Revenue and 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%, compared to the same period in 2024 [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]. - 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]. 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]. - The Brigit segment generated revenues of $141.4 million and an operating profit of $23.9 million since its acquisition [169]. - Brigit segment revenues reached $57.7 million for the three months ended September 30, 2025, with gross profit as a percentage of revenues at 88.5% [203][204]. - Mexico segment revenues increased by 8.7% to $20.7 million for the three months ended September 30, 2025, while gross profit was $14.7 million, representing 71.2% of revenues [207][208]. Profitability and Expenses - 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%, primarily due to increases in non-labor operating expenses and general and administrative expenses [165]. - Operating profit decreased by $17.3 million, or 24.7%, to $52.8 million for the three months ended September 30, 2025, compared to $70.1 million for the same period in 2024 [184]. - Non-labor operating expenses increased by $46.1 million, or 23.5%, to $242.1 million for the three months ended September 30, 2025, compared to $196.0 million for the same period in 2024 [181]. 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 increased by $97.3 million to $264.0 million for the nine months ended September 30, 2025, driven by higher net earnings and reduced payments for inventory [211]. - Cash used in investing activities rose to $374.9 million for the nine months ended September 30, 2025, primarily due to the acquisition of Brigit for $275.9 million [212]. Strategic Initiatives - The company aims to leverage data analytics to attract new customers and mitigate risk across business segments [145]. - The company plans to accelerate the shift to e-commerce and improve the omni-channel customer experience at Rent-A-Center, expecting to increase brand awareness and customer loyalty [154]. - The company is committed to developing digital and e-commerce capabilities, including mobile applications, to enhance customer experience [144]. - The company is actively pursuing joint ventures, partnerships, and M&A opportunities to elevate financial mobility for underserved consumers [146]. Economic and Market Conditions - Macroeconomic conditions have significantly impacted the company's operations, 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]. Debt and Obligations - 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]. Tax and Accounting - The company recorded $0.4 million in uncertain tax positions as of September 30, 2025, representing potential future cash liabilities [229]. - The company is currently assessing the impact of new accounting standards issued by the FASB, including ASU 2024-03 and ASU 2025-05, which will affect future financial reporting [231][232].
RENT-A-CENTER(RCII) - 2025 Q3 - Quarterly Report