Upbound Group, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue was $1.15 billion, landing at the high end of the guided range.
• GAAP net earnings were $34 million, an increase of $21 million year-over-year.
• GAAP diluted EPS was $0.58.
• Adjusted EBITDA was $123 million, exceeding the top of the guided range.
• Non-GAAP diluted EPS was $1.01, exceeding the top of the guided range.
• Net cash provided by operating activities increased 81% year-over-year to approximately $163 million.
• Free cash flow more than doubled year-over-year to approximately $121 million.
• The Company reduced debt by more than $225 million since year-end.

Guidance and Future Outlook:

• Full-year 2026 consolidated revenue range narrowed to $4.68–$4.78 billion.
• Full-year 2026 Adjusted EBITDA range narrowed to $510–$525 million.
• Full-year 2026 non-GAAP diluted EPS range narrowed to $4.15–$4.30, increasing the midpoint.
• Q4 2026 consolidated revenue is expected to be $1.15–$1.25 billion.
• Q4 2026 Adjusted EBITDA is expected to be $125–$135 million.
• Q4 2026 non-GAAP diluted EPS is expected to be $1.00–$1.10.

Business Segments and Product Lines:

• Acima: Revenue was $585 million, down approximately 6.5% year-over-year. GAAP net earnings increased 17.3% to $74.7 million. Adjusted EBITDA increased approximately 15% year-over-year to $86 million, with Adjusted EBITDA margin expanding approximately 270 basis points to 14.7%. Lease charge-off rate improved more than 100 basis points year-over-year to 8.7%.
• Brigit: Revenue grew 37% year-over-year to $79 million. Paying Users rose approximately 27% to 1.84 million. Average monthly revenue per paying user (ARPU) increased 4.7% to $14.39. GAAP net earnings increased 93.8% to $8.9 million. Adjusted EBITDA grew 59% year-over-year to $14.7 million.
• Rent-A-Center: Revenue was $459 million, essentially flat to the prior year. Same store sales increased approximately 180 basis points year-over-year, extending growth to four consecutive quarters.

Market and Competitive Landscape:

• Acima entered an integration agreement with Boost Mobile to serve as a preferred lease-to-own solution across approximately 5,000 Boost Mobile stores nationwide.
• The Company operates in the United States, Mexico, and Puerto Rico, serving underserved consumers through store-based and digital channels.

Risks and Challenges:

• Forward-looking statements are subject to risks including general economic strength, consumer spending behaviors, credit availability, inflation, central bank monetary policy, and potential recession or economic slowdown.
• Risks also include those detailed in the Company's full third quarter 2026 earnings release, Form 10-K for the year ended December 31, 2025, and Form 10-Q for the quarter ended September 30, 2026.

Management Commentary and Tone:

• Fahmi Karam (CEO) and Hal Khouri (CFO) hosted a conference call to review results.
• Scott Young was welcomed as Chief Operating Officer.
• Dev Chakraborty was welcomed as Head of Brigit.
• Management highlighted that underwriting discipline drove Acima profitability and that Brigit delivered double-digit growth across key metrics.

Other Key Points:

• The Company intends to repurchase up to $50 million of its common stock under its existing share repurchase program authorized in December 2021.
• The overall net leverage ratio has been reduced due to debt paydown.
• The Company operates industry-leading brands including Acima, Brigit, and Rent-A-Center.