--- title: "Upbound | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 1.2 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/284756985.md" datetime: "2026-04-30T11:21:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284756985.md) - [en](https://longbridge.com/en/news/284756985.md) - [zh-HK](https://longbridge.com/zh-HK/news/284756985.md) --- # Upbound | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 1.2 B Revenue: As of FY2026 Q1, the actual value is USD 1.2 B, missing the estimate of USD 1.226 B. #### Q1 2026 Consolidated Financial Highlights - Net Income: Upbound Group, Inc. reported $35.8 million, an increase of $11.0 million year-over-year . The net profit margin was 2.9%, an 80 basis point increase year-over-year . - Adjusted EBITDA: Upbound Group, Inc. achieved $136.1 million, representing a 7.9% increase year-over-year . The Adjusted EBITDA margin was 11.2%, up 50 basis points compared to the prior-year period . - Consolidated Revenue: $1,219.7 million for Q1 2026, up from $1,176.4 million in Q1 2025, an increase of $43.4 million or 3.7% year-over-year . - Consolidated Operating Profit: $77.4 million in Q1 2026, compared to $62.6 million in the prior-year period . The GAAP operating profit margin was 6.3%, up from 5.3% year-over-year . - Non-GAAP Operating Profit: $115.9 million in Q1 2026, compared to $105.9 million in the prior-year period . - Consolidated Cost of Revenues: $633.3 million in Q1 2026, compared to $626.2 million in Q1 2025 . - Consolidated Operating Expenses: $509.0 million in Q1 2026, compared to $487.5 million in Q1 2025 . GAAP Operating Expenses as a percentage of Total Revenue were 41.7% in Q1 2026, compared to 41.4% in Q1 2025 . - On-Rent Rental Merchandise, Net: $1,099.1 million as of March 31, 2026, compared to $1,056.6 million as of March 31, 2025 . #### Segment Revenue (Q1 2026 vs. Q1 2025) - **Acima Revenue**: $648.7 million in Q1 2026, an increase of approximately 1.8% year-over-year from $637.3 million in Q1 2025 . This consisted of $489.7 million from rentals and fees and $158.7 million from merchandise sales in Q1 2026, compared to $477.0 million from rentals and fees and $160.0 million from merchandise sales in Q1 2025 . - **Rent-A-Center Revenue**: $481.6 million in Q1 2026, a decrease of approximately -1.5% year-over-year from $489.0 million in Q1 2025 . This included $406.1 million from rentals and fees and $70.6 million from merchandise sales in Q1 2026, compared to $405.0 million from rentals and fees and $75.5 million from merchandise sales in Q1 2025 . - **Brigit Revenue**: $67.7 million from subscriptions and fees in Q1 2026, an increase of 40.7% year-over-year from $31.9 million in Q1 2025 . - **Mexico Revenue**: $21.8 million in Q1 2026, up from $18.2 million in Q1 2025 . #### Segment Operational Metrics (Q1 2026 vs. Q1 2025) - **Acima Segment**: - GMV: $427.1 million, a decrease of approximately -5.9% year-over-year, though GMV from the direct-to-consumer marketplace increased approximately 9% year-over-year . - Lease Charge-Off Rate (LCO): 8.8%, a decrease of 10 basis points year-over-year and 130 basis points sequentially . - Net Earnings: $77.3 million, with a net profit margin of 11.9%, an increase of 30 basis points from the prior-year period . - Adjusted EBITDA: $88.6 million, with an Adjusted EBITDA margin of 13.7%, an increase of 40 basis points year-over-year . - 60+ Day Past Due Rate: 12.8% . - **Brigit Segment**: - Paying Subscribers: 1.56 million, an increase of over 328k or approximately 27% year-over-year . - Average Monthly Revenue Per User (ARPU): $14.41, an increase of 11.9% year-over-year . - Net Advance Loss Rate: 3.5%, an increase of 110 basis points year-over-year and remaining flat sequentially . - Net Earnings: $18.6 million, with a net profit margin of 27.4% . - Adjusted EBITDA: $22.9 million, with an Adjusted EBITDA margin of 33.9% . - **Rent-A-Center Segment**: - Company-Owned Same Store Sales: Increased 0.4% year-over-year . - Average Portfolio Value Per Store: Increased approximately 1.4% year-over-year . - Lease Charge-Offs for Company-Owned Stores: 4.7%, an increase of 10 basis points year-over-year and a decrease of 20 basis points sequentially . - Net Earnings: $62.3 million, a decrease of -6.2% year-over-year, with a net profit margin of 12.9% . - Adjusted EBITDA: $67.4 million, a decrease of -6.5% year-over-year, with an Adjusted EBITDA margin of 14.0% . - 30+ Day Past Due Rate: 3.6% . #### Cash Flow and Capital Allocation (Q1 2026) - Net Cash Provided by Operating Activities: $170.7 million, an increase of $22.7 million year-over-year from $148.0 million in Q1 2025 . - Free Cash Flow: $135.9 million for Q1 2026, compared to $127.2 million for Q1 2025 and $13.5 million for Q4 2025 . - Capital Expenditures: $16.0 million . - Dividends Paid: $23.1 million . The quarterly dividend per share was $0.39, or $1.56 annualized . #### Quarter-End Financial Position (Q1 2026) - Liquidity: $465.0 million . - Net Debt: $1.4 billion . - Net Leverage Ratio: 2.6x at quarter-end, down from 2.9x at year-end . - Cash and Cash Equivalents: $98.412 million . - Total Assets: $3,128.117 million . - Senior Debt, Net: $995.249 million . - Senior Notes, Net: $444.339 million . - Total Liabilities: $2,412.385 million . - Total Stockholders’ Equity: $715.732 million . #### Outlook / Guidance Upbound Group, Inc. reaffirms its full-year 2026 guidance and provides guidance for Q2 2026 . For the full year 2026, the company anticipates consolidated revenues between $4.70 billion and $4.95 billion, with Adjusted EBITDA (excluding stock-based compensation) projected to be $500 million to $535 million . For the second quarter of 2026, revenues are projected to be between $1.10 billion and $1.20 billion, and Adjusted EBITDA (excluding stock-based compensation) between $120 million and $130 million . ### Related Stocks - [UPBD.US](https://longbridge.com/en/quote/UPBD.US.md) ## Related News & Research - [Upbound Group's Bryan Pechersky to Resign as Executive VP, General Counsel and Corporate Secretary](https://longbridge.com/en/news/286909292.md) - [Upbound Group Q1 revenue misses estimates](https://longbridge.com/en/news/284755011.md) - [Yext to Announce First Quarter Fiscal Year 2027 Financial Results on June 2, 2026 | YEXT Stock News](https://longbridge.com/en/news/286970613.md) - [West Pharma amends 8-K on material cyberattack disclosure](https://longbridge.com/en/news/287111623.md) - [Abundia Global Impact amends 8-K to disclose 2025 equity plan share increase](https://longbridge.com/en/news/287111321.md)