UPBOUND GROUP, INC. has recently released its 10-K report, providing a detailed insight into its business operations and financial performance. The company leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima, facilitate consumer transactions across a range of store-based and virtual channels, offering furniture, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.
In the recently released 10-K report, UPBOUND GROUP, INC. reported its financial operations under four operating segments, including Acima, Rent-A-Center, Brigit, and Mexico. The report also discusses recent developments that are expected to have current and future impacts on the company's business, trends, and uncertainties within its industry and business model that may impact its financial results, as well as the company's recent results of operations and discussion of its liquidity and capital resources.
One of the notable recent developments is the acquisition of Brigit, a holistic financial health technology company, for total consideration of up to $460 million. The company also established a new operating segment following the acquisition of Brigit and combined its Franchising segment with its Rent-A-Center segment. Additionally, UPBOUND GROUP, INC. entered into a Fourth Amendment to the Term Loan Facility, which provided approximately $77 million of incremental commitments under the Term Loan Facility.
The company also witnessed executive management changes, with the retirement of its former Chief Executive Officer and the appointment of a new Chief Executive Officer and other key executive positions. UPBOUND GROUP, INC. also announced a quarterly cash dividend of $0.39 per share for the first quarter of 2026.
The report also delves into the business and operational trends, including the impact of macroeconomic conditions on the company's operations, such as changes in the U.S. consumer price index, demand for certain consumer retail categories, consumer payment behaviors, labor market conditions, interest rates, tariff and trade policies, and global supply chain disruptions. The report highlights that while the company's businesses have historically remained resilient through various economic cycles, the full extent to which macroeconomic trends may impact the company in future periods is uncertain.
In terms of financial performance, the report provides key metrics such as Gross Merchandise Volume (GMV), Lease Portfolio Value, Same Store Lease Portfolio Value, Same Store Sales, Lease Charge-Offs (LCOs), and Brigit Net Advance Losses. These metrics offer insights into the company's operational and financial performance.
The report also compares the financial information for the year ended December 31, 2025, with the year ended December 31, 2024. It highlights changes in revenues, cost of revenues, gross profit, operating expenses, debt refinancing charges, interest, net earnings, and income tax expenses. Notably, the company reported an increase in total revenue by $374.5 million, or 8.7%, to $4,695.1 million for the year ended December 31, 2025, from $4,320.6 million for 2024. However, the operating profit decreased by approximately $68.3 million, primarily due to increases in non-labor operating expenses, other gains and charges, and general and administrative expenses.
Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $20.15. For more information, read the company's full 10-K submission here.
