Upbound Group, Inc. (NASDAQ:UPBD) is included among the 13 Dividend Stocks with Over 8% Yield. TD Cowen Highlights Structural Growth in Specialty Finance, Keeps Upbound (UPBD) Buy On January 8, TD Cowen analyst Hoang Nguyen trimmed Upbound Group, Inc. (NASDAQ:UPBD)’s price target to $30 from $31. However, the firm maintained a Buy rating on the stock. The adjustment reflected the firm’s broader view of the specialty finance space, where macro pressures are weighing on the outlook even as several areas of ...

Exec Edge hosted a fireside chat at the ICR Conference 2026 with Fahmi Karam, Chief Executive Officer at Upbound Group, Inc. (NASDAQ: UPBD). The in-person interview was joined by Editor-in-Chief John Jannarone, and they discussed the company’s core brands Acima, Brigit and Rent-A-Center, the difference between Lease-to-Own and Buy Now, Pay Later, how Acima differs from Klarna, Affirm and others, among other topics. About Fahmi Karam Mr. Karam was appointed Chief Executive Officer effective June 1, 2025. M ...

Key Points Rent-A-Center rebranded as Upbound in early 2023. More than just a name refresh, Upbound has acquired two interesting tech companies that play into its strengths. The stock's 8.2% yield is well covered by its business, with a forward earnings ratio in the mid-single digits. 10 stocks we like better than Upbound Group › If you invest in dividend stocks, you know that there's no free lunch. The higher the yield, the larger the risk. The bigger the distributions, the more likely they are ...

Financial Data and Key Metrics Changes - The company is approaching $5 billion in revenues, indicating strong overall financial performance and a solid balance sheet [13] - The Rent-A-Center business has transformed into a digital e-commerce player, with approximately 27% of revenue now generated online, expected to grow further [5][9] Business Line Data and Key Metrics Changes - Rent-A-Center remains the legacy business, generating mature cash flow and focusing on digital transformation [5] - Acima has become the largest segment, growing approximately 17% last year and continuing to grow in the low teens through Q3 2025 [6] - Brigit, acquired in January 2025, has 1.5 million paying subscribers and offers various financial tools, contributing to the overall ecosystem [7] Market Data and Key Metrics Changes - The core consumer, identified as non-prime, has shown resilience despite economic pressures since 2022, adjusting spending habits due to inflation [25][26] - The company has maintained a conservative underwriting posture over the past year, ensuring the right consumer is placed in the right lease package [27] Company Strategy and Development Direction - The company aims to create a connected financial ecosystem focused on serving underserved consumers through its three brands: Rent-A-Center, Acima, and Brigit [4][8] - There is a strong emphasis on leveraging technology and data science to enhance customer experience and drive growth [14][16] - The strategy includes cross-selling opportunities among the three brands, with a focus on personalized offerings based on consumer data [30] Management's Comments on Operating Environment and Future Outlook - Management views the business model as resilient, having proven its strength through various economic cycles and the pandemic [36] - The integration of data from Brigit is expected to enhance decision-making and improve customer offerings across all brands [29] Other Important Information - The company is focused on capital allocation strategies that prioritize organic growth, technology investment, and shareholder returns through dividends and share repurchases [24] - The management team has been strengthened with new leadership to accelerate the digital transformation and overall vision [10][11] Q&A Session Summary Question: What stands out most at Upbound? - The company has a rock-solid foundation with strong financial performance and a supportive management team [13] Question: How do the three business units complement each other? - The businesses provide consumers with choices and access to products, meeting them where they want to shop [15][16] Question: What are the key drivers within each segment? - Rent-A-Center focuses on omnichannel experiences, Acima diversifies its retailer network, and Brigit aims to scale and innovate [17][18][21] Question: What is the strategy for capital allocation? - The focus is on driving shareholder returns, fueling organic growth, and investing in technology and data science [22][24] Question: What trends are observed in consumer spending? - The non-prime consumer is resilient but under pressure from inflation, leading to a demand for flexible financial solutions [25][26] Question: Is there a cross-selling motion happening now? - Yes, there are early stages of cross-selling among the brands, with plans to enhance integration and personalized offers [28][30]

