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- **Record Revenue Growth**: 2025 full-year revenue of $4.7 billion (8.7% YoY), driven by Brigit acquisition and Acima expansion.
- **Brigit Outperformance**: 30% YoY subscriber growth, ARPU up 10%, and Q4 revenue of $64.6 million despite delayed product launches.
- **Segment Resilience**: Rent-A-Center Q4 same-store sales growth of 80 basis points; Acima loss rate stabilized at 10.1%.
- **2026 Guidance**: Targeted 30%+ Brigit revenue growth; Acima GMV mid-single digits; free cash flow $200 million.
- **AI and Cross-Sell**: Investing in AI for customer personalization and cross-selling across brands to unlock $100 million+ in incremental value.

**【CEO Summary Section】**
- **Revenue and Growth**: Full-year 2025 revenue reached $4.7 billion (8.7% YoY), with Q4 revenue of $1.2 billion (10.9% YoY). Adjusted EBITDA was $510 million (7.5% YoY), and non-GAAP EPS was $4.13 (7.8% YoY). Free cash flow improved to $180 million, up $130 million YoY.
- **Strategic Acquisitions**: Brigit added 1.6 million paid subscribers (30% YoY) and contributed $64.6 million in Q4 revenue. Acima's direct-to-consumer GMV grew 100% YoY, accounting for 10% of total GMV.
- **Segment Performance**: Acima saw 8.6% YoY revenue growth; Rent-A-Center achieved 80 basis points of same-store sales growth in Q4; Brigit's ARPU increased 10% YoY.
- **Future Focus**: 2026 priorities include AI-driven customer personalization, cross-selling across brands, and disciplined underwriting to manage macroeconomic risks.

**【CFO Financial Commentary】**
- **2025 Financials**: GAAP net income of $420 million; non-GAAP EPS of $4.13. Free cash flow of $180 million, up $130 million YoY, driven by tax benefits and improved collections.
- **2026 Guidance**: Revenue $4.7-4.95 billion; adjusted EBITDA $500-535 million; non-GAAP EPS $4-4.35. Brigit expected to grow 30% YoY to $265-285 million in revenue.
- **Liquidity and Capital Allocation**: $358 million liquidity as of Q4. Targeting 2x net leverage ratio over time. Share buybacks may resume if conditions allow.
- **Risk Management**: Acima loss rate guided to 9.5% for 2026; Rent-A-Center loss rate stable at 4.9%.

**【Q&A Highlights】**
- **Brigit Product Delays**: Line of credit pilot launched late 2025; broader rollout delayed due to regulatory and partner challenges. 2026 focus on profitable growth with 30%+ revenue target.
- **Tax Season Impact**: Elevated tax refunds could boost Acima/RAC Q1 revenue but compress margins. Brigit may see lower subscriber growth in Q1 due to consumer cash flush.
- **Competitive Landscape**: Brigit faces new entrants in EWA market, but differentiates through subscription model and cash flow underwriting. Acima maintains leadership in lease-to-own GMV growth.
- **AI Integration**: Acima's leasability engine uses AI to approve 45% of direct-to-consumer transactions. Future plans include generative AI for customer engagement and underwriting.
- **Segment Outlook**: Acima GMV growth mid-single digits; Rent-A-Center flat to positive; Brigit 30%+ revenue growth. All segments prioritize EBITDA margin expansion.

Upbound Group, Inc. (UPBD) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Q3 revenue $1.16 billion (+9% YoY), driven by Acima (+11% GMV) and Brigit (+40% revenue). 
- **Segment Performance**: Acima EBITDA margin 12% (down 130bps YoY), Brigit EBITDA $9.3 million (16.1% margin), Rent-A-Center EBITDA margin 16.2%. 
- **Underwriting Tightening**: Acima charge-offs 9.7% (up 50bps YoY), guiding to peak 10% in Q4 before improving in 2026. 
- **Tax Benefits**: $150 million tax savings to support deleveraging and growth investments. 
- **2026 Outlook**: Acima targeting high single-digit to low double-digit GMV growth, Brigit testing new credit products.

**【CEO Opening Remarks】**
- Introduced new executives: Hal Khouri (CFO) and Rebecca Wooters (Chief Growth Officer), emphasizing their expertise in consumer finance and digital transformation.
- Highlighted Q3 2025 results: Revenue of $1.16 billion (+9% YoY), Adjusted EBITDA of $123.6 million (+5.7% YoY). 
- Segment performance: Acima GMV +11% YoY, Brigit revenue +40% YoY, Rent-A-Center same-store sales improving sequentially.

