Upbound (US:UPBD)2026-02-19 15:00Financial Data and Key Metrics Changes - Full-year revenue grew 8.7% to approximately $4.7 billion, marking the highest full-year revenue on record for the company [15] - Adjusted EBITDA for the year was nearly $510 million, up 7.5% from the prior year [15] - Non-GAAP diluted EPS increased to $4.13, a 7.8% improvement from $3.83 in 2024 [15] - Free cash flow reached $180 million, increasing over $130 million year-over-year [16] Business Line Data and Key Metrics Changes - Brigit segment achieved approximately 1.6 million paid subscribers, a nearly 30% increase year-over-year [25] - Acima's revenue grew 8.6% year-over-year, marking its ninth consecutive quarter of revenue growth [23] - Rent-A-Center recorded nearly $480 million in revenue for the fourth quarter, flat compared to the year-ago quarter but improved by 4.7% year-over-year [27] Market Data and Key Metrics Changes - Acima's GMV for the fourth quarter was nearly $550 million, the highest since its addition five years ago, with a 40 basis points year-over-year increase [22] - Brigit's revenue for the fourth quarter was $64.6 million, representing a 41.5% increase from the year-ago quarter [26] - Rent-A-Center's loss rate improved year-over-year, finishing at 4.9%, down 10 basis points from the year-ago period [28] Company Strategy and Development Direction - The company aims to position itself for sustainable, profitable growth while executing its strategic transformation [18] - Continued investment in technology, data, and advanced analytics is planned to enhance customer service and competitive advantages [19] - Focus on operational excellence and targeted efficiency initiatives to improve execution and scalability [20] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the growth potential of Brigit and its alignment with the company's mission [8] - The company anticipates a challenging macroeconomic environment affecting consumer discretionary income and demand levels [37] - Expectations for 2026 include mid-single-digit revenue growth and stable loss rates for Acima [38] Other Important Information - The company plans to maintain a conservative underwriting posture throughout 2026 [37] - Legal and regulatory matters are expected to be resolved in the near term, with an estimated legal accrual of $72 million on the balance sheet [36] - The company is targeting a leverage ratio in the 2 times range over the long term, with progress expected throughout 2026 [33] Q&A Session Summary Question: Guidance clarification regarding EPS and revenue growth - Management explained that the first quarter benefits from a full quarter of Brigit, while the overall year guidance reflects seasonality and macroeconomic factors [50][53] Question: Customer base momentum and potential slowdowns - Management indicated that credit tightening in the Acima business may impact growth in the early part of the year, but they remain optimistic about the overall portfolio [55][56] Question: Brigit's outlook and product rollout delays - Management acknowledged delays in new product rollouts due to regulatory uncertainties and emphasized a cautious approach to growth [61][62]