Upbound Group Q2 revenue beats estimates on Brigit subscriber growth
Upbound Group Q2 revenue beats estimates on Brigit subscriber growth
Overview
US financial solutions provider's Q2 consolidated revenue beats analyst expectations
Brigit segment revenue rose 37% yr/yr, driven by 30% growth in paying subscribers
Company reaffirmed full-year revenue, adjusted EBITDA, and non-GAAP EPS guidance
Outlook
Upbound Group narrows 2026 full-year revenue outlook to $4.70–$4.85 bln
Company reaffirms 2026 adj EBITDA guidance of $500–$535 mln and non-GAAP EPS of $4.00–$4.35
Upbound Group expects Q3 2026 revenue of $1.05–$1.15 bln, adj EBITDA $105–$115 mln, EPS $0.85–$0.95
Result Drivers
BRIGIT SUBSCRIBER GROWTH - Brigit revenue rose 37% yr/yr, driven by about 30% growth in paying subscribers and a 6.3% increase in ARPU
ACIMA PORTFOLIO QUALITY - Acima revenue fell about 2.5% yr/yr, but lease charge-off rate improved by 50 basis points to 8.8% and EBITDA margin expanded
RENT-A-CENTER SAME-STORE SALES - Rent-A-Center posted its third consecutive quarter of same-store sales growth, with SSS up about 160 basis points yr/yr
Company press release: ID:nBw7JR84ga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.2 bln | $1.16 bln (7 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Upbound Group Inc is $28.00, about 33.7% above its July 29 closing price of $20.95
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago
Reuters Recommended Reads
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July 29 - LendingTree Q2 revenue rises 25%, but fails to impress investors
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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