Upbound (UPBD) stock price is $24.43, up 0.78% on the day, as of Nov 9, 2026. It has a market cap of $1.42Bn and a P/E ratio of 12.79, and is classified in the Specialty Finance industry (Financial Services sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap1.42 Bn
P/E12.79
FCF (Yr)238.71 Mn
ROA (Yr)2.47
EV to EBIT3.75
Net Income (Yr)73.24 Mn
Enterprise Value975.61 Mn
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About
Upbound Group, Inc. is a technology and data driven leader in accessible and inclusive financial solutions that address the evolving needs and aspirations of underserved consumers. The company operates as a leading lease to own provider with a presence in the United States Puerto Rico and Mexico. Through its lease to own offerings it enables customers to obtain ownership of high quality name brand durable products under flexible agreements that do not create long term debt…
Upbound Group, Inc. is a technology and data driven leader in accessible and inclusive financial solutions that address the evolving needs and aspirations of underserved consumers. The company operates as a leading lease to own provider with a presence in the United States Puerto Rico and Mexico. Through its lease to own offerings it enables customers to obtain ownership of high quality name brand durable products under flexible agreements that do not create long term debt obligations. In addition the company provides financial health tools such as earned wage access credit building savings and identity theft protection following the acquisition of Brigit. Its business model combines technology data analytics and retail partnerships to serve consumers who seek alternative payment options.
Upbound Group, Inc. generates revenue from several distinct streams. The primary source is rentals and fees earned from lease to own agreements across its Acima and Rent-A-Center segments. Merchandise sales contribute revenue when customers exercise early purchase options on leased items. Subscription based fees are derived from the Brigit segment for services such as earned wage access credit builder savings tools and identity theft protection. Additional revenue comes from other sources including transaction fees and ancillary services. The company serves individual consumers who need flexible ways to acquire goods and manage cash flow as well as retail partners that use its platform to increase sales and broaden their customer reach.
The company operates through the following segments: Acima, Rent-A-Center, Brigit, and Mexico.
Acima: Provides lease to own solutions through a network of retailers that operate both physical stores and online platforms. This segment enables retailers to grow sales by offering customers access to a wide range of durable products including furniture appliances electronics and smartphones under flexible lease to own agreements. Acima’s technology platform supports real time approvals and seamless integration with partner systems.
Rent-A-Center: Delivers a fully integrated customer experience through its brick and mortar stores and its electronic commerce platform. The segment offers lease to own transactions for household goods such as furniture appliances and electronics allowing customers to lease items with the option to purchase at the end of the term. Rent-A-Center emphasizes an omnichannel approach that lets shoppers start a transaction online and complete it in store or vice versa.
Brigit: Offers a suite of financial health products designed to help consumers improve their financial well being. These include earned wage access that lets users access a portion of their earned wages before payday credit builder tools that assist in establishing or improving credit scores savings programs that encourage regular deposits and identity theft protection services that monitor and safeguard personal information. Brigit’s offerings are delivered primarily through mobile applications and online channels.
Mexico: Provides lease to own services in Mexico through store based and online channels. This segment offers customers in Mexico the ability to lease durable goods such as furniture appliances and electronics under flexible lease to own arrangements. The Mexico segment leverages the same core lease to own model as the Rent-A-Center segment while adapting to local market preferences and regulatory requirements.
Upbound Group, Inc. holds a leading position in the lease to own industry competing with traditional rent to own stores virtual lease to own platforms buy now pay later services and financial health technology firms. Its competitive advantages arise from data driven underwriting algorithms that improve approval rates and reduce risk a broad network of retail partners that increases product availability and an integrated omnichannel approach that enhances convenience and customer satisfaction. The company’s focus on technology innovation and inclusive financial solutions differentiates it from many peers that rely solely on physical storefronts.
The company serves underserved consumers who need alternative ways to acquire essential household items and improve their financial stability. This includes individuals who may have limited access to traditional credit and those seeking flexible payment options for durable goods. Upbound Group, Inc. also works with retail partners ranging from small independent stores to large national chains that want to expand their customer base and increase sales by offering lease to own options at the point of sale. Additionally the financial health tools of the Brigit segment are used by consumers aiming to build credit manage cash flow and protect against identity theft.
Sectors:Financial Services·TechnologySector rationaleThe company's primary revenue is generated from lease-to-own agreements (Acima, Rent-A-Center, Mexico), which are essentially specialty finance products providing alternative credit to underserved consumers. A secondary sector of Technology is justified by the Brigit segment, which operates a subscription-based fintech platform providing digital financial health tools like earned wage access and credit building via mobile applications.Industries:Specialty FinanceSpecialty FinancePrimaryUpbound operates as a leading lease-to-own provider through its Acima, Rent-A-Center, and Mexico segments, providing non-bank financing for durable goods like furniture and electronics. This activity matches the specialty finance description of equipment leasing and non-bank commercial lending funded by wholesale borrowing rather than deposits.Digital BankingDigital BankingSecondaryThe Brigit segment provides a suite of financial health products, including earned wage access, credit builder tools, and savings programs, delivered through a technology-first, software-native mobile application model.Classified using BQ-MICSCIK: 0000933036
Bull & bear
Investment Thesis
▲ Bull case
Upbound's strategic acquisition of Brigit has proven to be a significant growth driver, with the segment demonstrating robust performance in Q1 FY26. The segment's paying subscribers and monthly average revenue per user both increased by double digits year-over-year, driving a revenue increase of over 40%. This performance reflects strong demand and solid execution, positioning Brigit to hit its financial targets for 2026. The segment's focus on enhancing its value proposition and driving increased engagement and monetization across the platform presents a compelling growth narrative that the market may be underestimating. The upcoming broader rollout of the line of credit pilot later this year could further accelerate this growth, providing a hidden catalyst that management has not heavily promoted.
