Upbound Group (NASDAQ:UPBD) Releases Earnings Results, Beats Expectations By $0.04 EPS

Upbound Group (NASDAQ:UPBD) released its quarterly earnings data on Thursday. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.97 by $0.04, Zacks reports. Upbound Group had a return on equity of 36.08% and a net margin of 1.85%.The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.17 billion. During the same quarter in the previous year, the business posted $1.05 EPS. Upbound Group’s revenue for the quarter was up 10.8% on a year-over-year basis. Upbound Group updated its Q1 2026 guidance to 1.050-1.150 EPS and its FY 2026 guidance to 4.000-4.350 EPS.

Here are the key takeaways from Upbound Group’s conference call:

• Record 2025 results: Consolidated revenue was about $4.7B (up 8.7%), adjusted EBITDA nearly $510M (up 7.5%), non‑GAAP EPS $4.13, and free cash flow improved to ~$180M, signaling stronger cash generation heading into 2026.
• Brigit is a growth engine: Brigit finished Q4 with ~1.6M paid subscribers, $14.15 monthly ARPU, $64.6M Q4 revenue (up 41.5% YoY) and $405M in originated advances, and management expects >30% annual revenue growth in 2026 (guidance $265M–$285M).
• Brigit guidance was trimmed and some product rollouts delayed — pilot of a line‑of‑credit and slower bank‑partner approvals (and macro caution) pushed certain higher‑growth initiatives into 2026–2027, reducing near‑term upside.
• Acima momentum and marketplace traction: Q4 GMV (~$550M) was the highest since acquisition, the direct‑to‑consumer marketplace grew >100% YoY to ~10% of GMV, revenue was up 8.6% and management expects mid‑single‑digit GMV/revenue growth in 2026 with loss rates stabilizing around ~9.5%.
• Liquidity and capital priorities: year‑end liquidity was ~$358M and net leverage ~2.9x with a long‑term target near 2x, the company is prioritizing deleveraging and maintaining its dividend (opportunistic buybacks deferred), and guidance includes a $72M legal/regulatory settlement accrual.

Upbound Group Stock Up 8.0%

Shares of NASDAQ:UPBD traded up $1.67 during trading on Thursday, hitting $22.55. 586,029 shares of the company were exchanged, compared to its average volume of 673,797. The stock has a market cap of $1.31 billion, a price-to-earnings ratio of 15.63 and a beta of 1.88. Upbound Group has a fifty-two week low of $15.82 and a fifty-two week high of $30.00. The firm has a fifty day moving average price of $18.99 and a two-hundred day moving average price of $20.89. The company has a current ratio of 3.16, a quick ratio of 0.98 and a debt-to-equity ratio of 2.25.

Upbound Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Wednesday, December 17th were paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 6.9%. The ex-dividend date was Wednesday, December 17th. Upbound Group’s dividend payout ratio (DPR) is currently 107.59%.

Wall Street Analyst Weigh In

UPBD has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Upbound Group in a research note on Monday, December 29th. TD Cowen reiterated a “buy” rating on shares of Upbound Group in a report on Thursday, January 8th. BTIG Research dropped their target price on Upbound Group from $40.00 to $28.00 and set a “buy” rating on the stock in a research report on Friday, October 31st. Wall Street Zen cut Upbound Group from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Finally, Zacks Research cut shares of Upbound Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 12th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Upbound Group has an average rating of “Moderate Buy” and a consensus price target of $32.25.

Insider Activity at Upbound Group

In other news, Director Jeffrey J. Brown purchased 2,502 shares of the business’s stock in a transaction on Tuesday, January 6th. The stock was purchased at an average price of $17.68 per share, for a total transaction of $44,235.36. Following the completion of the purchase, the director directly owned 92,972 shares in the company, valued at $1,643,744.96. The trade was a 2.77% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Upbound Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Quarry LP increased its position in Upbound Group by 913.1% during the third quarter. Quarry LP now owns 1,388 shares of the company’s stock worth $33,000 after buying an additional 1,251 shares during the last quarter. Public Employees Retirement System of Ohio lifted its position in shares of Upbound Group by 18.7% in the fourth quarter. Public Employees Retirement System of Ohio now owns 3,400 shares of the company’s stock valued at $60,000 after buying an additional 535 shares during the last quarter. Canada Pension Plan Investment Board acquired a new stake in shares of Upbound Group in the second quarter valued at approximately $95,000. Tower Research Capital LLC TRC boosted its stake in shares of Upbound Group by 47.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,891 shares of the company’s stock worth $123,000 after acquiring an additional 1,574 shares during the period. Finally, Virtus Advisers LLC acquired a new position in shares of Upbound Group during the 3rd quarter worth approximately $130,000. 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.