UPBOUND GROUP, INC.

Previous wording

This Quarterly Report on Form 10-Q includes “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” These forward-looking statements, include, without limitation, those relating to the impact of ongoing challenging macroeconomic conditions on our business, operations, financial performance and prospects, the future business prospects and financial performance of our Company as a whole (which includes Bridge IT, Inc. (“Brigit”) following the closing of our acquisition of Brigit (the “Merger”) on January 31, 2025) and our segments, our growth strategies, our expectations, plans and strategy relating to our capital structure and capital allocation, including any share repurchases under our share repurchase program, the potential impact of the matters discussed in Note 12, and other statements that are not historical facts. Unless expressly indicated or the context requires otherwise, the terms “Upbound Group, Inc.,” “Company,” “we,” “us,” and “our” in this document refer to Upbound Group, Inc. and, where appropriate, its subsidiaries.

Current wording

This Quarterly Report on Form 10-Q includes “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” These forward-looking statements, include, without limitation, those relating to the impact of ongoing challenging macroeconomic conditions on our business, operations, financial performance and prospects, the future business prospects and financial performance of our Company as a whole (which includes Bridge IT, Inc. (“Brigit”) following the closing of our acquisition of Brigit (the “Merger”) on January 31, 2025) and our segments, our growth strategies, our expectations, plans and strategy relating to our capital structure and capital allocation, including any share repurchases under our share repurchase program, the potential impact of the matters discussed in Note 12 - “Contingencies” in this Quarterly Report on Form 10-Q, and other statements that are not historical facts. Unless expressly indicated or the context requires otherwise, the terms “Upbound Group, Inc.,” “Company,” “we,” “us,” and “our” in this document refer to Upbound Group, Inc. and, where appropriate, its subsidiaries.

Previous wording

•additional risks associated with our recently acquired Brigit business and its consumer products and services, including managing losses and payment defaults, regulatory, licensing and other compliance risks, risks associated with Brigit’s reliance on regulated banks and on providers of third party data, technology and other third-party service providers; and other new risks for our company;

Current wording

•additional risks associated with the Brigit business and its consumer products and services, including managing losses and payment defaults, regulatory, licensing and other compliance risks, risks associated with Brigit’s reliance on regulated banks and on providers of third party data, technology and other third-party service providers; and other new risks for our Company;

Previous wording

•our compliance with applicable statutes and regulations governing our businesses, impacts from the enforcement of existing laws and regulations and the enactment of new laws and regulations adversely affecting our business, including in connection with the regulatory matters described in Note 12 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and any legislative or other regulatory enforcement efforts that seek to re-characterize store-based or virtual lease-to-own transactions as credit sales and to apply consumer credit laws and regulations to our lease-to-own business or to apply credit laws to Brigit’s non-credit consumer offerings;

Current wording

•our compliance with applicable statutes and regulations governing our businesses, impacts from the enforcement of existing laws and regulations and the enactment of new laws and regulations adversely affecting our business, including in connection with the regulatory matters described in Note 12 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and any legislative or other regulatory enforcement efforts or private party litigation or arbitration that seeks to re-characterize store-based or virtual lease-to-own transactions as credit sales and to apply consumer credit laws and regulations to our lease-to-own business or to apply credit laws to Brigit’s non-credit consumer offerings;

Previous wording

Dividend. On June 3, 2025, we announced that our board of directors approved a quarterly cash dividend of $0.39 per share for the second quarter of 2025. The dividend was paid on July 8, 2025 to our common stockholders of record as of the close of business on June 17, 2025.

Current wording

Dividend. On September 17, 2025, we announced that our board of directors approved a quarterly cash dividend of $0.39 per share for the fourth quarter of 2025. The dividend was paid on October 21, 2025 to our common stockholders of record as of the close of business on September 30, 2025.

Previous wording

While the lease-to-own industry has historically remained a resilient business model throughout various economic cycles, the full extent to which our risk management strategy and these macroeconomic trends (including consumer spending and payment behavior) may impact our business in future periods is uncertain. The continuation of volatile macroeconomic trends may have a material adverse impact on our financial statements, including our results of operations, operating cash flows, liquidity and capital resources.

Current wording

While our businesses have historically remained resilient through various economic cycles, the full extent to which our risk management strategy and these macroeconomic trends (including consumer spending and payment behavior) may impact the Company in future periods is uncertain. The continuation of volatile macroeconomic trends may have a material adverse impact on our financial statements, including our results of operations, operating cash flows, liquidity and capital resources.

