Results were mixed — Brigit's strong growth and improving credit at Acima are positives, but near-flat consolidated revenue, declining EBITDA, and softer consumer demand commentary cap the upside. The reaffirmed full-year EBITDA/EPS guidance provides a floor, but the narrowed revenue range signals caution. Watch Q3 guidance ($1.05-$1.15B revenue) for consumer demand trends and monitor Acima GMV trajectory and Rent-A-Center same-store sales sustainability.
Price Chart
Executive Summary
Upbound Group reported Q2 2026 results within all guided ranges: consolidated revenue of $1,163.4M (+0.5% YoY), GAAP diluted EPS of $0.37, and non-GAAP diluted EPS of $1.07 (a 2.0% beat vs $1.05 consensus). Brigit continued strong momentum with 37% revenue growth and 30% paying subscriber growth, while Acima improved credit quality (LCO down 50bps YoY to 8.8%) and expanded EBITDA margins. However, consolidated revenue growth was nearly flat, Adjusted EBITDA declined 4.6% YoY, and Rent-A-Center net earnings fell 13.2%. The company reaffirmed full-year EBITDA and EPS guidance but narrowed the revenue range to $4.70-$4.85B, citing softer consumer demand.
Key Financial Metrics
Key Facts
- Consolidated revenue of $1,163.4M, +0.5% YoY, within guided range of $1.10-$1.20B
- Non-GAAP diluted EPS of $1.07, a 2.0% beat vs consensus of $1.05
- GAAP diluted EPS of $0.37 vs $0.26 in prior year period
- Adjusted EBITDA of $127.0M, -4.6% YoY; margin 10.9% vs 11.5% prior year
- Brigit revenue $71.1M, +37.1% YoY; paying subscribers 1.72M, +30.2% YoY
- Acima revenue $603.5M, -2.5% YoY; LCO rate improved 50bps to 8.8%; EBITDA margin +117bps to 16.2%
- Rent-A-Center revenue $466.4M, -0.2% YoY; same-store sales +1.6% YoY; net earnings -13.2% YoY
- Net cash from operations $123.3M; free cash flow $84M
- Full-year 2026 guidance: revenue narrowed to $4.70-$4.85B; Adj. EBITDA $500-$535M and Non-GAAP EPS $4.00-$4.35 reaffirmed
- Q3 2026 guidance: revenue $1.05-$1.15B, Adj. EBITDA $105-$115M, Non-GAAP EPS $0.85-$0.95
- Net leverage ratio 2.6x, down from 2.9x at year-end 2025
- Quarterly dividend $0.39 per share ($1.56 annualized)
Financial Impact
Non-GAAP EPS beat consensus by $0.02 (2.0%); revenue essentially in line; Adjusted EBITDA declined 4.6% YoY
Risk Factors
- Softer consumer demand pressuring top-line growth, especially at Acima (GMV -10.7% YoY)
- Rent-A-Center net earnings declining 13.2% YoY and LCO rate increasing 30bps
- Brigit net advance loss rate increasing 100bps YoY to 3.6%
- Cybersecurity incident-related fraudulent lease-to-own losses of $13.3M in Acima segment
- Legal and regulatory overhang (multi-state AG investigation, NY AG lawsuit)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-324902 |
| Document: upbd-20260730.htm | 0001193125-26-324902 |
| Document: upbd-ex99_3.htm | 0001193125-26-324902 |
| Document: upbd-ex99_1.htm | 0001193125-26-324902 |
| Document: 0001193125-26-324902-index-headers.html | 0001193125-26-324902 |
| Document: 0001193125-26-324902-index.html | 0001193125-26-324902 |
| Document: 0001193125-26-324902.txt | 0001193125-26-324902 |
| 8-K Data (Synthetic) | 0001193125-26-324902 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | SC 13G | $15.69 | awaiting T+20 | — | $16.99 (+8.29%) |
Sep 22, 2026 4w ago | 8-K | $16.78 $16.32 | ▼ −2.74% | ▼ −2.18% | $16.99 (+1.25%) |
Jul 31, 2026 12w ago | ANALYST-DOWNGRADE | $19.39 $19.22 | ▼ −0.88% | ▼ −3.86% | $16.99 (−12.38%) |
Jul 30, 2026 12w ago | 8-K | $20.12 $19.29 | ▼ −4.13% | ▼ −8.09% | $16.99 (−15.56%) |
Jun 3, 2026 20w ago | 8-K | $17.89 $19.89 | ▲ +11.18% | ▲ +12.18% | $16.99 (−5.03%) |
May 19, 2026 22w ago | DEFA14A | $17.07 $17.46 | ▲ +2.28% | ▲ +1.30% | $16.99 (−0.47%) |
May 19, 2026 22w ago | 8-K | $17.07 $17.46 | ▲ +2.28% | ▲ +1.30% | $16.99 (−0.47%) |
Apr 30, 2026 25w ago | 8-K | $19.76 $19.21 | ▼ −2.78% | ▼ −8.01% | $16.99 (−14.02%) |
Apr 21, 2026 26w ago | DEFA14A | $19.78 $17.23 | ▼ −12.89% | ▼ −17.81% | $16.99 (−14.11%) |
US Market Status
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