Upbound Group (NASDAQ:UPBD) Issues Quarterly Earnings Results

Upbound Group (NASDAQ:UPBD) released its earnings results on Thursday. The company reported $1.07 earnings per share for the quarter, hitting the consensus estimate of $1.07, FiscalAI reports. The company had revenue of $1.16 billion during the quarter, compared to the consensus estimate 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 previous 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 Performance

Shares of NASDAQ:UPBD traded down $0.83 during trading on Thursday, reaching $20.12. 1,379,028 shares of the company’s stock traded hands, compared to its average volume of 849,340. The stock has a market capitalization of $1.17 billion, a P/E ratio of 4.98 and a beta of 1.79. Upbound Group has a 12 month low of $15.82 and a 12 month high of $28.02. The company has a 50 day moving average of $19.78 and a 200-day moving average of $19.40. The company has a debt-to-equity ratio of 2.01, a current ratio of 3.06 and a quick ratio of 0.88.

Upbound Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Tuesday, June 16th were given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 7.8%. The ex-dividend date of this dividend 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 on revenue of approximately $1.16 billion, matching analyst estimates. Revenue increased 0.5% year over year, while growth at Brigit and solid execution helped offset softer demand. Upbound Q2 Earnings Meet Estimates, FY26 Revenue Outlook Down
• Positive Sentiment: The company maintained a relatively strong profitability profile, including a reported return on equity of 35.56%, and its full-year 2026 EPS range of $4.00 to $4.35 brackets the current consensus estimate of $4.19. Upbound Group Stock and Earnings Information
• Neutral Sentiment: Brokerages carry a consensus price target of $31.00, implying analysts remain more optimistic about the stock’s longer-term value than the immediate earnings reaction suggests. Upbound Group Receives $31 Consensus Target Price
• Negative Sentiment: Third-quarter guidance was below expectations: EPS of $0.85 to $0.95 versus the $1.00 consensus forecast, and revenue of $1.1 billion to $1.2 billion versus an expected $1.2 billion. This points to continuing demand softness and pressured near-term earnings. Upbound Group Reports Second Quarter 2026 Results
• Negative Sentiment: Although full-year EPS guidance was maintained at $4.00 to $4.35, the company’s full-year revenue outlook of $4.7 billion to $4.9 billion indicates a cautious sales view. Second-quarter EPS also declined from $1.12 a year earlier to $1.07. Upbound Group Matches Q2 Earnings Estimates

Wall Street Analysts Forecast Growth

UPBD has been the subject of a number of research reports. TD Cowen lifted their price target on Upbound Group from $28.00 to $29.00 and gave the stock a “buy” rating in a research note on Tuesday, July 7th. Weiss Ratings restated a “hold (c-)” rating on shares of Upbound Group in a research note on Wednesday, June 24th. Finally, Zacks Research downgraded Upbound Group from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Upbound Group presently has an average rating of “Moderate Buy” and an average price target of $31.00.

Insider Transactions at Upbound Group

In related news, Director Jeffrey J. Brown bought 2,295 shares of the firm’s stock in a transaction on Tuesday, July 7th. The stock was bought at an average cost of $20.09 per share, for a total transaction of $46,106.55. Following the completion of the purchase, the director directly owned 96,681 shares in the company, valued at approximately $1,942,321.29. The trade was a 2.43% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.20% of the stock is owned by corporate insiders.

Institutional Trading of Upbound Group

Several hedge funds have recently made changes to their positions in the stock. State Street Corp boosted 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 valued at $43,220,000 after acquiring an additional 246,146 shares during the period. Wellington Management Group LLP increased 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 during the period. Charles Schwab Investment Management Inc. lifted its position in 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 valued at $21,696,000 after purchasing an additional 91,245 shares during the last quarter. Bragg Financial Advisors Inc boosted its stake 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 valued at $19,405,000 after purchasing an additional 119,158 shares during the period. Finally, Qube Research & Technologies Ltd boosted its stake in Upbound Group by 27.3% during the 2nd quarter. Qube Research & Technologies Ltd now owns 783,997 shares of the company’s stock valued at $19,678,000 after purchasing an additional 168,113 shares during the period. 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.