Previous wording

Rent-A-Center e-commerce revenue. In recent years, e-commerce revenues have continued to increase as a percentage of total rentals and fees revenue in our Rent-A-Center segment. For the six months ended June 30, 2025 and 2024, e-commerce revenues represented approximately 27% and 26% of total lease-to-own revenues, respectively. Due to recent trends in consumer shopping behaviors and expectations, we believe e-commerce solutions are an important part of our lease-to-own offering. However, we are unable to quantify the extent to which e-commerce revenues are incremental compared to what our overall revenues would have been in the absence of those e-commerce transactions. In addition, the profitability of e-commerce transactions can be impacted by different merchandise loss factors compared to traditional store-based transactions in the Rent-A-Center segment. Therefore, we are unable to determine with certainty whether the continuation of this trend toward increased e-commerce transactions will have a significant impact to our financial statements in future periods or be ultimately favorable or unfavorable to our financial results.

Current wording

Rent-A-Center e-commerce revenue. In recent years, e-commerce revenues have continued to increase as a percentage of total rentals and fees revenue in our Rent-A-Center segment. For the nine months ended September 30, 2025 and 2024, e-commerce revenues represented approximately 27% and 26% of total lease-to-own revenues, respectively. Due to recent trends in consumer shopping behaviors and expectations, we believe e-commerce solutions are an important part of our lease-to-own offering. However, we are unable to quantify the extent to which e-commerce revenues are incremental compared to what our overall revenues would have been in the absence of those e-commerce transactions. In addition, the profitability of e-commerce transactions can be impacted by different merchandise loss factors compared to traditional store-based transactions in the Rent-A-Center segment. Therefore, we are unable to determine with certainty whether the continuation of this trend toward increased e-commerce transactions will have a significant impact to our financial statements in future periods or be ultimately favorable or unfavorable to our financial results.

Previous wording

The following discussion focuses on our results of operations and our liquidity and capital resources. You should read this discussion in conjunction with the condensed consolidated financial statements and notes thereto for the six months ended June 30, 2025 included in Part I, Item I of this Quarterly Report on Form 10-Q.

Current wording

The following discussion focuses on our results of operations and our liquidity and capital resources. You should read this discussion in conjunction with the condensed consolidated financial statements and notes thereto for the nine months ended September 30, 2025 included in Part I, Item I of this Quarterly Report on Form 10-Q.

Previous wording

On January 31, 2025 we established a new operating segment following the acquisition of Brigit. Please reference Note 2 for additional discussion of the acquisition. In addition we combined our Franchising segment with our Rent-A-Center segment. Financial information disclosed within this report has been recast for the related prior year period to reflect this change. We report four operating segments: Acima, Rent-A-Center, Brigit and Mexico. The following briefly summarizes certain of our financial information for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Current wording

On January 31, 2025 we established a new operating segment following the acquisition of Brigit. Please reference Note 2 for additional discussion of the acquisition. In addition we combined our Franchising segment with our Rent-A-Center segment. Financial information disclosed within this report has been recast for the related prior year period to reflect this change. We report four operating segments: Acima, Rent-A-Center, Brigit and Mexico. The following briefly summarizes our financial performance for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 on a consolidated basis and for our operating segments.

Previous wording

During the first six months of 2025, consolidated revenues and gross profit increased by approximately $161.4 million and $60.9 million, respectively, primarily due to the addition of Brigit segment revenues and an increase in the Acima segment revenues, partially offset by a decrease in Rent-A-Center segment revenues described below. Operating profit decreased by approximately $29.1 million, primarily due to increases in other gains and charges, non-labor operating expenses, and general and administrative expenses of $57.1 million, $31.5 million, and $18.5 million, respectively, partially offset by the increase in gross profit noted above and a decrease in operating labor expenses of $16.0 million.

Current wording

During the first nine months of 2025, consolidated revenues and gross profit increased by approximately $257.3 million and $112.9 million, respectively, primarily due to the addition of Brigit segment revenues and an increase in the Acima segment revenues, partially offset by a decrease in Rent-A-Center segment revenues described below. Operating profit decreased by approximately $46.4 million, primarily due to increases in other gains and charges, non-labor operating expenses, and general and administrative expenses of $82.2 million, $77.4 million, and $17.2 million, respectively, partially offset by the increase in gross profit noted above and a decrease in operating labor expenses of $17.0 million.

Previous wording

The Acima segment revenues increased approximately $142.1 million for the six months ended June 30, 2025, due to increases in rentals and fees revenues and merchandise sales of $104.4 million and $37.5 million, respectively, primarily resulting from higher GMV. Growth in GMV was primarily due to an increase in third-party retailer locations and productivity, which resulted in more leases per retailer, and expanded direct-to-consumer offerings. Operating profit increased approximately $33.8 million for the six months ended June 30, 2025, primarily due to an increase in gross profit of $32.5 million and decreases in operating labor costs and other gains and charges of $4.2 million and $1.7 million, respectively, partially offset by an increase in non-labor operating expenses of $4.2 million. See“Segment Performance” below for further discussion of Acima segment operating results for the six months ended June 30, 2025.

