Upbound Group Q3 revenue beats on Acima, Brigit growth

Overview

• U.S. financial solutions provider's Q3 revenue rose and beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company plans to repurchase up to $50 mln of its common stock

Outlook

• Upbound Group narrows 2026 revenue outlook to $4.68-$4.78 bln

• Company expects 2026 adjusted EBITDA of $510-$525 mln

• Upbound Group sees 2026 non-GAAP diluted EPS at $4.15-$4.30

Result Drivers

• ACIMA PROFITABILITY - Co said improved underwriting discipline at Acima drove higher profitability and lower lease charge-off rates

• BRIGIT GROWTH - Co said Brigit segment delivered double-digit revenue and user growth, contributing to higher earnings

• RENT-A-CENTER SALES - Co said Rent-A-Center segment extended same store sales growth for a fourth consecutive quarter

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $26.50, about 56.7% above its October 28 closing price of $16.91

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Oct 28 - PROG Holdings Q3 revenue misses estimates, announces buyback

• Oct 27 - SoFi Technologies Q3 adjusted revenue beats on member, product growth

• Oct 27 - PayPal tops Q3 adjusted EPS estimates, raises FY forecast

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(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.)