Gross margins have experienced significant compression, falling from a peak of 50.3% in 2023Q4 to 35.1% in 2025Q4, reflecting sensitivity to lease loss provisions and merchandise depreciation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 4.74B | 4.7B | 4.32B | 3.99B | 4.25B | 4.58B | 2.81B | 2.67B | 2.66B | 2.7B | 2.96B | 3.28B | 3.16B | 3.1B | 3.08B | 2.88B | 2.73B | 2.75B | 2.88B | 2.91B | 2.43B | 2.34B | 2.31B | 2.23B | 2.01B | 1.81B | 1.6B | 1.42B | 809.7M | 327.5M | 238M |
| Revenue Growth % | 7.67% | 8.67% | 8.22% | -5.96% | -7.38% | 62.87% | 5.41% | 0.35% | -1.56% | -8.8% | -9.61% | 3.82% | 1.73% | 0.7% | 6.96% | 5.51% | -0.74% | -4.58% | -0.76% | 19.4% | 4.05% | 1.12% | 3.82% | 10.85% | 11.14% | 12.92% | 13.01% | 75.03% | 147.24% | 37.6% | 78.54% |
| Cost of Goods Sold | 2.6B | 3.08B | 2.24B | 1.97B | 2.17B | 2.35B | 1.14B | 1.03B | 972.3M | 984M | 1.03B | 1.16B | 973.43M | 954.74M | 948.73M | 829.67M | 2.28B | 2.32B | 2.47B | 2.46B | 2.04B | 1.99B | 1.9B | 122.92M | 137.59M | 123.79M | 79.21M | 858.6M | 56.2M | 41.6M | 28.7M |
| COGS % of Revenue | - | 65.55% | 51.85% | 49.35% | 51.02% | 51.24% | 40.58% | 38.42% | 36.55% | 36.41% | 34.7% | 35.39% | 30.83% | 30.76% | 30.78% | 28.79% | 83.44% | 84.3% | 85.56% | 84.7% | 83.8% | 85% | 82.01% | 5.52% | 6.85% | 6.84% | 4.95% | 60.58% | 6.94% | 12.7% | 12.06% |
| Gross Profit | 2.14B | 1.62B | 2.08B | 2.02B | 2.08B | 2.24B | 1.67B | 1.64B | 1.69B | 1.72B | 1.94B | 2.12B | 2.18B | 2.15B | 2.13B | 2.05B | 452.28M | 431.92M | 416.55M | 444.64M | 394.37M | 350.93M | 416.21M | 2.11B | 1.87B | 1.68B | 1.52B | 558.6M | 753.5M | 285.9M | 209.3M |
| Gross Margin % | 45.2% | 34.45% | 48.15% | 50.65% | 48.98% | 48.76% | 59.42% | 61.58% | 63.45% | 63.59% | 65.3% | 64.61% | 69.17% | 69.24% | 69.22% | 71.21% | 16.56% | 15.7% | 14.44% | 15.3% | 16.2% | 15% | 17.99% | 94.48% | 93.15% | 93.16% | 95.05% | 39.42% | 93.06% | 87.3% | 87.94% |
| Gross Profit Growth % | - | -22.25% | 2.87% | -2.75% | -6.96% | 33.66% | 1.71% | -2.61% | -1.77% | -11.19% | -8.64% | -3.03% | 1.62% | 0.73% | 3.97% | 353.81% | 4.71% | 3.69% | -6.32% | 12.75% | 12.38% | -15.68% | -80.23% | 12.43% | 11.14% | 10.66% | 172.54% | -25.87% | 163.55% | 36.6% | 60.51% |
| Operating Expenses | 1.64B | 1.39B | 1.79B | 1.86B | 1.93B | 1.95B | 1.43B | 1.39B | 1.63B | 1.78B | 1.85B | 1.96B | 1.99B | 1.9B | 1.82B | 1.74B | 129.57M | 135.6M | 137.66M | 201.69M | 172.43M | 86M | 133.26M | 290.35M | 1.52B | 1.5B | 1.28B | 368.5M | 651.3M | 244M | 178.3M |
| OpEx % of Revenue | - | 29.69% | 41.4% | 46.57% | 45.48% | 42.64% | 50.98% | 52.07% | 61.34% | 65.92% | 62.44% | 59.66% | 63.05% | 61.31% | 58.89% | 60.21% | 4.74% | 4.93% | 4.77% | 6.94% | 7.08% | 3.68% | 5.76% | 13.03% | 75.72% | 82.95% | 79.78% | 26% | 80.44% | 74.5% | 74.92% |
| Selling, General & Admin | 784.77M | 1.18B | 821.62M | 977.63M | 820.81M | 839.66M | 732.23M | 772.73M | 846.87M | 903.56M | 957.96M | 1.02B | 1.05B | 1.89B | 1.81B | 1.73B | 126.32M | 132.76M | 125.63M | 123.7M | 93.56M | 82.29M | 75.48M | 1.29B | 1.13B | 1.07B | 914.33M | 42M | 452.5M | 175.8M | 126.7M |
