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- **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

Revenue

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UPBD

UPBD fundamentals

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