Current wording

The Acima segment revenues increased approximately $201.2 million for the nine months ended September 30, 2025, due to increases in rentals and fees revenues and merchandise sales of $150.5 million and $50.7 million, respectively, primarily resulting from higher GMV. Growth in GMV was primarily due to an increase in third-party retailer locations and productivity, which resulted in more leases per retailer, and expanded direct-to-consumer offerings. Operating profit increased approximately $33.5 million for the nine months ended September 30, 2025, primarily due to an increase in gross profit of $41.8 million and decreases in operating labor costs and other gains and charges of $5.2 million and $1.7 million, respectively, partially offset by an increase in non-labor operating expenses of $14.8 million. See“Segment Performance” below for further discussion of Acima segment operating results for the nine months ended September 30, 2025.

Previous wording

Revenues in our Rent-A-Center segment decreased approximately $60.8 million for the six months ended June 30, 2025, due to a decrease in same store sales of 3.0% driven by decreases in rentals and fees revenues and merchandise sales of $55.8 million and $6.7 million, respectively. Operating profit decreased approximately $20.3 million for the six months ended June 30, 2025, primarily due to the decrease in gross profit of approximately $42.6 million in addition to higher general and administrative expenses of approximately $10.3 million, partially offset by decreases in non-labor operating expenses, operating labor expense and other gains and charges of $14.6 million, $12.7 million and $6.1 million, respectively. See“Segment Performance” below for further discussion of Rent-A-Center segment operating results for the six months ended June 30, 2025.

Current wording

Revenues in our Rent-A-Center segment decreased approximately $83.3 million for the nine months ended September 30, 2025, due to a decreases in same store sales of 3.2% and lower corporate-owned store count as a result of prior year store closures, resulting in decreases in rentals and fees revenues and merchandise sales of $79.9 million and $5.3 million, respectively. Operating profit decreased approximately $37.1 million for the nine months ended September 30, 2025, primarily due to a decrease in gross profit of approximately $52.0 million driven by lower revenues, in addition to higher general and administrative expenses and other gains and charges of approximately $10.6 million and $6.5 million, respectively, partially offset by decreases in non-labor operating expenses and operating labor expense of $18.6 million and $14.1 million, respectively. See“Segment Performance” below for further discussion of Rent-A-Center segment operating results for the nine months ended September 30, 2025.

Previous wording

The Brigit segment had revenues and operating profit of $83.8 million and $19.3 million, respectively, since the Closing Date. See“Segment Performance” below for further discussion of Brigit segment operating results for the six months ended June 30, 2025.

Current wording

The Brigit segment had revenues and operating profit of $141.4 million and $23.9 million, respectively, since the Closing Date. See“Segment Performance” below for further discussion of Brigit segment operating results for the nine months ended September 30, 2025.

Previous wording

The Mexico segment revenues, gross profit and operating profit decreased by 8.9%, 9.3%, and 2.9% for the six months ended June 30, 2025, respectively, primarily due to negative impacts of exchange rate fluctuations. See“Segment Performance” below for further discussion of Mexico segment operating results for the six months ended June 30, 2025.

Current wording

The Mexico segment revenues and gross profit decreased by 3.3% and 4.0% for the nine months ended September 30, 2025, respectively, primarily due to negative impacts of exchange rate fluctuations. Operating profit increased 8.1%, primarily due to lower operating expenses, partially offset by negative impacts of exchange rate fluctuations. See“Segment Performance” below for further discussion of Mexico segment operating results for the nine months ended September 30, 2025.

Previous wording

Cash flow from operations was $145.6 million for the six months ended June 30, 2025. As of June 30, 2025, we held $106.8 million of cash and cash equivalents and had outstanding indebtedness of $1.6 billion.

Current wording

Cash flow from operations was $264.0 million for the nine months ended September 30, 2025. As of September 30, 2025, we held $107.0 million of cash and cash equivalents and had outstanding indebtedness of $1.6 billion.

Previous wording

Revenue. Total revenues increased by $81.0 million, or 7.5%, to $1,157.5 million for the three months ended June 30, 2025, from $1,076.5 million for the three months ended June 30, 2024. This increase was primarily due to an increase of approximately $66.2 million in the Acima segment and the addition of the Brigit segment with $51.9 million in revenues, partially offset by a decrease of approximately $35.7 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below.

Current wording

Revenue. Total revenues increased by $95.8 million, or 9.0%, to $1,164.7 million for the three months ended September 30, 2025, from $1,068.9 million for the three months ended September 30, 2024. This increase was primarily due to an increase of approximately $59.1 million in the Acima segment and the addition of the Brigit segment with $57.7 million in revenues, partially offset by a decrease of approximately $22.6 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below.

