# UPBOUND GROUP, INC. (UPBD)

Informational only - not investment advice.

CIK: 0000933036
SIC: 7359 Services-Equipment Rental & Leasing, NEC
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7359 Services-Equipment Rental & Leasing, NEC](/industry/7359/)
Latest 10-K filed: 2026-02-23
SEC page: https://www.sec.gov/edgar/browse/?CIK=933036
Filing source: https://www.sec.gov/Archives/edgar/data/933036/000093303626000008/upbd-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-23 · accession 0000933036-26-000008 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000933036.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,695,061,000 USD | 2025 | verified |
| Net income | 73,242,000 USD | 2025 | verified |
| Assets | 3,276,081,000 USD | 2025 | verified |
| Free cash flow | 238,708,000 USD | 2025 | computed |
| Net margin | 1.56% | 2025 | computed |
| Operating margin | 4.76% | 2025 | computed |
| Revenue YoY | +8.67% | 2025 | computed |
| ROE | 10.53% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | UPBD | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.6% | 4.2% | 41 | 310 |
| Operating margin | 4.8% | 6.3% | 46 | 301 |
| Revenue growth | 8.7% | 9.2% | 47 | 315 |
| FCF margin | 5.1% | 14.9% | 23 | 307 |
| ROE | 10.5% | 6.6% | 60 | 287 |
| ROA | 2.2% | 2.6% | 48 | 318 |
| Liabilities / equity | 3.71 | 1.27 | 83 | 290 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 73 Business Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4695061000 | USD | 2025 | 2026-02-23 |
| Net income | 73242000 | USD | 2025 | 2026-02-23 |
| Assets | 3276081000 | USD | 2025 | 2026-02-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000933036.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 2,963,252,000 | 2,702,540,000 | 2,660,465,000 | 2,669,852,000 | 2,814,191,000 | 4,583,451,000 | 4,245,392,000 | 3,992,413,000 | 4,320,564,000 | 4,695,061,000 |
| Net income |  | -105,195,000 | 6,653,000 | 8,492,000 | 173,546,000 | 208,115,000 | 134,940,000 | 12,357,000 | -5,179,000 | 123,478,000 | 73,242,000 |
| Operating income |  | -66,596,000 | -63,059,000 | 56,137,000 | 253,859,000 | 237,336,000 | 280,539,000 | 148,538,000 | 162,865,000 | 291,631,000 | 223,347,000 |
| Gross profit |  | 1,935,049,000 | 1,718,542,000 | 1,688,168,000 | 1,644,071,000 | 1,672,152,000 | 2,235,012,000 | 2,079,532,000 | 2,022,258,000 | 2,080,351,000 | 2,271,709,000 |
| Diluted EPS |  | -1.98 | 0.12 | 0.16 | 3.10 | 3.73 | 2.02 | 0.21 | -0.09 | 2.21 | 1.25 |
| Operating cash flow |  | 354,073,000 | 110,533,000 | 227,505,000 | 215,416,000 | 236,502,000 | 392,298,000 | 468,460,000 | 200,290,000 | 104,721,000 | 305,571,000 |
| Capital expenditures |  | 61,143,000 | 65,460,000 | 27,962,000 | 21,157,000 | 34,545,000 | 62,450,000 | 61,387,000 | 53,402,000 | 56,275,000 | 66,863,000 |
| Dividends paid |  | 25,554,000 | 12,811,000 | 0.00 | 13,707,000 | 63,119,000 | 71,505,000 | 79,188,000 | 83,056,000 | 82,299,000 | 87,865,000 |
| Share buybacks | 0.00 |  | 0.00 | 0.00 | 1,292,000 | 26,572,000 | 390,112,000 | 75,052,000 | 50,000,000 | 0.00 | 0.00 |
| Assets |  | 1,602,741,000 | 1,420,781,000 | 1,396,917,000 | 1,582,798,000 | 1,750,980,000 | 2,993,327,000 | 2,763,619,000 | 2,721,430,000 | 2,649,662,000 | 3,276,081,000 |
| Liabilities |  | 1,337,808,000 | 1,149,649,000 | 1,110,400,000 | 1,123,835,000 | 1,158,900,000 | 2,480,051,000 | 2,238,473,000 | 2,161,058,000 | 2,020,678,000 | 2,580,341,000 |
| Stockholders' equity |  | 264,933,000 | 271,132,000 | 286,517,000 | 458,963,000 | 592,080,000 | 513,276,000 | 525,146,000 | 560,372,000 | 628,984,000 | 695,740,000 |
| Cash and cash equivalents |  | 95,396,000 | 72,968,000 | 155,391,000 | 70,494,000 | 159,449,000 | 108,333,000 | 144,141,000 | 93,705,000 | 60,860,000 | 120,528,000 |
