Upbound Group Reports 9.2% Revenue Growth and 607.3% Net Earnings Increase in Q3 2024

Upbound Group, Inc. reported significant financial growth for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues reached $1,068.9 million, marking a 9.2% increase from $979.1 million in Q3 2023. Year-to-date revenues for the nine months ended September 30, 2024, totaled $3,241.3 million, up 9.0% from $2,974.3 million in the prior year.

The company's gross profit for Q3 2024 was $511.1 million, a 2.8% increase from $497.2 million in Q3 2023. Year-to-date gross profit also rose to $1,572.1 million, up 4.1% from $1,509.7 million. Operating profit for Q3 2024 increased by 20.7% to $70.1 million, while year-to-date operating profit surged to $212.5 million, a 98.5% increase from $107.0 million in the same period last year. Net earnings for Q3 2024 were $30.9 million, a substantial increase of 607.3% from $4.4 million in Q3 2023, and year-to-date net earnings reached $92.5 million, compared to $6.1 million in the prior year.

The Acima segment, which provides lease-to-own solutions, saw revenues increase by approximately $256.9 million for the nine months ended September 30, 2024, driven by higher rentals and fees. The Rent-A-Center segment reported a modest revenue increase of $14.6 million, attributed to a 1.9% rise in same-store sales. However, the Mexico segment experienced an 8.9% revenue increase, contributing to a gross profit rise of 10.2%.

Strategically, Upbound Group sold 55 Rent-A-Center stores in New York and New Jersey for approximately $19.1 million on September 9, 2024, which included a net gain of about $3.1 million. The company also faced increased operating expenses, with non-labor operating expenses rising by $44.5 million year-to-date, alongside a $9.8 million increase in general and administrative expenses.

Cash and cash equivalents as of September 30, 2024, were $85.1 million, down from $93.7 million at the end of 2023. The company reported outstanding indebtedness of $1.3 billion, with significant repayments of $291.6 million during the nine months ended September 30, 2024. The effective tax rate for the nine months ended September 30, 2024, was 24.9%, a notable decrease from 76.1% in the same period of 2023, attributed to lower tax impacts from stock compensation expenses.

Overall, Upbound Group's performance reflects strong revenue growth and profitability improvements, despite facing challenges such as increased operating costs and macroeconomic pressures.