Upbound Group Inc (NASDAQ:UPBD) Reports Q3 2025 Earnings, Meets Profit Forecasts

Upbound Group Inc (NASDAQ:UPBD) reported its financial results for the third quarter of 2025, delivering a performance that narrowly missed analyst revenue expectations while meeting adjusted profit forecasts. The company's pre-market trading activity suggests a positive reception from investors following the report.

Third Quarter 2025 Financial Performance

The company posted consolidated revenue of $1.165 billion for the quarter ended September 30, 2025, representing a 9.0% year-over-year increase. This topline figure came in slightly below the analyst consensus estimate of $1.178 billion. On the profitability front, Upbound reported non-GAAP diluted earnings per share of $1.00, effectively meeting the analyst estimate of $1.00.

Key performance metrics from the quarter include:

• Consolidated revenue of $1.165 billion, a 9.0% year-over-year increase
• Non-GAAP EPS of $1.00, meeting analyst estimates
• Revenue miss versus estimates of approximately $13 million

Brand Performance and Operational Highlights

The earnings release detailed divergent performances across Upbound's three main business units, providing context for the overall financial results.

The Acima segment continued its strong growth trajectory, achieving its eighth consecutive quarter of expansion. Gross Merchandise Volume grew 11.0% year-over-year, while revenue increased by 10.4%. The Brigit segment demonstrated particularly robust growth, with revenue surging 40.2% year-over-year. This was driven by a 26.8% increase in paying subscribers and an 11.4% rise in Average Revenue Per User. In contrast, the legacy Rent-A-Center business showed signs of stabilization, with same-store sales declining 3.6% year-over-year. The company noted this represented a 40-basis point improvement compared to the second quarter and expressed expectations for same-store sales to approach flat-to-positive territory in the fourth quarter.

Management Commentary and Forward Guidance

Alongside the earnings report, Upbound announced a significant addition to its leadership team, appointing Hal Khouri as Executive Vice President and Chief Financial Officer, effective November 10, 2025. Khouri brings over 30 years of financial leadership experience, most recently serving as CFO at goeasy Ltd., a Canadian non-prime consumer lender. CEO Fahmi Karam, who had been serving as interim CFO since June, will hand over the financial leadership reins.

Regarding forward guidance, the company tightened its full-year 2025 non-GAAP diluted EPS outlook to a range of $4.05 to $4.15. This refined guidance appears consistent with the broader analyst expectations for the company's full-year performance.

Market Reaction and Investment Perspective

The stock's pre-market gain of approximately 3.85% indicates a favorable market response to the earnings release. This positive momentum may be attributed to the company meeting its EPS target despite the slight revenue shortfall, coupled with the strong operational cash flow generation of $264 million year-to-date and the reaffirmation of full-year earnings guidance. The appointment of a seasoned CFO with relevant industry experience likely also contributed to investor confidence.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, review the complete earnings and estimates data for UPBD.

Disclaimer: This article presents factual information from recent corporate disclosures and market data for informational purposes only. It does not constitute investment advice, financial guidance, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.