Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $108.8 million, a slight decline from $111.5 million in the prior year quarter, reflecting ongoing challenges in commercial construction and residential demand due to high-interest rates [10][11] - U.S. concrete pumping segment revenue was $72.2 million compared to $74.5 million in the prior year quarter, with infrastructure projects remaining a bright spot [10][11] - Consolidated Adjusted EBITDA for Q4 was $30.7 million, down from $33.7 million year-over-year, with an Adjusted EBITDA margin of 28.2% compared to 30.2% in the prior year [14] Business Line Data and Key Metrics Changes - U.S. concrete waste management services segment revenue increased 8% to $21.3 million, driven by higher pan pickup volumes and pricing momentum [11] - U.K. operations revenue decreased to $15.3 million from $17.1 million, primarily due to volume-driven declines in commercial construction activity [11] Market Data and Key Metrics Changes - U.S. concrete pumping revenue from infrastructure projects constituted 24% of total revenue, with commercial construction demand improving in key geographies [5][10] - The residential end market accounted for 29% of total revenue, with demand pressured by affordability constraints from higher interest rates [6][11] Company Strategy and Development Direction - The company plans to accelerate a $22 million investment in its U.S. concrete pumping and EcoPan fleet in anticipation of stricter NOx emission standards set to take effect in 2027 [8][9] - The focus remains on maintaining financial flexibility, pursuing acquisitions, and investing in organic growth initiatives to enhance shareholder value [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential recovery in construction activity, particularly in large-scale commercial projects such as data centers and semiconductor facilities [16][18] - The outlook for fiscal 2026 anticipates revenue between $390-$410 million and Adjusted EBITDA between $90-$100 million, assuming no significant recovery in construction markets [15][16] Other Important Information - The company repurchased approximately 274,000 shares for $1.8 million during Q4, continuing its share buyback program initiated in 2022 [15] - The company completed an acquisition in Ireland, which is expected to contribute to long-term growth despite being modest in size [19][41] Q&A Session Summary Question: Drivers behind expected revenue growth in 2026 - Management indicated that revenue growth is expected to come from pricing improvements rather than significant volume increases, with larger projects contributing to this growth [22] Question: Margin pressure in 2026 - Management confirmed that margin pressure is primarily due to fleet utilization, with flat volume leading to a marginal decline in margin percentage [23] Question: Outlook for residential construction - Management noted that while the residential market has softened, there are signs of stabilization and potential improvement in the near future [25] Question: Growth outlook for U.K. and EcoPan - Management expects strong public spending in the U.K. and anticipates EcoPan to achieve high single-digit to double-digit growth despite market challenges [30] Question: CapEx related to upcoming regulations - Management stated that the accelerated CapEx will address most requirements associated with the new regulations, avoiding potential disruptions [32] Question: Status of delayed projects - Management confirmed that while some office buildings and manufacturing projects have been shelved, there are still opportunities in data centers and chip plants [45]

Financial Data and Key Metrics Changes - The company is approaching $5 billion in revenues, indicating strong overall financial performance and a solid balance sheet [13] - The Rent-A-Center business has transformed into a digital e-commerce player, with approximately 27% of revenue now generated online, expected to grow further [5][9] Business Line Data and Key Metrics Changes - Rent-A-Center remains the legacy business, generating mature cash flow and focusing on digital transformation [5] - Acima has become the largest segment, growing approximately 17% last year and continuing to grow in the low teens through Q3 2025 [6] - Brigit, acquired in January 2025, has 1.5 million paying subscribers and offers various financial tools, contributing to the overall ecosystem [7] Market Data and Key Metrics Changes - The core consumer, identified as non-prime, has shown resilience despite economic pressures since 2022, adjusting spending habits due to inflation [25][26] - The company has maintained a conservative underwriting posture over the past year, ensuring the right consumer is placed in the right lease package [27] Company Strategy and Development Direction - The company aims to create a connected financial ecosystem focused on serving underserved consumers through its three brands: Rent-A-Center, Acima, and Brigit [4][8] - There is a strong emphasis on leveraging technology and data science to enhance customer