Upbound's disciplined underwriting actions at Acima have resulted in a meaningful improvement in lease charge-offs, dropping by 130 basis points sequentially. This improvement validates the data-driven approach adopted to protect portfolio quality and improve long-term economics. The company's revised guidance for Acima's adjusted EBITDA margin to finish the year up slightly relative to 2025, despite revenue pressures, indicates a strong focus on profitability. The company's ability to navigate macro headwinds and maintain portfolio health positions it well for meaningful growth opportunities as the year progresses. The market may be overlooking the potential for a rebound in GMV growth in the second half of the year, driven by the company's strategic partnerships and improved underwriting models.
The company's strategic partnership with Amazon, enabling convenient order pickup and returns at more than 1,700 Rent-A-Center corporate-owned stores, is a significant growth driver that has not been fully appreciated by the market. This collaboration is expected to increase store relevance, drive brand awareness, and support new customer acquisition. The pilot program showed promising results with heavy traffic and a high percentage of new customers, suggesting that this initiative could have a material impact on Rent-A-Center's performance. The market may be underestimating the potential upside from this partnership, which could drive meaningful GMV in the second half of the year.
Upbound's focus on leveraging data, advanced analytics, and AI to improve personalization, strengthen underwriting, and enhance operating efficiency is a critical growth driver. The company's efforts to create a more connected, tech-enabled financial platform are expected to translate into enhanced customer engagement, better outcomes, and higher returns on capital. The recent addition of a new Chief Technology Officer with extensive experience in financial services and retail underscores the company's commitment to accelerating its digital transformation. The market may be underappreciating the long-term value creation potential of these initiatives, which could position Upbound as a leader in the financial technology space.
The company's strong cash flow generation and disciplined deleveraging strategy are key strengths that the market may be overlooking. Upbound's ability to convert earnings into cash and its focus on strengthening the balance sheet position it well to advance its capital allocation priorities. The company's target of achieving leverage in the 2x range over the long term indicates a strong commitment to financial discipline. The market may be underestimating the potential for shareholder returns and reinvestment opportunities that this strategy could unlock.
Upbound's strategic acquisition of Brigit has proven to be a significant growth driver, with the segment demonstrating robust performance in Q1 FY26. The segment's paying subscribers and monthly average revenue per user both increased by double digits year-over-year, driving a revenue increase of over 40%. This performance reflects strong demand and solid execution, positioning Brigit to hit its financial targets for 2026. The segment's focus on enhancing its value proposition and driving increased engagement and monetization across the platform presents a compelling growth narrative that the market may be underestimating. The upcoming broader rollout of the line of credit pilot later this year could further accelerate this growth, providing a hidden catalyst that management has not heavily promoted.
Upbound's disciplined underwriting actions at Acima have resulted in a meaningful improvement in lease charge-offs, dropping by 130 basis points sequentially. This improvement validates the data-driven approach adopted to protect portfolio quality and improve long-term economics. The company's revised guidance for Acima's adjusted EBITDA margin to finish the year up slightly relative to 2025, despite revenue pressures, indicates a strong focus on profitability. The company's ability to navigate macro headwinds and maintain portfolio health positions it well for meaningful growth opportunities as the year progresses. The market may be overlooking the potential for a rebound in GMV growth in the second half of the year, driven by the company's strategic partnerships and improved underwriting models.
The company's strategic partnership with Amazon, enabling convenient order pickup and returns at more than 1,700 Rent-A-Center corporate-owned stores, is a significant growth driver that has not been fully appreciated by the market. This collaboration is expected to increase store relevance, drive brand awareness, and support new customer acquisition. The pilot program showed promising results with heavy traffic and a high percentage of new customers, suggesting that this initiative could have a material impact on Rent-A-Center's performance. The market may be underestimating the potential upside from this partnership, which could drive meaningful GMV in the second half of the year.
Upbound's focus on leveraging data, advanced analytics, and AI to improve personalization, strengthen underwriting, and enhance operating efficiency is a critical growth driver. The company's efforts to create a more connected, tech-enabled financial platform are expected to translate into enhanced customer engagement, better outcomes, and higher returns on capital. The recent addition of a new Chief Technology Officer with extensive experience in financial services and retail underscores the company's commitment to accelerating its digital transformation. The market may be underappreciating the long-term value creation potential of these initiatives, which could position Upbound as a leader in the financial technology space.
