Q2 2025 Upbound Group Inc Earnings Call Transcript

Jul 31, 2025 / 01:00 PM GMT

Release Date Price: €21.2

Transcript 10-Q8-K

Key Points

Positve

Upbound Group Inc (UPBD) reported a strong quarter with a 7.5% increase in revenue year-over-year, driven by growth in the AEA and Bridget segments.
The company achieved a 16% year-over-year growth in GMV for the CEMA segment, marking its seventh consecutive quarter of GMV growth.
Bridget segment saw nearly 40% revenue growth, with a 24% increase in paid subscribers year-over-year.
Upbound Group Inc (UPBD) improved its free cash flow significantly, reaching $117 million year-to-date, compared to $34 million in the prior year.
The company is making strategic investments in digital capabilities and new product offerings, such as the line of credit product in the Bridget segment, to drive future growth.

Negative

Rent A Center segment experienced a 4% decline in same-store sales, attributed to strategic decisions made in the previous year and ongoing pressure in the furniture category.
The approval rate for applications in the CEMA segment decreased by more than 300 basis points compared to the previous year.
Upbound Group Inc (UPBD) recorded a net usage of free cash flow of $10 million in the second quarter, indicating ongoing investment needs.
The Rent A Center segment's adjusted EBITDA margin declined by 1.7 percentage points year-over-year due to lower rental income and a smaller lease portfolio.
The company is facing legal and regulatory challenges, including a $31.7 million accrual for ongoing legal matters, which could impact future financial performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

UPBD.OQ - Upbound Group Inc
Q2 2025 Upbound Group Inc Earnings Call
Jul 31, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by. Welcome to the Upbound Group's 2nd quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during a session, you will need to press 11 on your telephone, and you will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today.

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Unidentified_2 [2]
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