Upbound Group, Inc. Q1 FY2026 earnings call

• Focus on building a more connected, tech-enabled financial platform and fostering sustainable, profitable growth. • Using data, analytics, and AI to improve personalization, underwriting, and efficiency. • Advancing a unified operating structure. • Applying analytics and AI in underwriting, customer communications, etc. • Investing in senior leadership, including new CTO. • Bridget investing in products and marketing; line of credit pilot advancing. • ASEMA tightening underwriting, improving portfolio health; GMV impacted by macro headwinds. • Rent-A-Center focusing on cost optimization, same-store sales growth; Amazon partnership announced.

Bridget: Revenue $68 million, up over 40% YOY; paying subscribers up ~27% YOY; monthly ARPU up nearly 12% YOY; adjusted EBITDA contribution ~$22.9 million, up over 2x YOY. ASEMA: Revenue $649 million, up ~2% YOY; GMB ~$427 million, down ~6% YOY; lease charge-offs ~8.8%, improved 130 basis points QoQ; adjusted EBITDA $89 million, up ~4% YOY. Rent-A-Center: Revenue $482 million, down ~2% YOY; same-store sales up ~40 basis points QoQ; lease charge-offs ~4.7%, down 20 basis points QoQ; adjusted EBITDA $67 million, down ~6% YOY

• Consolidated revenue target 4.7 - 4.95 billion, adjusted EBITDA 500 - 535 million, non-GAAP diluted EPS $4 - $4.35, free cash flow ~$200 million in 2026. • ASEMA: GMB and revenue flat to low single digits YOY; losses slightly better than expected, margin improved. • Bridget: Annualized revenue growth over 30% in $265 - $285 million range, adjusted EBITDA $50 - $60 million. • Rent-A-Center: Segment revenue flat to low single digits YOY, adjusted EBITDA margin flat. • Q2 2026: Consolidated revenue $1.1 - $1.2 billion, adjusted EBITDA $120 - $130 million, non-GAAP diluted EPS $1 - $1.10

• Non-prime consumer facing pressure from elevated costs in essential categories, influencing purchasing behavior and discretionary spending. • Geopolitical developments leading to higher energy prices partially offsetting tax refund season benefits. • Uncertainty in macro environment affecting consumer demand and underwriting outcomes.

Q: Walk through segment performance and customer impact from macro factors.

A: Femi discussed macro challenges like cooling labor market, sticky inflation, fuel price volatility. Impacted consumer discretionary spending, with Bridget having strong start due to tax season, ASEMA and Rent-A-Center affected by underwriting and macro.

Q: Context on ASEMA GMV decline.

A: Femi said underwriting tightened in 2025 Q2 - Q3, majority of GMV decline due to underwriting, categories down low single digits.

Q: Bridget new products.

A: Bridget has line of credit pilot, pricing tests, launching later in year, cautious on rollout.

Q: Rent-A-Center growth and Amazon partnership.

A: Rent-A-Center had same-store sales growth, Amazon partnership to have over 1,700 stores in June, driving traffic.

Q: Aseema DTC marketplace.

A: DTC marketplace has 10% GMV growth, returning customers, buffered from macro.

Q: Underwriting conservatism and leverage.

A: Underwriting conservative, goal to lower leverage to 2x range, using cash flow for debt reduction.

Q: Bridget product launch and legal accrual.

A: Bridget cautious on new product launch, legal accrual normal course, provision appropriate.

Q: Fuel price impact on customers.

A: Gradual impact, lower payouts and tax refund exercise changes noticed.

Q: Product mix strength.

A: Most categories down low single digits, jewelry most affected due to risk