Upbound Group, Inc. UPBD has posted first-quarter 2026 adjusted earnings of $1.08 per share, growing 8% year over year and surpassing the Zacks Consensus Estimate of $1.06 by 1.9%. Revenues rose 3.7% year over year to $1,219.7 million but lagged the consensus mark of $1,226 million by 0.5%.
Results reflected steady execution across the portfolio, led by Brigit’s scale-up in paying users, which climbed 26.7% year over year to 1.56 million. The company is focused on building a more connected, technology-driven platform while maintaining disciplined underwriting and investing in digital capabilities. Its diversified business model continues to support resilience, with a cautious but confident outlook for sustaining profitability and long-term value creation.
Upbound Group, Inc. Price, Consensus and EPS Surprise
Upbound Group, Inc. price-consensus-eps-surprise-chart | Upbound Group, Inc. Quote
UPBD Starts 2026 With Higher Margins
Even with a small revenue miss, profitability improved year over year. Operating profit increased to $77.4 million from $62.6 million, lifting the operating profit margin by 100 basis points to 6.3%. Net earnings rose 44.4% year over year to $35.8 million, pushing the net profit margin to 2.9% from 2.1%.
Adjusted operating profit was $115.9 million, up 9.4% year over year. The stronger margin profile showed up in adjusted EBITDA of $136.1 million, up 7.9%, with the adjusted EBITDA margin expanding 50 basis points year over year to 11.2% from 10.7%.
Upbound’s Brigit Drives High-Margin Expansion
Brigit continued to contribute outsized profitability, supported by subscriber growth and richer monetization. Segment revenues reached $67.7 million, up 40.7% year over year and beating the Zacks Consensus Estimate of $62.4 million. Average monthly revenues per user increased 11.9% year over year to $14.41, driven by a shift toward Brigit’s Premium tier and deeper engagement with marketplace offers and expedited transfer revenues.
Earnings contribution remained meaningful. Brigit generated net earnings of $18.6 million, translating to a 27.4% net profit margin. Adjusted EBITDA was $22.9 million and the adjusted EBITDA margin stood at 33.9%, underscoring the operating leverage embedded in the subscription-led model.
UPBD’s Acima Balances Growth & Underwriting
Acima produced modest revenue growth amid a more cautious credit posture. Segment revenues increased 1.8% year over year to $648.7 million, while GMV declined 5.9% to $427.1 million. The Zacks Consensus Estimate for the Acima segment’s revenues was pegged at $657.3 million for the quarter. The mix was influenced by tighter underwriting actions, alongside continued momentum in the direct-to-consumer marketplace channel, which increased about 9% year over year.
Credit metrics showed sequential improvement, which helped support earnings quality. Acima delivered net earnings of $77.3 million and the net earnings margin improved to 11.9% from 11.6% in the prior-year quarter. Adjusted EBITDA increased 4.3% year over year to $88.6 million, with the adjusted EBITDA margin rising 40 basis points year over year to 13.7%.
Rent-A-Center Shows Improving Demand Signals
Rent-A-Center delivered a constructive demand read-through, even as reported revenues slipped. Company-owned same-store sales increased 0.4% year over year. Segment revenues declined 1.5% to $481.6 million, highlighting uneven demand across the footprint. The Zacks Consensus Estimate for the Rent-A-Center segment’s revenues was pegged at $486.4 million for the quarter.
Profitability softened versus the prior year. Net earnings were $62.3 million compared with $66.4 million a year ago, and adjusted EBITDA declined to $67.4 million from $72.1 million. Average portfolio value per store increased 1.4% year over year, suggesting steadier lease portfolio fundamentals despite the revenue decline.
The company’s Mexico segment generated $21.8 million in revenues, up 19.6% year over year and beat the consensus estimate of $18.5 million. Adjusted EBITDA totaled $0.5 million in the quarter under review.
UPBD Highlights Cash Flow & Balance Sheet Progress
The company ended the first quarter of 2026 with cash and cash equivalents of $98.4 million compared with $107.3 million in the year-ago period. Debt outstanding stood at $1.46 billion, down from $1.59 billion sequentially.
Cash flow from operations totaled $170.7 million for the first quarter of 2026 compared with $148 million in the year-ago period, up 15.3%. The free cash flow came in at $135.9 million, up from $127.2 million, reflecting continued strong cash generation.
Management pointed to meaningful deleveraging and liquidity. Liquidity ended the quarter above $460 million, and the net leverage ratio improved to 2.6X from 2.9X at 2025-end. UPBD also maintained its quarterly dividend at 39 cents per share, or $1.56 annualized, while continuing to prioritize debt paydown and investment in shared data and digital capabilities.
UPBD Stock Past 3-Month Performance
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Upbound Reaffirms 2026 View, Sets Q2 Outlook
The company reaffirmed its 2026 outlook. Full-year revenues are guided at $4.70-$4.95 billion, with adjusted EBITDA projected at $500-$535 million. UPBD expects adjusted earnings per share of $4.00-$4.35 for the year.
For the second quarter of 2026, management guided revenues of $1.10-$1.20 billion. It also expects adjusted EBITDA of $120-$130 million and adjusted earnings per share of $1.00-$1.10, keeping the overall 2026 earnings framework intact.
Shares of this Zacks Rank #3 (Hold) company have lost 2% in the past three months against the industry’s growth of 1.7%.
Eye These Better-Ranked Picks
Some better-ranked stocks are FIGS Inc. FIGS, Tapestry, Inc. TPR and Tilly's, Inc. TLYS.
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently sports a Zacks Rank of 1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 187.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales and earnings indicates growth of 11.9% and 26.3%, respectively, from the year-ago reported numbers.
Tapestry, which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales suggests growth of 26.5% and 11.2%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 12.8%.
Tilly's is a specialty retailer in the action sports industry, selling clothing, shoes and accessories. It has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Tilly's current fiscal-year earnings and sales implies growth of 70.7% and 2.6%, respectively, from the year-ago actuals. TLYS delivered a trailing four-quarter average earnings surprise of 147%.
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Tilly's, Inc. (TLYS): Free Stock Analysis Report
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Upbound Group, Inc. (UPBD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).