Upbound Group, Inc. · NASDAQ:UPBD
Upbound — Q4 2024 Earnings Presentation
26 slides from Upbound's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter & Full Year 2024 Earnings Review
™ Fourth Quarter & Full Year 2024 Earnings Review February 20, 2025
Slide 2: Disclosures
Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial posi
Slide 3: 2024 Year in Review
2024 Year in Review 17.1% á 1.5% á +Brigit Definitive agreement to acquire leading Y/Y GMV1 and revenue growth Same Store Sales2 Growth financial health technology company, closed in 2025 26% +$5M 25%+á Estimated annual interest savings from Y/Y application growth Revenue from e-commerce channel TLB
Slide 4: Q4 Consolidated Financial Highlights
Q4 Consolidated Financial Highlights $1.05 $1.1 billion $122.8 million Non-GAAP Diluted EPS2 Consolidated Revenue Adjusted EBITDA2 +$0.24 y/y +6.0% y/y +14.1% y/y +29.6% y/y 7.3% $31.0 million $0.55 Lease Charge-Off Rate1 Net Income GAAP Diluted EPS -20 bps y/y +$42.3 million y/y +$0.76 y/y 1 Lease
Slide 5: 2024 Consolidated Financial Highlights
2024 Consolidated Financial Highlights $3.83 $4.3 billion $473.2 million Non-GAAP Diluted EPS2 Consolidated Revenue Adjusted EBITDA2 +$0.28 y/y +8.2% y/y +3.8% y/y +7.9% y/y 7.3% $123.5 million $2.21 Lease Charge-Off Rate1 Net Income GAAP Diluted EPS +20 bps y/y +$128.7 million y/y +$2.30 y/y 1 Leas
Slide 6: 2025 Strategic Priorities
2025 Strategic Priorities Customer Focus Drives Digital Evolution Maintain Momentum Repeat Business Enhance customer experience and Expand the existing growth Broaden Marketplace merchant roster optimize omni-channel execution to trajectory by adding new and streamline the LTO experience for improve
Slide 7: Acima Q4 Highlights
Acima Q4 Highlights Rental Revenue by Product Category Acima GMV Trend ($M) Acima LCO and Past Due Rates1 Trends 1 Defined as the average accounts 60+ days past due as a percentage of total open leases. 60+ past due rates normalized to exclude large retailers that are no longer on Acima’s platform.
Slide 8: Rent-A-Center Q4 Highlights
Rent-A-Center Q4 Highlights Rental Revenue by Product Category Rent-A-Center Portfolio1,2 Per Store ($000's) and Same Store Sales Trends Rent-A-Center LCO and Past Due Rates2,3 Trends 1 Lease Portfolio Value: Represents the aggregate dollar value of the expected monthly rental income associated with
Slide 9: 2024 Year-End Capital Allocation & Financial Position
2024 Year-End Capital Allocation & Financial Position $489.2 million $56.3 million $82.3 million Liquidity1 FY 2024 CapEx FY 2024 Dividends Paid $1.3 billion 2.7x 2.0x Net Debt1,2 Net Leverage Ratio3 Target Net Leverage Ratio3 All figures except CapEx and dividends paid, which represent expenditures
Slide 10: Full Year 2025 Guidance
Full Year 2025 Guidance Topline growth drives strong Adjusted EBITDA and EPS expansion in FY 2025 Consolidated Guidance1 Full Year 2025 First Quarter 2025 Revenues ($B) $4.50 - $4.75 $1.05 - $1.15 Adj. EBITDA Excluding SBC ($M)2 $500 - $540 $120 - $130 Non-GAAP Diluted Earnings Per Share2 $3.90 - $4
Slide 11: Key Takeaways
Key Takeaways Transformative year strengthens foundation for Upbound's growing, digital-first platform supporting the underserved consumer Innovation into Delivered virtually with Paired with prudent Provides foundation complementary financial increasing scale risk management for earnings growth sol
Slide 12: Appendix
upb ound Appendix
Slide 13: Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Q4 2024)
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended December 31, 2024 Earnings Diluted Operating Before Earnings per (in thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 508,238 $ 79,
Slide 14: Reconciliation of Net Loss to Non-GAAP Diluted EPS (Q4 2023)
Reconciliation of Net (Loss) to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended December 31, 2023 Earnings Diluted (Loss) Operating Before Net (Loss) Earnings per (in thousands) Gross Profit Profit Income Tax Tax Expense Earnings Share GAAP Results $ 5
