NASDAQ$UPBD

Upbound Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Upbound Group, Inc. reported strong third-quarter results with significant growth in revenue, net earnings, and EPS, driven by strong performance in both Acima and Rent-A-Center segments.

Upbound Group, Inc. delivered a robust third quarter in 2024, with consolidated revenues increasing by 9.2% year-over-year to $1,068.9 million. Net earnings saw a substantial rise to $30.9 million, and diluted EPS reached $0.55, with non-GAAP diluted EPS at $0.95. This performance was bolstered by double-digit GMV growth in Acima and positive same-store sales growth in Rent-A-Center, positioning the company to achieve its full-year 2024 guidance.

  • Consolidated revenues increased 9.2% year-over-year to $1,068.9 million, driven by higher rentals and fees revenue and merchandise sales.
  • GAAP operating profit increased to $70.1 million, up from $58.1 million in the prior year, with the operating profit margin improving to 6.6%.
  • Net earnings surged to $30.9 million, a $26.5 million increase from the prior year, primarily due to a prior year tax impact.
  • Adjusted EBITDA increased 10.3% year-over-year to $116.9 million, with improvements in both Acima and Rent-A-Center segments and lower Corporate costs.

Headline financials

Total Revenue

$1.07B

Previous: $979M+9.2%
EPS

$0.55

Previous: $0.08+587.5%
RAC Same-Store Sales Growth

2.6%

No prior period
Capital Expenditures

-$44.2M

Previous: -$36.2M-22.2%
Free Cash Flow

-$13.3M

Previous: -$31.8M+58.1%
Net Income

$30.9M

Previous: $4.36M+607.3%
Operating Income

$70.1M

Previous: $58.1M+20.7%
Gross Profit

$511M

Previous: $497M+2.8%

Revenue & EPS history

Upbound · Revenue · Quarterly

$1.07B

Q3 2024+9.2%vs Q3 2023
Beat estimate in 2 of 3 quarters(67%)
ActualEstimate

Revenue by segment

Upbound · $476M total across 1 segment · Q4 2023

  • Acima
    $476M

Forward guidance

Upbound Group, Inc. has tightened its full-year 2024 financial guidance, reflecting confidence in achieving its targets despite ongoing economic uncertainties. The company expects continued growth and strong performance, driven by strategic investments and operational efficiencies.

Tailwinds

  • Consolidated Revenues guidance maintained at $4.20 billion - $4.30 billion.
  • Adjusted EBITDA Excluding SBC guidance tightened to $470 million - $480 million (previously $465 million - $485 million).
  • Non-GAAP Diluted Earnings Per Share guidance tightened to $3.75 - $3.90 (previously $3.65 - $4.00).
  • Free Cash Flow guidance maintained at $100 million - $130 million.
  • Company is well-positioned to drive sustainable growth and long-term returns with a robust balance sheet and approaching $600 million in liquidity.

Headwinds

  • Inherent uncertainty related to special items may significantly impact future GAAP results.
  • Economic backdrop continues to be characterized by uncertainty despite strong employment metrics.
  • Consumers are selective with their spending, requiring dynamic decisioning.
  • Seasonal trends in delinquency rates require continuous monitoring and underwriting refinements.
  • Management does not believe it is able to provide a meaningful forecast of comparable GAAP measures or reconciliation due to inherent uncertainty of special items.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.8%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

58%

18 / 31 earnings

Positive

+19.1%

Q1 2025

Best reaction

-18.4%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-1.1%+1.4%
Q4 2025+6.3%+3.5%-17.6%
Q3 2025-16.3%-14.5%-22.5%
Q1 2025+19.1%+17.2%+15.3%
Q3 2024-1.4%-8.1%-16.5%
Q2 2024+0.0%-3.8%+23.1%
Q1 2024+0.0%-6.3%-11.9%
Q4 2023+0.0%-3.5%+2.4%
Q3 2023+5.9%+10.9%+15.1%
Q3 2022+0.0%-2.8%-11.6%
Q2 2023-4.8%-3.3%-7.9%
Q1 2023+10.2%+16.6%+22.8%
Q2 2022+13.3%+13.3%-0.4%
Q1 2022+4.2%+1.9%-3.4%
Q3 2021-18.4%-19.5%-17.6%
Q2 2021+0.3%+4.7%+12.9%
Q1 2021+2.0%-4.0%+3.2%
Q3 2020-4.9%-3.9%+9.4%
Q2 2020+0.5%+2.7%-7.1%
Q1 2020+0.9%+1.0%+12.9%
Q3 2019-6.6%-0.9%+11.5%
Q2 2019+5.3%+8.7%-1.0%
Q1 2019-0.8%-9.5%-10.8%
Q3 2018+1.5%+1.9%+2.5%
Q2 2018-0.6%-0.1%-0.7%
Q1 2018+0.1%-1.7%+5.6%
Q3 2017+2.4%+4.0%+15.7%
Q2 2017+0.9%+4.1%-6.0%
Q1 2017+0.8%+0.6%+7.1%
Q3 2016+3.0%+7.1%+23.7%
Q2 2016-1.1%+5.8%+12.5%

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