Previous wording

Cost of Rentals and Fees. Cost of rentals and fees consists primarily of depreciation of rental merchandise. Cost of rentals and fees for the three months ended June 30, 2025 increased by $19.5 million, or 5.8%, to $358.1 million as compared to $338.6 million for the three months ended June 30, 2024. The increase was primarily attributable to an increase of approximately $30.6 million in the Acima segment, driven by an increase in rentals and fees revenues, partially offset by a decrease of approximately $10.8 million in the Rent-A-Center segment. Cost of rentals and fees expressed as a percentage of rentals and fees revenue increase to 39.6% for the three months ended June 30, 2025, as compared to 38.2% for the three months ended June 30, 2024, primarily due to the continued growth of the Acima segment as a percent of total rentals and fees revenue.

Current wording

Cost of Rentals and Fees. Cost of rentals and fees consists primarily of depreciation of rental merchandise. Cost of rentals and fees for the three months ended September 30, 2025 increased by $21.7 million, or 6.4%, to $364.1 million as compared to $342.4 million for the three months ended September 30, 2024. The increase was primarily attributable to an increase of approximately $31.8 million in the Acima segment, driven by an increase in rentals and fees revenues, partially offset by a decrease of approximately $10.6 million in the Rent-A-Center segment. Cost of rentals and fees expressed as a percentage of rentals and fees revenue increase to 40.4% for the three months ended September 30, 2025, as compared to 39.0% for the three months ended September 30, 2024, primarily due to the continued growth of the Acima segment as a percent of total rentals and fees revenue.

Previous wording

Cost of Merchandise Sold. Cost of merchandise sold represents the net book value of rental merchandise at time of sale. Cost of merchandise sold increased by $15.7 million, or 7.6%, to $221.7 million for the three months ended June 30, 2025, from $206.0 million for the three months ended June 30, 2024, primarily attributable to an increase of $20.2 million in the Acima segment, driven primarily by higher merchandise sales, partially offset by a decrease of approximately $4.5 million in the Rent-A-Center segment. The gross margin percent of merchandise sales decreased to (15.3)% for the three months ended June 30, 2025, from (12.8)% for the three months ended June 30, 2024.

Current wording

Cost of Merchandise Sold. Cost of merchandise sold represents the net book value of rental merchandise at time of sale. Cost of merchandise sold increased by $15.5 million, or 7.2%, to $230.9 million for the three months ended September 30, 2025, from $215.4 million for the three months ended September 30, 2024, primarily attributable to an increase of $18.0 million in the Acima segment, driven primarily by higher merchandise sales, partially offset by a decrease of approximately $2.6 million in the Rent-A-Center segment. The gross margin percent of merchandise sales increased to (16.5)% for the three months ended September 30, 2025, from (17.5)% for the three months ended September 30, 2024.

Previous wording

Gross Profit. Gross profit increased by $39.8 million, or 7.5%, to $571.8 million for the three months ended June 30, 2025, from $532.0 million for the three months ended June 30, 2024, primarily due to the addition of the Brigit segment with $45.9 million in gross profit and an increase of $15.4 million in the Acima segment, partially offset by a decrease of $20.4 million in the Rent-A-Center segment, as discussed further in the section “Segment Performance” below. Gross profit as a percentage of total revenue was 49.4% for both the three months ended June 30, 2025 and 2024.

Current wording

Gross Profit. Gross profit increased by $52.0 million, or 10.2%, to $563.1 million for the three months ended September 30, 2025, from $511.1 million for the three months ended September 30, 2024, primarily due to the addition of the Brigit segment with $51.0 million in gross profit and an increase of $9.3 million in the Acima segment, partially offset by a decrease of $9.4 million in the Rent-A-Center segment, as discussed further in the section “Segment Performance” below. Gross profit as a percentage of total revenue increased to 48.3% for the three months ended September 30, 2025, from 47.8% for both the three months ended September 30, 2024.

Previous wording

Operating Labor. Operating labor includes all salaries and wages paid to operational employees and district managers, together with payroll taxes and benefits. Operating labor decreased by $7.1 million, or 4.5%, to $149.1 million for the three months ended June 30, 2025, as compared to $156.2 million for the three months ended June 30, 2024, primarily due to decreases of $5.7 million and $2.2 million in the Rent-A-Center and Acima segments, respectively, partially offset by the addition of the Brigit segment with $1.1 million in operating labor. Operating labor expressed as a percentage of total revenue was 12.9% for the three months ended June 30, 2025, as compared to 14.5% for the three months ended June 30, 2024.

Current wording

Operating Labor. Operating labor includes all salaries and wages paid to operational employees and district managers, together with payroll taxes and benefits. Operating labor decreased by $0.9 million, or 0.6%, to $151.7 million for the three months ended September 30, 2025, as compared to $152.6 million for the three months ended September 30, 2024, primarily due to decreases of $1.4 million and $1.0 million in the Rent-A-Center and Acima segments, respectively, partially offset by $1.2 million attributable to the addition of the Brigit segment. Operating labor expressed as a percentage of total revenue was 13.0% for the three months ended September 30, 2025, as compared to 14.3% for the three months ended September 30, 2024.

