Financial Performance - Upbound Group's LTM Consolidated Revenue reached $4.5 billion[11] - The company's LTM Net Income was $102 million[11] - LTM Adjusted EBITDA amounted to $499 million[11] - The business generated LTM Free Cash Flow of $131 million[11] - Q2 2025 consolidated revenue was $1.2 billion, a 7.5% year-over-year increase[20] - Q2 2025 Adjusted EBITDA was $133.2 million, a 7% year-over-year increase[20] - Q2 2025 GAAP Diluted EPS was $0.26, a decrease of $0.35 year-over-year[20] - Q2 2025 Non-GAAP Diluted EPS was $1.12, an increase of $0.08 year-over-year[20] Segment Highlights - Acima experienced 16% year-over-year GMV growth[16] - Brigit saw a 24.1% year-over-year growth in paying subscribers[16] - Brigit's cash advance volume increased by 21.1% year-over-year[16] - Rent-A-Center's same store sales decreased by 4% year-over-year[16] Liquidity and Leverage - The company's liquidity stood at $276.3 million[38] - Net debt was $1.5 billion[38] - The net leverage ratio was 30x[38] Guidance - The company raised the midpoint of FY 2025 guidance for Non-GAAP Diluted Earnings Per Share to $4.05 - $4.40[41]

[Executive Summary & CEO Commentary](index=1&type=section&id=Executive%20Summary%20%26%20CEO%20Commentary) Upbound Group reported strong Q2 2025 results, exceeding guidance with significant growth in Acima and Brigit, and a positive outlook from the CEO [Second Quarter 2025 Results & Key Metrics](index=1&type=section&id=Second%20Quarter%202025%20Results%20%26%20Key%20Metrics) Upbound Group reported strong second-quarter 2025 results, achieving guidance targets with significant growth in Acima's GMV and Brigit's revenue. The company also raised the midpoint of its FY 2025 Non-GAAP Diluted EPS target Key Q2 2025 Financial Metrics | Metric | Value | | :---------------- | :-------- | | Adjusted Diluted EPS ($) | $1.12 | | GAAP Net Earnings ($M) | $15M | | Total Adjusted EBITDA ($M) | $0.26 | | Revenue | 16% GMV and 12% Revenue Growth at Acima; Nearly 40% Revenue Growth at Brigit | - Acima achieved **16% GMV** and **12% Revenue Growth**[2](index=2&type=chunk) - Brigit experienced nearly **40% Revenue Growth**[2](index=2&type=chunk) - Company raised the midpoint of FY 2025 Non-GAAP Diluted EPS Target[2](index=2&type=chunk) [CEO Commentary on Q2 Performance](index=1&type=section&id=CEO%20Commentary) CEO Fahmi Karam expressed satisfaction with Q2 results, highlighting the increased relevance of their financial solutions for underserved consumers. He noted Acima's seventh consecutive quarter of GMV growth and Brigit's substantial subscriber base expansion, emphasizing the company's adaptability and data-driven strategy - CEO pleased with Q2 results, reflecting heightened relevance of financial solutions to a large and growing segment of underserved consumers[3](index=3&type=chunk) - Acima segment delivered **16% GMV growth**, representing its seventh consecutive quarter of GMV growth[3](index=3&type=chunk) - Brigit grew its subscriber base by over **24%**[3](index=3&type=chunk) - Business adapts to meet evolving customer and merchant needs, leveraging millions of datapoints to guide future customer interactions, product roadmap, and overall strategy[4](index=4&type=chunk)[5](index=5&type=chunk) [Second Quarter Consolidated Financial Overview](index=1&type=section&id=Second%20Quarter%20Consolidated%20Results) Upbound Group reported a 7.5% year-over-year increase in consolidated revenues, reaching $1,157.5 million, primarily driven by the Brigit acquisition and higher revenues in existing segments. GAAP operating profit and net earnings decreased significantly YoY, while Adjusted EBITDA increased by 7.0% Consolidated Financial Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :------------- | | Consolidated Revenues | 1,157.5 | 1,076.5 | +7.5% | | GAAP Operating Profit | 50.7 | 80.7 | -37.17% | | GAAP Net Earnings | 15.5 | 33.9 | -54.28% | | Adjusted EBITDA | 133.2 | 124.5 | +7.0% | | GAAP Diluted EPS ($) | 0.26 | 0.61 | -57.4% | | Non-GAAP Diluted EPS ($) | 1.12 | 1.04 | +7.7% | - Consolidated revenues of **$1,157.5 million** increased **7.5% year-over-year**, driven by the acquisition of Brigit in addition to both higher rentals and fees revenue and higher merchandise sales revenue[6](index=6&type=chunk) - GAAP operating profit margin was **4.4%**, compared to **7.5%** in the prior year period, including **$65.5 million** of pre-tax costs relating to special items[6](index=6&type=chunk) - Net profit margin of **1.3%** decreased **190 bps** year-over-year[6](index=6&type=chunk) [Second Quarter 2025 Segment Performance](index=2&type=section&id=Second%20Quarter%20Highlights) This section details Q2 2025 performance across Acima, Brigit, Rent-A-Center, and Mexico segments, highlighting revenue and profitability [Acima Segment Highlights](index=2&type=section&id=Acima%20Segment%20Highlights) Acima segment saw strong growth in Q2 2025, with applications increasing nearly 20% YoY and GMV growing 