| Free cash flow |  | 292,930,000 | 45,073,000 | 199,543,000 | 194,259,000 | 201,957,000 | 329,848,000 | 407,073,000 | 146,888,000 | 48,446,000 | 238,708,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | -3.55% | 0.25% | 0.32% | 6.50% | 7.40% | 2.94% | 0.29% | -0.13% | 2.86% | 1.56% |
| Operating margin |  | -2.25% | -2.33% | 2.11% | 9.51% | 8.43% | 6.12% | 3.50% | 4.08% | 6.75% | 4.76% |
| Return on equity |  | -39.71% | 2.45% | 2.96% | 37.81% | 35.15% | 26.29% | 2.35% | -0.92% | 19.63% | 10.53% |
| Return on assets |  | -6.56% | 0.47% | 0.61% | 10.96% | 11.89% | 4.51% | 0.45% | -0.19% | 4.66% | 2.24% |
| Liabilities / equity |  | 5.05 | 4.24 | 3.88 | 2.45 | 1.96 | 4.83 | 4.26 | 3.86 | 3.21 | 3.71 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000933036.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.10 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.84 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.83 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | -45,618,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 979,098,000 |  | 0.08 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,018,091,000 | -11,254,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 1,095,967,000 | 27,687,000 | 0.50 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 27,687,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,076,510,000 |  | 0.61 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 33,949,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,068,859,000 |  | 0.55 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,079,228,000 | 30,982,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,176,363,000 | 24,793,000 | 0.42 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 24,793,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,157,536,000 |  | 0.26 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 15,485,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,164,717,000 |  | 0.22 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,196,445,000 | 19,743,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,219,729,000 | 35,789,000 | 0.61 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 35,789,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,163,426,000 |  | 0.37 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from UPBD's latest 10-K: [/company/UPBD/business/](/company/UPBD/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from UPBD's latest 10-K: [/company/UPBD/risk-factors/](/company/UPBD/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/933036/000119312526326420/upbd-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” These forward-looking statements include, without limitation, those relating to the impact of ongoing challenging macroeconomic conditions on our business, operations, financial performance and prospects, the future business prospects and financial performance of our Company as a whole and our segments, our growth strategies, our expectations, plans and strategy relating to our capital structure and capital allocation, including any share repurchases under our share repurchase program, the potential impact of the matters discussed in Note 11 - “Contingencies” in this Quarterly Report on Form 10-Q, and other statements that are not historical facts. Unless expressly indicated or the context requires otherwise, the terms “Upbound Group, Inc.,” “Company,” “we,” “us,” and “our” in this document refer to Upbound Group, Inc. and, where appropriate, its subsidiaries.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Our actual future results and trends may differ materially and adversely depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” below. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this Quarterly Report on Form 10-Q and any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Except as required by law, we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. Factors that could cause or contribute to these differences include, but are not limited to:

