Upbound Group (UPBD) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,146.2M, down 1.6% YoY; GAAP net earnings rose to $34.3M from $13.2M, while Adjusted EBITDA was $123.4M and non-GAAP diluted EPS was $1.01.

• Adjusted EBITDA and non-GAAP EPS exceeded guidance; free cash flow more than doubled YoY to $121M, and net leverage declined to 2.4x.

• Brigit grew revenue and earnings, Acima expanded profitability despite lower GMV, and Rent-A-Center recorded a fourth consecutive quarter of same-store sales growth.

Financial highlights

• Q3 consolidated revenue was $1,146.2M versus $1,164.7M; gross profit rose 3.0% to $580.2M and operating profit rose 34.9% to $71.2M.

• GAAP diluted EPS was $0.58 versus $0.22; non-GAAP diluted EPS was $1.01 versus $1.00.

• Operating cash flow was $163.1M, up $73.2M YoY; free cash flow was $121M versus $50M.

• 9M revenue rose 0.9% to $3.529B; operating profit increased 22.1% to $202.9M and net earnings rose to $91.6M from $53.5M.

Outlook and guidance

• FY26 guidance narrowed to revenue of $4.68B-$4.78B, Adjusted EBITDA of $510M-$525M and non-GAAP diluted EPS of $4.15-$4.30; the EPS midpoint increased.

• Q4 guidance: revenue of $1.15B-$1.25B, Adjusted EBITDA of $125M-$135M and non-GAAP diluted EPS of $1.00-$1.10.

• FY26 free cash flow is expected to be at least $250M, including estimated legal payments; operating cash flow is expected to be ~$400M.

• Brigit outlook includes annualized revenue growth of ~35%, normalized to FY25 revenue of $290M-$300M, and Adjusted EBITDA of $55M-$65M.

• Q4 Acima GMV is expected to be relatively flat YoY; Rent-A-Center FY revenue is expected flat to down low single digits, with an Adjusted EBITDA margin of ~14%.