**【Segment Performance】**
- **Acima**: GMV growth driven by new merchants (13% more applications YoY), but underwriting tightening led to 11% GMV growth vs. 15% in Q4 2024. EBITDA margin 12% (-130bps YoY) due to jewelry category expansion and higher charge-offs (9.7% vs. 9.2% YoY). 
- **Brigit**: 27% subscriber growth, ARPU $13.74 (+11.4% YoY), testing line of credit product. Adjusted EBITDA $9.3 million (16.1% margin). 
- **Rent-A-Center**: Same-store sales -3.6% YoY but +40bps sequentially. EBITDA margin 16.2% (+160bps sequentially) due to operational efficiency. 

**【Financial Highlights】**
- Free cash flow: $50 million Q3, $167 million YTD. 
- Tax benefits: $150 million savings from bonus depreciation, reducing 2025 tax rate to 24.5% (vs. 26% run rate). 
- Guidance: Full year revenue $4.0-4.75 billion, EBITDA $500-510 million, EPS $4.05-4.15. 

**【Q&A Highlights】**
- **Acima Growth**: Tightening underwriting will limit Q4 GMV to mid-single digits, but 2026 target of high single-digit to low double-digit growth remains. 
- **Consumer Trends**: Core consumers (income $25-60k) facing inflation and job market uncertainty, driving demand for low weekly payments. 
- **Brigit Strategy**: Testing new marketing channels and line of credit product, aiming for high single-digit sequential growth. 
- **Tax Policy Impact**: $150 million tax savings to support deleveraging and share buybacks. 
- **Merchant Pipeline**: Strong pipeline for Acima, focusing on SMBs and direct-to-consumer tools.

Upbound Group, Inc. (UPBD) Q3 2025 Earnings Call Transcript

- **Acima Dominance**: 16% GMV growth, 15% EBITDA expansion, and 9.3% lease charge-off rate highlight strong execution in core LTO business. 
- **Brigit Breakout**: 40% revenue growth, 28% EBITDA margin, and $500 credit product pilot position Brigit as fastest-growing segment. 
- **Rent-A-Center Restructuring**: -4% same-store sales but stable 4.7% charge-off rate. Free cash flow engine expected to return to growth in 2026. 
- **Digital Transformation**: Virtual lease card, AI sales coaching, and cross-selling initiatives drive omnichannel expansion. 
- **Leverage Progress**: Free cash flow +3x YoY to $117M. Targeting 2x leverage by end of 2026. 


**【CEO Summary Section】**
- **Overall Performance**: Q2 revenue of $1.16 billion (+0.5% YoY), adjusted EBITDA of $133 million (+7% YoY), and non-GAAP EPS of $1.12 (+7.7% YoY). Free cash flow year-to-date improved to $117 million (3x YoY). 
- **Acima Segment**: GMV +16% YoY, revenue +12% YoY, EBITDA +15% YoY. GMV from Acima's marketplace up 130% YoY. Lease charge-off rate improved 30bps to 9.3%. Direct-to-consumer channel now 5% of GMV. 
- **Brigit Segment**: Subscribers +24% YoY, revenue +40% YoY. Cash advance volume $350M (+21% YoY). Testing $500 line of credit product. EBITDA margin 28% (vs. 20% expected). 
- **Rent-A-Center**: Same-store sales -4% YoY due to underwriting tightening. Adjusted EBITDA $68M (-17% YoY). Lease charge-off rate 4.7% (+50bps YoY). Free cash flow generator with mid-teens margins. 
- **Strategic Initiatives**: Acima's virtual lease card pilot, Brigit's cross-selling with Acima/Rent-A-Center, and AI-driven sales coaching at Rent-A-Center. 

**【Q&A Highlights】**
- **Rent-A-Center Recovery**: CEO expects comps to ease in 2H25, targeting low single-digit growth by 2026. 2024 store closures will lap in 2H25. 
- **Brigit Growth**: $500 line of credit pilot shows promise. Marketing expansion in 2H25 to target holiday season. 
- **Acima Resilience**: 7Q streak of GMV growth (37% 2Y CAGR). Diversified GMV mix (31% from top 10 retailers). Jewelry and DTC categories driving growth. 
- **Leverage Target**: Net leverage 3x as of Q2, targeting 2x by end of 2026. Free cash flow improving to support deleveraging. 
- **Legal Updates**: $31.7M accrual for multistate AG matter. $14M McBurney settlement finalized post-Q2. 


Upbound (UPBD)-31 Jul 25-2025 Q2 Earnings call transcript

- **Acima outperforms**: 9% GMV growth, 170bps margin expansion, and 70bps charge-off improvement.
- **Brigit momentum**: 26% user growth, 35% revenue growth in first two months post-acquisition.
- **Rent-A-Center stabilization**: 4.6% charge-off rate (down 10bps YoY) despite 2% sales decline.
- **Strong cash flow**: $127M free cash flow (+4x YoY), exceeding guidance ranges.

