Upbound Lifts Full-Year EPS Midpoint After Profit Jump

The Tip Desk · November 10, 2026 · 4 min read

GAAP net earnings were $34.3 million, or $0.58 a share, as third-quarter revenue of $1.15 billion sat at the high end of the company’s outlook.

Upbound Group, Inc. (UPBD), a technology and data-driven provider of lease-to-own and cash-advance products, reported GAAP net earnings of $34.3 million, or $0.58 a share, for the quarter ended September 30, 2026, up from $13.2 million, or $0.22 a share, a year earlier.

Consolidated revenue was $1,146.2 million, down 1.6% from a year earlier, at the high end of the company’s outlook. Adjusted EBITDA was $123.4 million, and non-GAAP diluted earnings were $1.01 a share, both above the top of their guided ranges. GAAP operating profit was $71.2 million, with a 6.2% operating margin.

The company said underwriting discipline at Acima was the profit engine. Acima revenue was $584.7 million, down approximately 6.5% year-over-year after a 2.5% decline in the second quarter. Gross merchandise volume fell about 11.0%. GAAP net earnings at Acima rose 17.3% to $74.7 million, with a 12.8% net earnings margin. Adjusted EBITDA increased about 15% to $86.0 million, and the Adjusted EBITDA margin expanded about 270 basis points to 14.7%. The lease charge-off rate improved more than 100 basis points year-over-year to 8.7%, after a 50-basis-point year-over-year improvement to 8.8% in the second quarter. The company attributed the charge-off decline to continued disciplined underwriting and strong portfolio performance.

Acima also entered an integration agreement with Boost Mobile to serve as a preferred lease-to-own solution across approximately 5,000 Boost Mobile stores nationwide.

Brigit revenue grew 37% year-over-year to $78.8 million, matching the 37% growth rate recorded in the second quarter. Paying users rose about 27% to 1.84 million, after about 30% growth to 1.7 million in the prior quarter. ARPU increased 4.7% to $14.39. GAAP net earnings rose 93.8% to $8.9 million, and adjusted EBITDA grew 59% to $14.7 million, with an 18.7% margin. The net advance loss rate rose 111 basis points year-over-year to 4.4%. The company said ARPU was driven by a shift toward the Premium tier, deeper marketplace engagement, and higher expedited-transfer revenue, and that the loss-rate increase accompanied strong portfolio growth in a challenging macroeconomic environment.

Rent-A-Center same store sales increased about 180 basis points year-over-year, extending same-store sales growth to four consecutive quarters after about 160 basis points of growth in the second quarter. Segment revenue was $459.0 million, essentially flat to the prior year. Net earnings were $55.6 million and adjusted EBITDA was $66.3 million. Lease charge-offs for company-owned stores were 5.4%.

Net cash provided by operating activities increased 81% to approximately $163 million, and free cash flow more than doubled year-over-year to approximately $121 million. The company repaid about $77 million of debt in the quarter, reducing net leverage to 2.4 times from 2.6 times last quarter, and said it has reduced debt by more than $225 million since year-end. Quarter-end liquidity was approximately $576 million. It intends to repurchase up to $50 million of common stock under its existing program.

Full-year 2026 consolidated revenue guidance was narrowed to $4.68 billion to $4.78 billion from $4.70 billion to $4.85 billion. Adjusted EBITDA was narrowed to $510 million to $525 million. The non-GAAP diluted EPS range was narrowed to $4.15 to $4.30, increasing the midpoint from the prior $4.00 to $4.35 range. For the fourth quarter, the company expects consolidated revenue of $1.15 billion to $1.25 billion, adjusted EBITDA of $125 million to $135 million, and non-GAAP diluted EPS of $1.00 to $1.10.

The quarterly dividend was $0.39 a share, or $1.56 annualized. The company said it continues to expect full-year free cash flow of at least $250 million, inclusive of estimated legal payments.