Previous wording

Non-Labor Operating Expenses. Non-labor operating expenses include LCOs, occupancy, delivery, advertising, selling, insurance, travel and other operating expenses. Non-labor operating expenses increased by $26.2 million, or 12.8%, to $230.1 million for the three months ended June 30, 2025, as compared to $203.9 million for the three months ended June 30, 2024, primarily due to the addition of the Brigit segment with $28.3 million in non-labor operating expenses and an increase in non-labor operating expense of approximately $5.5 million in the Acima segment, primarily related to an increase in lease charge-off expense, partially offset by a decrease in non-labor operating expenses of $7.2 million in the Rent-A-Center segment, primarily attributable to a decrease in corporate-owned store count, resulting from prior year store closures and refranchising. Non-labor operating expenses expressed as a percentage of total revenue was 19.9% for the three months ended June 30, 2025, compared to 18.9% for the three months ended June 30, 2024.

Current wording

Non-Labor Operating Expenses. Non-labor operating expenses include LCOs, occupancy, delivery, advertising, selling, insurance, travel and other operating expenses. Non-labor operating expenses increased by $46.1 million, or 23.5%, to $242.1 million for the three months ended September 30, 2025, as compared to $196.0 million for the three months ended September 30, 2024, primarily due to the addition of the Brigit segment with $38.8 million in non-labor operating expenses and an increase in non-labor operating expense of approximately $10.6 million in the Acima segment, driven primarily by an increase of $8.9 million in lease charge-off expense, partially offset by a decrease in non-labor operating expenses of $4.0 million in the Rent-A-Center segment, primarily attributable to a decrease of $2.2 million in lease charge-off expense. Non-labor operating expenses expressed as a percentage of total revenue was 20.8% for the three months ended September 30, 2025, compared to 18.3% for the three months ended September 30, 2024.

Previous wording

General and Administrative Expenses. General and administrative expenses include all corporate overhead expenses related to our headquarters such as salaries, payroll taxes and benefits, stock-based compensation, occupancy, administrative and other expenses, as well as salaries and labor costs for our regional directors, divisional vice presidents and executive vice presidents. General and administrative expenses increased by $9.8 million, or 18.2%, to $63.4 million for the three months ended June 30, 2025, as compared to $53.6 million for the three months ended June 30, 2024, primarily due to increases in the allowance for doubtful accounts related to franchising trade receivables and the addition of the Brigit segment. General and administrative expenses expressed as a percentage of total revenue was 5.5% for the three months ended June 30, 2025, compared to 5.0% for the three months ended June 30, 2024.

Current wording

General and Administrative Expenses. General and administrative expenses include all corporate overhead expenses related to our headquarters such as salaries, payroll taxes and benefits, stock-based compensation, occupancy, administrative and other expenses, as well as salaries and labor costs for our regional directors, divisional vice presidents and executive vice presidents. General and administrative expenses decreased by $1.3 million, or 2.4%, to $50.2 million for the three months ended September 30, 2025, as compared to $51.5 million for the three months ended September 30, 2024. General and administrative expenses expressed as a percentage of total revenue was 4.3% for the three months ended September 30, 2025, compared to 4.8% for the three months ended September 30, 2024.

Previous wording

Other Gains and Charges. Other gains and charges increased by $40.6 million to $65.5 million for the three months ended June 30, 2025, as compared to $24.9 million for the three months ended June 30, 2024. The increase in other gains and charges was driven primarily by increases of $31.8 million in legal matters and $17.5 million related to the Brigit acquisition, including depreciation and amortization of the fair value of acquired software and intangible assets, stock compensation expense related to the vesting of a portion of the equity consideration, and other compensation and transaction costs, partially offset by decreases of $5.2 million in lease impairment charges and fixed asset disposals, $1.7 million in accelerated stock compensation expense related to our letter agreement with the Company's former Chief Executive Officer and $1.5 million in accelerated software depreciation for the three months ended June 30, 2024.

Current wording

Other Gains and Charges. Other gains and charges increased by $25.3 million to $53.4 million for the three months ended September 30, 2025, as compared to $28.1 million for the three months ended September 30, 2024. The increase in other gains and charges was driven primarily by an increase of $16.4 million related to the Brigit acquisition, including depreciation and amortization of the fair value of acquired software and intangible assets, stock compensation expense related to the vesting of a portion of the equity consideration, and other compensation and transaction costs, and an increase of $11.7 million in asset impairments related to the closure of approximately 50 franchise store locations.