The company's strong cash flow generation and disciplined deleveraging strategy are key strengths that the market may be overlooking. Upbound's ability to convert earnings into cash and its focus on strengthening the balance sheet position it well to advance its capital allocation priorities. The company's target of achieving leverage in the 2x range over the long term indicates a strong commitment to financial discipline. The market may be underestimating the potential for shareholder returns and reinvestment opportunities that this strategy could unlock.
Upbound's revenue growth in Q1 FY26 was relatively modest, with a 3.7% year-over-year increase to $1.2 billion. While the company delivered results in line with its financial targets, the lack of significant revenue growth raises concerns about the company's ability to drive top-line expansion in a challenging operating environment. The market may be ignoring the potential for continued revenue pressures, particularly if macro headwinds persist. The company's guidance for flat to low single-digit year-over-year growth in GMV and revenue at Acima suggests that revenue growth could remain subdued in the near term.
The company's adjusted EBITDA margin at Rent-A-Center declined by approximately 6% year-over-year, driven by lower revenue and profit contribution from the franchise business and inflationary pressure on margins. This decline raises concerns about the segment's ability to maintain profitability in the face of macroeconomic challenges. The market may be overlooking the potential for continued margin compression, particularly if the operating environment remains difficult. The company's guidance for flat to down low single-digit year-over-year growth in Rent-A-Center segment revenue suggests that this segment could continue to face headwinds.
Upbound's exposure to the non-prime consumer segment poses significant risks, particularly in the current operating environment. The non-prime consumer continues to face pressure from elevated costs in essential categories such as groceries, rent, utilities, and energy, which influences purchasing behavior and weighs on discretionary spending. The market may be ignoring the potential for further deterioration in the non-prime consumer's financial health, which could negatively impact Upbound's performance. The company's disciplined underwriting approach, while prudent, may not be sufficient to offset the broader macroeconomic challenges.
The company's legal and regulatory settlements, estimated at approximately $70 million in 2026, represent a significant risk that the market may be underestimating. While the company has provided guidance on these settlements, the potential for additional legal and regulatory risks could pose a challenge to its financial performance. The market may be ignoring the potential for unforeseen legal and regulatory issues to arise, which could impact the company's bottom line. The company's provision and reserve for legal settlements, while appropriate, indicate that this remains an area of concern.
Upbound's reliance on strategic partnerships and initiatives, such as the Amazon collaboration and the exclusive checkout option with a large online furniture retailer, poses execution risks that the market may be overlooking. While these initiatives have the potential to drive growth, their success is contingent on effective implementation and consumer adoption. The market may be underestimating the potential for these initiatives to fall short of expectations, particularly in a challenging macroeconomic environment. The company's ability to execute on these initiatives will be critical to its future performance.
Upbound's revenue growth in Q1 FY26 was relatively modest, with a 3.7% year-over-year increase to $1.2 billion. While the company delivered results in line with its financial targets, the lack of significant revenue growth raises concerns about the company's ability to drive top-line expansion in a challenging operating environment. The market may be ignoring the potential for continued revenue pressures, particularly if macro headwinds persist. The company's guidance for flat to low single-digit year-over-year growth in GMV and revenue at Acima suggests that revenue growth could remain subdued in the near term.
The company's adjusted EBITDA margin at Rent-A-Center declined by approximately 6% year-over-year, driven by lower revenue and profit contribution from the franchise business and inflationary pressure on margins. This decline raises concerns about the segment's ability to maintain profitability in the face of macroeconomic challenges. The market may be overlooking the potential for continued margin compression, particularly if the operating environment remains difficult. The company's guidance for flat to down low single-digit year-over-year growth in Rent-A-Center segment revenue suggests that this segment could continue to face headwinds.
Upbound's exposure to the non-prime consumer segment poses significant risks, particularly in the current operating environment. The non-prime consumer continues to face pressure from elevated costs in essential categories such as groceries, rent, utilities, and energy, which influences purchasing behavior and weighs on discretionary spending. The market may be ignoring the potential for further deterioration in the non-prime consumer's financial health, which could negatively impact Upbound's performance. The company's disciplined underwriting approach, while prudent, may not be sufficient to offset the broader macroeconomic challenges.
The company's legal and regulatory settlements, estimated at approximately $70 million in 2026, represent a significant risk that the market may be underestimating. While the company has provided guidance on these settlements, the potential for additional legal and regulatory risks could pose a challenge to its financial performance. The market may be ignoring the potential for unforeseen legal and regulatory issues to arise, which could impact the company's bottom line. The company's provision and reserve for legal settlements, while appropriate, indicate that this remains an area of concern.
Upbound's reliance on strategic partnerships and initiatives, such as the Amazon collaboration and the exclusive checkout option with a large online furniture retailer, poses execution risks that the market may be overlooking. While these initiatives have the potential to drive growth, their success is contingent on effective implementation and consumer adoption. The market may be underestimating the potential for these initiatives to fall short of expectations, particularly in a challenging macroeconomic environment. The company's ability to execute on these initiatives will be critical to its future performance.