Upbound Group Soars 18% on Q1 Beat and Upgraded 2025 Outlook

Key Highlights:

• Q1 revenue hits $1.18B, up 7.3% YoY, beating expectations
• Adjusted EPS of $1.00 tops forecasts; adjusted EBITDA climbs 15.6%
• Acima and Brigit segments drive growth; full-year guidance raised

Upbound Group, Inc. (NASDAQ: UPBD) surged over 18% on Thursday after delivering a strong first-quarter 2025 earnings beat and raising its full-year guidance—marking a sharp reversal for a stock that had lost more than 30% over the past three months.

The Plano, Texas-based company reported revenue of $1.18 billion, a 7.3% increase year over year, surpassing market expectations. Adjusted earnings per share came in at $1.00, exceeding analyst forecasts and up from $0.79 in the same period last year.

Behind the upbeat performance was continued momentum at Acima, Upbound’s virtual lease-to-own platform, and a strong start from Brigit, the financial wellness platform acquired earlier this year.

“These results highlight the resilience of our model and the strength of our strategic investments,” said CEO Mitch Fadel. “Brigit and Acima are delivering operational leverage, and we’re seeing meaningful gains in user engagement and profitability.”

Segment Snapshot: Acima and Brigit Shine

The Acima segment generated $637.3 million in revenue, up 13.5% year over year. Applications rose more than 10%, while Gross Merchandise Volume (GMV) increased 8.8%. Most impressively, GMV from the Acima marketplace surged 75%, a sign of growing direct-to-consumer traction. Adjusted EBITDA margin improved by 170 basis points to 13.3%.

Meanwhile, Brigit contributed $31.9 million in revenue for the two months post-acquisition, up 35.4% from the same period last year. With a 26% rise in paying subscribers and 23% growth in cash advance volumes, Brigit delivered an EBITDA margin of 35.9%, reflecting high operating efficiency.

The Rent-A-Center segment saw a 4.9% revenue decline to $489 million due to store closures and underwriting discipline, though lease charge-offs improved slightly to 4.6%. Same-store sales fell 2%, and adjusted EBITDA declined by $11.7 million.

In Mexico, revenues rose 6.3% on a constant currency basis to $18.2 million across 132 locations.

Guidance Boosts Confidence

On the back of its Q1 beat, Upbound raised its 2025 full-year revenue guidance to $4.60–$4.75 billion, up from prior estimates. Adjusted earnings per share are now expected to be $4.00–$4.40, while free cash flow is projected at $150–$200 million.

Q2 revenue is forecast between $1.05 billion and $1.15 billion, with EPS in the $1.00–$1.10 range.

The updated outlook sent the stock soaring to $23.57, up $3.67 intraday, with volume surging to 877,000 shares, well above its average of 570,000. The company now trades at a forward PE of just 10.67, with a 7.85% dividend yield, making it a potentially attractive value play for income and growth investors alike.

Outlook: Recovery in Motion

Upbound’s rebound hinges on its ability to scale high-margin segments like Brigit and Acima while managing headwinds in legacy operations like Rent-A-Center. With a diversified revenue model and rising digital adoption, the company appears well-positioned to navigate ongoing consumer pressures and macro volatility.

As consumer wallets remain squeezed by inflation and credit constraints, Upbound’s alternative financing solutions are gaining relevance—and that’s showing up in both the numbers and market sentiment.