Upbound Group (UPBD) investor relations material

Executive summary

• Q2 2026 consolidated revenue reached $1.2 billion, within guidance, supported by disciplined risk management, digital investments, and cross-brand integration; net income was $21.6 million, up $6.1 million year-over-year.

• Brigit segment saw strong revenue and subscriber growth, contributing significantly to overall profit; Rent-A-Center achieved its third consecutive quarter of same-store sales growth.

• Acima improved portfolio quality and EBITDA margin despite a slight revenue decline and a $13 million cybersecurity-related fraud loss, with remediation measures implemented.

• Robust cash flow generation supported deleveraging, dividend payments, and increased free cash flow.

• Continued investment in AI, analytics, and digital capabilities to enhance underwriting, customer engagement, and operational efficiency.

Financial highlights

• Q2 2026 consolidated revenue was $1.2 billion, up 0.5% year-over-year; adjusted EBITDA declined to $127 million; net income increased 39% year-over-year to $21.6 million.

• Non-GAAP diluted EPS was $1.07–$1.70, down year-over-year; GAAP diluted EPS was $0.37, up $0.11 year-over-year.

• Net cash from operating activities was $123 million, up $97 million year-over-year; free cash flow was $84 million, up from -$10 million.

• Dividend of $0.39/share paid, totaling $23 million, representing a 7.5% yield.

• Gross profit margin improved to 49.6% for the first half of 2026.

Outlook and guidance

• Full-year 2026 revenue guidance narrowed to $4.70–$4.85 billion; adjusted EBITDA reaffirmed at $500–$535 million; non-GAAP EPS $4.00–$4.35.

• Q3 2026 guidance: revenue $1.05–$1.15 billion, adjusted EBITDA $105–$115 million, non-GAAP EPS $0.85–$0.95.

• Raised free cash flow guidance to $250 million for the year.

• Management expects continued growth in Brigit and Mexico segments, with ongoing investments in technology and e-commerce.

• No formal forward guidance provided in some filings, but liquidity and cash flow are believed sufficient for the next twelve months.