Slide 15: Reconciliation of Net Earnings to Non-GAAP Diluted EPS (Year 2024)
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Year Ended December 31, 2024 Earnings Diluted Operating Before Earnings per (in thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 2,080,351 $ 291,631 $
Slide 16: Reconciliation of Net Loss to Non-GAAP Diluted EPS (Year 2023)
Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Year Ended December 31, 2023 Earnings Diluted (Loss) Operating Before Tax Expense Net (Loss) Earnings per (in thousands) Gross Profit Profit Income Tax (Benefit) Earnings Share GAAP
Slide 17: Net Earnings to Adjusted EBITDA by Segment (Q4 2024)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended December 31, 2024 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 69,653 $ 69,693 $ 667 $ 4,500 $ (113,531) $ 30,982 Plus: Interest expense, ne
Slide 18: Net Earnings to Adjusted EBITDA by Segment (Q4 2023)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended December 31, 2023 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 60,378 $ 61,880 $ 1,429 $ 3,807 $ (138,748) $ (11,254) Plus: Interest expense
Slide 19: Operating Profit to Adjusted EBITDA by Segment (Year 2024)
Reconciliation of Operating Profit (Loss) to Adjusted EBITDA (Consolidated and by Segment) Year Ended December 31, 2024 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 255,549 $ 280,423 $ 4,806 $ 16,737 $ (434,037) $ 123,478 Plus: Interest expense,
Slide 20: Operating Profit to Adjusted EBITDA by Segment (Year 2023)
Reconciliation of Operating Profit (Loss) to Adjusted EBITDA (Consolidated and by Segment) Year Ended December 31, 2023 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 235,480 $ 273,518 $ 4,846 $ 17,087 $ (536,110) $ (5,179) Plus: Interest expense,
Slide 21: Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash (Used in) Provided by Operating Activities to Free Cash Flow Three Months Ended December 31, Year Ended December 31, (in thousands) 2024 2023 2024 2023 Net cash (used in) provided by operating activities $ (61,945) $ (19,652) $ 104,721 $ 200,290 Purchase of property assets
Slide 22: Supplemental Segment Performance Details – GAAP
Supplemental Segment Performance Details – GAAP Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchising Corporate Consolidated (in millions) Acima Center Mexico Franchising Corporate Consolidated Revenue Revenue Rentals
Slide 23: Supplemental Segment Performance Details – Including Non-GAAP Adjustments
Supplemental Segment Performance Details – Including Non-GAAP Adjustments Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchising Corporate Consolidated (in millions) Acima Center Mexico Franchising Corporate Consolidate
Slide 24: Supplemental Segment Performance Details – GAAP
Supplemental Segment Performance Details – GAAP Year Ended December 31, 2024 Year Ended December 31, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchising Corporate Consolidated (in millions) Acima Center Mexico Franchising Corporate Consolidated Revenue Revenue Rentals and fees $ 1,760
Slide 25: Supplemental Segment Performance Details – Including Non-GAAP Adjustments
Supplemental Segment Performance Details – Including Non-GAAP Adjustments Year Ended December 31, 2024 Year Ended December 31, 2023 Rent-A- (in millions) Acima Center Mexico Franchising Corporate Consolidated Rent-A- (in millions) Acima Center Mexico Franchising Corporate Consolidated Revenue Revenu
Slide 26: Reconciliation of Consolidated Total Leverage Ratio
Reconciliation of Consolidated Total Leverage Ratio Q4 (in millions) 2024 Outstanding Debt $ 1,327.3 Less: Cash and cash equivalents 60.9 Net debt 1,266.4 Adjusted EBITDA(1) Q1 2024 109.1 Q2 2024 124.5 Q3 2024 116.9 Q4 2024 122.8 Trailing twelve month Adjusted EBITDA $ 473.2 Net leverage ratio 2.7 x