Financial Performance - Consolidated revenues for Q2 2025 reached $1,157.5 million, a 7.5% increase year-over-year, driven by the acquisition of Brigit and higher rentals and merchandise sales[6] - GAAP net earnings decreased to $15.5 million, down from $33.9 million in the prior year, resulting in a net profit margin of 1.3%, a decrease of 190 basis points year-over-year[6] - Adjusted EBITDA increased by 7.0% year-over-year to $133.2 million, with an adjusted EBITDA margin of 11.5%, a slight decrease of 10 basis points compared to the previous year[6] - Non-GAAP diluted earnings per share for Q2 2025 was $1.12, compared to $1.04 in the prior year, reflecting a 7.7% increase[6] - Operating profit decreased to $50.734 million from $80.655 million year-over-year, highlighting increased operating expenses[28] - Net earnings for Q2 2025 were $15.485 million, a decrease from $33.949 million in Q2 2024, resulting in basic earnings per share of $0.27[28] - The company reported a GAAP net earnings of $7,364,000 for the three months ended June 30, 2025, with a diluted earnings per share of $0.26[34] - Non-GAAP adjusted net earnings for the same period were $65,703,000, resulting in a diluted earnings per share of $1.12[34] - Net earnings for the three months ended June 30, 2025, were $82,003 thousand for Acima, $63,001 thousand for Rent-A-Center, and $10,472 thousand for Brigit, with a consolidated net loss of $141,927 thousand[49] Revenue Growth - Acima segment achieved 16% GMV growth, marking its seventh consecutive quarter of growth, while Brigit's subscriber base grew over 24%[3] - Total revenues for Q2 2025 reached $1,157.536 million, a 7.5% increase from $1,076.510 million in Q2 2024[28] - Gross profit for the same period was $571.825 million, compared to $531.959 million in the previous year, reflecting a gross margin improvement[28] - The Acima segment generated revenues of $618.967 million, up from $552.794 million, indicating strong growth in this area[28] - Cash advance volume increased by 21.1% year-over-year, reaching $356.1 million, with paying subscribers up 24.1%[7] - Average monthly revenue per user (ARPU) increased by 12.5% year-over-year to $13.45, driven by higher engagement and premium tier shifts[7] Guidance and Future Outlook - The company raised the midpoint of its FY 2025 non-GAAP diluted EPS target to a range of $4.05 - $4.40[10] - The company expects to achieve its guidance for FY 2025 while positioning for a strong start in 2026, supported by new e-commerce initiatives[12][13] - The company is tightening its FY 2025 guidance for Adjusted EBITDA to a range of $515 - $535 million[10] - Future guidance indicates potential challenges due to macroeconomic conditions, impacting financial performance and growth strategies[26] - The company plans to continue focusing on market expansion and new product development as part of its growth strategy[49] Assets and Liabilities - Total assets increased to $3,095,440,000 in June 2025, up from $2,620,279,000 in June 2024, representing a growth of approximately 18.1%[30] - Cash and cash equivalents rose to $106,841,000 in June 2025, compared to $82,515,000 in June 2024, marking an increase of about 29.5%[30] - Net receivables increased significantly to $189,894,000 in June 2025, up from $115,150,000 in June 2024, reflecting a growth of approximately 64.8%[30] - Total liabilities increased to $2,409,892,000 in June 2025, compared to $2,023,978,000 in June 2024, indicating a rise of approximately 19.1%[30] - Goodwill increased to $487,050,000 in June 2025, up from $289,750,000 in June 2024, representing a growth of about 68.1%[30] Special Items and Expenses - The company incurred special items totaling $88,311,000 for the three months ended June 30, 2025, which included legal matters and asset depreciation[34] - The company incurred $31.7 million in estimated legal accruals and $0.8 million in litigation expenses related to ongoing regulatory lawsuits[50] - Amortization expenses included approximately $11.0 million related to acquired intangible assets and $3.9 million for acquired software assets[51] - The company reported special items including $32,516 thousand related to legal matters and $14,900 thousand for Acima acquired assets depreciation and amortization[49] Operational Efficiency - The adjusted EBITDA margin for the three months ended June 30, 2025, was significantly higher, reflecting improved operational efficiency[32] - The total depreciation and amortization for the consolidated segment was $12,983 thousand for the three months ended June 30, 2025[49] - The operating profit for the three months ended June 30, 2025, was $50,734 thousand, reflecting a significant improvement from the previous loss[49] Market Presence - The company has approximately 2,300 retail units across the U.S., Mexico, and Puerto Rico, indicating a significant market presence[23] - The acquisition of Brigit is expected to enhance the company's financial solutions offerings, with integration planned for early 2025[26]
RENT-A-CENTER(RCII) - 2025 Q2 - Quarterly Results