Previous wording

Operating Profit. Operating profit decreased by $30.0 million, or 37.1%, to $50.7 million for the three months ended June 30, 2025, as compared to $80.7 million for the three months ended June 30, 2024, primarily due to increases in other gains and charges, non-labor operating expenses and general and administrative expenses, partially offset by an increase in gross profit and a decrease in operating labor, as described above. Operating profit expressed as a percentage of total revenue was 4.4% for the three months ended June 30, 2025, compared to 7.5% for the three months ended June 30, 2024.

Current wording

Operating Profit. Operating profit decreased by $17.3 million, or 24.7%, to $52.8 million for the three months ended September 30, 2025, as compared to $70.1 million for the three months ended September 30, 2024, primarily due to increases in non-labor operating expenses and other gains and charges, partially offset by an increase in gross profit and decreases in general and administrative expenses and operating labor, as described above. Operating profit expressed as a percentage of total revenue was 4.5% for the three months ended September 30, 2025, compared to 6.6% for the three months ended September 30, 2024.

Previous wording

Income Tax Expense. Income tax expense decreased by $5.1 million, or 41.0%, to $7.4 million for the three months ended June 30, 2025, as compared to $12.5 million for the three months ended June 30, 2024, primarily due to the decrease in earnings before income taxes for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, partially offset by a higher effective tax rate for the three months ended June 30, 2025, attributable to the tax impact on non-deductible expenses related to the Brigit acquisition.

Current wording

Income Tax Expense. Income tax expense decreased by $6.7 million to $6.6 million for the three months ended September 30, 2025, as compared to $13.3 million for the three months ended September 30, 2024, primarily due to the decrease in earnings before income taxes for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, partially offset by a higher effective tax rate for the three months ended September 30, 2025, attributable to the tax impact on non-deductible expenses related to the Brigit acquisition.

Previous wording

Revenue. Total revenue increased by $161.4 million, or 7.4%, to $2,333.9 million for the six months ended June 30, 2025, from $2,172.5 million for the six months ended June 30, 2024. The increase was primarily due to an increase of approximately $142.1 million in the Acima segment and the addition of the Brigit segment with $83.8 million in revenues, partially offset by a decrease of approximately $60.8 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below.

Current wording

Revenue. Total revenue increased by $257.3 million, or 7.9%, to $3,498.6 million for the nine months ended September 30, 2025, from $3,241.3 million for the nine months ended September 30, 2024, primarily due to an increase of approximately $201.2 million in the Acima segment and the addition of the Brigit segment with $141.4 million in revenue, partially offset by a decrease of approximately $83.3 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below.

Previous wording

Cost of Rentals and Fees. Cost of rentals and fees for the six months ended June 30, 2025 increased by $44.9 million, or 6.7%, to $710.6 million, as compared to $665.7 million for the six months ended June 30, 2024. The increase was primarily attributable to an increase of approximately $61.9 million in the Acima segment driven by an increase in rentals and fees revenues, partially offset by a decrease of approximately $16.2 million in the Rent-A-Center segment. Cost of rentals and fees expressed as a percentage of rentals and fees revenue increased to 39.4% for the six months ended June 30, 2025, as compared to 37.9% for the six months ended June 30, 2024, primarily due to the continued growth of the Acima segment as a percent of total rentals and fees revenue.

Current wording

Cost of Rentals and Fees. Cost of rentals and fees for the nine months ended September 30, 2025 increased by $66.7 million, or 6.6%, to $1,074.8 million, as compared to $1,008.1 million for the nine months ended September 30, 2024. The increase was primarily attributable to an increase of approximately $93.7 million in the Acima segment driven by an increase in rentals and fees revenues, partially offset by a decrease of approximately $26.8 million in the Rent-A-Center segment. Cost of rentals and fees expressed as a percentage of rentals and fees revenue increased to 39.7% for the nine months ended September 30, 2025, as compared to 38.2% for the nine months ended September 30, 2024, primarily due to the continued growth of the Acima segment as a percent of total rentals and fees revenue.

Previous wording

Cost of Merchandise Sold. Cost of merchandise sold increased by $45.6 million, or 10.2%, to $491.3 million for the six months ended June 30, 2025, from $445.7 million for the six months ended June 30, 2024, primarily attributable to an increase of $47.7 million in the Acima segment driven primarily by higher merchandise sales. The gross margin percent of merchandise sales decreased to (14.7)% for the six months ended June 30, 2025, from (12.1)% for the six months ended June 30, 2024.

Current wording

Cost of Merchandise Sold. Cost of merchandise sold increased by $61.1 million, or 9.2%, to $722.2 million for the nine months ended September 30, 2025, from $661.1 million for the nine months ended September 30, 2024, primarily attributable to an increase of $65.6 million in the Acima segment driven primarily by higher merchandise sales. The gross margin percent of merchandise sales decreased to (15.3)% for the nine months ended September 30, 2025, from (13.8)% for the nine months ended September 30, 2024.

