Upbound Group (NASDAQ:UPBD) Issues Earnings Results, Beats Expectations By $0.04 EPS

Upbound Group (NASDAQ:UPBD) posted its earnings results on Thursday. The company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.97 by $0.04, Zacks reports. Upbound Group had a net margin of 1.85% and a return on equity of 36.08%. The company had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period in the prior year, the business posted $1.05 earnings per share. Upbound Group’s revenue for the quarter was up 10.8% on a year-over-year basis. Upbound Group updated its Q1 2026 guidance to 1.050-1.150 EPS and its FY 2026 guidance to 4.000-4.350 EPS.

Here are the key takeaways from Upbound Group’s conference call:

• Record 2025 results: Consolidated revenue was about $4.7B (up 8.7%), adjusted EBITDA nearly $510M (up 7.5%), non‑GAAP EPS $4.13, and free cash flow improved to ~$180M, signaling stronger cash generation heading into 2026.
• Brigit is a growth engine: Brigit finished Q4 with ~1.6M paid subscribers, $14.15 monthly ARPU, $64.6M Q4 revenue (up 41.5% YoY) and $405M in originated advances, and management expects >30% annual revenue growth in 2026 (guidance $265M–$285M).
• Brigit guidance was trimmed and some product rollouts delayed — pilot of a line‑of‑credit and slower bank‑partner approvals (and macro caution) pushed certain higher‑growth initiatives into 2026–2027, reducing near‑term upside.
• Acima momentum and marketplace traction: Q4 GMV (~$550M) was the highest since acquisition, the direct‑to‑consumer marketplace grew >100% YoY to ~10% of GMV, revenue was up 8.6% and management expects mid‑single‑digit GMV/revenue growth in 2026 with loss rates stabilizing around ~9.5%.
• Liquidity and capital priorities: year‑end liquidity was ~$358M and net leverage ~2.9x with a long‑term target near 2x, the company is prioritizing deleveraging and maintaining its dividend (opportunistic buybacks deferred), and guidance includes a $72M legal/regulatory settlement accrual.

Upbound Group Stock Up 8.0%

NASDAQ UPBD traded up $1.67 on Thursday, hitting $22.55. 684,348 shares of the stock traded hands, compared to its average volume of 676,363. The company has a current ratio of 3.16, a quick ratio of 0.98 and a debt-to-equity ratio of 2.25. The stock has a 50-day moving average of $18.99 and a 200 day moving average of $20.89. Upbound Group has a twelve month low of $15.82 and a twelve month high of $30.00. The company has a market capitalization of $1.31 billion, a P/E ratio of 15.62 and a beta of 1.88.

Upbound Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Stockholders of record on Wednesday, December 17th were given a dividend of $0.39 per share. The ex-dividend date of this dividend was Wednesday, December 17th. This represents a $1.56 annualized dividend and a dividend yield of 6.9%. Upbound Group’s dividend payout ratio (DPR) is presently 107.59%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on UPBD shares. Weiss Ratings reissued a “hold (c-)” rating on shares of Upbound Group in a research note on Monday, December 29th. BTIG Research lowered their price objective on shares of Upbound Group from $40.00 to $28.00 and set a “buy” rating on the stock in a research report on Friday, October 31st. Zacks Research cut Upbound Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 12th. Wall Street Zen lowered Upbound Group from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Finally, TD Cowen reiterated a “buy” rating on shares of Upbound Group in a research report on Thursday, January 8th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $32.25.

Insider Buying and Selling

In other Upbound Group news, Director Jeffrey J. Brown bought 2,502 shares of the business’s stock in a transaction on Tuesday, January 6th. The shares were purchased at an average price of $17.68 per share, with a total value of $44,235.36. Following the completion of the acquisition, the director directly owned 92,972 shares of the company’s stock, valued at approximately $1,643,744.96. The trade was a 2.77% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 2.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Upbound Group

Several institutional investors have recently bought and sold shares of the stock. Quarry LP grew its holdings in Upbound Group by 913.1% in the 3rd quarter. Quarry LP now owns 1,388 shares of the company’s stock valued at $33,000 after buying an additional 1,251 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in Upbound Group by 18.7% in the fourth quarter. Public Employees Retirement System of Ohio now owns 3,400 shares of the company’s stock worth $60,000 after purchasing an additional 535 shares in the last quarter. Canada Pension Plan Investment Board acquired a new position in shares of Upbound Group in the 2nd quarter worth approximately $95,000. Tower Research Capital LLC TRC lifted its holdings in shares of Upbound Group by 47.5% during the second quarter. Tower Research Capital LLC TRC now owns 4,891 shares of the company’s stock valued at $123,000 after acquiring an additional 1,574 shares during the period. Finally, Virtus Advisers LLC bought a new position in Upbound Group during the 3rd quarter valued at about $130,000. 90.30% of the stock is currently owned by institutional investors.

More Upbound Group News

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Q4 beat: GAAP EPS of $1.01 vs. consensus $0.97 and revenue $1.20B vs. $1.17B; revenue rose ~10.8% year‑over‑year — supports near‑term momentum. Upbound Group (UPBD) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Q1 2026 guidance raised: EPS guidance of $1.05–$1.15 (consensus ~$0.97) and revenue guidance $1.2B–$1.3B — suggests management sees stronger start to FY26. Upbound Group, Inc. Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: High return on equity (36.08%) indicates efficient capital use, which can support valuation as earnings scale. Upbound Group Q4 earnings transcript / metrics
• Neutral Sentiment: Conference call, press release and slide deck published — useful for investors wanting detail on drivers, margins and seasonality. View Press Release
• Neutral Sentiment: Analysts’ consensus for FY26 EPS sits near ~4.28 (firm-level and street estimates will adjust based on guidance). Watch revisions after the report. Upbound Group: Q4 Earnings Snapshot
• Negative Sentiment: FY 2026 guidance was below consensus: EPS $4.00–$4.35 vs. street ~$4.57 and revenue $4.7B–$5.0B vs. ~$5.0B — the lower top‑end and midrange may cap upside and prompt analyst downgrades. Upbound Group, Inc. Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Q4 EPS was slightly below last year’s $1.05 (this quarter $1.01) despite revenue growth — indicates margin pressure or one‑time items that investors should probe on the call. Upbound Group: Q4 Earnings Snapshot

Upbound Group Company Profile

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It offers furniture comprising mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.