experience and drive growth [14][16] - The strategy includes cross-selling opportunities among the three brands, with a focus on personalized offerings based on consumer data [30] Management's Comments on Operating Environment and Future Outlook - Management views the business model as resilient, having proven its strength through various economic cycles and the pandemic [36] - The integration of data from Brigit is expected to enhance decision-making and improve customer offerings across all brands [29] Other Important Information - The company is focused on capital allocation strategies that prioritize organic growth, technology investment, and shareholder returns through dividends and share repurchases [24] - The management team has been strengthened with new leadership to accelerate the digital transformation and overall vision [10][11] Q&A Session Summary Question: What stands out most at Upbound? - The company has a rock-solid foundation with strong financial performance and a supportive management team [13] Question: How do the three business units complement each other? - The businesses provide consumers with choices and access to products, meeting them where they want to shop [15][16] Question: What are the key drivers within each segment? - Rent-A-Center focuses on omnichannel experiences, Acima diversifies its retailer network, and Brigit aims to scale and innovate [17][18][21] Question: What is the strategy for capital allocation? - The focus is on driving shareholder returns, fueling organic growth, and investing in technology and data science [22][24] Question: What trends are observed in consumer spending? - The non-prime consumer is resilient but under pressure from inflation, leading to a demand for flexible financial solutions [25][26] Question: Is there a cross-selling motion happening now? - Yes, there are early stages of cross-selling among the brands, with plans to enhance integration and personalized offers [28][30]

Financial Data and Key Metrics Changes - The company is approaching $5 billion in revenues, indicating strong overall financial performance and a solid balance sheet [13] - The Rent-A-Center business has transformed to generate approximately 27% of its revenue online, with expectations for continued growth in this area [5] Business Line Data and Key Metrics Changes - The Rent-A-Center segment is the legacy business, generating mature cash flow and focusing on digital transformation [5] - Acima has become the largest segment, growing approximately 17% last year and continuing to grow in the low teens through Q3 2025 [6] - Brigit, acquired in January 2025, has 1.5 million paying subscribers and offers various financial tools, contributing to the overall ecosystem [7] Market Data and Key Metrics Changes - The core consumer, identified as non-prime, remains resilient despite economic pressures, with a focus on value and flexibility in spending [25] - The company has adjusted its underwriting approach to maintain stability in a challenging economic environment [26][27] Company Strategy and Development Direction - The company aims to create a connected financial ecosystem to serve underserved consumers, leveraging data to provide personalized offerings [4][8] - There is a strong emphasis on cross-selling opportunities among the three business units (Rent-A-Center, Acima, and Brigit) to enhance customer experience and drive growth [30] - The management team is focused on digital transformation and integrating technology to improve customer interactions and operational efficiency [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing economic pressures on consumers but believes in the resilience of their business model and consumer base [25][37] - The integration of Brigit is seen as a significant opportunity to enhance data-driven decision-making and improve customer offerings [29] Other Important Information - The company is focused on capital allocation strategies that prioritize organic growth, technology investment, and shareholder returns [24] - The management team has undergone recent upgrades, including the hiring of a new CFO and Chief Growth Officer, to support the company's transformation [10][11] Q&A Session Summary Question: What stands out most at Upbound? - The company has a rock-solid foundation with strong financial performance and a supportive management team [13] Question: Can you discuss the capital allocation strategy? - The strategy focuses on driving shareholder returns, fueling organic growth, and investing in technology and data science [22][24] Question: What are the spending trends among consumers? - The non-prime consumer is resilient but under pressure from inflation, leading to a focus on value and flexibility in spending [25][26] Question: Is there a cross-selling motion happening now? - Yes, there is a significant cross-selling opportunity, with early stages of integration and customer referrals already in place [28][30]