Financial Data and Key Metrics Changes - The company is approaching $5 billion in revenues, indicating strong overall financial performance and a solid balance sheet [13] - The Rent-A-Center business has transformed to generate approximately 27% of its revenue online, with expectations for continued growth in this area [5] Business Line Data and Key Metrics Changes - The Rent-A-Center segment is the legacy business, generating mature cash flow and focusing on digital transformation [5] - Acima has become the largest segment, growing approximately 17% last year and continuing to grow in the low teens through Q3 2025 [6] - Brigit, acquired in January 2025, has 1.5 million paying subscribers and offers various financial tools, contributing to the overall ecosystem [7] Market Data and Key Metrics Changes - The core consumer, identified as non-prime, remains resilient despite economic pressures, with a focus on value and flexibility in spending [25] - The company has adjusted its underwriting approach to maintain stability in a challenging economic environment [26][27] Company Strategy and Development Direction - The company aims to create a connected financial ecosystem to serve underserved consumers, leveraging data to provide personalized offerings [4][8] - There is a strong emphasis on cross-selling opportunities among the three business units (Rent-A-Center, Acima, and Brigit) to enhance customer experience and drive growth [30] - The management team is focused on digital transformation and integrating technology to improve customer interactions and operational efficiency [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing economic pressures on consumers but believes in the resilience of their business model and consumer base [25][37] - The integration of Brigit is seen as a significant opportunity to enhance data-driven decision-making and improve customer offerings [29] Other Important Information - The company is focused on capital allocation strategies that prioritize organic growth, technology investment, and shareholder returns [24] - The management team has undergone recent upgrades, including the hiring of a new CFO and Chief Growth Officer, to support the company's transformation [10][11] Q&A Session Summary Question: What stands out most at Upbound? - The company has a rock-solid foundation with strong financial performance and a supportive management team [13] Question: Can you discuss the capital allocation strategy? - The strategy focuses on driving shareholder returns, fueling organic growth, and investing in technology and data science [22][24] Question: What are the spending trends among consumers? - The non-prime consumer is resilient but under pressure from inflation, leading to a focus on value and flexibility in spending [25][26] Question: Is there a cross-selling motion happening now? - Yes, there is a significant cross-selling opportunity, with early stages of integration and customer referrals already in place [28][30]

Financial Data and Key Metrics Changes - The company is approaching $5 billion in revenues, indicating strong overall financial performance and a solid balance sheet [15] - The Rent-A-Center business has transformed from traditional retail to a digital e-commerce player, with approximately 27% of revenue now generated online [6] Business Line Data and Key Metrics Changes - The Acima virtual lease-to-own business has become the largest segment, growing approximately 17% last year and continuing to grow in the low teens through Q3 2025 [7] - Brigit, the digital financial health app, has 1.5 million paying subscribers and over 500,000 free users, offering various financial tools and services [8] Market Data and Key Metrics Changes - The core consumer, identified as non-prime, has shown resilience despite economic pressures since 2022, with a focus on value and flexibility in spending [27][28] - The company has adjusted its underwriting approach to remain consistent and conservative in response to changing consumer spending habits [28] Company Strategy and Development Direction - The company aims to create a connected financial ecosystem that serves underserved consumers through its three major brands: Rent-A-Center, Acima, and Brigit [5][10] - There is a strong emphasis on leveraging technology and data science to enhance customer experience and drive personalized offerings [15][20] Management's Comments on Operating Environment and Future Outlook - Management believes the business model is resilient, having proven its strength through various economic cycles and the pandemic [37] - The integration of data from all three businesses is expected to enhance decision-making and improve customer engagement [30] Other Important Information - The company is focused on capital allocation strategies that prioritize organic growth, technology investment, and shareholder returns through dividends and share repurchases [25][26] - The management team has been strengthened with new leadership to accelerate the digital transformation of the business [12][13] Q&A Session Summary Question: What stands out most at Upbound? - The company has a rock-solid foundation with strong financial performance and a supportive management team, positioning it for exceptional growth [15] Question: How do the three business units complement each other? - The businesses work together to meet consumer needs, providing choices across different shopping channels and product offerings [18][19] Question: What are the key drivers within each segment? - Rent-A-Center focuses on omnichannel experiences, Acima is diversifying its retailer network, and Brigit aims to scale its subscriber base and innovate [20][21][23] Question: What is the capital allocation strategy for the new year? - The strategy includes driving shareholder returns, fueling organic growth, and investing in technology and infrastructure [25][26] Question: What trends are observed in consumer spending? - The non-prime consumer remains resilient but is under financial pressure, leading to a focus on value and flexibility in purchasing [27][28] Question: Is there a cross-selling opportunity among the brands? - Yes, there is significant potential for cross-selling, with early efforts underway to integrate customer insights across the brands [29][30]

Upbound Group, Inc. ( UPBD ) is evolving in a complicated landscape for this end of the year. I will give a hold rating to the company, challenged by a divergence between its retail andI am a dynamic finance professional with a Master’s in Banking & Finance from Université Paris 1 Panthéon-Sorbonne. My investing background mix corporate finance, M&A, and investment analysis, with a focus on real estate, renewable energy, and equity markets. I specialize in financial modelling, valuation, and qualitative ana ...

Core Insights - Upbound Group, Inc. (NASDAQ:UPBD) is identified as a strong dividend stock with a potential upside of 48% based on average price targets, and a high estimate suggesting a 144% upside [1][2] - The company reported a 9% year-over-year increase in consolidated revenues for Q3 2025, totaling $1,164.7 million, driven by the Brigit acquisition and increased rentals, fees, and merchandise sales [2] - GAAP net earnings for the same quarter were $13.2 million, a decrease from $30.9 million in the previous year [2] - Upbound refinanced its term loan, increasing it to $875 million, which enhances liquidity and extends maturity to 2032 [3] - The company ended the quarter with over $360 million in liquidity and a net debt of $1.5 billion, resulting in a net leverage ratio of 2.9x [3] - A quarterly dividend of $0.39 per share was declared, payable on January 6, 2026, to shareholders as of December 17, 2025 [4] - Upbound operates in the lease-to-own household goods market across the United States, Puerto Rico, and Mexico, with four business segments: Rent-A-Center, Acima, Mexico, and Franchising [4]

