Upbound Group, Inc. (NASDAQ:UPBD) reported second-quarter results on Thursday that exceeded Wall Street expectations, thanks to robust growth in its Acima and Brigit segments. Shares inched up 0.04% in pre-market trading following the earnings release.
The company posted adjusted earnings per share of $1.12, surpassing analyst estimates by $0.07, while revenue totaled $1.16 billion, above the consensus forecast of $1.14 billion.
Revenue rose 7.5% year-over-year, fueled by strength in Acima, which posted a 16% increase in Gross Merchandise Volume (GMV) and 12% revenue growth. Meanwhile, recently acquired Brigit showed rapid expansion, with nearly 40% revenue growth and a 24.1% rise in paying subscribers.
“I am very pleased with our second quarter results, which reflect the heightened relevance of our financial solutions to a large and growing segment of consumers who are underserved by traditional providers,” said CEO Fahmi Karam. “Our Acima segment delivered 16% GMV growth, representing its seventh consecutive quarter of GMV growth, while Brigit grew its subscriber base by over 24%.”
Adjusted EBITDA climbed 7.0% year-over-year to $133.2 million, although the adjusted EBITDA margin dipped slightly by 10 basis points to 11.5%. The Rent-A-Center segment faced headwinds, with a 7.1% decline in revenue and a 4.0% decrease in same-store sales.
Looking ahead, Upbound projects third-quarter revenue between $1.05 billion and $1.15 billion, with adjusted EPS expected to fall between $0.95 and $1.05. The company raised the midpoint of its full-year non-GAAP diluted EPS guidance to $4.05–$4.40, up from a prior range of $4.00–$4.40. Its 2025 revenue outlook remains unchanged at $4.60 billion to $4.75 billion.
The Brigit segment, which Upbound acquired in January 2025, continues to perform strongly, with cash advance volume up 21.1% year-over-year to $356.1 million and average monthly revenue per user rising 12.5% to $13.45.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.