Upbound Group Reports Q2 Earnings Amid Cybersecurity Challenges
Upbound Group (NASDAQ:UPBD) reported second-quarter results in line with guidance, showing modest revenue growth to $1.2 billion and improved cash flow metrics despite a challenging economic environment for non-prime consumers. Operating cash flow surged to $123 million from $26 million the previous year, while free cash flow reached $84 million compared to negative $10 million in Q2 2025. The company faced headwinds due to cybersecurity-related fraud and weaker demand for discretionary goods, which led to an 11% decline in Acima's gross merchandise volume (GMV) and approximately $13 million in fraudulent contract losses. However, tighter underwriting improved credit performance with charge-offs falling to 8.8%. Upbound narrowed its full-year revenue guidance but raised free cash flow expectations. Brigit continued as a growth driver for the company, reporting 37% year-over-year revenue growth and a 30% increase in paying users.
Tickers: $UPBD
Topics: cash_flow ebitda financial_results fraud_impact revenue_growth