Upbound Group (NASDAQ:UPBD) Announces Quarterly Earnings Results

by · The Cerbat Gem

Upbound Group (NASDAQ:UPBD – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.08 EPS for the quarter, beating the consensus estimate 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%. During the same period in the prior year, the business posted $1.00 earnings per share. The business’s revenue 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

Shares of NASDAQ UPBD traded up $0.82 during mid-day trading on Thursday, reaching $19.76. 1,790,572 shares of the company were exchanged, compared to its average volume of 762,888. The stock has a market capitalization of $1.15 billion, a PE ratio of 15.94 and a beta of 1.85. The company’s 50 day moving average price is $19.14 and its 200 day moving average price is $19.17. Upbound Group has a 52 week low of $15.82 and a 52 week high of $28.02. The company has a quick ratio of 0.78, a current ratio of 2.92 and a debt-to-equity ratio of 2.26.

Upbound Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, April 28th. Stockholders of record on Tuesday, April 7th were issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 7.9%. The ex-dividend date of this dividend was Tuesday, April 7th. Upbound Group’s payout ratio is currently 125.81%.

Trending Headlines about Upbound Group

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

  • Positive Sentiment: Q1 earnings beat — EPS $1.08 vs. $1.06 consensus; management cited Brigit subscriber growth, margin expansion and strong cash flow, which underpinned the rally. Upbound Q1 Earnings Beat on Brigit Subscriber Growth
  • Positive Sentiment: Insider buying — Director Jeffrey J. Brown purchased 2,329 shares (~$19.41 avg), increasing his stake ~2.5%, a bullish insider signal for some investors. SEC Form 4
  • Neutral Sentiment: Guidance roughly in line — Q2 EPS guided to $1.00–$1.10 (consensus ~$1.05) and FY EPS $4.00–$4.35 (consensus ~$4.18); revenue ranges span consensus levels, so guidance is not a major surprise but lacks a clear upside signal. Press Release / Slide Deck
  • Neutral Sentiment: Market coverage noted the mixed print — multiple outlets highlighted the EPS beat but flagged the revenue shortfall, which produced a measured intraday move rather than a decisive gap up. Upbound Group stock edges up on earnings beat despite revenue miss
  • Negative Sentiment: Revenue miss / cautious revenue tone — quarterly revenue growth was modest (+3.7% YoY) and Q2 revenue was guided to a range whose low end is below consensus, which may keep investors cautious about near-term top-line momentum. Upbound Group (UPBD) Q1 Earnings Top Estimates
  • Negative Sentiment: Structural/financial considerations — reported net margin was low (~1.6%) and debt-to-equity is relatively high (~2.26), which could concern investors focused on leverage and profitability despite the EPS beat.

Wall Street Analysts Forecast Growth

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

Read Our Latest Stock Analysis on UPBD

Insider Buying and Selling

In other Upbound Group news, Director Jeffrey J. Brown bought 2,329 shares of the firm’s stock in a transaction that occurred 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 transaction, the director directly owned 94,840 shares in the company, valued at $1,840,844.40. This trade represents a 2.52% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Upbound Group

Large investors have recently added to or reduced their stakes in the business. Inspire Investing LLC raised its position in Upbound Group by 37.4% in the 4th quarter. Inspire Investing LLC now owns 27,094 shares of the company’s stock worth $476,000 after purchasing an additional 7,376 shares during the period. Quantinno Capital Management LP purchased a new position in Upbound Group in the 2nd quarter worth $346,000. Rafferty Asset Management LLC raised its position in Upbound Group by 7.9% in the 2nd quarter. Rafferty Asset Management LLC now owns 13,668 shares of the company’s stock worth $343,000 after purchasing an additional 999 shares during the period. Freestone Grove Partners LP raised its position in Upbound Group by 16.0% in the 4th quarter. Freestone Grove Partners LP now owns 19,162 shares of the company’s stock worth $336,000 after purchasing an additional 2,648 shares during the period. Finally, Inceptionr LLC purchased a new position in Upbound Group in the 4th quarter worth $307,000. Hedge funds and other institutional investors own 90.30% of the company’s stock.

Upbound Group Company Profile

(Get Free Report)

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.

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