Financial Performance - Consolidated revenues for Q3 2025 reached $1,164.7 million, a 9.0% increase year-over-year, primarily driven by the acquisition of Brigit and higher rentals and fees revenue [6]. - Net earnings on a GAAP basis were $13.2 million, down from $30.9 million in the prior year, resulting in a net profit margin of 1.1%, a decrease of 180 basis points year-over-year [6]. - Adjusted EBITDA increased 5.7% year-over-year to $123.6 million, with an adjusted EBITDA margin of 10.6%, down 30 basis points compared to the prior year [6]. - Total revenues for Q3 2025 reached $1,164,717, an increase of 8.97% compared to $1,068,859 in Q3 2024 [28]. - Gross profit for Q3 2025 was $563,076, up from $511,086 in Q3 2024, reflecting a gross margin improvement [28]. - Net earnings for Q3 2025 were $13,221, a decrease of 57.1% from $30,860 in Q3 2024 [28]. - The company reported a total revenue increase of 5% compared to the previous quarter, reflecting strong operational performance [39]. - For the three months ended September 30, 2025, the consolidated net earnings (loss) were $(112,769) thousand, with an adjusted EBITDA of $123,561 thousand [48]. - The operating profit (loss) for the same period was $(73,237) thousand, with a total depreciation and amortization of $12,900 thousand [48]. Segment Performance - Acima's Gross Merchandise Volume (GMV) grew 11.0% year-over-year to $484.0 million, with new merchants and an expanding direct-to-consumer marketplace contributing significantly to this growth [7]. - Brigit segment revenue increased over 40% year-over-year, with paying subscribers rising approximately 27% year-over-year to 1.44 million [7]. - The Rent-A-Center segment reported a revenue decline of 4.7% year-over-year to $461.1 million, with same store sales decreasing 3.6% year-over-year [7]. Guidance and Future Outlook - The company tightened its FY 2025 guidance, maintaining revenue expectations of $4.60 - $4.75 billion while adjusting adjusted EBITDA guidance to $500 - $510 million [10]. - Future guidance suggests an expected revenue growth of 10% for the upcoming quarter, driven by new product launches and market expansion strategies [39]. - The company plans to invest $50 million in R&D for new technology development in the next fiscal year, aiming to enhance competitive advantage [39]. - The acquisition of Brigit is expected to contribute an additional $20 million in revenue over the next year, bolstering overall financial performance [39]. Liquidity and Debt - The company ended the quarter with liquidity of over $360 million and net debt of $1.5 billion, resulting in a net leverage ratio of 2.9x [12]. - Cash and cash equivalents increased to $107,021 in Q3 2025 from $85,054 in Q3 2024, indicating improved liquidity [30]. - The company reported a net leverage ratio of 2.9x, with outstanding debt of $1,564,000,000 and net debt of $1,457,000,000 [76]. - The company’s senior debt increased to $1,102,657 in Q3 2025 from $794,257 in Q3 2024, highlighting a significant rise in leverage [30]. Operational Costs and Expenses - Operating expenses for Q3 2025 totaled $510,323, compared to $441,027 in Q3 2024, indicating a rise in operational costs [28]. - Legal matters incurred expenses of $32.5 million in the three months ended June 30, 2025, significantly affecting the operating profit [39]. - Legal matters incurred expenses of approximately $12,612 thousand, primarily related to regulatory investigations and lawsuits [50]. - The company incurred shutdown and holding expenses related to store closures amounting to $0.4 million [68]. Acquisitions and Intangible Assets - The company acquired Brigit on January 31, 2025, which is expected to enhance its financial service offerings [25]. - The average monthly revenue per user (ARPU) for Brigit increased 11.4% year-over-year to $13.74, driven by higher expedited transfer revenue and deeper engagement with marketplace offers [7]. - The total fair value of acquired intangible assets led to an amortization expense of approximately $10.9 million for the three months ended March 31, 2025 [60]. - The total depreciation and amortization related to Brigit's acquired assets was approximately $4.1 million for the three months ended March 31, 2025 [62]. Special Items and Adjustments - Special items included in the financial results for September 30, 2025, accounted for approximately $78.1 million, impacting net earnings positively [33]. - The company recognized $31.7 million in estimated legal accruals related to ongoing regulatory investigations for the three months ended June 30, 2025 [55]. - The company reported special items including $14,899,000 for Acima acquired assets depreciation and amortization [65].
RENT-A-CENTER(RCII) - 2025 Q3 - Quarterly Results