Financial Data and Key Metrics Changes - The company is approaching $5 billion in revenues, indicating strong overall financial performance and a solid balance sheet [15] - The Rent-A-Center business has transformed from traditional retail to a digital e-commerce player, with approximately 27% of revenue now generated online [6] Business Line Data and Key Metrics Changes - The Acima virtual lease-to-own business has become the largest segment, growing approximately 17% last year and continuing to grow in the low teens through Q3 2025 [7] - Brigit, the digital financial health app, has 1.5 million paying subscribers and over 500,000 free users, offering various financial tools and services [8] Market Data and Key Metrics Changes - The core consumer, identified as non-prime, has shown resilience despite economic pressures since 2022, with a focus on value and flexibility in spending [27][28] - The company has adjusted its underwriting approach to remain consistent and conservative in response to changing consumer spending habits [28] Company Strategy and Development Direction - The company aims to create a connected financial ecosystem that serves underserved consumers through its three major brands: Rent-A-Center, Acima, and Brigit [5][10] - There is a strong emphasis on leveraging technology and data science to enhance customer experience and drive personalized offerings [15][20] Management's Comments on Operating Environment and Future Outlook - Management believes the business model is resilient, having proven its strength through various economic cycles and the pandemic [37] - The integration of data from all three businesses is expected to enhance decision-making and improve customer engagement [30] Other Important Information - The company is focused on capital allocation strategies that prioritize organic growth, technology investment, and shareholder returns through dividends and share repurchases [25][26] - The management team has been strengthened with new leadership to accelerate the digital transformation of the business [12][13] Q&A Session Summary Question: What stands out most at Upbound? - The company has a rock-solid foundation with strong financial performance and a supportive management team, positioning it for exceptional growth [15] Question: How do the three business units complement each other? - The businesses work together to meet consumer needs, providing choices across different shopping channels and product offerings [18][19] Question: What are the key drivers within each segment? - Rent-A-Center focuses on omnichannel experiences, Acima is diversifying its retailer network, and Brigit aims to scale its subscriber base and innovate [20][21][23] Question: What is the capital allocation strategy for the new year? - The strategy includes driving shareholder returns, fueling organic growth, and investing in technology and infrastructure [25][26] Question: What trends are observed in consumer spending? - The non-prime consumer remains resilient but is under financial pressure, leading to a focus on value and flexibility in purchasing [27][28] Question: Is there a cross-selling opportunity among the brands? - Yes, there is significant potential for cross-selling, with early efforts underway to integrate customer insights across the brands [29][30]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue capacity, currently estimated at $200 million, with potential to double revenue due to recent facility expansions [39] - Gross margin has improved from 11.9% to consistently in the mid- to high 20s%, with a peak of 30% before investments in trade [40] Business Line Data and Key Metrics Changes - The company has expanded its product offerings from under five items to approximately seven items per store, with aspirations to reach 27 items [16][19] - The company is now present in about 15,000 stores, up from 8,000, indicating significant growth in market penetration [16] Market Data and Key Metrics Changes - The deli category, where the company operates, has shown resilience with a growth rate of approximately 4% this year, despite broader economic challenges [8] - The company has successfully entered new retail partnerships, including Target and Food Lion, enhancing its market presence [36] Company Strategy and Development Direction - The company aims to create a one-stop shop in the deli category, which is valued at $60 billion and is highly fragmented, presenting consolidation opportunities [5] - The management team is focused on driving margin expansion and increasing product penetration in existing stores [7][20] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the company's growth trajectory, projecting it to become a billion-dollar business, up from $40 million to $200 million in recent years [46] - The company is experiencing strong demand for its products as consumers shift towards home dining, benefiting from the current economic climate [9] Other Important Information - The company has successfully integrated recent acquisitions, enhancing operational capabilities and customer relationships [44][45] - The management emphasizes the importance of retailer partnerships and flexibility in product branding to drive sales [26][29] Q&A Session Summary Question: How is the Costco partnership performing? - The company reported strong sales performance with Costco, achieving $10 million in Q1 from a national buy, indicating positive traction [36] Question: What are the company's long-term growth targets? - The company aims for organic growth of 20% year over year, with plans to acquire an additional $500 million in revenue [46] Question: What is the expected EBITDA margin at scale? - The management anticipates reaching mid-teens EBITDA margins as the business scales [47]

