Upbound Group (UPBD) Q4 2024 earnings summary

Executive summary

• CEO Mitch Fadel announced retirement, with CFO Fahmi Karam named as successor effective June 1, 2025, following a planned succession process.

• Achieved consolidated revenue of $4.3 billion in 2024, up 8.2% year-over-year, with strong growth in Acima and Rent-A-Center segments.

• Closed Brigit acquisition in January 2025, expanding digital and fintech offerings and enhancing cross-brand synergies.

• Focused on digital innovation, operational efficiency, and disciplined risk management to drive future growth.

• Results reflect performance across Acima, Brigit, and Rent-A-Center, with operations in over 2,300 retail units.

Financial highlights

• Q4 2024 revenue reached $1.1 billion, up 6% year-over-year, driven by Acima's strength.

• Adjusted EBITDA for Q4 was $123 million, up over 14% year-over-year, with margins at 11.4%.

• Non-GAAP diluted EPS for Q4 was $1.05; full year Non-GAAP diluted EPS was $3.83, up $0.28 year-over-year.

• Full-year Adjusted EBITDA was $473 million, up 3.8%; net income was $123.5 million, up $128.7 million from prior year.

• Lease charge-off rate for 2024 was 7.3%, slightly up from 7.1% in 2023.

Outlook and guidance

• 2025 revenue guidance: $4.5–$4.75 billion; adjusted EBITDA: $500–$540 million; non-GAAP EPS: $3.90–$4.40; free cash flow: $150–$200 million.

• Brigit projected to contribute $215–$230 million in revenue and $25–$30 million in adjusted EBITDA for 11 months in 2025.

• Acima expected to deliver high single to low double-digit GMV and revenue growth, with margin improvement.

• Rent-A-Center revenue expected to decline low single digits due to store consolidations; margins to normalize.

• Q1 2025 revenue expected up mid-single digits year-over-year, with stable/improving charge-offs.