Upbound Group, Inc. reported its fourth‑quarter and full‑year 2025 results on February 19, 2026, delivering a non‑GAAP diluted earnings per share of $1.01—$0.04 above the consensus estimate of $0.97—while revenue reached $1.196 billion, beating the $1.18 billion estimate by roughly $16.5 million.
Year‑over‑year, the company’s revenue grew 10.9% to $1.196 billion, and its non‑GAAP diluted EPS fell slightly to $1.01 from $1.05 in Q4 2024. Adjusted EBITDA for the quarter rose to $126 million from $123 million, reflecting modest margin expansion amid higher sales volume. For the full year, consolidated revenue climbed 8.7% to $4.7 billion, while GAAP net income declined to $73.2 million from $123.5 million in 2024 due to special items, legal‑related accruals, and acquisition amortization costs.
Segment performance varied: Acima’s revenue continued to grow, driven by a strong GMV trajectory, but its lease charge‑off rate increased, slightly compressing profitability. Brigit, acquired in Q1 2025, delivered a 40% year‑over‑year revenue increase, reinforcing the company’s digital‑first strategy. Rent‑A‑Center’s revenue remained flat YoY, and its adjusted EBITDA margin contracted, reflecting competitive pricing pressures and higher operating costs.
Management highlighted the company’s progress: "Upbound's third quarter demonstrates our commitment to delivering strong financial results while positioning our business for long‑term, sustainable growth. Our Acima and Brigit segments continued their momentum, with Acima achieving its eighth consecutive quarter of GMV growth and Brigit delivering over 40% year‑over‑year increase in revenue. Additionally, our Rent‑A‑Center segment same store sales performance improved sequentially and is expected to stabilize further in the fourth quarter," said CEO Fahmi Karam. CEO Sami B. Sulaiman added, "As we reflect on the past year, it is clear that 2025 marked a period of significant progress for Upbound Group, Inc. as we execute against our strategic priorities. Since taking on the CEO role in June, following my tenure as CFO, I have been eager to build upon our recent momentum and to steer Upbound through our ongoing transformation into a leading digital and data‑driven platform of financial solutions for underserved consumers." He also noted, "In 2025, across all of our brands, we served over 3,500,000 customers." "Our revenue grew 8.7% to approximately $4.7 billion, representing the highest full‑year revenue on record for Upbound. Surpassing the previous record in fiscal year 2021, which, of course, benefited from stimulus and the pandemic‑related pull forward in the furniture sector. Adjusted EBITDA for the year was nearly $510 million, which was up 7.5% from the prior year. Our non‑GAAP diluted EPS was $4.13 compared to $3.83 in 2024. A 7.8% improvement and near the high end of our guidance last quarter," he said.
For 2026, Upbound guided full‑year revenue of $4.70 billion to $4.95 billion and adjusted EBITDA of $500 million to $535 million, with non‑GAAP diluted EPS projected at $4.00 to $4.35. The guidance range is below analyst expectations, reflecting management’s caution amid rising lease charge‑off rates, margin compression in Rent‑A‑Center, and the impact of special items on GAAP profitability. First‑quarter 2026 guidance calls for revenue of $1.16 billion to $1.26 billion, adjusted EBITDA of $120 million to $130 million, and non‑GAAP diluted EPS of $1.05 to $1.15. Investors have focused on the lower guidance, noting that the company’s forward outlook is more conservative than the consensus, which may temper enthusiasm for the strong Q4 performance.
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