Q1 2026 Upbound Group Inc Earnings Call Transcript
Key Points
- Upbound Group Inc (UPBD) delivered results in line with financial targets, generating robust cash flow and deleveraging the balance sheet.
- The company's diversified portfolio, including the Bridgit acquisition, provides multiple paths to growth and helps manage category swings.
- Brigit segment showed strong growth with a revenue increase of over 40% year-over-year, driven by increased paying subscribers and monthly average revenue per user.
- Acima's lease charge-offs improved significantly, validating the data-driven approach to protect portfolio quality and improve long-term economics.
- The Rent-A-Center segment achieved year-over-year same-store sales growth for the second consecutive quarter, reflecting strategic tightening and cost optimization efforts.
- Tightening underwriting and macroeconomic headwinds pressured Acima's GMV, which finished the quarter below expectations.
- The non-prime consumer continues to face pressure from elevated costs in essential categories, influencing purchasing behavior and weighing on discretionary spending.
- Brigit's adjusted EBITDA margin was slightly down due to elevated loss rates as new products are tested.
- Rent-A-Center's revenue was down approximately 2% year-over-year, driven by a decrease in merchandise sales and lower revenue contribution from franchisees.
- The operating environment remains challenging, with uneven macro factors that pressure core consumers' discretionary income and demand levels.
Good day and thank you for standing by.
Welcome to the Upbound Group Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode.
(Operator Instructions)
Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Steven Kos of Upbound Investor Relations.
Please go ahead.
Good morning and thank you all for joining to discuss the company's performance for the first quarter of 2026.
We issued our earnings release this morning before the market opened, and the release and all related materials, including a link to the live webcast, are available on our website at investor.upbound.com.
On the call today from Upbound Group, we have Fahmi Karam, our Chief Executive Officer; and Hal Khouri, our Chief Financial Officer.
As a reminder, some of the statements provided on this call are forward-looking and are subject to factors that
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