Upbound Group, Inc.

The company said Q2 revenue was $1.2 billion, up modestly year over year, adjusted EBITDA was $127 million, and non-GAAP diluted EPS was $1.07, down approximately 4% from the prior year. Operating cash flow was $123 million, up $97 million year over year, and free cash flow was $84 million versus negative $10 million in the prior-year quarter. By segment, Brigit revenue was $71 million, up 37% year over year, with paying users at approximately 1.7 million; Acima revenue was $604 million, down approximately 2.5%, and GMV was about $466 million, down approximately 11%; Rent-A-Center revenue was $466 million. For Q3, management guided to consolidated revenue of $1.05 billion to $1.15 billion, adjusted EBITDA of $105 million to $115 million, and non-GAAP diluted EPS of $0.85 to $0.95. For full year 2026, they narrowed revenue to $4.7 billion to $4.85 billion, reaffirmed adjusted EBITDA of $500 million to $535 million and EPS of $4 to $4.35, and raised free cash flow guidance to $250 million from $200 million.

Fahmi Karam emphasized that the quarter showed continued positive trends, disciplined underwriting, and progress on the company’s multi-brand strategy. He highlighted shared capabilities, AI and analytics, and cross-brand connections as the main strategic priorities to improve customer outcomes, operating leverage and long-term value. On tone, he was upbeat about Brigit’s growth and the Amazon partnership at Rent-A-Center, while staying cautious on Acima because of cyber-related fraud losses, consumer pressure and conservative underwriting.

Hal Khouri focused on the financial quality of the quarter: Brigit revenue grew 37% to $71 million with ARPU up 6.3% to $14.30 and adjusted EBITDA contribution of about $11.8 million; Acima revenue fell 2.5% to $604 million and GMV fell 11%, but lease charge-offs improved to 8.8% and EBITDA margin rose to 16.2%; Rent-A-Center revenue was $466 million with lease charge-offs around 5% and adjusted EBITDA of $63 million. He also pointed to cash generation and balance-sheet progress, with liquidity of about $487 million, net debt of about $1.3 billion, leverage at 2.6x trailing 12-month adjusted EBITDA versus 2.9x at year-end 2025, and a long-term leverage target in the 2x range. He said the full-year free cash flow raise to $250 million was mainly driven by working capital, with capital spending expected to be similar to 2025 and the quarterly dividend of $0.39 per share remaining part of capital allocation.

Analysts pressed on Brigit marketing ROI and management said the spend is producing strong demand and was within or at the high end of their expectations, with the possibility of additional investment later in the year if performance holds. Questions also focused on Acima’s 4Q inflection and GMV decline; management said the rebound should reflect seasonality, easier comparisons, some margin expansion and new merchant wins in the pipeline, while remaining disciplined on underwriting. Analysts asked about consumer pressure and underwriting risk, and management said the outlook already assumes a conservative posture, with Acima losses trending below 9% for the year and cash collections still strong. On Rent-A-Center, management said the 69 store closures were part of a broader optimization effort and that the Amazon partnership is already increasing foot traffic and brand awareness.