Previous wording

Gross Profit. Gross profit increased by $61.0 million, or 5.7%, to $1,122.0 million for the six months ended June 30, 2025, from $1,061.0 million for the six months ended June 30, 2024, primarily due to the addition of the Brigit segment with $73.8 million in gross profit and an increase of $32.5 million in the Acima segment, partially offset by a decrease of approximately $42.6 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below. Gross profit as a percentage of total revenue decreased to 48.1% for the six months ended June 30, 2025, as compared to 48.8% for the six months ended June 30, 2024.

Current wording

Gross Profit. Gross profit increased by $112.9 million, or 7.2%, to $1,685.0 million for the nine months ended September 30, 2025, from $1,572.1 million for the nine months ended September 30, 2024, primarily due to the addition of the Brigit segment with $124.8 million in gross profit and an increase of $41.8 million in the Acima segment, partially offset by a decrease of approximately $52.0 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below. Gross profit as a percentage of total revenue decreased to 48.2% for the nine months ended September 30, 2025, as compared to 48.5% for the nine months ended September 30, 2024.

Previous wording

Operating Labor. Operating labor decreased by $16.0 million, or 5.1%, to $298.3 million for the six months ended June 30, 2025, as compared to $314.3 million for the six months ended June 30, 2024, primarily due to decreases of $12.7 million and $4.2 million in the Rent-A-Center and Acima segments, respectively. The decrease in Rent-A-Center operating labor was primarily attributable to a decrease in corporate-owned store count, resulting from prior year store closures and refranchising. Operating labor expressed as a percentage of total revenue was 12.8% for the six months ended June 30, 2025, as compared to 14.5% for the six months ended June 30, 2024.

Current wording

Operating Labor. Operating labor decreased by $17.0 million, or 3.6%, to $450.0 million for the nine months ended September 30, 2025, as compared to $467.0 million for the nine months ended September 30, 2024, primarily due to decreases of $14.1 million and $5.2 million in the Rent-A-Center and Acima segments, respectively. The decrease in Rent-A-Center operating labor was primarily attributable to a decrease in corporate-owned store count, resulting from prior year store closures and refranchising. Operating labor expressed as a percentage of total revenue was 12.9% for the nine months ended September 30, 2025, as compared to 14.4% for the nine months ended September 30, 2024.

Previous wording

Non-Labor Operating Expenses. Non-labor operating expenses increased by $31.5 million, or 7.5%, to $449.2 million for the six months ended June 30, 2025, as compared to $417.7 million for the six months ended June 30, 2024, primarily due to the addition of the Brigit segment with $42.7 million in non-labor operating expenses and increase of approximately $4.2 million in the Acima segment, partially offset by a decrease of approximately $14.6 million in the Rent-A-Center segment. Non-labor operating expenses expressed as a percentage of total revenue was 19.2% for both the six months ended June 30, 2025 and 2024.

Current wording

Non-Labor Operating Expenses. Non-labor operating expenses increased by $77.4 million, or 12.6%, to $691.2 million for the nine months ended September 30, 2025, as compared to $613.8 million for the nine months ended September 30, 2024, primarily due to the addition of the Brigit segment with $81.5 million in non-labor operating expenses and increase of approximately $14.8 million in the Acima segment primarily related to an increase of $16.0 million in lease charge-off expense, partially offset by a decrease of approximately $18.6 million in the Rent-A-Center segment, primarily attributable to decreases of $9.0 million in lease-to-own store merchandise losses and $5.9 million in store occupancy and vehicle expenses driven by lower corporate-owned store count due to prior year store closures. Non-labor operating expenses expressed as a percentage of total revenue was 19.8% for the nine months ended September 30, 2025, as compared to 18.9% for the nine months ended September 30, 2024.

Previous wording

General and Administrative Expenses. General and administrative expenses increased by $18.5 million, or 17.0%, to $127.2 million for the six months ended June 30, 2025, as compared to $108.7 million for the six months ended June 30, 2024, primarily due to increases in the allowance for doubtful accounts related to franchising trade receivables and the addition of the Brigit segment. General and administrative expenses expressed as a percentage of total revenue were 5.4% for the six months ended June 30, 2025, compared to 5.0% for the six months ended June 30, 2024.

Current wording

General and Administrative Expenses. General and administrative expenses increased by $17.2 million, or 10.8%, to $177.4 million for the nine months ended September 30, 2025, as compared to $160.2 million for the nine months ended September 30, 2024, primarily due to an increase in the allowance for doubtful accounts of $10.6 million related to franchising trade receivables and the addition of the Brigit segment with $9.5 million in general and administrative expenses. General and administrative expenses expressed as a percentage of total revenue were 5.1% for the nine months ended September 30, 2025, compared to 4.9% for the nine months ended September 30, 2024.