Financial Data and Key Metrics Changes - The company reported a revenue capacity of approximately $200 million, with expectations to double this figure due to recent expansions and renovations of facilities [36] - Gross margin has improved significantly from 11.9% to consistently in the mid- to high 20s%, with a peak of 30% [37] Business Line Data and Key Metrics Changes - The company has expanded its presence from about 8,000 stores to approximately 15,000 stores, with an increase in the average number of items sold per store from under five to around seven [15][16] - The company has successfully entered new retail partnerships, including Target and Food Lion, and is now present in every Costco, BJ's, and half of Walmart locations [15][16] Market Data and Key Metrics Changes - The deli category, where the company operates, is valued at $60 billion and has shown growth, with the category growing 4% this year [4][8] - The company noted that the deli category is one of the most profitable parts of grocery stores, with margins often exceeding 50% for retailers [9][10] Company Strategy and Development Direction - The company aims to create a one-stop shop in the deli space, capitalizing on the fragmented market and focusing on expanding its product offerings [4] - The management team has been overhauled to include experienced professionals from leading companies, enhancing operational capabilities and strategic execution [6][7] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the deli category's growth, noting that it is outperforming other retail segments amid economic challenges [8][9] - The company is targeting a billion-dollar revenue goal, with plans for organic growth and strategic acquisitions to reach this target [43] Other Important Information - The company has implemented significant operational improvements, including insourcing functions that have positive margin implications [39] - The management emphasized the importance of partnerships with retailers and the flexibility in product branding to drive sales [24][25] Q&A Session Summary Question: How is the Costco partnership performing? - The company reported strong performance in Costco, with sales increasing from $540,000 in the first year to $10 million last year, and achieving $10 million in Q1 this year alone [33] Question: What are the long-term growth targets? - The company aims for a billion-dollar business, with half of the growth expected to be organic and the other half through acquisitions, targeting $500 million in revenue from M&A [43] Question: What is the expected EBITDA margin at scale? - The management anticipates achieving mid-teens EBITDA margins once the company reaches scale [45]

Financial Data and Key Metrics Changes - The company reported a revenue capacity of approximately $200 million, with expectations to double this through recent facility expansions [38] - Gross margins have improved significantly from 11.9% to mid- to high 20s%, with a peak of 30% before investments in trade [39] Business Line Data and Key Metrics Changes - The company has expanded its presence from about 8,000 stores to an expected 15,000 stores, with an increase in the average number of items sold per store from under five to around seven [17][18] - The company is now in every Costco, BJ's, and half of Walmart locations, indicating strong penetration in club and mass retail channels [18] Market Data and Key Metrics Changes - The deli category, where the company operates, has shown resilience with a growth rate of approximately 4% this year, despite economic challenges [10] - The company noted that the prepared food section is one of the most profitable parts of grocery stores, driving incremental trips and larger baskets for retailers [11][12] Company Strategy and Development Direction - The company aims to create a one-stop shop in the deli category, which is valued at $60 billion and is highly fragmented [6] - The management team is focused on expanding product offerings and increasing shelf space in retail locations, with a goal of significantly increasing the number of items per store [20][21] Management's Comments on Operating Environment and Future Outlook - The CEO expressed optimism about the company's growth trajectory, projecting it to become a billion-dollar business, up from $40 million to $200 million currently [44] - The company is targeting a mid-teens EBITDA margin once it reaches scale, indicating confidence in future