16.0% YoY, driven by retailer productivity and direct-to-consumer offerings. Net earnings margin and Adjusted EBITDA margin improved due to lower operating expenses and lease-charge off rates - Applications increased nearly **20% year-over-year** in the second quarter[7](index=7&type=chunk) - GMV from the Acima direct-to-consumer marketplace grew over **130% year-over-year**[7](index=7&type=chunk) - GMV increased **16.0% year-over-year**, due primarily to an increase in existing retailer productivity and new merchants, increased applications, and expanding direct-to-consumer offerings[7](index=7&type=chunk) Acima Segment Financials (Q2 2025) | Metric | Value ($M) | YoY Change | | :---------------------- | :--------- | :--------- | | Total Revenue | $619.0M | +12.0% | | Net Earnings | $82.0M | +17.1% | | Net Earnings Margin | 13.2% | +50 bps | | Adjusted EBITDA | $93.3M | +14.7% | | Adjusted EBITDA Margin | 15.1% | +40 bps | | LCO Rate | 9.3% | -30 bps | [Brigit Segment Highlights](index=2&type=section&id=Brigit%20Segment%20Highlights) Brigit, acquired on January 31, 2025, demonstrated robust performance in Q2 2025 with nearly 40% YoY revenue growth and a significant increase in paying subscribers. Average monthly revenue per user (ARPU) also increased, driven by higher expedited transfer revenue and a shift to the Premium tier - Upbound acquired Brigit on January 31, 2025[7](index=7&type=chunk) - Paying subscribers increased **24.1% year-over-year**[7](index=7&type=chunk) - Cash advance volume increased **21.1% year-over-year**, or **$62.0 million**, to **$356.1 million**[7](index=7&type=chunk) Brigit Segment Financials (Q2 2025) | Metric | Value ($M) | YoY Change | | :---------------------- | :--------- | :--------- | | Total Revenue | $51.9M | +39.3% | | ARPU ($) | $13.45 | +12.5% | | Net Earnings | $10.5M | N/A | | Net Earnings Margin | 20.2% | N/A | | Adjusted EBITDA | $14.4M | N/A | | Adjusted EBITDA Margin | 27.7% | N/A | | Net Advance Loss Rate | 2.6% | +20 bps | [Rent-A-Center Segment Highlights](index=2&type=section&id=Rent-A-Center%20Segment%20Highlights) The Rent-A-Center segment experienced a 7.1% YoY revenue decrease in Q2 2025, primarily due to a reduction in company-owned store count and lower deliveries. Same store sales also declined. Despite this, gross profit margin improved, partially offsetting the impact of lower revenue on net earnings and Adjusted EBITDA - Revenues of **$467.1 million** decreased **7.1% year-over-year**, due primarily to a reduction in company-owned store count and lower deliveries[7](index=7&type=chunk) - Company-owned same store sales decreased **4.0% year-over-year**[7](index=7&type=chunk) - Rent-A-Center segment financials now include all franchised locations, which had been reported separately prior to Q1 2025[7](index=7&type=chunk) Rent-A-Center Segment Financials (Q2 2025) | Metric | Value ($M) | YoY Change | | :---------------------- | :--------- | :--------- | | Total Revenue | $467.1M | -7.1% | | Gross Profit Margin | 67.9% | +80 bps | | Net Earnings | $63.0M | -$8.6M YoY | | Adjusted EBITDA | $68.4M | -$13.8M YoY | | LCO Rate | 4.7% | +50 bps | | Same Store Sales | N/A | -4.0% | [Mexico Segment Highlights](index=2&type=section&id=Mexico%20Segment%20Highlights) The Mexico segment reported a 6.5% increase in total revenue on a constant currency basis in Q2 2025. As of June 30, 2025, the segment operated 135 locations - Total Revenue increased **6.5%** on a constant currency basis[7](index=7&type=chunk) - As of June 30, 2025, the Mexico segment owned and operated **135 locations**[7](index=7&type=chunk) - Segment net earnings, on a GAAP basis, and Adjusted EBITDA were approximately **$1.9 million** and **$2.4 million**, respectively[7](index=7&type=chunk) [Financial Outlook](index=3&type=section&id=Full%20Year%202025%20Financial%20Outlook) Upbound Group provides full-year and Q3 2025 financial guidance, with the CEO confident in strategic growth initiatives [Full Year 2025 Guidance](index=3&type=section&id=FY%202025%20Guidance) Upbound Group tightened the midpoint of its FY 2025 Adjusted EBITDA guidance and raised the midpoint for Non-GAAP Diluted Earnings Per Share. The company maintains its revenue and free cash flow guidance - The Company is tightening the midpoint of its previous FY 2025 guidance for Adjusted EBITDA and raising the midpoint of its guidance for Non-GAAP Diluted Earnings Per Share[9](index=9&type=chunk) FY 2025 Consolidated Guidance Comparison | Metric | Current Guidance (7/31/2025) | Previous Guidance (5/1/2025) | | :------------------------------ | :--------------------------- | :--------------------------- | | Revenues ($B) | $4.60 - $4.75 | $4.60 - $4.75 | | Adj. EBITDA Excluding SBC ($M) | $515 - $535 | $510 - $540 | | Non-GAAP Diluted Earnings Per Share ($) | $4.05 - $4.40 | $4.00 - $4.40 | | Free Cash Flow ($M) | $150 - $200 | $150 - $200 | [Q3 2025 Guidance](index=3&type=section&id=Q3%202025%20Guidance) Upbound