Upbound posts third-quarter EPS of $1.01 and revenue of $1,146.2 million
Key Facts
Upbound Group said adjusted diluted earnings per share were $1.01 in the third quarter of 2026, compared with $1.00 in the same period last year, while consolidated revenue was $1,146.2 million, down 1.6% year over year. In its results statement, the company said non-GAAP earnings per share exceeded its forecast range, while revenue came in at the top end of its outlook. Adjusted earnings per share therefore improved year over year despite a decline in total revenue. GAAP net income was $34.3 million, compared with $13.2 million a year earlier, an increase of $21.1 million. The results highlight diverging performance across businesses, alongside improved earnings and cash flow.
Segment performance varied: Brigit reported revenue of $78.8 million, up 36.6% year over year, and its number of paying subscribers rose 27.4% to 1.84 million. By contrast, Acima revenue fell about 6.5% to $584.7 million, but it increased net income 17.3% to $74.7 million. At Rent-A-Center, same-store sales rose about 180 basis points year over year, while revenue of $459 million was largely unchanged from a year earlier. The figures show a widening gap between Brigit's growth and Acima's revenue decline, while Acima recorded earnings growth despite contracting sales. The statement did not specify how much each segment contributed to the change in consolidated revenue.
Adjusted earnings before interest, taxes, depreciation and amortization were $123 million, above the top end of the quarterly guidance range, while GAAP diluted earnings per share were $0.58. Net cash from operating activities was about $163 million, up 81% from the same period. The company also reported free cash flow of about $121 million during the quarter, bringing the year-to-date total to about $340 million. Management said it repaid about $77 million of debt during the quarter and reduced debt by more than $225 million since year-end. The company also intends to repurchase up to $50 million of common stock under its existing buyback program, without specifying when the purchases will take place.
In a commercial expansion, Acima signed an integration agreement with Boost Mobile to become a preferred rent-to-own solution at about 5,000 of the company's stores in the United States. The agreement comes as Acima's revenue declined year over year, alongside an increase in quarterly net income. The statement did not provide a figure for the agreement's contribution to revenue or earnings, but specified its reach across the Boost Mobile store network. The partnership adds a new distribution channel for Acima, while Brigit's revenue growth remained the most prominent driver among the segments for which detailed figures were provided. At the group level, the company recorded a substantial increase in GAAP net income compared with the prior year.
Upbound raised its fiscal 2026 outlook, setting a revenue range of $4.68 billion to $4.78 billion and a non-GAAP diluted EPS range of $4.15 to $4.30. For the fourth quarter, it expects revenue of $1.15 billion to $1.25 billion and EPS of $1.00 to $1.10. The ranges provide the company's outlook for the coming period after a quarter in which consolidated revenue fell year over year, while earnings and cash flow improved. UPBD shares closed at $16.91 on October 28, 2026. The company held a call to discuss its third-quarter results on October 29, 2026, at 9:00 a.m. Eastern time.