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PLANO, Texas - On Thursday, Upbound Group, Inc. (NASDAQ:UPBD) reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.12, beating estimates by $0.07, and revenue of $1.16 billion surpassing the consensus forecast of $1.14 billion.
The company’s stock edged up 0.04% in pre-market trading following the announcement.
The financial services provider delivered consolidated revenue growth of 7.5% YoY, driven by strong performance in its Acima segment, which saw a 16% increase in Gross Merchandise Volume (GMV) and 12% revenue growth. The company’s recently acquired Brigit segment showed impressive results with nearly 40% revenue growth and a 24.1% increase in paying subscribers.
"I am very pleased with our second quarter results, which reflect the heightened relevance of our financial solutions to a large and growing segment of consumers who are underserved by traditional providers," said CEO Fahmi Karam. "Our Acima segment delivered 16% GMV growth, representing its seventh consecutive quarter of GMV growth, while Brigit grew its subscriber base by over 24%."
Adjusted EBITDA increased 7.0% YoY to $133.2 million, though adjusted EBITDA margin decreased slightly by 10 basis points to 11.5%. The Rent-A-Center segment faced challenges with a 7.1% revenue decline and a 4.0% drop in same-store sales.
For the third quarter of 2025, Upbound expects revenue between $1.05 billion and $1.15 billion, with adjusted EPS of $0.95 to $1.05. The company raised the midpoint of its full-year non-GAAP diluted EPS guidance to $4.05-$4.40, up from the previous range of $4.00-$4.40, while maintaining its revenue outlook of $4.60 billion to $4.75 billion.
The company’s Brigit segment, acquired in January 2025, continues to show strong momentum with cash advance volume increasing 21.1% YoY to $356.1 million and average monthly revenue per user rising 12.5% to $13.45.
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