Upbound Group Reports Strong Revenue Growth Amid Challenges

Upbound Group, Inc. ( (UPBD) ) has released its Q3 earnings. Here is a breakdown of the information Upbound Group, Inc. presented to its investors.

Upbound Group, Inc. is a technology and data-driven company that provides accessible financial solutions through its brands Acima, Brigit, and Rent-A-Center, operating across the United States, Mexico, and Puerto Rico. In its latest earnings report, Upbound Group, Inc. showcased a 9% year-over-year increase in consolidated revenues, reaching $1,164.7 million, primarily due to the acquisition of Brigit and increased rental and merchandise sales revenue. The company also reported a GAAP operating profit of $52.8 million, although this was a decrease from the previous year, with net earnings on a GAAP basis falling to $13.2 million from $30.9 million. Key highlights include Acima’s eighth consecutive quarter of GMV growth, with an 11% year-over-year increase, and Brigit’s impressive over 40% revenue growth year-over-year. However, the Rent-A-Center segment saw a decline in revenue by 4.7% year-over-year, attributed to a reduction in company-owned store count. Despite these challenges, Upbound Group remains optimistic about its future, with management focusing on enhancing offerings and maintaining a disciplined approach to risk management. The company is also looking forward to the contributions of its newly appointed Chief Financial Officer and Chief Growth Officer as it aims to deliver strong financial performance and meet the needs of underserved consumers.