Upbound Group reported stronger adjusted earnings and cash generation in the third quarter, while revenue reached the high end of its outlook. The owner of Acima, Brigit and Rent-A-Center also narrowed its full-year forecasts, announced a planned share repurchase of up to $50 million, and highlighted a new Acima partnership with Boost Mobile.
Third-quarter results
- Consolidated revenue was $1.15 billion. GAAP net earnings rose to $34 million from $13 million a year earlier, and diluted earnings per share were 58 cents. Adjusted EBITDA was $123 million and adjusted diluted EPS was $1.01; both exceeded the top of the company’s guided ranges.
- Acima’s earnings improved despite lower revenue. Revenue fell about 6.5% year over year to $585 million, while GAAP net earnings increased 17.3% to $74.7 million. Adjusted EBITDA grew about 15% to $86 million, and its margin expanded roughly 270 basis points to 14.7%. Acima’s lease charge-off rate improved by more than one percentage point to 8.7%.
- Brigit grew across key measures. Revenue rose 37% to $79 million. Paying users increased about 27% to 1.84 million, and average revenue per paying user rose 4.7% to $14.39. GAAP net earnings nearly doubled, increasing 93.8% to $8.9 million; adjusted EBITDA climbed 59% to $14.7 million.
- Rent-A-Center continued to build same-store sales momentum. Same-store sales increased about 1.8% year over year, marking four consecutive quarters of growth. Revenue was $459 million, essentially unchanged from a year earlier.
Outlook, cash flow and capital allocation
- Upbound narrowed its full-year 2026 outlook. It now expects revenue of $4.68 billion to $4.78 billion, adjusted EBITDA of $510 million to $525 million, and adjusted diluted EPS of $4.15 to $4.30. The company said the midpoint of its EPS range increased; it did not specify a midpoint increase for the other ranges in the announcement.
- For the fourth quarter, the company expects revenue of $1.15 billion to $1.25 billion, adjusted EBITDA of $125 million to $135 million, and adjusted diluted EPS of $1.00 to $1.10.
- Operating cash flow rose 81% to about $163 million, while free cash flow more than doubled to about $121 million. Upbound said it has paid down more than $225 million of debt since year-end, reducing its net leverage ratio.
- The company intends to repurchase up to $50 million of common stock under its existing buyback program. Management will determine the timing and amount based on factors including market conditions, share price and capital needs; the announcement does not commit the company to repurchase the full amount.
Business and leadership updates
- Acima agreed to become a preferred lease-to-own provider at Boost Mobile, with the arrangement covering approximately 5,000 Boost Mobile stores nationwide.
- Upbound added two executives: Scott Young as chief operating officer and Dev Chakraborty as head of Brigit.
The quarter showed different trends across Upbound’s businesses: Acima earned more while revenue declined, Brigit delivered growth in both revenue and earnings, and Rent-A-Center’s same-store sales continued to improve even as its revenue stayed roughly flat. Stronger cash generation and debt reduction also accompanied the planned, but not guaranteed, stock repurchases.