Core Viewpoint - Upbound Group, Inc. has announced a quarterly cash dividend of $0.39 for the first quarter of 2026, reflecting its commitment to providing returns to shareholders [1] Company Announcement - The dividend will be paid on January 6, 2026, to common stockholders of record as of the close of business on the specified date [1]

Financial Performance - Consolidated revenues increased by approximately $257.3 million, or 7.9%, to $3.5 billion for the nine months ended September 30, 2025, compared to the same period in 2024 [165]. - Total revenues for the three months ended September 30, 2025, increased by $95.8 million, or 9.0%, to $1.164 billion, driven by the Acima and Brigit segments [175]. - Total revenue increased by $257.3 million, or 7.9%, to $3,498.6 million for the nine months ended September 30, 2025, from $3,241.3 million for the same period in 2024 [186]. - Gross profit increased by $112.9 million, or 7.2%, to $1.7 billion for the nine months ended September 30, 2025 [165]. - Operating profit decreased by approximately $46.4 million, or 21.8%, to $166.1 million for the nine months ended September 30, 2025, compared to $212.5 million for the same period in 2024 [194]. - Operating profit margin for the Rent-A-Center segment decreased to 12.2% for the three months ended September 30, 2025, down from 15.1% in the same period of 2024, due to increased other gains and charges [202]. Segment Performance - The Acima segment revenues rose by approximately $201.2 million, driven by an increase in rentals and fees revenues of $150.5 million and merchandise sales of $50.7 million, primarily due to higher GMV [166]. - Revenues for the Rent-A-Center segment decreased by 4.7% to $461.1 million for the three months ended September 30, 2025, and by 5.6% to $1.42 billion for the nine months ended September 30, 2025, primarily due to a 3.6% decline in same store sales [200]. - The Brigit segment generated revenues of $141.4 million and an operating profit of $23.9 million since its acquisition [169]. - Acima segment revenues increased by $59.1 million, or 10.4%, to $625.3 million for the three months ended September 30, 2025, compared to $566.2 million for the same period in 2024 [197]. - Brigit segment revenues reached $57.7 million for the three months ended September 30, 2025, with gross profit at $51.0 million, resulting in a gross profit margin of 88.5% [203][204]. Cash Flow and Investments - Cash flow from operations was $264.0 million for the nine months ended September 30, 2025, with cash and cash equivalents of $107.0 million and outstanding indebtedness of $1.6 billion [171]. - Operating cash flow generated was $264.0 million for the nine months ended September 30, 2025, an increase of $97.3 million from the prior year [211]. - Cash used in investing activities surged to $374.9 million for the nine months ended September 30, 2025, primarily due to the acquisition of Brigit for $275.9 million [212]. - Capital expenditures increased to $49.3 million for the nine months ended September 30, 2025, compared to $44.2 million in 2024, reflecting a 11.52% increase primarily due to higher investment in software development [216]. Debt and Financing - The company entered into a Fourth Amendment to the Term Loan Facility on August 19, 2025, extending the maturity date to August 19, 2032, and providing approximately $77 million of incremental commitments [148]. - As of October 23, 2025, the company had outstanding borrowings of $875 million under the Term Loan Facility and $239 million under the ABL Credit Facility [223][237]. - The interest rate on the Term Loan Facility was 6.88% as of October 23, 2025, while the ABL Credit Facility bore interest at 6.23% [221][237]. - The total remaining obligation for existing store lease contracts was approximately $338 million as of September 30, 2025 [226]. Operational Changes and Strategy - The company aims to leverage data analytics to attract new customers and mitigate risk across business segments [145]. - The company is focused on enhancing its competitive position through the execution of market opportunities in both traditional and virtual lease-to-own solutions [145]. - The company plans to accelerate the shift to e-commerce and improve the omni-channel customer experience at Rent-A-Center [154]. - The company is committed to retaining revenue from acquired lease-to-own customer accounts and enhancing the performance of acquired stores [144]. - Executive management changes include the appointment of Mr. Hal Khouri as Chief Financial Officer and Ms. Rebecca Wooters as Chief Growth Officer, effective November 10, 2025, and September 18, 2025, respectively [155]. Market Conditions - Macroeconomic conditions have significantly impacted business trends, including changes in consumer payment behaviors and rising product costs [150]. - A hypothetical 1.0% increase in market interest rates would result in an additional $11.1 million annualized pre-tax charge or credit to the company's financial statements [237]. - The company is currently assessing the impact of recently issued accounting standards, including ASU 2024-03 and ASU 2025-05, which will be effective in the coming years [231][232]. Merchandise Losses - Total merchandise losses for the nine months ended September 30, 2025, were $268.995 million, an increase from $260.303 million in the same period of 2024, representing a 2.65% increase [216]. - Merchandise losses in Acima locations due to LCOs were approximately 9.7% and 9.3% for the three and nine months ended September 30, 2025, respectively, compared to 9.2% and 9.5% for the same periods in 2024 [199].