| SG&A % of Revenue | - | 25.17% | 19.02% | 24.49% | 19.33% | 18.32% | 26.02% | 28.94% | 31.83% | 33.43% | 32.33% | 31.13% | 33.29% | 60.94% | 58.7% | 60.05% | 4.62% | 4.82% | 4.36% | 4.26% | 3.84% | 3.52% | 3.26% | 57.9% | 56.39% | 59.43% | 57.09% | 2.96% | 55.88% | 53.68% | 53.24% |
| Research & Development | 0 | 0 | 0 | 9.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.23% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 212.22M | 967.1M | 872.55M | 1.11B | 1.11B | 702.58M | 617.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 238.17M | 223.35M | 291.63M | 162.87M | 148.54M | 280.54M | 237.34M | 253.86M | 56.14M | -63.06M | -66.6M | -1.01B | 193.46M | 246.17M | 318.47M | 293.16M | 303.77M | 296.32M | 274.34M | 204.24M | 221.94M | 249.77M | 282.95M | 1.81B | 350.45M | 184.59M | 244.63M | 190.1M | 102.2M | 41.9M | 31M |
| Operating Margin % | 5.03% | 4.76% | 6.75% | 4.08% | 3.5% | 6.12% | 8.43% | 9.51% | 2.11% | -2.33% | -2.25% | -30.74% | 6.13% | 7.93% | 10.33% | 10.17% | 11.12% | 10.77% | 9.51% | 7.03% | 9.12% | 10.68% | 12.23% | 81.45% | 17.43% | 10.21% | 15.27% | 13.41% | 12.62% | 12.79% | 13.03% |
| Operating Income Growth % | - | -23.41% | 79.06% | 9.65% | -47.05% | 18.2% | -6.51% | 352.21% | 189.02% | 5.31% | 93.39% | -620.97% | -21.41% | -22.7% | 8.64% | -3.49% | 2.51% | 8.01% | 34.32% | -7.98% | -11.14% | -11.73% | -84.41% | 417.87% | 89.86% | -24.54% | 28.68% | 86.01% | 143.91% | 35.16% | 56.57% |
| EBITDA | 1.03B | 275.31M | 342.52M | 287.12M | 282.41M | 450.37M | 294M | 315.17M | 125.08M | 15.53M | 12.94M | -927.17M | 280.86M | 257.7M | 324.36M | 297.83M | 307.02M | 299.17M | 290.98M | 854.95M | 750.68M | 765.67M | 789.57M | 2.3B | 783.2M | 598.65M | 608.08M | 516.6M | 301M | 110.1M | 82.6M |
| EBITDA Margin % | 21.65% | 5.86% | 7.93% | 7.19% | 6.65% | 9.83% | 10.45% | 11.8% | 4.7% | 0.57% | 0.44% | -28.28% | 8.89% | 8.3% | 10.52% | 10.33% | 11.24% | 10.87% | 10.09% | 29.42% | 30.84% | 32.73% | 34.13% | 103.42% | 38.96% | 33.1% | 37.97% | 36.45% | 37.17% | 33.62% | 34.71% |
| EBITDA Growth % | 215.15% | -19.62% | 19.29% | 1.67% | -37.29% | 53.19% | -6.72% | 151.97% | 705.22% | 20.04% | 101.4% | -430.12% | 8.99% | -20.55% | 8.91% | -2.99% | 2.63% | 2.82% | -65.97% | 13.89% | -1.96% | -3.03% | -65.74% | 194.22% | 30.83% | -1.55% | 17.71% | 71.63% | 173.39% | 33.29% | 51.28% |
| D&A (Non-Cash Add-back) | 787.66M | 51.96M | 50.89M | 124.26M | 133.87M | 169.83M | 56.67M | 61.31M | 68.95M | 78.59M | 79.54M | 80.72M | 87.4M | 11.53M | 5.89M | 4.67M | 3.25M | 2.84M | 16.64M | 650.72M | 528.73M | 515.9M | 506.61M | 489.44M | 432.75M | 414.06M | 363.45M | 326.5M | 198.8M | 68.2M | 51.6M |
| EBIT | 157.76M | 221.07M | 288.13M | 166.28M | 149.18M | 265.18M | 238.1M | 254.81M | 97.74M | -64.2M | -66.09M | -1.01B | 190.2M | 246.98M | 319.31M | 293.78M | 301.52M | 297.16M | 287.58M | 211.06M | 221.94M | 264.94M | 282.95M | 1.81B | 350.45M | 184.59M | 244.63M | 190.07M | 102.22M | 45.9M | 31M |
