UPBOUND GROUP, INC. Q4 FY2025 earnings call

• 2025 marked significant progress with serving over 3,500,000 customers, adding Bridget segment, welcoming new executives. - Bridget had strategic priorities of maintaining growth momentum, launching new products, cross marketing; showed revenue growth, developed new products like line of credit pilot. - Acima drove repeat business, had revenue and adjusted EBITDA growth despite tough macro environment, direct-to-consumer marketplace grew over 100% year over year. - Rent-A-Center focused on digital evolution, disciplined underwriting, improved customer experience, had same-store sales growth in fourth quarter

Acima: Fourth quarter GMV was nearly $550 million, highest since adding Acima five years ago; revenue grew 8.6% year over year, adjusted EBITDA $87 million up 7.3% from a year ago, loss rate 10.1% up 110 basis points year over year. Bridget: Fourth quarter had approximately 1,600,000 paid subscribers, up nearly 30% year over year; ARPU $14.15, up nearly 10% year over year; originated $45 million in cash advances, up 19% year over year; revenue $64.6 million, up 41.5% year over year; adjusted EBITDA $11.1 million, margin 17.2%. Rent-A-Center: Fourth quarter same-store sales increased 80 basis points, first positive quarter since 2024; revenue nearly $480 million, flat year over year; adjusted EBITDA $69.2 million, down ~13% from 2024, margin 14.4% down 230 basis points year over year

• 2026 consolidated revenue range $4.7 billion to $4.95 billion, adjusted EBITDA range $500 million to $535 million, fully diluted non-GAAP EPS $4.10 to $4.35, free cash flow ~$200 million. - Acima expected mid-single digits GMV and revenue growth, adjusted EBITDA margins in line with 2025, losses stabilizing in 9.5% area. - Bridget expected strong growth trajectory, annualized revenue growth over 30% in $265 million to $285 million range, adjusted EBITDA $50 million to $60 million. - Rent-A-Center expected modest top-line growth, flat to positive relative to 2025, adjusted EBITDA margins in line with 2025. - First quarter 2026 consolidated revenue $1.16 billion to $1.26 billion, adjusted EBITDA $120 million to $130 million, non-GAAP EPS $1.05 to $1.15

• Macro environment with uneven factors pressuring core consumer discretionary income and demand levels. - Legal and regulatory matters with estimated legal accrual $72 million, McBurney class action awaiting final court approval, multistate attorneys general matter nearing nonbinding agreement in principle but final binding settlement not assured. - Uncertainty around tax season and maintaining conservative underwriting posture throughout the year

Q: Robert Kenneth Griffin asked about guidance shape, seasonality, Bridget product rollout delay and integration.

A: Sami and Hal responded on seasonality, Bridget's growth, product rollout delay due to macro, bank partner uncertainty, and light integration.

Q: Vincent Albert Caintic asked about Acima GMV cadence, normalizing underwriting changes, and Bridget roadmap.

A: Sami responded on Acima GMV cadence, direct-to-consumer channel, returning customers, and Bridget's long-term roadmap.

Q: Kyle Joseph asked about tax refund expectations and RAC outlook.

A: Sami responded on tax refund impact, RAC's turnaround and outlook.

Q: Bradley Bingham Thomas asked about Acima category performance, merchant addition, and AI impact.

A: Sami responded on Acima category performance, merchant addition pipeline, and AI impact on growth, underwriting, efficiency.

Q: Hoang Manh Nguyen asked about Bridget revenue acceleration, cadence, and competitive landscape.

A: Sami responded on Bridget's revenue acceleration, cadence, and competitive landscape.

Q: Eunice Sun asked about RAC segment margin and credit tightening cadence.

A: Hal and Sami responded on RAC margin drivers and credit tightening cadence.

Q: Anthony Chinonye Chukumba asked about Acima GMV slowdown causes.

A: Sami responded on Acima GMV slowdown due to underwriting standards and macro demand softness