Upbound Group (UPBD) investor relations material

Executive summary

• Delivered solid Q1 2026 results with consolidated revenue of $1.2 billion, up 3.7% year-over-year, and net income of $35.8 million, an increase of $11.0 million year-over-year, despite a challenging macro environment.

• Adjusted EBITDA reached $136.1 million, up 7.9% year-over-year; non-GAAP diluted EPS was $1.08, up $0.08 year-over-year.

• Robust cash flow generation with net cash from operating activities at $171 million, supporting significant deleveraging and liquidity over $460 million at quarter-end.

• Continued investment in digital transformation, AI, and leadership, with new CTO, CFO, and Chief Growth Officer to drive long-term value.

• Diversified portfolio with Brigit, Acima, and Rent-A-Center brands supports resilience and growth.

Financial highlights

• Q1 2026 consolidated revenue was $1.2 billion, up 3.7% year-over-year, with net income up $11 million and adjusted EBITDA at $136 million (11.2% margin).

• Non-GAAP diluted EPS was $1.08, compared to $1.00 in Q1 2025.

• Free cash flow reached $136 million, up from $127.2 million year-over-year.

• Quarterly dividend of $0.39/share (~8% yield), $23 million paid.

Outlook and guidance

• 2026 guidance reaffirmed: revenue $4.7–$4.95 billion, adjusted EBITDA $500–$535 million, non-GAAP EPS $4.00–$4.35.

• Free cash flow expected at ~$200 million for 2026.

• Q2 2026 outlook: revenue $1.1–$1.2 billion, adjusted EBITDA $120–$130 million, EPS $1.00–$1.10.

• Acima GMV and revenue expected flat to low single-digit growth; Brigit revenue growth >30%; Rent-A-Center revenue flat to down low single digits.