•
difficulties encountered in managing the financial and operational performance of our multiple business segments;

•
risks associated with pricing, value proposition and other changes to our consumer offerings and strategies being deployed in our businesses;

•
our ability to continue to effectively execute our strategic initiatives, including mitigating risks associated with any potential additional mergers and acquisitions, or lease-to-own refranchising opportunities;

•
our ability to effectively provide consumers with additional products and services beyond lease-to-own and products and services currently offered by our Brigit segment, including through third-party partnerships;

•
the possibility that costs, difficulties or disruptions related to the integration of Brigit operations into our other operations will be greater than expected;

•
the possibility that the anticipated benefits from the Brigit acquisition may not be fully realized or may take longer to realize than expected;

•
the general strength of the economy and other economic conditions affecting consumer preferences, spending and payment behaviors, including the availability of credit to our target consumers and to other consumers, impacts from continued or renewed inflation, central bank monetary policy initiatives to address inflation concerns, and a possible recession or slowdown in economic growth;

•
failure to effectively manage our operating labor and non-labor operating expenses, including failure to effectively optimize our proprietary algorithms and customer decisioning tools to limit merchandise losses for our lease-to-own offerings;

25

•
our ability to retain the revenue associated with acquired lease-to-own customer accounts and enhance the performance of acquired stores;

•
factors affecting the disposable income available to our current and potential customers;

•
changes in the unemployment rate;

•
capital market conditions, including changes in interest rates and availability of funding sources for us;

•
changes in our credit ratings;

•
our ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies;

•
disruptions caused by the operation of our information management systems or disruptions in the systems of our third-party retailers or other third parties with whom we do business;

•
risks related to our virtual lease-to-own business, including our ability to continue to develop and successfully implement the necessary technologies;

•
our ability to achieve the benefits expected from our integrated virtual and staffed third-party retailer offering and to successfully grow this business segment;

•
exposure to potential operating margin degradation due to the higher cost of merchandise and higher merchandise losses in our Acima segment compared to our Rent-A-Center segment;

•
additional risks associated with our Brigit segment and its consumer products and services, including managing losses, regulatory, licensing and other compliance risks, and risks associated with our Brigit segment’s reliance on regulated banks and on providers of third-party data and technology and other third-party service providers; and other new risks for our Company;

•
our ability to (i) effectively adjust to changes in the composition of our offerings and product mix as a result of acquiring Brigit and continue to maintain the quality of existing offerings and (ii) successfully introduce other new product or service offerings on a timely and cost-effective basis;

•
changes in our future cash requirements as a result of the Brigit acquisition, whether caused by unanticipated increases in capital expenditures or working capital needs, unanticipated liabilities or otherwise;

•
litigation or administrative proceedings to which we are or may be a party to from time to time and changes in estimates relating to litigation reserves, including in each case in connection with the regulatory and litigation matters described in Note 11 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q;

•
our compliance with applicable statutes and regulations governing our businesses, impacts from the enforcement of existing laws and regulations and the enactment of new laws and regulations adversely affecting our business and any legislative or other regulatory enforcement efforts or private party litigation or arbitration that seeks to re-characterize store-based or virtual lease-to-own transactions as credit sales and to apply consumer credit laws and regulations to our lease-to-own business or to apply consumer credit laws to our Brigit segment’s non-credit consumer offerings, in each case including in connection with, but not limited to, the regulatory matters described in Note 11 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q;

•
our transition to more-readily scalable “cloud-based” solutions;

•
our ability to continue to enhance digital or e-commerce capabilities, including mobile applications;

•
our ability to protect our proprietary intellectual property and to defend against allegations by third parties that any of our products, services or business activities may infringe against their intellectual property rights;

•
risks from development, deployment and governance of artificial intelligence (“AI”) and adjacent technologies, including technical failures or inaccuracies, rapid adoption by our competitors, and evolving regulatory requirements that may restrict certain AI uses or increase compliance costs;

26

•
our ability or that of our third-party retailers or other third parties with whom we do business to protect the integrity and security of customer, employee, supplier and third-party retailer or other third-party information, from adverse effects of hacking, computer viruses, cybersecurity attacks or similar disruptions;

•
impairment of our goodwill or other intangible assets;

•
disruptions in our supply chain;

•
limitations of, or disruptions in, our distribution network;

•
rapid inflation or deflation in the prices of our lease-to-own products and other related costs;

•
allegations of product safety and quality control issues, including recalls of goods we lease to customers;