Group provided specific guidance for the third quarter of 2025, projecting revenues between $1.05 billion and $1.15 billion, Adjusted EBITDA between $120 million and $130 million, and Non-GAAP Diluted EPS between $0.95 and $1.05 Q3 2025 Consolidated Guidance | Metric | Q3 2025 Guidance | | :------------------------------ | :--------------- | | Revenues ($B) | $1.05 - $1.15 | | Adj. EBITDA Excluding SBC ($M) | $120 - $130 | | Non-GAAP Diluted Earnings Per Share ($) | $0.95 - $1.05 | [CEO Commentary on Outlook](index=3&type=section&id=CEO%20Commentary%20on%20Outlook) CEO Fahmi Karam reiterated confidence in Upbound's resilient business model, noting Q2 performance exceeded guidance. He highlighted Acima's sustained GMV growth and Brigit's innovation-driven growth, anticipating Rent-A-Center's e-commerce initiatives to improve conversion and lease portfolio growth, positioning the company for a strong 2026 - Second quarter performance delivered strong results that finished above the midpoint of guidance, featuring consolidated revenue up **7.5%**, Adjusted EBITDA up **7%** and non-GAAP diluted EPS up **7.7%**[11](index=11&type=chunk) - Acima's growth algorithm continues to deliver sustainable, **double-digit GMV growth**[12](index=12&type=chunk) - Brigit's growth curve is powered by its marketing and product innovation efforts[12](index=12&type=chunk) - Expect Rent-A-Center's new ecommerce initiatives to deliver better conversion rates and ultimately lease portfolio growth, built on a foundation of disciplined underwriting[12](index=12&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides Q2 2025 conference call details, an overview of Upbound Group, and investor contact information [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information) Upbound Group, Inc. will host a conference call on Thursday, July 31, 2025, at 9:00 a.m. ET to discuss Q2 results, guidance, and operational matters. A live webcast and related financial information will be available on the investor relations website - Upbound Group, Inc. will host a conference call to discuss second quarter results, guidance and other operational matters on the morning of Thursday, July 31, 2025, at **9:00 a.m. ET**[15](index=15&type=chunk) - For a live webcast of the call, visit https://investor.upbound.com. Certain financial and other statistical information will also be provided on the same website[15](index=15&type=chunk) [About Upbound Group, Inc.](index=6&type=section&id=About%20Upbound%20Group%2C%20Inc) Upbound Group, Inc. (NASDAQ: UPBD) is a technology and data-driven leader in accessible financial solutions for underserved consumers, operating brands like Acima, Brigit, and Rent-A-Center across approximately 2,300 retail units in the US, Mexico, and Puerto Rico - Upbound Group, Inc. (NASDAQ: UPBD) is a technology and data-driven leader in accessible and inclusive financial solutions that address the evolving needs and aspirations of underserved consumers[23](index=23&type=chunk) - The Company's customer-facing operating units include industry-leading brands such as Acima®, Brigit™, and Rent-A-Center®[23](index=23&type=chunk) - Facilitates consumer transactions across a wide range of store-based and digital channels, including approximately **2,300 company branded retail units** across the United States, Mexico and Puerto Rico[23](index=23&type=chunk) [Investor Contact](index=6&type=section&id=Investor%20Contact) Investor inquiries for Upbound Group, Inc. can be directed to Jeff Chesnut, SVP, IR & Corporate Development, via phone at 972-801-1108 or email at jeff.chesnut@upbound.com - Investor Contact: Jeff Chesnut, SVP, IR & Corporate Development[25](index=25&type=chunk) - Contact details: **972-801-1108**, jeff.chesnut@upbound.com[25](index=25&type=chunk) [Detailed Financial Highlights & Key Metrics](index=4&type=section&id=Financial%20Highlights) This section presents detailed consolidated and segment-specific financial metrics for Q2 2025, including revenue, profitability, and key operational indicators [Consolidated Financial Metrics](index=4&type=section&id=Consolidated%20Financial%20Metrics) Consolidated metrics for Q2 2025 show revenue growth of 7.5% YoY, but a decline in GAAP operating profit and net earnings. Non-GAAP diluted EPS increased to $1.12. Free cash flow was negative in Q2 2025 Consolidated Key Metrics (Q2 2025, Q1 2025, Q2 2024) | Metrics ($'s Millions - except per share and ARPU) | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | | :---------------------------------------- | :------ | :------ | :------ | | Revenue | $1,157.5| $1,076.5| $1,176.4| | Revenue Y/Y % Change | 7.5 % | 9.9 % | 7.3 % | | GAAP Operating Profit | $50.7 | $80.7 | $62.6 | | Net Earnings | $15.5 | $33.9 | $24.8 | | Net Profit Margin | 1.3 % | 3.2 % | 2.1 % | | Adj. EBITDA | $133.2 | $126.1 | $124.5 | | Adj. EBITDA Margin | 11.5 % | 11.6 % | 10.7 % | | GAAP Diluted EPS ($) | $0.26 | $0.61 | $0.42 | | Non-GAAP Diluted EPS ($) | $1.12 | $1.04 | $1.00 | | On-Rent Rental Merchandise, Net | $1,095.6| $1,064.9| $1,056.6| | Net Cash Provided by Operating Activities | $7.8 | $15.0 | $137.7 | | Free Cash Flow | $(10.4) | $0.6 | $127.2 | [Acima Segment Metrics](index=4&type=section&id=Acima%20Segment%20Metrics) Acima segment showed strong growth in Q2 2025 with GMV up 16.0% YoY and revenue up 12.0% YoY. Both net profit margin and Adjusted EBITDA margin improved significantly Acima Segment Key Metrics (Q2 2025, Q1 2025, Q2 2024) | Metrics ($'s Millions) | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | | :--------------------- | :------ | :------ | :------ | | GMV | $522.1 | $450.1 | $454.1 | | GMV (Y/Y % Change) | 16.0 % | 21.0 % | 8.8 % | | Revenue | $619.0 | $552.8 | $637.3 | | Revenue Y/Y % Change | 12.0 % | 19.0 % | 13.5 % | | GAAP Operating Profit/GAAP Net Earnings | $82.0 | $70.0 | $73.7 | | Net Profit Margin | 13.2 % | 12.7 % | 11.6 % | | Adj. EBITDA | $93.3 | $81.3 | $85.0 | | Adj. EBITDA Margin | 15.1 % | 13.3 % | 14.7 % | | On-Rent Rental Merchandise, Net | $638.8 | $680.8 | $608.6 | | Lease Charge-Off Rate | 9.3 % | 9.6 % | 8.9 % | | 60+ Day Past Due Rate | 11.8 % | 12.1 % | 12.9 % | [Brigit Segment Metrics](index=4&type=section&id=Brigit%20Segment%20Metrics) Brigit, included since Q1 2025, reported Q2 2025 revenue of $51.9 million and a strong Adjusted EBITDA margin of 27.7%. Cash advance volume was $356.1 million, and ARPU increased to $13.45 Brigit Segment Key Metrics (Q2 2025, Q1 2025) | Metrics ($'s Millions - except ARPU) | Q2 2025 ($M) | Q1 2025 ($M) | | :----------------------------------- | :-------- | :-------- | | Cash Advance Volume | $356.1 | $218.4 | | Paying Users | 1,320,272 | 1,230,158 | | ARPU ($) | $13.45 | $12.88 | | Revenue | $51.9 | $31.9 | | GAAP Operating Profit/GAAP Net Earnings | $10.5 | $8.8 | | Net Profit Margin | 20.2 % | 27.7 % | | Adj. EBITDA | $14.4 | $11.4 | | Adj. EBITDA Margin | 27.7 % | 35.9 % | | Net Advance Loss Rate | 2.6 % | 2.4 % | [Rent-A-Center Segment Metrics](index=4&type=section&id=Rent-A-Center%20Segment%20Metrics) Rent-A-Center segment revenue decreased 7.1% YoY in Q2 2025, with same store sales down 4.0%. Lease portfolio value also declined. The segment's Adjusted EBITDA margin was 14.6% Rent-A-Center Segment Key Metrics (Q2 2025, Q1 2025, Q2 2024) | Metrics ($'s Millions) | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | | :-------------------------------------- | :------ | :------ | :------ | | Lease Portfolio - Monthly Value | $128.5 | $139.7 | $129.9 | | Same Store Lease Portfolio Value (Y/Y %) | (4.9)% | 1.4 % | (3.2)% | | Same Store Sales (Y/Y % Change) | (4.0)% | 2.6 % | (2.0)% | | Revenue | $467.1 | $502.8 | $489.0 | | Revenue Y/Y % Change | (7.1)% | 1.3 % | (4.9)% | | GAAP Operating Profit/GAAP Net Earnings | $63.0 | $71.6 | $66.4 | | Net Profit Margin | 13.5 % | 13.6 % | 14.2 % | | Adj. EBITDA | $68.4 | $82.2 | $72.1 | | Adj. EBITDA Margin | 14.6 % | 16.3 % | 14.7 % | | On-Rent Rental Merchandise, Net | $390.9 | $433.6 | $396.6 | | Lease-Charge Off Rate | 4.7 % | 4.2 % | 4.6 % | | 30+ Day Past Due Rate | 2.7 % | 2.7 % | 3.3 % | | Corporate Owned Store Count | 1,723 | 1,784 | 1,725 | [Key Performance Metric Definitions](index=5&type=section&id=Key%20Performance%20Metric%20Definitions) This section provides definitions for key performance metrics used in the financial highlights, including Gross Merchandise Volume (GMV), Lease Charge-Offs (LCOs), 60+ Day Past Due Rate, ARPU, Cash Advance Volume, Brigit Paying Users, Net Advance Loss, Lease Portfolio Value, Same Store Lease Portfolio Value, Same Store Sales (SSS), and 30+ Day Past Due Rate - Definitions are provided for Gross Merchandise Volume (GMV), Lease Charge-Offs (LCOs), 60+ Day Past Due Rate, ARPU, Cash Advance Volume, Brigit Paying Users, Net Advance Loss, Lease Portfolio Value, Same Store Lease Portfolio Value, Same Store Sales (SSS), and 30+ Day Past Due Rate[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward%20Looking%20Statements) This section outlines forward-looking statements, emphasizing potential material differences in actual performance due to various risks [Forward Looking Statements Overview](index=7&type=section&id=Forward%20Looking%20Statements%20Overview) This section outlines the forward-looking statements made in the press release, emphasizing that actual future performance may differ materially due to various risks and uncertainties. Key factors include integration risks from the Brigit acquisition, macroeconomic conditions, changes in consumer behavior, capital market conditions, regulatory compliance, and competition - This press release and guidance contain forward-looking statements made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995[26](index=26&type=chunk) - The Company's actual future performance could differ materially and adversely from such statements[26](index=26&type=chunk) - Factors that could cause differences include costs/difficulties