Upbound GroupUPBD +1.43%74 Gross Margin % is 48.08% as of Mar. 2026, which is 13% below its 10-year median of 55.04. GuruFocus rates UPBD with a GF Score™ of 74/100 and a GF Value™ of $31.83 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 2,683 Software companies, Upbound Group ranks better than 59.63% on this metric.
Upbound Group Inc gross margin has been in long-term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for Upbound Group's Gross Margin % or its related term are showing as below:
UPBD'
s Gross Margin % Range Over the Past 10 Years
Min: 48.15 Med: 55.04 Max: 65.3
Current: 48.71
During the past 13 years, the highestGross Margin % of Upbound Group was 65.30%. The lowest was 48.15%. And the median was 55.04%.
UPBD's Gross Margin % is ranked better than 59.63% of 2683
companies
in the Software industry
Industry Median: 40.45
vs UPBD: 48.71
Upbound Group had a gross margin of 48.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Upbound Group was -2.90% per year.
Upbound Group (NAS:UPBD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Upbound Group had a gross margin of 48.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Upbound Group Gross Margin % Related Terms
Upbound Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Upbound Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
UPBD vs APPS, AMPL, VIA: Gross Margin % Comparison
For the Software - Application subindustry, Upbound Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Upbound Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Upbound Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Upbound Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Upbound Group (UPBD) has a Gross Margin % of 48.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Upbound Group and its competitors. This is 13% below median its historical median of 55.04. Over the past decade, Upbound Group's Gross Margin % has ranged from 48.15 to 65.30. According to the industry distribution chart, Upbound Group ranks #1083 out of 2683 companies in the Software industry, placing it in the top 40.4%.
Is Upbound Group's Gross Margin % too high?
Upbound Group's current Gross Margin % of 48.08% is 13% below median its 10-year median of 55.04. Over the past 10 years, this metric has ranged from a low of 48.15 to a high of 65.30. The Software industry median Gross Margin % is 40.45. Upbound Group's value of 48.08% is 18.9% above this industry median. Based on the distribution chart, Upbound Group ranks #1083 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Upbound Group has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Upbound Group's Gross Margin % compare to APPS and AMPL?
According to the Software industry distribution chart, Upbound Group ranks #1083 out of 2683 companies for Gross Margin %. This puts Upbound Group in the upper half of its industry. The industry median Gross Margin % is 40.45. Upbound Group's value of 48.08% is 18.9% above this benchmark. Historically, Upbound Group's own Gross Margin % has ranged from 48.15 to 65.30 over the past decade. While the company's 10-year median is 55.04 vs. the industry median of 40.45, Upbound Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Upbound Group's current Gross Margin % of 48.08% is 18.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Upbound Group and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Upbound Group's current Gross Margin % is 48.08%, which is 13% below median its own 10-year median of 55.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Upbound Group stock overvalued right now?
Based on GuruFocus' analysis, Upbound Group (UPBD) is currently considered Significantly Undervalued. The stock's GF Value™ is $31.83, compared to a current price of $19.87 — trading 37.6% below its estimated fair value. The current Gross Margin % is 48.08%, which is 13% below median its 10-year median of 55.04 and 18.9% above the Software industry median of 40.45. Upbound Group's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Upbound Group (UPBD), the current Gross Margin % is 48.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Upbound Group (UPBD) Overvalued in 2026?
Based on GuruFocus' analysis, Upbound Group stock appears to be undervalued.
The current stock price of $19.87 is trading 37.6% below its estimated GF Value™ of $31.83.
GuruFocus considers Upbound Group to be Significantly Undervalued.
Key valuation signals for UPBD:
Gross Margin %: 48.08% (13% below median its 10-year median of 55.04)
GF Value™: $31.83 vs. price of $19.87 (37.6% below fair value)
Industry Position: 18.9% above the Software median (#1083 of 2683)
No single metric tells the full story. See the UPBD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Upbound Group Inc is an omnichannel platform company committed to elevating financial opportunity for all through inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. It has four operating segments; The Rent-A-Center Business segment operates lease-to-own stores, the Acima segment offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer, and also offers the lease-to-own transaction through virtual offering solutions, Mexico segment offers lease-to-own stores in Mexico. The The Brigit segment offers various financial health products and tools to help users improve their financial health. The company derives a majority of its revenue from the Acima segment.
74GF Score
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