•
our ability to execute, as well as the effectiveness of, lease-to-own store consolidations, including our ability to retain the revenue from customer accounts merged into another store location as a result of a store consolidation;

•
our available cash flow and our ability to generate sufficient cash flow to continue to fund the operations of our business;

•
increased competition from traditional competitors, virtual lease-to-own competitors, online retailers, Buy-Now-Pay-Later, earned wage access and financial health technology competitors and other fintech companies and other competitors, including subprime lenders;

•
our ability to identify and successfully market products and services that appeal to our current and future targeted customer segments and to accurately estimate the size of the total addressable market;

•
consumer preferences and perceptions of our brands;

•
our ability to enter into new rental or lease purchase agreements and collect on our existing rental or lease purchase agreements;

•
ongoing changes in tariff policies, including impacts from tariffs proposed or imposed by the current U.S. Presidential Administration on the price of imported goods, or consumer prices overall or other financial impacts of such tariffs or proposed or imposed retaliatory tariffs enacted by U.S. trading partners on our costs or target consumers;

•
adverse changes in the economic conditions of the industries, countries or markets that we serve;

•
information technology and data security costs;

•
the impact of breaches in data security or other disturbances to our information technology and other networks;

•
changes in estimates relating to self-insurance liabilities and income tax reserves;

•
changes in our effective tax rate;

•
fluctuations in foreign currency exchange rates;

•
our ability to maintain an effective system of internal controls; and

•
the other risks detailed from time to time in our reports furnished or filed with the United States Securities and Exchange Commission (the “SEC”).

Additional important factors that could cause our actual results to differ materially from our expectations are discussed under the section “Risk Factors” in our Annual Report

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/933036/000093303626000008/upbd-20251231.htm
Complete FY 2025 MD&A: /company/UPBD/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-23
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Objective

We report financial operations under four operating segments, including our Acima segment, which includes our virtual and staffed business models; our Rent-A-Center segment, which includes our company-owned stores, franchise stores, and e-commerce platform through rentacenter.com; and our Brigit and Mexico segments.

The following discussion focuses on recent developments expected to have current and future impacts on the results of our business, trends and uncertainties within our industry and business model that may impact our financial results, our recent results of operations, and discussion of our liquidity and capital resources. You should read the following discussion in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K.

For similar historical operating and financial data and discussion of our year ended December 31, 2024 results compared to our year ended December 31, 2023 results, refer to Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K, for the year ended December 31, 2024, incorporated herein by reference, which was filed with the SEC on February 25, 2025.

Recent Developments

Brigit Acquisition. On January 31, 2025, we completed the acquisition of Brigit for total consideration of up to $460 million, consisting of approximately $278.7 million in cash consideration and approximately 2.7 million shares of Upbound Group, Inc. common stock at closing, $75 million in deferred consideration, payable in multiple installments, and an earnout of up to $60 million based on the achievement of certain financial performance metrics for the Brigit business in 2026. Brigit is a holistic financial health technology company that has helped millions of Americans improve their financial health and literacy, find ways to earn and save money, access their earned wages before their regularly scheduled payday, build their credit through savings, and protect themselves from identity theft. Its mission is to help everyday Americans build a better financial future.

Operating Segments. On January 31, 2025 we established a new operating segment following the acquisition of Brigit. Please reference Note B in our consolidated financial statements included in this Annual Report on Form 10-K for additional discussion of the acquisition. In addition, effective January 1, 2025, we combined our Franchising segment with our Rent-A-Center segment. Financial information disclosed within this report has been recast for the related prior year period to reflect this change. We report four operating segments: Acima, Rent-A-Center, Brigit and Mexico.

One Big Beautiful Bill Act (“OBBB”). The OBBB was signed into law on July 4, 2025 and contains a broad range of tax reform provisions, including the reinstatement of 100% bonus depreciation and the immediate expensing of domestic R&D under the new § 174A of the Internal Revenue Code. As a result of the new provisions, we expect that OBBB will have a favorable impact on our cash taxes paid in the near term relative to the prior law.