**【CEO Summary Section】**
- Acima achieved 9% YoY GMV growth in Q1 2025, driven by 10%+ application growth and 170bps EBITDA margin expansion. Acima's lease charge-off rate improved by 70bps YoY to 8.9%.
- Brigit delivered 26% subscriber growth (1.2M+ users) and 35% revenue growth in first two months of ownership, despite seasonal tax refund headwinds.
- Rent-A-Center same-store sales declined 2% YoY due to underwriting tightening and product line rationalization, but lease charge-off rate improved 10bps YoY to 4.6%.
- Upbound generated $127M free cash flow in Q1, up 4x YoY, with consolidated revenue of $1.2B (+7.3% YoY) and non-GAAP EPS of $1.00 (+27% YoY).

Upbound (UPBD)-1 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: Q4 2024 revenue up 6% YoY to $1.1 billion, driven by Acima's 15.3% GMV growth. Full-year revenue +8.2% to $4.3 billion.
- **Acima Momentum**: 2024 GMV +34% (two-year stacked), with 17% YoY growth. Q4 loss rate improved to 9% (down 90 bps YoY).
- **Brigit Acquisition**: Adds $215-230M annual revenue, with cross-selling initiatives to begin in Q2.
- **2025 Outlook**: Revenue $4.5-4.75B, EBITDA $500-540M, EPS $3.90-4.40. Free cash flow to rebound to $150-200M.
- **Risk Management**: Prudent underwriting limits macro impact, with Acima leveraging trade-down to offset margin pressure.


**【CEO Summary Section】**
- Upbound Group reported Q4 2024 revenue of $1.1 billion, a 6% YoY increase driven by Acima's GMV growth of 15.3%. Full-year revenue reached $4.3 billion, up 8.2% YoY.
- Acima's 2024 GMV grew 34% on a two-year stacked basis, with 17% YoY growth. Rent-A-Center maintained stable EBITDA amid a challenging macro environment.
- Brigit's acquisition closed in January 2025, adding $215-230 million in annual revenue and $25-30 million in EBITDA. Integration focuses on cross-selling and underwriting collaboration.
- Management emphasized prudent underwriting to manage lease charge-offs, with Acima's loss rate improving to 9% in Q4 (down 90 bps YoY).

**【CFO Financial Commentary】**
- Q4 2024 adjusted EBITDA was $123 million (11.4% margin), up 14% YoY. Full-year adjusted EBITDA reached $473 million, up 3.8% YoY.
- Free cash flow for 2024 was $50 million, expected to rebound to $150-200 million in 2025 as working capital moderates.
- 2025 guidance: Revenue $4.5-4.75 billion, adjusted EBITDA $500-540 million, non-GAAP EPS $3.90-4.40.
- Net leverage ratio stood at 3x post-Brigit acquisition, with a target to deleverage to 2x by 2026.

**【Q&A Highlights】**
- **Consumer Trends**: Core customer pressure persists, but Acima benefits from trade-down (70% of GMV growth). Rent-A-Center faces headwinds from macro uncertainty.
- **Acima Growth**: Marketplace GMV grew 60% YoY in Q4, with plans to expand virtual lease card adoption. 2025 EBITDA margin target: low to mid-teens.
- **Brigit Integration**: Cross-selling initiatives to begin in Q2, with R&D focus on financial health tools. No near-term M&A plans.
- **Furniture Market**: Acima diversifies into jewelry, wheel/tire, and electronics (43% furniture mix in Q4). Rent-A-Center's furniture focus remains profitable but vulnerable to macro trends.
- **Risk Management**: Tightened underwriting at both Acima and Rent-A-Center, with Acima's loss rate improving 60 bps sequentially.


Actual											0.67	0.8	1.04	1.03	1.32	1.63	1.52	1.08	0.74	1.15	0.94	0.86	0.83	1.11	0.79	0.81	0.79	1.04	0.95	1.05	1	1.12	1	1.01
Forecast											0.5825	0.6043	1.0229	1.0171	1.1243	1.3586	1.4863	1.6125	0.7057	1.0057	0.89	0.73	0.6588	0.7488	0.7513	0.7738	0.768	1.0324	0.93	1.0331	0.9466	1.065	1.0027	0.9729
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+15.02%	+32.38%	+1.67%	+1.27%	+17.41%	+19.98%	+2.27%	-33.02%	+4.86%	+14.35%	+5.62%	+17.81%	+25.99%	+48.24%	+5.15%	+4.68%	+2.86%	+0.74%	+2.15%	+1.64%	+5.64%	+5.16%	-0.27%	+3.81%

UPBD

UPBD fundamentals

UPBD Q4 2025 Earnings

Earnings Call

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UPBD

UPBD fundamentals

UPBD Q4 2025 Earnings

Earnings Call

UPBD Earnings Call Summary for Q4/20259:00 AM on Feb 19, 2026

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UPBD Earnings Call Summary for Q4/20249:00 AM on Feb 20, 2025

You can ask Aime