Upbound Group (NASDAQ:UPBD) Releases Earnings Results, Hits Expectations

Upbound Group (NASDAQ:UPBD) issued its earnings results on Thursday. The company reported $1.07 EPS for the quarter, meeting analysts’ consensus estimates of $1.07, FiscalAI reports. The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.16 billion. Upbound Group had a return on equity of 35.56% and a net margin of 1.78%.Upbound Group’s revenue was up .5% on a year-over-year basis. During the same period in the prior year, the company posted $1.12 earnings per share. 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 NASDAQ UPBD traded down $0.83 during midday trading on Thursday, reaching $20.12. 1,379,028 shares of the company traded hands, compared to its average volume of 868,392. The firm has a market cap of $1.17 billion, a PE ratio of 14.07 and a beta of 1.79. The stock’s 50-day simple moving average is $19.73 and its 200-day simple moving average is $19.40. Upbound Group has a 12 month low of $15.82 and a 12 month high of $28.02. The company has a debt-to-equity ratio of 2.01, a quick ratio of 0.88 and a current ratio of 3.06.

Upbound Group Dividend Announcement

The business also recently disclosed 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. This represents a $1.56 annualized dividend and a yield of 7.8%. The ex-dividend date was Tuesday, June 16th. Upbound Group’s dividend payout ratio is currently 109.09%.

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 estimates. Revenue increased 0.5% year over year, while growth in Brigit and solid execution helped offset softer demand. Upbound Q2 Earnings Meet Estimates, FY26 Revenue Outlook Down
• Positive Sentiment: The company’s profitability metrics remained strong, including a reported return on equity of 35.56%, and its full-year EPS outlook of $4.00 to $4.35 remains broadly consistent with the analyst forecast of $4.19. Upbound Group Earnings Report
• Neutral Sentiment: Brokerages assigned Upbound a consensus price target of $31.00, suggesting analysts see potential upside, although the report did not indicate a change in ratings or targets. Upbound Group Receives $31 Consensus Target Price
• Negative Sentiment: Third-quarter EPS guidance of $0.85 to $0.95 is below the $1.00 consensus estimate. Revenue guidance of $1.1 billion to $1.2 billion also falls short of the $1.2 billion consensus at the midpoint, pointing to near-term earnings pressure. Upbound Group Matches Q2 Earnings Estimates
• Negative Sentiment: Although full-year EPS guidance was maintained at $4.00 to $4.35, the full-year revenue outlook of $4.7 billion to $4.9 billion reflects a more cautious sales outlook, with softer consumer demand weighing on investor sentiment. Second-quarter EPS also declined from $1.12 a year earlier. Upbound Group Reports Second Quarter 2026 Results

Insider Buying and Selling at Upbound Group

In other news, Director Jeffrey J. Brown bought 2,295 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The stock was acquired at an average price of $20.09 per share, for a total transaction of $46,106.55. Following the transaction, the director directly owned 96,681 shares of the company’s stock, valued at $1,942,321.29. This trade represents a 2.43% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Upbound Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UPBD. State Street Corp increased its holdings in shares of Upbound Group by 11.4% during the fourth quarter. State Street Corp now owns 2,410,524 shares of the company’s stock worth $43,220,000 after buying an additional 246,146 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Upbound Group by 4.8% in the 4th quarter. Wellington Management Group LLP now owns 1,315,672 shares of the company’s stock worth $23,103,000 after acquiring an additional 59,798 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of Upbound Group by 8.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,235,539 shares of the company’s stock worth $21,696,000 after acquiring an additional 91,245 shares in the last quarter. Bragg Financial Advisors Inc grew its position in Upbound Group by 12.1% during the 4th quarter. Bragg Financial Advisors Inc now owns 1,105,047 shares of the company’s stock worth $19,405,000 after acquiring an additional 119,158 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its position in Upbound Group by 27.3% during the 2nd quarter. Qube Research & Technologies Ltd now owns 783,997 shares of the company’s stock worth $19,678,000 after acquiring an additional 168,113 shares during the last quarter. 90.30% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on UPBD shares. TD Cowen boosted their price target on shares of Upbound Group from $28.00 to $29.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. 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, Weiss Ratings reissued a “hold (c-)” rating on shares of Upbound Group in a research note on Wednesday, June 24th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $31.00.

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.