Upbound Stock Gains 6% After Reporting Q4 Earnings & Revenue Beat

Core Insights - Upbound Group, Inc. (UPBD) reported fourth-quarter 2025 results with revenues and earnings exceeding Zacks Consensus Estimates, although earnings declined year over year [1][4] - The fourth quarter faced macroeconomic pressures, including inflation and credit normalization, but the company's disciplined underwriting and fintech growth supported long-term fundamentals [2][3] Financial Performance - Adjusted earnings per share were $1.01, surpassing the consensus estimate of 97 cents, but down 3.8% from $1.05 in the previous year [4] - Total revenues reached $1,196.4 million, exceeding the consensus estimate of $1,182 million, marking a 10.9% year-over-year increase driven by the acquisition of Brigit and strong growth at Acima [4] - Adjusted EBITDA totaled $125.9 million, up 2.6% year over year, with a margin of 10.5%, down 90 basis points from the prior year [5] Segment Performance - Rent-A-Center segment revenues were flat at $479.9 million, with same-store sales increasing by 0.8% year over year [6] - Adjusted EBITDA for Rent-A-Center was $69.2 million, down from $80 million in the previous year, with a margin of 14.4% [7] - Acima segment revenues increased by 8.6% year over year to $631 million, although it fell short of the consensus estimate of $638.3 million [8] - Adjusted EBITDA for Acima was $86.9 million, up from $80.9 million in the prior year, with a margin of 13.8% [9] Growth in Fintech - Brigit reported revenues of $64.6 million, exceeding the consensus estimate of $62 million, with a 28.9% increase in paying subscribers [11] - Average monthly revenues per user rose by 9.7% year over year to $14.15, driven by higher engagement and a shift towards Brigit's Premium tier [11] Financial Health - The company ended 2025 with cash and cash equivalents of $120.5 million, up from $60.9 million a year ago, and total liquidity of $358.1 million [13] - Cash flow from operations totaled $305.6 million for fiscal 2025, reflecting significant year-over-year improvement [14] 2026 Guidance - For Q1 2026, revenues are expected to be between $1.16 billion and $1.26 billion, with adjusted EBITDA projected at $120-$130 million [15] - For the full year 2026, management anticipates revenues of $4.70-$4.95 billion and adjusted EBITDA between $500 million and $535 million [17] - Acima is expected to achieve mid-single-digit GMV and revenue growth, while Brigit is projected to deliver annual revenues between $265 million and $285 million [20]