| Net Interest Income | -83.26M | -110.36M | -107.49M | -110M | -87.07M | -70.65M | -14.56M | -27.91M | -41.82M | -45.2M | -46.68M | -48.69M | -51.11M | -38.81M | -31.22M | -36.61M | -29.01M | -25.95M | -57.38M | -87.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.21M | 2.62M | 3.1M | 3.42M | 641K | 221K | 768K | 3.12M | 1.15M | 791K | 503K | 634K | 947K | 815K | 842K | 627K | 854K | 837K | 8.86M | 6.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 112.06M | 112.98M | 110.58M | 113.42M | 87.71M | 70.87M | 15.32M | 31.03M | 42.97M | 46M | 47.18M | 49.33M | 52.06M | 39.63M | 32.06M | 37.23M | 26.77M | 26.79M | 66.24M | 94.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -114.32M | -115.26M | -114.09M | -110M | -87.07M | -86.23M | -14.56M | -30.08M | -42.3M | -47.14M | -46.68M | -48.69M | -51.11M | -38.81M | -26.78M | -61.06M | -50.5M | -25.95M | -56.98M | -188.91M | -57.81M | -47.87M | -31.57M | -1.52B | -62.01M | -59.78M | -50.23M | -74.77M | -53.52M | 2.2M | 100K |
| Pretax Income | 123.85M | 108.09M | 177.54M | 52.87M | 61.47M | 194.3M | 222.78M | 223.78M | 13.84M | -110.2M | -113.27M | -1.06B | 142.35M | 207.36M | 287.25M | 256.55M | 274.76M | 270.37M | 221.34M | 116.29M | 164.14M | 209.07M | 251.38M | 290.83M | 288.44M | 124.81M | 194.4M | 115.3M | 48.7M | 44.1M | 31.1M |
| Pretax Margin % | 2.61% | 2.3% | 4.11% | 1.32% | 1.45% | 4.24% | 7.92% | 8.38% | 0.52% | -4.08% | -3.82% | -32.23% | 4.51% | 6.68% | 9.32% | 8.9% | 10.06% | 9.82% | 7.67% | 4% | 6.74% | 8.94% | 10.87% | 13.05% | 14.35% | 6.9% | 12.14% | 8.14% | 6.01% | 13.47% | 13.07% |
| Income Tax | 39.61M | 34.85M | 54.06M | 58.05M | 49.11M | 59.36M | 14.66M | 50.24M | 5.35M | -116.85M | -8.08M | -189.95M | 45.93M | 79.12M | 103.76M | 91.91M | 103.11M | 102.52M | 81.72M | 40.02M | 61.05M | 73.33M | 95.52M | 109.33M | 116.27M | 58.59M | 91.37M | 55.9M | 23.9M | 18.2M | 13.1M |
| Effective Tax Rate % | 31.98% | 32.24% | 30.45% | 109.8% | 79.9% | 30.55% | 6.58% | 22.45% | 38.65% | 106.04% | 7.13% | 17.98% | 32.27% | 38.16% | 36.12% | 35.83% | 37.53% | 37.92% | 36.92% | 34.41% | 37.19% | 35.07% | 38% | 37.59% | 40.31% | 46.94% | 47% | 48.48% | 49.08% | 41.27% | 42.12% |
| Net Income | 84.24M | 73.24M | 123.48M | -5.18M | 12.36M | 134.94M | 208.12M | 173.55M | 8.49M | 6.65M | -113.27M | -866.63M | 96.42M | 128.24M | 183.49M | 164.64M | 171.64M | 167.85M | 139.62M | 76.27M | 103.09M | 135.74M | 155.85M | 181.5M | 172.17M | 66.22M | 103.03M | 59.4M | 24.8M | 25.9M | 18M |
| Net Margin % | 1.78% | 1.56% | 2.86% | -0.13% | 0.29% | 2.94% | 7.4% | 6.5% | 0.32% | 0.25% | -3.82% | -26.43% | 3.05% | 4.13% | 5.95% | 5.71% | 6.28% | 6.1% | 4.84% | 2.62% | 4.24% | 5.8% | 6.74% | 8.15% | 8.57% | 3.66% | 6.43% | 4.19% | 3.06% | 7.91% | 7.56% |
| Net Income Growth % | -30.14% | -40.68% | 2484.21% | -141.91% | -90.84% | -35.16% | 19.92% | 1943.64% | 27.64% | 105.87% | 86.93% | -998.79% | -24.81% | -30.11% | 11.45% | -4.08% | 2.26% | 20.22% | 83.07% | -26.02% | -24.05% | -12.91% | -14.13% | 5.41% | 160.01% | -35.73% | 73.45% | 139.52% | -4.25% | 43.89% | 68.22% |