Term Loan Facility Amendment. On August 19, 2025 we entered into a Fourth Amendment to the Term Loan Facility, effective as of August 19, 2025. The amendment, in addition to certain other changes, (i) extended the maturity date for the loans outstanding under the Term Loan Facility to August 19, 2032 (subject to certain springing maturity provisions) and (ii) provided approximately $77 million of incremental commitments under the Term Loan Facility, all of which were drawn at the closing of the amendment, resulting in total aggregate borrowings under the Credit Agreement on such date of $875 million.

Executive Management Changes.

•On June 1, 2025, Mitchell E. Fadel retired from his position as Chief Executive Officer and as a member of the Board of Directors. Fahmi Karam, our former Chief Financial Officer, succeeded Mr. Fadel as Chief Executive Officer and a member of the Board of Directors.

•On September 18, 2025, Rebecca Wooters joined the Company as Executive Vice President, Chief Growth Officer. Ms. Wooters brings more than 30 years of executive leadership in digital transformation, product innovation, technology, and customer engagement. Under the leadership of Ms. Wooters, we have consolidated Upbound’s marketing, data analytics, customer experience, and product development teams into a single integrated group.

•On November 10, 2025, Mr. Hal Khouri joined the Company as Executive Vice President, Chief Financial Officer. Mr. Khouri has over 30 years of experience in consumer-based banking, financial services, leasing, retail, consulting and government service.

42

Dividend. On December 4, 2025, we announced that our Board of Directors approved a quarterly cash dividend of $0.39 per share for the first quarter of 2026. The dividend was paid on January 6, 2026 to our common stockholders of record as of the close of business on December 17, 2025.

Business and Operational Trends

Macroeconomic Conditions. In recent years, we have experienced significant change in business and operational trends driven by macroeconomic conditions, which have directly impacted our customers as well as our operations, including significant changes in the U.S. consumer price index, changes in demand for certain consumer retail categories, changes in consumer payment behaviors, a condensed labor market, which has also contributed to wage inflation, rapid increases in interest rates, changes in tariff and trade policies, and global supply chain disruptions resulting in reduced product availability and rising product costs.

While our businesses have historically remained resilient through various economic cycles, the full extent to which our risk management strategy and these macroeconomic trends (including consumer spending and payment behavior) may impact the Company in future periods is uncertain. The continuation of volatile macroeconomic trends may have a material adverse impact on our financial statements, including our results of operations, operating cash flows, liquidity and capital resources.

See “Risk Factors” in Part I, Item 1A in this Annual Report on Form 10-K, for additional discussion of impacts to our business and additional risks associated with macroeconomic conditions.

Rent-A-Center e-commerce revenue. In recent years, e-commerce revenues have continued to increase as a percentage of total rentals and fees revenue in our Rent-A-Center segment. For the years ended December 31, 2025 and 2024, e-commerce revenues represented approximately 27% and 26% of total lease-to-own revenues, respectively. Due to recent trends in consumer shopping behaviors and expectations, we believe e-commerce solutions are an important part of our lease-to-own offering. However, we are unable to quantify the extent to which e-commerce revenues are incremental compared to what our overall revenues would have been in the absence of those e-commerce transactions. In addition, the profitability of e-commerce transactions can be impacted by different merchandise loss factors compared to traditional store-based transactions in the Rent-A-Center segment. Therefore, we are unable to determine with certainty whether the continuation of this trend toward increased e-commerce transactions will have a significant impact on our financial statements in future periods or be ultimately favorable or unfavorable to our financial results.

Results of Operations

The following discussion focuses on our results of operations and our liquidity and capital resources. You should read this discussion in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2025 included in Part II, Item 8 of this Annual Report on Form 10-K.

Key Metrics

Gross Merchandise Volume (“GMV”): The Company defines Gross Merchandise Volume as the retail value in U.S. dollars of merchandise acquired by the Acima segment that is leased to customers through a transaction that occurs within a defined period, net of estimated cancellations as of the measurement date.

Lease Portfolio Value: Represents the aggregate dollar value of the expected monthly rental income associated with current active lease agreements from our Company-owned Rent-A-Center lease-to-own stores and e-commerce platform at the end of any given period.

