management confidence in the company’s outlook. Read More.
• Neutral Sentiment: EPS guidance roughly in line with Street — FY2026 EPS guide $4.00–$4.35 and Q2 guide $1.00–$1.10 sit near consensus, leaving earnings visibility adequate but not clearly bullish. Read More.
• Neutral Sentiment: Top?line growth modest — Q1 revenue rose ~3.7% YoY to $1.22B, showing steady but slow sales growth; net margin remains low (1.56%) despite improved ROE. Read More.
• Negative Sentiment: Revenue and revenue guidance missed expectations — Q1 revenue slightly below estimates and FY/Q2 revenue ranges were modestly under Street midpoints, raising concerns about near?term top?line momentum. Read More.
• Negative Sentiment: High dividend payout ratio — the company pays a sizable yield (~7.9%) but reported payout ratio above 100%, which could concern income investors about sustainability. Read More.

Insiders Place Their Bets

In other Upbound Group news, Director Jeffrey J. Brown purchased 2,329 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The shares were acquired at an average price of $19.41 per share, with a total value of $45,205.89. Following the transaction, the director owned 94,840 shares in the company, valued at $1,840,844.40. The trade was a 2.52% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Upbound Group

Several large investors have recently added to or reduced their stakes in UPBD. Aristeia Capital L.L.C. purchased a new position in Upbound Group during the fourth quarter worth about $219,000. Lazard Asset Management LLC purchased a new position in Upbound Group during the fourth quarter worth about $176,000. Mangrove Partners IM LLC purchased a new position in Upbound Group during the fourth quarter worth about $239,000. Cibc World Market Inc. purchased a new position in Upbound Group during the fourth quarter worth about $245,000. Finally, Sender Co & Partners Inc. purchased a new position in Upbound Group during the third quarter worth about $204,000. Institutional investors own 90.30% of the company’s stock.

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.