| Net Income (Continuing) | 84.24M | 73.24M | 123.48M | -5.18M | 12.36M | 134.94M | 208.12M | 173.55M | 8.49M | 6.65M | -105.19M | -953.52M | 96.42M | 128.24M | 183.49M | 164.64M | 171.64M | 167.85M | 139.62M | 76.27M | 103.09M | 135.74M | 155.85M | 181.5M | 172.17M | 66.22M | 103.03M | 59.4M | 24.8M | 25.9M | 18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 1.25 | 2.21 | -0.09 | 0.21 | 2.02 | 3.73 | 3.10 | 0.16 | 0.12 | -2.13 | -16.34 | 1.81 | 2.33 | 3.03 | 2.64 | 2.60 | 2.52 | 2.08 | 1.10 | 1.46 | 1.83 | 1.94 | 2.08 | 1.90 | 0.72 | 1.18 | 0.70 | 0.33 | 0.16 | 0.29 |
| EPS Growth % | -32.86% | -43.44% | 2446.07% | -144.86% | -89.6% | -45.84% | 20.32% | 1837.5% | 33.33% | 105.63% | 86.96% | -1002.76% | -22.32% | -23.1% | 14.77% | 1.54% | 3.17% | 21.15% | 89.09% | -24.66% | -20.22% | -5.67% | -6.73% | 9.47% | 163.89% | -38.98% | 68.57% | 112.12% | 106.25% | -44.83% | 248.56% |
| EPS (Basic) | - | 1.30 | 2.26 | -0.09 | 0.23 | 2.37 | 3.84 | 3.19 | 0.16 | 0.12 | -2.13 | -16.34 | 1.82 | 2.35 | 3.06 | 2.67 | 2.64 | 2.54 | 2.10 | 1.11 | 1.48 | 1.86 | 1.99 | 2.16 | 2.20 | 0.79 | 1.52 | 0.82 | 0.34 | 0.17 | 0.29 |
| Diluted Shares Outstanding | 0 | 58.61M | 55.93M | 54.98M | 58.97M | 66.84M | 55.75M | 55.95M | 54.54M | 53.84M | 53.12M | 53.05M | 53.13M | 55.16M | 59.41M | 61.89M | 65.9M | 66.57M | 67.19M | 69.47M | 70.61M | 74.17M | 80.34M | 87.26M | 85.42M | 70.96M | 78.22M | 70.98M | 156.25M | 156.25M | 62.5M |
| Basic Shares Outstanding | 0 | 56.48M | 54.65M | 54.98M | 53.85M | 57.05M | 54.19M | 54.33M | 53.47M | 53.28M | 53.12M | 53.05M | 52.85M | 54.8M | 58.91M | 61.19M | 65.1M | 65.99M | 66.61M | 68.71M | 69.66M | 72.98M | 78.32M | 84.03M | 73.49M | 64.48M | 61.09M | 60.54M | 156.25M | 156.25M | 62.5M |
| Dividend Payout Ratio | - | 119.97% | 66.65% | - | 640.84% | 52.99% | 30.33% | 7.9% | - | 192.56% | - | - | 50.47% | 36.5% | 20.64% | 16.33% | 4.55% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Subprime consumer credit deterioration
According to the provided quarterly income statements, Upbound Group has maintained a consistent revenue trajectory, with year-over-year growth rates hovering between 3.7% and 10.9% over the last ten quarters, suggesting a stable demand environment for its core lease-to-own services despite broader macroeconomic headwinds.
The company's ability to sustain top-line growth at approximately $1.2 billion per quarter indicates a resilient customer base that continues to rely on lease-to-own solutions. However, investors should monitor whether this growth is driven by new customer acquisition or simply by inflationary pricing adjustments within the existing lease portfolio.
Based on reported financial figures, Upbound Group experienced significant gross margin compression, falling from a peak of 50.3% in 2023Q4 to a low of 35.1% in 2025Q4, which highlights the inherent sensitivity of the company's cost structure to merchandise depreciation and lease loss provisions.
