Upbound Group Revenue Growth Slows as Acima Sales Decline
Consolidated revenue rose 0.5% year-over-year to $1.16 billion.
Upbound Group (UPBD) reported consolidated revenue of $1.16 billion for the quarter, representing a 0.5% increase year-over-year.
The result marked a sharp deceleration in growth for the financial services provider. Revenue growth slowed from 3.7% in the first quarter of 2026 and 11% in the fourth quarter of 2025.
Consolidated Adjusted EBITDA fell 4.6% year-over-year to $127.0 million. The Adjusted EBITDA margin compressed 60 basis points to 10.9% compared to the same period last year.
Performance diverged across the company's primary segments. Revenue for the Acima segment decreased approximately 2.5% year-over-year to $603.5 million, reversing the 1.8% growth seen in the prior quarter and 9% growth in the fourth quarter of 2025. Despite the revenue decline, Acima's EBITDA margin expanded 117 basis points year-over-year to 16.2%, and its lease charge-off rate improved 50 basis points to 8.8%.
Rent-A-Center recorded its third consecutive quarter of same-store sales growth, which rose 1.6% year-over-year. This growth accelerated from 0.4% in the first quarter of 2026 and 0.8% in the fourth quarter of 2025. Lease charge-offs for company-owned stores at Rent-A-Center increased 30 basis points year-over-year to 5.0%.
Brigit revenue increased 37.1% year-over-year to $71.1 million, though the rate slowed from the growth of more than 40% in the first quarter of 2026. The segment's paying subscribers grew 30.2% year-over-year to 1.72 million, a sequential increase of 10.3%. Average revenue per user rose 6.3% year-over-year to $14.30.
Upbound narrowed its full-year 2026 consolidated revenue guidance to a range of $4.70 billion to $4.85 billion, down from a previous upper limit of $4.95 billion. The company reaffirmed its full-year Adjusted EBITDA guidance of $500 million to $535 million and non-GAAP diluted EPS guidance of $4.00 to $4.35 a share.
The company disclosed fraudulent lease-to-own contract losses within the Acima segment stemming from cybersecurity incidents.