profitability [46] Other Important Information - The company has successfully integrated recent acquisitions, enhancing its operational capabilities and customer relationships [43] - The management team has been completely overhauled over the past three years, bringing in experienced professionals from leading companies [9] Q&A Session Summary Question: How is the Costco partnership performing? - The CEO reported that Costco sales have significantly increased, with $10 million in sales from a digital multi-vendor mailer in Q1, indicating strong traction [35] Question: What are the company's long-term growth targets? - The CEO mentioned that the company is growing at 20% year over year, with plans to achieve $500 million in revenue through acquisitions [45] Question: What is the strategy for M&A? - The focus is on acquiring capabilities within the deli space, with an emphasis on incremental customers and capacity [41]

Financial Data and Key Metrics Changes - Adjusted EBITDA has increased each of the last five years, with a compound annual growth rate (CAGR) of 9% over that period [24] - Free cash flow has also risen year-over-year over the last five years, particularly strong on the tobacco side [24] - The company maintains a conservative debt level, around 2.5 times Adjusted EBITDA, allowing for future opportunities as debt is paid down [25] Business Line Data and Key Metrics Changes - The tobacco business continues to generate strong and consistent cash flows, with segment operating income showing growth over the last five years [11] - The new Universal Ingredients segment has been established, focusing on growth through acquisitions and organic development, with significant investments made since 2018 [16][19] - The company has invested over $30 million in expanding capabilities within the ingredients segment, enhancing extraction and packaging processes [18] Market Data and Key Metrics Changes - The company operates in over 30 countries across five continents, maintaining a strong global footprint in strategic markets [2] - The competitive landscape includes global leaf suppliers, vertically integrated customers, and local suppliers, with the company positioned to capture additional market share [10][11] Company Strategy and Development Direction - The corporate strategy is built on three pillars: maximizing the tobacco business, growing the ingredients business, and strengthening the company for future sustainability [5] - The company aims to leverage its strengths in agronomy, processing, and logistics to maintain its leading market position and enhance operational efficiency [12][15] - Sustainability is a core focus, with initiatives aimed at supporting farmers and meeting customer expectations in both tobacco and ingredients segments [22][23] Management's Comments on Operating Environment and Future Outlook - The management expresses confidence in the company's ability to grow both the tobacco and ingredients businesses, emphasizing the importance of sustainability in future market trends [24][27] - The company is focused on building a solid foundation for the next 100 years, with a commitment to improving financial performance and shareholder returns [26][28] Other Important Information - The company has achieved its 55th consecutive annual increase in dividends, reflecting its commitment to returning value to shareholders [25] - Sustainability reports are regularly published, showcasing the company's progress and goals in this area [23] Q&A Session Summary Question: What is the outlook for the ingredients segment? - The company is looking to scale up the ingredients segment to generate volume and margin, focusing on co-creating products with customers to meet market trends [19][20] Question: How does the company plan to maintain its competitive advantage in the tobacco market? - The company emphasizes its strong sourcing capabilities, processing efficiency, and logistics expertise as key factors in maintaining its market leadership [12][15]

Financial Data and Key Metrics Changes - Adjusted EBITDA has increased each of the last five years, with a compound annual growth rate (CAGR) of 9% over that period [24] - Free cash flow has also risen year over year during the last five years, particularly strong on the tobacco side [24] - The company maintains a debt level around 2.5 times Adjusted EBITDA, focusing on fiscal conservatism and maintaining credit ratings [25] Business Line Data and Key Metrics Changes - The tobacco business continues to generate strong and consistent cash flows, with segment operating income showing growth over the last five years [11] - The new Universal Ingredients segment has been established, focusing on growth through acquisitions and organic development, with significant investments made since 2018 [16][19] - The company has invested over $30 million in expanding capabilities within the ingredients segment, enhancing extraction and packaging processes [18] Market Data and Key Metrics Changes - The company operates in over 30 countries across five continents, maintaining