Oct 29, 2026 earnings call — Underwriting discipline boosts margins and cash flow
Third quarter revenue was $1.15 billion at the high end of guidance.
Revenue $1.1B (est $1.1B) · EPS $1.01 (est $0.91) · Next-quarter revenue outlook $1.1B–$1.3B
Key quotes
"We actively manage underwriting at a strategic level, balancing growth, portfolio performance, and risk-adjusted returns based on the data we see in each business."
"Upbound generated $121 million of free cash flow, more than double the prior year, allowing us to reduce net leverage to 2.4 times."
"Paying users grew 27% to 1.84 million, and revenue grew 37% to $79 million."
Analyst Q&A 6
recent consumer trends and Q4 outlook
Q (Brad Thomas · KeyBanc): The analyst asked if recent months show any change in trends and how management thinks about the fourth quarter. He also asked how much Acima GMV declines are from underwriting versus other factors and the future trajectory.
A: Management said they have not seen a big shift recently and the consumer is "stressed but resilient." They have tightened underwriting for about 12 months and estimate about 55%-60% of recent GMV declines are from underwriting tightening and 40%-45% are macro related; approval rate was down 300 basis points. Management also said payments and cash flow remain strong and they still expect $250 million in free cash flow for the year.
"I wouldn't say we've seen a big shift in recent months." — Fahmi Karam (CEO)
Brigit loss rate and Acima/Boost outlook
Q (Bobby Griffin · Raymond James): First, the analyst asked where Brigit's net advance loss ratio should be and whether they want it back near 3% or accept low-4s. Second, he asked about Acima portfolio size into 2027 and whether a smaller portfolio will pressure EBITDA. He also asked the potential size of the Boost account.
A: Management said they are comfortable with the current underwriting posture at Brigit despite the loss rate being over 4% and that Brigit is on track to $300 million of revenue with a 4:1 revenue-to-loss ratio and EBITDA margin north of 20%. For Acima, they said GMV fell short of expectations due to macro headwinds but they are offsetting top-line pressure with margin expansion (margins up 270 basis points and EBITDA dollars up 15% year-over-year) and they expect Boost (5,000 locations) to help keep Q4 relatively flat and support growth into 2027.
"Obviously having 5,000 locations in their network is very exciting, and we're hoping again to launch that in the fourth quarter before Black Friday." — Fahmi Karam (CEO)
Rent-A-Center performance and Acima demand
Q (Kyle Joseph · Stephens): He asked how Rent-A-Center's loss rates and overall performance compare to expectations, and separately whether product cycles are resetting so demand for big-ticket items like furniture and mattresses might return.
A: Management said Rent-A-Center had a solid quarter in a tough environment with same-store sales up 1.8% and the portfolio balance up 3%, and they expect losses in the middle of the 5% range while accepting some higher short-term losses to drive EBITDA and free cash flow. For Acima, they said consumer demand for large-ticket durables is soft but there is a shift to lower-margin categories like electronics and they are managing credit prudently while monitoring for recovery.
"That is our fourth quarter in a row of growing same-store sales." — Fahmi Karam (CEO)
Brigit ARPU and holiday pipeline for Acima
Q (Hoang Nguyen · TD Cowen): He asked why Brigit ARPU has been flat and whether there is room to raise pricing, and he asked about the Acima pipeline heading into the holiday season and timing for signing deals.
A: Management said ARPU rose 5% year-over-year to $14.39 this quarter and subscribers grew 27%, and they balance driving revenue per user with growing the network while adding new bundled products to lift ARPU. They also said the Experian partnership opens distribution and subscriber opportunities. On the holiday season, management said they are bullish and expect Q4 GMV to be relatively flat compared to last year but are cautious on where consumers will spend.
"ARPU has gone up again 5% this quarter, year-over-year." — Fahmi Karam (CEO)
cross-sell between brands and Amazon impact
Q (Casey Coates · Loop): He asked about current customer overlap across Brigit, Rent-A-Center, and Acima and which cross-sell opportunities are actionable. He also asked whether the Amazon partnership is improving conversion or just driving awareness and store traffic.
A: Management said current customer overlap is limited at about 10%-15% between the brands and they are building data and analytics to share across marketing, underwriting, and risk to create a connected customer experience and cross-sell over time. On Amazon, they said traffic per store is up by about 50 visits per week for the 1,500 corporate stores offering pickup/drop-off, conversion benefits have been seen but they are still working to tag and track those customers through the journey.
"You've heard us talk about the limited overlap to date in that 10%-15% range between Brigit and Rent-A-Center and Acima, and we think we can grow that over time." — Fahmi Karam (CEO)
cash flow bridge and capital plans
Q (William Reuter · BofA): First, he asked what explains the gap between operating cash flow guidance of $400 million and free cash flow of $250 million given CapEx of $65 million. Second, he asked about potential bolt-on M&A versus focusing on integrating Brigit and approaching leverage targets.
A: Management said there are substantial legal payments they are contemplating related to a multi-state attorney general investigation, and those would materially reconcile operating cash flow to free cash flow. On capital allocation, they said cash flow has been strong, they plan to invest in the business and reduce leverage, they announced up to $50 million in share repurchases, and they are not proactively pursuing M&A but will consider opportunities as they arise while they integrate Brigit.
"There are substantial legal payments that we are contemplating." — Hal Khouri (CFO)