related to Brigit integration, macroeconomic conditions, changes in consumer preferences, capital market conditions, difficulties managing business segments, regulatory compliance, and increased competition[26](index=26&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statements of operations and selected balance sheet highlights for Upbound Group [Consolidated Statements of Operations](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20-%20UNAUDITED) The consolidated statements of operations for Q2 2025 show total revenues of $1,157.5 million, an increase from $1,076.5 million in Q2 2024. Gross profit increased, but operating profit and net earnings decreased significantly due to higher operating expenses, particularly 'Other gains and charges' which included special items Consolidated Statements of Operations (Three Months Ended June 30, 2025 vs 2024) | (in thousands, except per share data) | 2025 ($ thousands) | 2024 ($ thousands) | | :------------------------------------ | :---------- | :---------- | | **Revenues** | | | | Rentals and fees | $904,583 | $885,977 | | Merchandise sales | 192,217 | 182,546 | | Subscriptions and fees | 51,890 | - | | Other | 8,846 | 7,987 | | **Total revenues** | **1,157,536** | **1,076,510** | | **Cost of revenues** | | | | Cost of rentals and fees | 358,058 | 338,554 | | Cost of merchandise sold | 221,667 | 205,997 | | Cost of subscriptions and fees | 5,986 | - | | **Total cost of revenues** | **585,711** | **544,551** | | **Gross profit** | **571,825** | **531,959** | | **Operating expenses** | | | | Operating labor | 149,092 | 156,181 | | Non-labor operating expenses | 230,144 | 203,945 | | General and administrative expenses | 63,410 | 53,638 | | Depreciation and amortization | 12,983 | 12,618 | | Other gains and charges | 65,462 | 24,922 | | **Total operating expenses** | **521,091** | **451,304** | | **Operating profit** | **50,734** | **80,655** | | Debt refinancing charges | - | 6,604 | | Interest expense | 28,523 | 28,371 | | Interest income | (638) | (753) | | **Earnings before income taxes** | **22,849** | **46,433** | | Income tax expense | 7,364 | 12,484 | | **Net earnings** | **$15,485** | **$33,949** | | Basic weighted average shares | 56,531 | 54,650 | | Basic earnings per common share ($) | $0.27 | $0.62 | | Diluted weighted average shares | 58,664 | 55,842 | | Diluted earnings per common share ($) | $0.26 | $0.61 | | **REVENUES BY SEGMENT** | | | | Acima ($ thousands) | $618,967 | $552,794 | | Rent-A-Center ($ thousands) | 467,118 | 502,848 | | Brigit ($ thousands) | 51,890 | - | | Mexico ($ thousands) | 19,561 | 20,868 | | **Total revenues** | **$1,157,536**| **$1,076,510**| [Selected Balance Sheets Highlights](index=9&type=section&id=SELECTED%20BALANCE%20SHEETS%20HIGHLIGHTS%20-%20UNAUDITED) As of June 30, 2025, Upbound Group reported total assets of $3,095.4 million, an increase from $2,620.3 million in June 2024. This increase was largely driven by higher receivables, on-rent rental merchandise, and goodwill, reflecting the Brigit acquisition. Total liabilities also increased, primarily due to higher senior debt Selected Balance Sheets Highlights (June 30, 2025 vs 2024) | (in thousands) | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | | :------------------------------ | :------------ | :------------ | | Cash and cash equivalents | $106,841 | $82,515 | | Receivables, net | 189,894 | 115,150 | | Prepaid expenses and other assets | 81,917 | 52,037 | | Rental merchandise, net - On rent | 1,095,616 | 1,064,942 | | Rental merchandise, net - Held for rent | 105,641 | 128,915 | | Operating lease right-of-use assets | 275,138 | 275,321 | | Goodwill | 487,050 | 289,750 | | **Total assets** | **3,095,440** | **2,620,279** | | Operating lease liabilities | 281,406 | 283,813 | | Senior debt, net | 1,123,641 | 874,787 | | Senior notes, net | 442,864 | 440,900 | | **Total liabilities** | **2,409,892** | **2,023,978** | | **Total stockholders' equity** | **685,548** | **596,301** | [Non-GAAP Financial Measures & Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Upbound Group's non-GAAP financial measures and provides detailed reconciliations to GAAP equivalents [Non-GAAP Financial Measures Definition](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Definition) This section defines the non-GAAP financial measures used by Upbound Group, including Non-GAAP diluted earnings per share, Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. It explains that 'Special items' are excluded to provide a clearer view of core business activities and assist management in performance evaluation and forecasting - Non-GAAP financial measures include Non-GAAP diluted earnings per share, Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow[32](index=32&type=chunk) - 'Special items' refer to certain gains and charges viewed as extraordinary, unusual or non-recurring in nature or which do not reflect core business activities[32](index=32&type=chunk) - These