a strong global footprint in strategic markets [2] - The competitive landscape includes global leaf suppliers, vertically integrated customers, and local suppliers, with the company positioned to capture additional market share [10][11] Company Strategy and Development Direction - The corporate strategy is built on three pillars: maximizing the tobacco business, growing the ingredients business, and strengthening the company for future sustainability [5] - The company aims to leverage its strengths in sustainability, particularly in the tobacco sector, to gain a competitive advantage in the ingredients market [22][24] - There is a focus on co-creating value-added products with customers to meet evolving market trends and demands [20] Management's Comments on Operating Environment and Future Outlook - The management expresses confidence in the company's ability to grow both the tobacco and ingredients segments, emphasizing the importance of sustainability and operational efficiency [26][27] - The management highlights the excitement surrounding the company's future, particularly in scaling the ingredients business and maintaining strong performance in tobacco [27][28] Other Important Information - The company has a long history of increasing dividends, marking its 55th consecutive annual increase, reflecting strong cash generation and commitment to shareholder returns [25] - Sustainability efforts are a key focus, with the company actively collecting data and reporting on its sustainability initiatives [22][23] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Adjusted EBITDA has increased each of the last five years, with a compound annual growth rate (CAGR) of 9% over that period [26] - Free cash flow has also risen year over year for the last five years, particularly strong on the tobacco side [26] - The company maintains a conservative debt level, around 2.5 times Adjusted EBITDA, allowing for future opportunities as debt is paid down [27] Business Line Data and Key Metrics Changes - The tobacco business continues to generate strong and consistent cash flows, with segment operating income showing growth over the last five years [12] - The new Universal Ingredients segment has been established, focusing on growth through acquisitions and organic development, with significant investments made since 2018 [17][20] - The company has invested over $30 million in expanding capabilities within the ingredients segment, enhancing extraction and packaging processes [19] Market Data and Key Metrics Changes - The company operates in over 30 countries across five continents, maintaining a strong global footprint in strategic markets [2] - Universal is the world's leading leaf tobacco supplier, with a competitive advantage over both global leaf suppliers and vertically integrated customers [10][11] - Sustainability is becoming increasingly important in both the tobacco and ingredients markets, with the company leveraging its expertise to gain a competitive edge [25][26] Company Strategy and Development Direction - The corporate strategy is built on three pillars: maximizing the tobacco business, growing the ingredients business, and strengthening the company for the next 100 years [5] - The company aims to increase volume and market share in the tobacco sector while optimizing operational efficiency [5][6] - For the ingredients segment, the focus is on organic growth and strategic acquisitions to enhance product offerings and market reach [20] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the company's strong performance and strategic direction, emphasizing the importance of sustainability and innovation [24][28] - The company is focused on building a solid foundation for future growth, particularly in the ingredients segment, which is seen as a significant opportunity [29] - There is an expectation that sustainability will become increasingly critical in the food and beverage markets, aligning with consumer trends [25] Other Important Information - The company has a long history of dividend increases, marking its 55th consecutive annual increase, reflecting strong financial health and commitment to shareholders [27] - Sustainability reports are regularly published, showcasing the company's progress and commitment to environmental stewardship [24][25] Q&A Session Summary Question: What is the outlook for the ingredients segment? - The company is looking to scale up the ingredients business to generate volume and income, leveraging its diverse product portfolio to meet changing market trends [20] Question: How does the company plan to maintain its competitive advantage in tobacco? - The company focuses on sourcing, processing, and logistics, ensuring strong relationships with farmers and customers while maintaining operational efficiency [13][16] Question: What role does sustainability play in the company's strategy? - Sustainability is a core focus, with the company implementing strict programs for farmers and aiming to leverage its expertise in both tobacco and ingredients markets [24][25]