Upbound Group (UPBD) investor relations material

Executive summary

• Consolidated revenue for Q2 2026 was approximately $1.2 billion, within guided ranges, with strong cash flow and ongoing deleveraging despite macroeconomic headwinds and a cybersecurity incident in Acima resulting in $13 million in fraudulent contract losses.

• Net income for Q2 2026 was $21.6 million, up 39% year-over-year, and GAAP diluted EPS was $0.37, up $0.11 year-over-year; non-GAAP diluted EPS was $1.07–$1.70, down year-over-year.

• Focused on strengthening cross-brand connections, investing in AI and analytics, and enhancing customer experience to drive long-term value.

• Brigit segment saw strong revenue and subscriber growth, contributing significantly to overall profit growth.

• Rent-A-Center achieved its third consecutive quarter of same-store sales growth, while Acima improved portfolio quality and EBITDA margin despite a slight revenue decline.

Financial highlights

• Consolidated revenue was $1.2 billion, up 0.5%–1% year-over-year; adjusted EBITDA declined to $127 million, down 4.6%–5% year-over-year, due to higher marketing and fixed costs.

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

• Net income for Q2 2026 was $21.6 million, a 39% increase year-over-year.

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

• Cash and cash equivalents at June 30, 2026 were $105.3 million, with total outstanding indebtedness of $1.4 billion.

Outlook and guidance

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

• Q3 2026 guidance: revenue $1.05–$1.15 billion, adjusted EBITDA $105–$115 million, non-GAAP diluted 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 was provided in some filings, but management believes liquidity and cash flow are sufficient for the next twelve months.