Thu, Aug 1, 8:47 PM (88 days ago)
Upbound Group, Inc. reported a 9.9% increase in total revenues to $1,076.5 million for Q2 2024, driven primarily by a 19.0% rise in Acima segment revenues due to higher Gross Merchandise Volume (GMV). Rent-A-Center segment revenues also saw a 1.9% increase, with a 2.6% rise in same-store sales. Gross profit rose by 5.1% to $532.0 million, though gross margin decreased to 49.4% from 51.7% in the prior year. Operating profit fell by 4.0% to $80.7 million, impacted by increased non-labor operating expenses, particularly in the Acima segment due to higher merchandise losses. Net earnings improved significantly to $33.9 million from a net loss of $45.6 million in Q2 2023, aided by a lower effective tax rate. Cash flow from operations was $60.5 million for the first half of 2024, with $82.5 million in cash and $1.3 billion in outstanding debt as of June 30, 2024. The company also reported ongoing regulatory and litigation challenges, particularly involving the CFPB and multi-state Attorneys General.