upbd-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38047

Upbound Group, Inc.

(Exact name of registrant as specified in its charter)


Delaware						45-0491516
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)
5501 Headquarters Drive, Plano, Texas						75024
(Address of principal executive offices)						(Zip Code)

(972) 801-1100

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $.01 par value	UPBD	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of April 24, 2025:


Class						Outstanding
Common stock, $.01 par value						57,825,534

TABLE OF CONTENTS



		Page No.
PART I.	FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements

	Condensed Consolidated Statements of Operations for the three-month periods ended March 31, 2025 and 2024	1

	Condensed Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2025 and 2024	2

	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	3

	Condensed Consolidated Statement s of Stockholders ’ Equity for the three-month periods ending March 31, 2025 and 2024	4

	Condensed Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2025 and 2024	5

	Notes to Condensed Consolidated Financial Statements	6



Item 2.	Management ’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

Item 4.	Controls and Procedures	35

PART II.	OTHER INFORMATION



Item 1.	Legal Proceedings	37

Item 1A.	Risk Factors	37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

Item 3.	Defaults Upon Senior Securities	37

Item 4.	Mine Safety Disclosures	37

Item 5.	Other Information	37

Item 6.	Exhibits	38

SIGNATURES

Item 1. Condensed Consolidated Financial Statements.

UPBOUND GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended March 31,
	2025		2024
(in thousands, except per share data)
Revenues
Rentals and fees	$	899,212	$	872,539
Merchandise sales	236,245		215,250
Subscriptions and fees	31,861		—


Other	9,045		8,178
Total revenues	1,176,363		1,095,967
Cost of revenues
Cost of rentals and fees	352,546		327,148
Cost of merchandise sold	269,682		239,751
Cost of subscriptions and fees	4,006		—


Total cost of revenues	626,234		566,899
Gross profit	550,129		529,068
Operating expenses
Operating labor	149,167		158,136
Non-labor operating expenses	219,011		213,802
General and administrative expenses	63,787		55,099
Depreciation and amortization	12,252		13,473
Other gains and charges	43,297		26,796
Total operating expenses	487,514		467,306
Operating profit	62,615		61,762

Interest expense	27,798		29,991
Interest income	(694)		(803)
Earnings before income taxes	35,511		32,574
Income tax expense	10,718		4,887
Net earnings	$	24,793	$	27,687
Basic earnings per common share	$	0.44	$	0.51
Diluted earnings per common share	$	0.42	$	0.50

See accompanying notes to condensed consolidated financial statements.

UPBOUND GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,
	2025		2024
(in thousands)
Net earnings	$	24,793	$	27,687
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax of $(20) and $180 for the three months ended March 31, 2025 and 2024, respectively	(77)		676
Total other comprehensive (loss) income	(77)		676
Comprehensive income	$	24,716	$	28,363

See accompanying notes to condensed consolidated financial statements.

UPBOUND GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2025		December 31, 2024
(in thousands, except share and par value data)
ASSETS
Cash and cash equivalents	$	107,325	$	60,860
Receivables, net of allowance for doubtful accounts of $21,858 and $13,290 in 2025 and 2024, respectively	184,826		156,438
Prepaid expenses and other assets	50,810		54,205
Rental merchandise, net
On rent	1,056,606		1,134,860
Held for rent	116,275		113,922
Merchandise held for installment sale	5,055		5,522
Property assets, net of accumulated depreciation of $565,023 and $548,708 in 2025 and 2024, respectively	312,486		254,151
Operating lease right-of-use assets	269,291		265,537
Deferred tax asset	58,314		58,732
Goodwill	488,374		290,189
Other intangible assets, net	393,768		255,246
Total assets	$	3,043,130	$	2,649,662
LIABILITIES
Accounts payable – trade	$	119,097	$	115,479
Accrued liabilities	384,862		304,212
Operating lease liabilities	275,896		272,983
Deferred tax liability	51,507		18,388
Senior debt, net	1,090,181		867,726
Senior notes, net	442,374		441,890
Total liabilities	2,363,917		2,020,678

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; 250,000,000 shares authorized; 128,885,953 and 125,796,878 shares issued in March 31, 2025 and December 31, 2024, respectively	1,125		1,108
Additional paid-in capital	1,541,983		1,493,885
Retained earnings	1,038,360		1,036,169
Treasury stock at cost, 71,060,928 shares in March 31, 2025 and December 31, 2024	(1,890,966)		(1,890,966)
Accumulated other comprehensive loss	(11,289)		(11,212)
Total stockholders’ equity	679,213		628,984
Total liabilities and stockholders’ equity	$	3,043,130	$	2,649,662

See accompanying notes to condensed consolidated financial statements.

UPBOUND GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Total
	Shares	Amount
(in thousands)
Balance at December 31, 2024	125,797	$	1,108	$	1,493,885	$	1,036,169	$	(1,890,966)	$	(11,212)	$	628,984
Net earnings	—	—		—		24,793		—		—		24,793
Other comprehensive loss	—	—		—		—		—		(77)		(77)

Exercise of stock options	1	—		9		—		—		—		9
Vesting of restricted share units, net of shares withheld for employee taxes	394	4		(4)		—		—		—		—
Tax effect of stock awards vested and options exercised	—	—		(6,230)		—		—		—		(6,230)
Stock-based compensation	—	—		13,279		—		—		—		13,279
Dividends declared(1)	—	—		—		(22,602)		—		—		(22,602)
Brigit acquisition equity consideration	2,694	13		41,044		—		—		—		41,057
Balance at March 31, 2025	128,886	$	1,125	$	1,541,983	$	1,038,360	$	(1,890,966)	$	(11,289)	$	679,213

(1) Cash dividends declared but not paid for the three months ended March 31, 2025 was $0.39 per common share.

Common Stock

Additional
Paid-In
Capital

Retained
Earnings

Treasury
Stock

Accumulated Other Comprehensive (Loss) Income

Total

Amount

(in thousands)

Balance at December 31, 2023

125,415

1,100

SEC Form 10-Q filed by Upbound Group Inc.