Upbound's Q1 2025 Earnings Call: Navigating Contradictions in Tariffs, Growth Strategies, and Consumer Trends

Tariff impact on pricing and inventory, Brigit's growth and integration, Acima's integration and growth strategy, consumer behavior and trade-down opportunities are the key contradictions discussed in Upbound's latest 2025Q1 earnings call.



Financial Performance and Growth:
- Upbound Group reported revenue of nearly $1.2 billion for Q1 2025, marking a 7.3% increase from the year-ago period.
- The growth was driven by strength in Acima's GMV and the addition of two months of Brigit's financial contributions.

Acima's Strong Performance:
- Acima achieved GMV growth of 8.8% year-over-year in Q1, with an impressive increase in applications of more than 10%.
- This growth was supported by a highly diversified lineup of merchant relationships, which reduced concentration risk and improved adjusted EBITDA margins by 170 basis points.

Brigit's Successful Integration:
- Brigit, acquired on January 31, ended Q1 with over 1.2 million subscribers, up more than 26% year-over-year.
- Revenue for the two months following the acquisition was $32 million, with a cash advance loss rate of 2.4%.
- Despite tax refunds historically reducing the need for liquidity solutions, Brigit's growth exceeded expectations.

Rent-A-Center's Strategic Adjustments:
- Rent-A-Center delivered revenue of $489 million, down 4.9% from the year-ago quarter.
- The decline was due to the exit of certain lower-margin products and tightened underwriting, which led to a 2% decrease in same-store sales.