Upbound Group Inc (NASDAQ:UPBD) stock rose 0.59% (As on September 17, 11:23:47 AM UTC-4, Source: Google Finance) after Loop Capital analyst Anthony Chukumba upgraded the company from Hold to Buy and raised the price target from $21 to $36, reflecting a positive near-term outlook for the company’s earnings prospects. The analyst left the meetings feeling incrementally more confident in Upbound’s near-term earnings prospects given the continued growth of Acima and Brigit. He also note Upbound will receive a substantial cash windfall over the next couple of years from the accelerated depreciation provisions in the One Big Beautiful Bill. Simply put, with Upbound stock trading at 5.0x the 2026 EPS—not EBITDA, EPS—estimate the analyst believe upside potential far outweighs downside risk. The new $36 price target is based on 6.9x the 2026 diluted EPS estimate, which would still represent sizable discounts to historical average levels and Upbound’s closest comparable company, PROG Holdings.

Meanwhile, in the second quarter of 2025, consolidated revenues was of $1,157.5 million increased 7.5% year-over-year, driven by the acquisition of Brigit in addition to both higher rentals and fees revenue and higher merchandise sales revenue. GAAP operating profit was of $50.7 million, including $65.5 million of pretax costs relating to special items described below, compared to $80.7 million of GAAP operating profit, including $24.9 million of pretax costs relating to special items, in the prior year period. Second quarter 2025 GAAP operating profit margin was 4.4%, compared to 7.5% in the prior year period. Net earnings on a GAAP basis of $15.5 million, compared to $33.9 million in the prior year period, an $18.4 million decrease. Net profit margin of 1.3% decreased 190 bps year-over-year. Adjusted EBITDA1 increased 7.0% year-over-year to $133.2 million, due to an increase in Adjusted EBITDA in the Acima segment and the addition of the Brigit segment, partially offset by a decrease in Adjusted EBITDA in the Rent-A-Center segment. Adjusted EBITDA margin of 11.5% decreased 10 basis points compared to the prior year period, due to a decrease in Adjusted EBITDA margin in the Rent-A-Center segment, partially offset by an increase in Adjusted EBITDA margin in the Acima segment and the addition of the Brigit segment, which had a strong Adjusted EBITDA margin.

In addition, Brigit is innovating on the product side and is currently piloting a line of credit offering with a loan size rating of up to $500, which is twice the current $250 top end of the instant cash product. In terms of the third quarter, the company expects revenues ranging from $1.05 billion to $1.15 billion, adjusted EBITDA of $120 million to $130 million, and non-GAAP EPS of $0.95 to $1.05.