Financial Performance - Consolidated revenues for Q1 2025 were $1,176.4 million, a 7.3% increase year-over-year, driven by higher rentals, fees, and merchandise sales, along with the acquisition of Brigit[6] - Adjusted EBITDA for Q1 2025 increased 15.6% year-over-year to $126.1 million, with an adjusted EBITDA margin of 10.7%, up 70 basis points from the prior year[6] - Net earnings on a GAAP basis were $24.8 million, a decrease of $2.9 million from the prior year, resulting in a net profit margin of 2.1%, down 40 basis points year-over-year[6] - Non-GAAP diluted earnings per share for Q1 2025 was $1.00, compared to $0.79 in the prior year, reflecting a 26.6% increase[11] - Free cash flow for Q1 2025 was $127.2 million, significantly up from $33.6 million in Q1 2024[17] - Operating profit for Q1 2025 was $62,615, slightly up from $61,762 in Q1 2024[29] - GAAP net earnings for the three months ended March 31, 2025, were $24.793 million, with diluted earnings per share of $0.42[34] - Non-GAAP adjusted net earnings for the same period were $58.145 million, resulting in diluted earnings per share of $1.00[34] Segment Performance - The Acima segment experienced GMV growth of nearly 9%, while Brigit's revenue grew over 35% year-over-year following its acquisition[3] - The Acima segment reported a GMV of $454.1 million, reflecting an 8.8% year-over-year increase from $417.6 million in Q1 2024[17] - Revenue from the Acima segment was $637.3 million, a 13.5% increase compared to $561.3 million in Q1 2024[17] - The Brigit segment had a cash advance volume of $218.4 million and 1,230,158 paying users, with an ARPU of $12.88[17] - The Rent-A-Center segment's revenue decreased by 4.9% to $489.0 million from $514.1 million in Q4 2024[17] Guidance and Future Outlook - The company raised its fiscal year 2025 revenue guidance to a range of $4.60 billion to $4.75 billion, up from the previous range of $4.50 billion to $4.75 billion[10] - The company anticipates ongoing challenges due to macroeconomic conditions impacting future performance and growth strategies[26] Debt and Financial Ratios - The company ended Q1 2025 with net debt of $1.4 billion and a net leverage ratio of 2.9x[12] - Outstanding debt as of Q1 2025 is $1,549.1 million[75] - Net debt stands at $1,441.8 million after accounting for cash and cash equivalents of $107.3 million[75] - The company is focusing on maintaining a net leverage ratio below 3.0x to ensure financial stability[75] Asset and Equity Growth - Cash and cash equivalents increased to $107,325 as of March 31, 2025, compared to $84,793 a year earlier[31] - Total assets grew to $3,043,130 as of March 31, 2025, up from $2,626,984 in 2024[31] - The company reported a total stockholders' equity of $679,213 as of March 31, 2025, compared to $578,295 in 2024[31] Special Items and Expenses - Special items included $14.900 million in depreciation and amortization related to Acima acquired assets and $10.645 million in legal matters[34] - The company incurred $6.218 million in transaction costs related to the Brigit acquisition[48] - Legal matters accounted for $10.645 million in expenses, including $10.0 million related to estimated legal accruals[50]
RENT-A-CENTER(RCII) - 2025 Q1 - Quarterly Results