Upbound Group (NASDAQ:UPBD) Issues Quarterly Earnings Results, Meets Estimates

Upbound Group (NASDAQ:UPBD) issued its quarterly earnings data on Thursday. The company reported $1.07 EPS for the quarter, hitting analysts’ consensus estimates of $1.07, FiscalAI reports. The firm had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.16 billion. Upbound Group had a net margin of 1.78% and a return on equity of 35.56%. The company’s revenue was up .5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.12 EPS. 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 Stock Down 5.2%

Shares of Upbound Group stock traded down $1.04 during trading on Friday, reaching $19.07. The stock had a trading volume of 214,563 shares, compared to its average volume of 862,867. The company has a current ratio of 3.06, a quick ratio of 0.88 and a debt-to-equity ratio of 2.01. The company has a market capitalization of $1.11 billion, a price-to-earnings ratio of 13.40 and a beta of 1.79. The stock has a fifty day moving average price of $19.78 and a two-hundred day moving average price of $19.40. Upbound Group has a 52 week low of $15.82 and a 52 week high of $28.02.

Upbound Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Tuesday, June 16th were issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 8.2%. The ex-dividend date was Tuesday, June 16th. Upbound Group’s payout ratio is 109.09%.

Key Upbound Group News

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

• Positive Sentiment: Upbound raised its 2026 free-cash-flow outlook to approximately $250 million, signaling stronger cash generation and financial flexibility. Management also cited growth at Brigit and solid operational execution. Upbound narrows 2026 revenue to $4.7B-$4.85B while raising free cash flow to $250M amid $13M Acima fraud losses
• Positive Sentiment: Some valuation analysis suggests UPBD could be roughly 29% undervalued based on its second-quarter performance and guidance, potentially offering upside if execution improves and demand stabilizes. Upbound Group could be 29% undervalued
• Neutral Sentiment: Second-quarter EPS and revenue matched analyst estimates, avoiding an immediate earnings miss. However, the results represented slower growth and lower EPS than a year ago. Upbound Group reports second quarter 2026 results
• Negative Sentiment: Upbound narrowed its 2026 revenue outlook to approximately $4.7 billion-$4.85 billion, reflecting softer demand. Third-quarter EPS guidance of $0.85-$0.95 is below the roughly $1.00 consensus estimate, while full-year EPS guidance of $4.00-$4.35 is modestly below the $4.19 midpoint implied by estimates. Upbound Q2 earnings meet estimates, FY26 revenue outlook down
• Negative Sentiment: Management disclosed approximately $13 million in Acima fraud losses, adding an unexpected charge and raising concerns about credit quality, controls and near-term profitability. Upbound Group Q2 2026 earnings call transcript

Wall Street Analyst Weigh In

Several research firms have recently commented on UPBD. BTIG Research cut shares of Upbound Group from a “buy” rating to a “neutral” rating and set a $28.00 price target on the stock. in a research note on Friday. Zacks Research cut Upbound Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Upbound Group in a report on Wednesday, June 24th. Finally, TD Cowen boosted their price objective on Upbound Group from $28.00 to $29.00 and gave the stock a “buy” rating in a report on Tuesday, July 7th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Upbound Group has an average rating of “Hold” and a consensus target price of $31.00.

Insider Activity

In other news, Director Jeffrey J. Brown acquired 2,295 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The stock was acquired at an average cost of $20.09 per share, for a total transaction of $46,106.55. Following the completion of the acquisition, the director owned 96,681 shares in the company, valued at $1,942,321.29. This represents a 2.43% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Upbound Group

A number of large investors have recently bought and sold shares of UPBD. Inceptionr LLC acquired a new stake in Upbound Group in the 4th quarter valued at $307,000. Virtu Financial LLC bought a new position in shares of Upbound Group in the 3rd quarter valued at about $300,000. Optimist Retirement Group LLC grew its holdings in shares of Upbound Group by 17.9% in the 3rd quarter. Optimist Retirement Group LLC now owns 10,910 shares of the company’s stock valued at $258,000 after acquiring an additional 1,653 shares in the last quarter. Entropy Technologies LP acquired a new stake in shares of Upbound Group in the third quarter valued at about $224,000. Finally, Aristeia Capital L.L.C. bought a new stake in Upbound Group during the fourth quarter worth about $219,000. 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.