The sharp fluctuation in gross margins suggests that the company's profitability is highly susceptible to the quality of its lease assets and the effectiveness of its recovery operations. This volatility may indicate that the integration of the Acima platform has introduced less predictable margin profiles compared to the legacy Rent-A-Center business.
As reported in the income statement data, operating margins have struggled to gain traction, fluctuating between 4.4% and 7.5% over the last ten quarters, which suggests that the company has yet to achieve meaningful operating leverage following its strategic pivot toward the Acima fintech model.
The lack of consistent expansion in operating margins implies that administrative and integration costs are offsetting potential efficiencies gained from the hybrid logistics network. Analysts should investigate whether the current SG&A levels are a permanent feature of the new business model or a temporary burden of ongoing digital transformation.
Based on the provided financial data, Upbound Group's net income has been subject to significant quarterly variance, with stock-based compensation reaching as high as $45.4 million in 2025Q4, which complicates the assessment of true operational profitability and shareholder value creation.
The inconsistent nature of net income, coupled with periodic spikes in stock-based compensation, suggests that reported EPS may not always reflect the underlying cash-generating capability of the business. Investors should be wary of these non-operating items when evaluating the company's ability to sustain its dividend and capital allocation strategy.
While the company positions itself as a diversified fintech platform, the income statement data reveals that gross margins are significantly lower than those of pure-play financial services peers, suggesting that the physical store network may be a drag on long-term profitability rather than a competitive moat.
Short-sellers might argue that the high variable costs associated with physical asset management will continue to pressure margins as the company scales its virtual Acima segment. This structural mismatch warrants further investigation into whether the company can truly decouple its revenue growth from the high-cost, asset-heavy legacy operations.
Quick answers to the most common questions about buying UPBD stock.
For fiscal year 2025, Upbound Group, Inc. (UPBD) reported total revenue of $4.70B. This represents a 1872.7% increase compared to $238.0M in 1996.
Upbound Group, Inc. (UPBD) is profitable, generating $73.2M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Upbound Group, Inc. (UPBD) reported an operating income of $223.3M, resulting in an operating profit margin of 4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Upbound Group, Inc. (UPBD) generated $1.62B in gross profit for the year, representing a gross profit margin of 34.4%. This demonstrates the company's core pricing power and production efficiency.