non-GAAP measures are intended to assist management in comparing performance, evaluating liquidity, planning, forecasting, and are also used as part of the incentive compensation program[32](index=32&type=chunk) [Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q2 2025)](index=11&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Net%20Earnings%20Excluding%20Special%20Items%20and%20Non-GAAP%20Diluted%20Earnings%20Per%20Share%20%28Q2%202025%29) For Q2 2025, GAAP Net Earnings of $15.5 million and Diluted EPS of $0.26 were adjusted to Non-GAAP Net Earnings of $65.7 million and Non-GAAP Diluted EPS of $1.12. Significant adjustments included legal matters ($24.1M), Acima acquired assets depreciation and amortization ($11.1M), and Brigit-related expenses (equity consideration vesting, acquired assets D&A, replacement awards totaling $22.1M) Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q2 2025) | (in thousands) | GAAP Results ($ thousands) | Plus: Special Items ($ thousands) | Non-GAAP Adjusted Results ($ thousands) | | :------------------------------------------------ | :----------- | :------------------ | :------------------------ | | Net Earnings | $15,485 | $50,218 | $65,703 | | Diluted Earnings per Share ($) | $0.26 | $0.86 | $1.12 | | **Key Special Items (Net Earnings Impact):** | | | | | Legal matters | | $24,123 | | | Acima acquired assets depreciation and amortization | | $11,054 | | | Brigit equity consideration vesting | | $6,405 | | | Brigit acquired assets depreciation and amortization| | $4,612 | | | Brigit replacement awards and other compensation | | $3,692 | | [Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q1 2025)](index=12&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Net%20Earnings%20Excluding%20Special%20Items%20and%20Non-GAAP%20Diluted%20Earnings%20Per%20Share%20%28Q1%202025%29) For Q1 2025, GAAP Net Earnings of $24.8 million and Diluted EPS of $0.42 were adjusted to Non-GAAP Net Earnings of $58.1 million and Non-GAAP Diluted EPS of $1.00. Key adjustments included Acima acquired assets D&A ($10.7M), legal matters ($7.7M), Brigit transaction costs ($5.5M), and other Brigit-related expenses Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q1 2025) | (in thousands) | GAAP Results ($ thousands) | Plus: Special Items ($ thousands) | Non-GAAP Adjusted Results ($ thousands) | | :------------------------------------------------ | :----------- | :------------------ | :------------------------ | | Net Earnings | $24,793 | $33,352 | $58,145 | | Diluted Earnings per Share ($) | $0.42 | $0.58 | $1.00 | | **Key Special Items (Net Earnings Impact):** | | | | | Acima acquired assets depreciation and amortization | | $10,734 | | | Legal matters | | $7,668 | | | Brigit transaction costs | | $5,522 | | | Brigit equity consideration vesting | | $4,059 | | | Brigit acquired assets depreciation and amortization| | $2,985 | | [Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q2 2024)](index=13&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Net%20Earnings%20Excluding%20Special%20Items%20and%20Non-GAAP%20Diluted%20Earnings%20Per%20Share%20%28Q2%202024%29) For Q2 2024, GAAP Net Earnings of $33.9 million and Diluted EPS of $0.61 were adjusted to Non-GAAP Net Earnings of $57.9 million and Non-GAAP Diluted EPS of $1.04. Adjustments included debt refinancing charges ($4.7M), Acima acquired assets D&A ($11.7M), asset impairments ($3.9M), and accelerated software depreciation ($1.4M) Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q2 2024) | (in thousands) | GAAP Results ($ thousands) | Plus: Special Items ($ thousands) | Non-GAAP Adjusted Results ($ thousands) | | :------------------------------------------------ | :----------- | :------------------ | :------------------------ | | Net Earnings | $33,949 | $23,928 | $57,877 | | Diluted Earnings per Share ($) | $0.61 | $0.43 | $1.04 | | **Key Special Items (Net Earnings Impact):** | | | | | Debt refinancing charges | | $4,721 | | | Acima acquired assets depreciation and amortization | | $11,705 | | | Asset impairments | | $3,888 | | | Accelerated software depreciation | | $1,389 | | | Accelerated stock compensation | | $1,239 | | [Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Q2 2025)](index=14&type=section&id=Reconciliation%20of%20Net%20Earnings%20%28Loss%29%20to%20Adjusted%20EBITDA%20%28Q2%202025%29) Consolidated Adjusted EBITDA for Q2 2025 was $133.2 million, reconciled from GAAP Net Earnings of $15.5 million. Key adjustments included interest, tax, D&A, stock-based compensation, and special items such as legal matters ($32.5M), Acima acquired assets D&A ($14.9M), and Brigit-related expenses ($17.6M) Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Q2 2025) | (in thousands) | Consolidated ($ thousands) | | :------------------------------------------------ | :----------- | | Net earnings (loss) | $15,485 | | Plus: Interest expense, net | 27,885 | | Plus: Income tax expense | 7,364 | | Plus: