Core Viewpoint - McGrath (MGRC) reported quarterly earnings of $1.72 per share, missing the Zacks Consensus Estimate of $1.83 per share, and showing a decline from $1.87 per share a year ago, indicating an earnings surprise of -6.01% [1][2] Financial Performance - The company posted revenues of $256.44 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.42%, and down from $266.76 million year-over-year [2] - Over the last four quarters, McGrath has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - McGrath shares have increased approximately 9.3% since the beginning of the year, compared to the S&P 500's gain of 13.9% [3] - The current Zacks Rank for McGrath is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $257 million, and for the current fiscal year, it is $6.25 on revenues of $953.54 million [7] - The trend of estimate revisions for McGrath was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Financial - Leasing Companies industry, to which McGrath belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Upbound Group (UPBD), is expected to report quarterly earnings of $0.98 per share, reflecting a year-over-year change of +3.2% [9]

[Music] It is time to light the same play by sale just because of course questions with my presenter and then the lightning round is over. Are you ready Steve D. Light round question.Let's start with Tom in New Jersey. Tom, >> how you doing Jim. >> Doing well from New Jersey.>> All right. Um I would like to have your opinion of remittly global or >> well that's to remmit for immigrants to be able to remmit money and I think that is very challenged group right now and I don't think you want to be there. I'd ...

Core Viewpoint - Upbound Group reported quarterly earnings of $1.12 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing an increase from $1.04 per share a year ago [1][2] Financial Performance - The company achieved revenues of $1.16 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.28%, compared to $1.08 billion in the same quarter last year [3] - Upbound Group has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2][3] Stock Performance - The stock has experienced a decline of approximately 16.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [4] - The current Zacks Rank for Upbound Group is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $1.17 billion, and for the current fiscal year, it is $4.18 on revenues of $4.66 billion [8] - The trend of estimate revisions for Upbound Group was favorable prior to the earnings release, suggesting potential positive movements in stock performance [6][7] Industry Context - Upbound Group operates within the Financial - Leasing Companies industry, which is currently ranked in the top 1% of over 250 Zacks industries, indicating a strong industry performance [9]

Group 1: Earnings Performance - McGrath reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.3 per share, and up from $1.2 per share a year ago, representing an earnings surprise of +12.31% [1] - The company posted revenues of $235.62 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.79%, compared to year-ago revenues of $212.61 million [2] - Over the last four quarters, McGrath has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - McGrath shares have increased by about 2.9% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $1.99 on revenues of $279.27 million, and for the current fiscal year, it is $6.19 on revenues of $953.21 million [7] Group 3: Industry Context - The Financial - Leasing Companies industry, to which McGrath belongs, is currently in the top 5% of over 250 Zacks industries, indicating strong performance potential [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact McGrath's stock performance [5][6]

Company Overview - Upbound Group (UPBD) is headquartered in Plano and operates in the Finance sector [3] - The stock has experienced a price decline of 14.5% since the beginning of the year [3] Dividend Information - Upbound Group currently pays a dividend of $0.78 per share, resulting in a dividend yield of 6.26% [3] - The average yield for the Financial - Leasing Companies industry is 4.09%, while the S&P 500's yield is 1.6% [3] - The company's annualized dividend of $1.56 has increased by 4% from the previous year [4] - Over the last 5 years, Upbound Group has raised its dividend 4 times, averaging an annual increase of 5.93% [4] - The current payout ratio is 39%, indicating that 39% of its trailing 12-month EPS is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Upbound Group's earnings per share for 2025 is $4.18, reflecting a year-over-year growth rate of 9.14% [5] Investment Appeal - Upbound Group is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Financial Data and Key Metrics Changes - First quarter revenue reached nearly $1,200,000,000, a 7.3% increase year over year, driven by the strength of Asima and the addition of two months of Bridget [15][16] - Adjusted EBITDA was $126,000,000, reflecting a 16% increase compared to Q1 of 2024, with adjusted EBITDA margins rising to 10.7%, up 70 basis points from the previous year [16][17] - Non-GAAP diluted EPS was $1, representing a 27% increase from the same quarter last year [16] - Free cash flow generated was $127,000,000, nearly four times larger than the previous year's first quarter result [16][37] Business Line Data and Key Metrics Changes - Asima achieved GMV growth of nearly 9% year over year, with improved lease charge-offs by 70 basis points, leading to a 170 basis point increase in adjusted EBITDA margin [10][11] - Rent A Center reported a 2% decline in same-store sales, primarily due to tightened underwriting and the removal of higher loss products [12][13] - Bridget recorded a 38% year-over-year revenue increase on a pro forma basis, with subscriber growth of over 26% [14][31] Market Data and Key Metrics Changes - Asima's GMV growth was driven by a diversified lineup of merchant relationships, with the top 10 merchants representing about 30% of total GMV [11][28] - Rent A Center's revenue was down 4.9% year over year, attributed to fewer company-owned stores and a decline in deliveries [34] - The average tax refund was ahead of the prior two years, providing a boost to consumer spending power [17] Company Strategy and Development Direction - The company aims to become a holistic financial platform that enhances financial opportunities for underserved consumers [6][50] - Expansion plans include launching Asima in the Mexican market, leveraging existing Rent A Center infrastructure [20][22] - Digital investments are a priority, with initiatives to enhance customer experience and integrate services across segments [19][23] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions present both challenges and opportunities, with a focus on maintaining customer trust and loyalty [9][18] - The company expects to see low double-digit GMV growth across the year, building on last year's 17% growth [12] - Management expressed confidence in achieving the revised guidance for 2025, citing strong first-quarter performance [45][48] Other Important Information - The company successfully resolved a long-standing regulatory matter with the CFPB, which had no impact on business operations [49] - The net leverage ratio was approximately 2.9 times, reflecting the closure of the Bridget transaction [38] Q&A Session Summary Question: Can you provide more details on tariff impacts and price increases? - Management indicated no current price increases from suppliers, with some categories even seeing price reductions [55][56] - They emphasized the ability to adjust pricing through weekly payment modifications if necessary [56][60] Question: What is the integration plan for Bridget across the business? - Management confirmed that marketing collaboration has begun, with plans for data sharing to enhance customer approvals and mitigate losses [64][65] Question: Can you elaborate on Bridget's seasonality and growth plans? - Management noted that Q1 typically has the highest margin profile, with expectations for subscriber growth in Q2 and Q3 [73][76] Question: What are the risks associated with expanding Asima into Mexico? - Management expressed confidence in the expansion due to existing Rent A Center operations in Mexico, which provide valuable market insights [77][79]

Group 1 - McGrath (MGRC) reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.93 per share a year ago, representing an earnings surprise of 12.75% [1] - The company posted revenues of $195.42 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.96%, compared to year-ago revenues of $187.83 million [2] - Over the last four quarters, McGrath has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with McGrath shares down about 8.4% year-to-date, slightly better than the S&P 500's decline of 8.6% [3] - The current consensus EPS estimate for the coming quarter is $1.31 on revenues of $223.53 million, and for the current fiscal year, it is $6.19 on revenues of $954.05 million [7] - The Zacks Industry Rank for Financial - Leasing Companies is currently in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8]