Same Store Lease Portfolio Value: Represents the aggregate dollar value of the expected monthly rental income associated with current active lease agreements from our Company-owned Rent-A-Center lease-to-own stores that were operated by us for 13 months or more at the end of any given period. The Company excludes from the same store base any store that receives a certain level of customer accounts from closed stores or acquisitions. The receiving store will be eligible for inclusion in the same store base in the 30th full month following account transfer.

Same Store Sales: Same store sales generally represents revenue earned in Company-owned Rent-A-Center stores that were operated by us for 13 months or more and are reported on a constant currency basis as a percentage of total revenue earned in stores of the segment during the indicated period. The Company excludes from the same store sales base any store that receives a certain level of customer accounts from closed stores or acquisitions. The receiving store will be eligible for inclusion in the same store sales base in the 30th full month following account transfer.

Lease Charge-Offs (“LCOs”) (previously referred to as “skip/stolen losses”): Represents charge-offs of the net book value of unrecoverable on-rent merchandise with lease-to-own customers who are past due. This is typically expressed as a percentage

43

of revenues for the applicable period. For the Rent-A-Center segment, LCOs exclude Get It Now, Home Choice and franchise-owned Rent-A-Center locations.

Brigit Net Advance Losses: Represents charge-offs of Brigit uncollectible customer cash advances that are more than 45 days past due. This is typically expressed as a percentage of total cash advances originated in the applicable period.

Overview

The following briefly summarizes certain of our financial information for the year ended December 31, 2025 as compared to the year ended December 31, 2024.

During the year ended December 31, 2025, consolidated revenues and gross profit increased by approximately $374.5 million and $191.3 million, respectively, primarily due to the addition of Brigit segment revenues and an increase in the Acima segment revenues, partially offset by a decrease in Rent-A-Center segment revenues described below. Operating profit decreased by approximately $68.3 million, primarily due to increases in non-labor operating expenses, other gains and charges and general and administrative expenses of $138.3 million, $107.6 million and $19.5 million, respectively, partially offset by the increase in gross profit noted above and a decrease in operating labor expenses of $6.9 million.

The Acima segment revenues increased approximately $251.0 million for the year ended December 31, 2025, due to increases in rentals and fees revenues and merchandise sales of $192.5 million and $59.0 million, respectively, primarily resulting from higher GMV of 8.6%. Growth in GMV was primarily due to an increase in third-party retailer locations and productivity, which resulted in more leases per retailer, and expanded direct-to-consumer offerings. Operating profit increased approximately $39.4 million for the year ended December 31, 2025, primarily due to an increase in gross profit of $60.3 million and decreases in operating labor costs and other gains and charges of $4.4 million and $1.7 million, respectively, partially offset by an incr

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/UPBD/mda/fy2025/
All MD&A years: /company/UPBD/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/UPBD/mda/fy2024/): filed 2025-02-25; accession 0000933036-25-000042 (https://www.sec.gov/Archives/edgar/data/933036/000093303625000042/upbd-20241231.htm)
- [FY 2023 MD&A](/company/UPBD/mda/fy2023/): filed 2024-02-27; accession 0000933036-24-000048 (https://www.sec.gov/Archives/edgar/data/933036/000093303624000048/upbd-20231231.htm)
- [FY 2022 MD&A](/company/UPBD/mda/fy2022/): filed 2023-02-24; accession 0000933036-23-000050 (https://www.sec.gov/Archives/edgar/data/933036/000093303623000050/rcii-20221231.htm)
- [FY 2021 MD&A](/company/UPBD/mda/fy2021/): filed 2022-02-28; accession 0000933036-22-000046 (https://www.sec.gov/Archives/edgar/data/933036/000093303622000046/rcii-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7359 Services-Equipment Rental & Leasing, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/UPBD.md · JSON record: /company/UPBD.json · verified financials: /company/UPBD/financials.json / /company/UPBD/financials.csv · machine TOC for the whole site: /llms.txt