Depreciation and amortization | 12,983 | | Plus: Stock-based compensation | 4,021 | | **Plus: Special Items:** | | | Legal matters | 32,516 | | Acima acquired assets depreciation and amortization | 14,900 | | Brigit equity consideration vesting | 6,405 | | Brigit acquired assets depreciation and amortization| 6,216 | | Brigit replacement awards and other compensation | 4,977 | | Asset impairment | 206 | | Brigit transaction costs | (109) | | Other | 351 | | **Adjusted EBITDA** | **$133,200** | [Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Q1 2025)](index=15&type=section&id=Reconciliation%20of%20Net%20Earnings%20%28Loss%29%20to%20Adjusted%20EBITDA%20%28Q1%202025%29) Consolidated Adjusted EBITDA for Q1 2025 was $126.1 million, reconciled from GAAP Net Earnings of $24.8 million. Adjustments included interest, tax, D&A, stock-based compensation, and special items such as Acima acquired assets D&A ($14.9M), legal matters ($10.6M), and Brigit transaction costs ($6.2M) Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Q1 2025) | (in thousands) | Consolidated ($ thousands) | | :------------------------------------------------ | :----------- | | Net earnings (loss) | $24,793 | | Plus: Interest expense, net | 27,104 | | Plus: Income tax expense | 10,718 | | Plus: Depreciation and amortization | 12,252 | | Plus: Stock-based compensation | 7,968 | | **Plus: Special Items:** | | | Acima acquired assets depreciation and amortization | 14,900 | | Legal matters | 10,645 | | Brigit transaction costs | 6,218 | | Brigit acquired assets depreciation and amortization| 4,144 | | Brigit equity consideration vesting | 4,059 | | Accelerated stock compensation | 1,599 | | Brigit replacement awards and other compensation | 1,095 | | Other | 637 | | **Adjusted EBITDA** | **$126,132** | [Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Q2 2024)](index=16&type=section&id=Reconciliation%20of%20Net%20Earnings%20%28Loss%29%20to%20Adjusted%20EBITDA%20%28Q2%202024%29) Consolidated Adjusted EBITDA for Q2 2024 was $124.5 million, reconciled from GAAP Net Earnings of $33.9 million. Adjustments included interest, tax, debt financing charges, D&A, stock-based compensation, and special items such as Acima acquired assets D&A ($14.9M) and asset impairments ($5.4M) Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Q2 2024) | (in thousands) | Consolidated ($ thousands) | | :------------------------------------------------ | :----------- | | Net earnings (loss) | $33,949 | | Plus: Interest, net | 27,618 | | Plus: Income tax expense | 12,484 | | Plus: Debt financing charges | 6,604 | | Plus: Depreciation and amortization | 12,618 | | Plus: Stock-based compensation | 6,315 | | **Plus: Special Items:** | | | Acima acquired assets depreciation and amortization | 14,900 | | Asset impairments | 5,382 | | Accelerated software depreciation | 1,534 | | Accelerated stock compensation | 1,733 | | Legal matters | 700 | | Other | 673 | | **Adjusted EBITDA** | **$124,510** | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=17&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) For Q2 2025, Free Cash Flow was negative $10.4 million, a decrease from $0.6 million in Q1 2025 and $0.6 million in Q2 2024, primarily due to higher capital expenditures relative to operating cash flow. For the six months ended June 30, 2025, Free Cash Flow was $116.7 million Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | (in thousands) | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $7,814 | $15,040 | $145,550 | $60,461 | | Purchase of property assets | (18,247) | (14,427) | (28,823) | (26,244) | | **Free cash flow** | **$(10,433)** | **$613** | **$116,727** | **$34,217** |

Group 1 - Upbound Group (UPBD) closed at $25.48, with an 11.1% gain over the past four weeks, and a mean price target of $36.63 suggests a 43.8% upside potential [1] - The average of eight short-term price targets ranges from $26.00 to $50.00, with a standard deviation of $8.07, indicating variability among analysts [2] - Analysts show strong agreement in revising UPBD's earnings estimates higher, which correlates with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for UPBD has increased by 0.3% due to one upward revision in the last 30 days, with no negative revisions [12] - UPBD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement [14]

Company Overview - Upbound Group (UPBD) is headquartered in Plano and operates in the Finance sector [3] - The stock has experienced a price decline of 14.5% since the beginning of the year [3] Dividend Information - Upbound Group currently pays a dividend of $0.78 per share, resulting in a dividend yield of 6.26% [3] - The average yield for the Financial - Leasing Companies industry is 4.09%, while the S&P 500's yield is 1.6% [3] - The company's annualized dividend of $1.56 has increased by 4% from the previous year [4] - Over the last 5 years, Upbound Group has raised its dividend 4 times, averaging an annual increase of 5.93% [4] - The current payout ratio is 39%, indicating that 39% of its trailing 12-month EPS is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Upbound Group's earnings per share for 2025 is $4.18, reflecting a year-over-year growth rate of 9.14% [5] Investment Appeal - Upbound Group is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Group 1 - Upbound Group, Inc. (NASDAQ: UPBD) announced the acquisition of Brigit, which is expected to enhance customer experience in the coming years [1] - The recent quarterly increase in operating profit was driven by decreases in operating labor expenses [1] Group 2 - The independent investor has over a decade of experience and focuses on cash flow statements and unlevered free cash flow figures [1] - The investor typically does not write about growth stocks and studies trading multiples such as EV/FCF, net income, and EV/EBITDA [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Upbound Group (UPBD) Analysis - Upbound Group (UPBD) has shown a four-week price change of 1.8%, indicating growing investor interest [3] - UPBD gained 3.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.73, suggesting it moves 73% more than the market in either direction [4] - UPBD has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - UPBD is trading at a Price-to-Sales ratio of 0.34, meaning investors pay 34 cents for each dollar of sales, indicating a reasonable valuation [6] Group 3: Investment Opportunities - UPBD appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - There are over 45 Zacks Premium Screens available to help identify winning stock picks based on various investing styles [8]

Group 1 - Upbound Group (UPBD) shares have increased by 5% over the past four weeks, closing at $26.29, with a mean price target of $36.63 indicating a potential upside of 39.3% [1] - The mean estimate consists of eight short-term price targets with a standard deviation of $8.07, where the lowest estimate suggests a 1.1% decline and the highest predicts a 90.2% increase to $50 [2] - Analysts show strong agreement in revising UPBD's earnings estimates higher, which correlates with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for UPBD's current year earnings has risen by 0.3% over the past month, with no negative revisions [12] - UPBD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While price targets may not be entirely reliable, the direction they imply suggests a positive outlook for UPBD [13]

Company Overview - Upbound Group (UPBD) is headquartered in Plano and operates in the Finance sector, specifically leasing furniture and appliances with an option to buy [3] - The stock has experienced a price decline of 12.86% since the beginning of the year [3] Dividend Information - Upbound Group currently pays a dividend of $0.39 per share, resulting in a dividend yield of 6.14%, which is significantly higher than the Financial - Leasing Companies industry's yield of 4.26% and the S&P 500's yield of 1.53% [3] - The company's annualized dividend of $1.56 has increased by 4% from the previous year, with an average annual increase of 5.93% over the last five years [4] - The current payout ratio is 39%, indicating that the company distributes 39% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Upbound Group's earnings in 2025 is projected at $4.16 per share, reflecting a year-over-year earnings growth rate of 8.62% [5] Investment Perspective - Upbound Group is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence in investing [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making the selection process challenging for investors [9] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (3, 4, 5) should be approached cautiously, even if they have favorable Style Scores [11] Company Spotlight: Upbound Group - Upbound Group, Inc. is a leading lease-to-own provider operating in the U.S., Puerto Rico, and Mexico, offering flexible lease purchase agreements [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [13] - Upbound Group is projected to achieve year-over-year earnings growth of 8.6% for the current fiscal year, with upward revisions in earnings estimates from analysts [13][14]

Group 1 - Upbound Group (UPBD) shares have increased by 16% in the past four weeks, closing at $23.66, with a mean price target of $36.63 indicating a potential upside of 54.8% [1] - The mean estimate consists of eight short-term price targets with a standard deviation of $8.07, where the lowest estimate is $26 (9.9% increase) and the highest is $50 (111.3% increase) [2] - Analysts show strong agreement in revising UPBD's earnings estimates higher, which correlates with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for UPBD's current year has risen by 1.7% over the past month, with three estimates increasing and no negative revisions [12] - UPBD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact stock gains, they can indicate the direction of price movement [13]