Previous wording

Other Gains and Charges. Other gains and charges increased by $57.1 million to $108.8 million for the six months ended June 30, 2025, as compared to $51.7 million for the six months ended June 30, 2024. The increase in other gains and charges was driven primarily by increases of $42.5 million in legal matters and $33.0 million related to the Brigit acquisition, including depreciation and amortization of the fair value of acquired software and intangible assets, stock compensation expense related to the vesting of a portion of the equity consideration, other compensation and transaction costs, partially offset by a decrease of $6.1 million in accelerated software depreciation, $5.8 million in lease impairment charges and fixed asset disposal, $4.9 million in stock compensation expense recognized related to restricted stock issued in connection with the Acima Holdings acquisition and $1.7 million in depreciation and amortization of acquired software and intangible assets in connection with the Acima Holdings acquisition for the six months ended June 30, 2025.

Current wording

Other Gains and Charges. Other gains and charges increased by $82.2 million to $162.1 million for the nine months ended September 30, 2025, as compared to $79.9 million for the nine months ended September 30, 2024. The increase in other gains and charges was driven primarily by increases of $49.5 million related to the Brigit acquisition, including depreciation and amortization of the fair value of acquired software and intangible assets, stock compensation expense related to the vesting of a portion of the equity consideration, other compensation and transaction costs, $44.0 million in estimated legal accruals and related litigation and defense expenses described further in Note 9 of our Condensed Consolidated Financial Statements and $5.8 million in lease impairment charges and fixed asset disposals, partially offset by decreases of $6.1 million in accelerated software depreciation, $4.9 million in stock compensation expense related to restricted stock issued in connection with the Acima Holdings acquisition and $1.7 million in depreciation and amortization of acquired software and intangible assets in connection with the Acima Holdings acquisition for the nine months ended September 30, 2025.

Previous wording

Operating Profit. Operating profit decreased by $29.1 million, or 20.4%, to $113.3 million for the six months ended June 30, 2025, as compared to $142.4 million for the six months ended June 30, 2024, primarily due to the increases in other gains and charges, non-labor operating expenses and general and administrative expenses, partially offset by an increase in gross profit and decrease in operating labor, as described above. Operating profit expressed as a percentage of total revenue was 4.9% for the six months ended June 30, 2025, compared to 6.6% for the six months ended June 30, 2024.

Current wording

Operating Profit. Operating profit decreased by $46.4 million, or 21.8%, to $166.1 million for the nine months ended September 30, 2025, as compared to $212.5 million for the nine months ended September 30, 2024, primarily due to the increases in other gains and charges, non-labor operating expenses and general and administrative expenses, partially offset by an increase in gross profit and decrease in operating labor, as described above. Operating profit expressed as a percentage of total revenue was 4.7% for the nine months ended September 30, 2025, compared to 6.6% for the nine months ended September 30, 2024.

Previous wording

Income Tax Expense. Income tax expense increased by $0.7 million to $18.1 million for the six months ended June 30, 2025, as compared to $17.4 million for the six months ended June 30, 2024, primarily due to a higher effective tax rate for the six months ended June 30, 2025. Additionally, in the six months ended June 30, 2024, we recorded a favorable adjustment related to foreign deferred tax assets that did not reoccur in the six months ended June 30, 2025.

Current wording

Income Tax Expense. Income tax expense decreased by $6.0 million to $24.7 million for the nine months ended September 30, 2025, as compared to $30.7 million for the nine months ended September 30, 2024, primarily due to the decrease in earnings before income taxes for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, partially offset by a higher effective tax rate for the nine months ended September 30, 2025 attributable to the tax impact on non-deductible expenses related to the Brigit acquisition.

Previous wording

Revenues. The increase in revenues for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, were primarily due to increases in rentals and fees revenues of $51.0 million and $104.4 million, respectively, and increases in merchandise sales revenue of $15.1 million and $37.5 million, respectively, resulting from higher GMV. Growth in GMV was primarily due to an increase in third-party retailer locations and productivity, which resulted in more leases per retailer, in addition to expanded direct-to-consumer offerings.

Current wording

Revenues. The increase in revenues for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, were primarily due to increases in rentals and fees revenues of $46.1 million and $150.5 million, respectively, and increases in merchandise sales revenue of $13.2 million and $50.7 million, respectively, resulting from higher GMV. Growth in GMV was primarily due to an increase in new third-party retailer locations and productivity, which resulted in more leases per retailer, in addition to expanded direct-to-consumer offerings.

Previous wording

Gross Profit. Gross profit increased for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, driven primarily by the increase in revenues described above. Gross profit as a percentage of segment revenues decreased to 31.5% and 30.4% for the three and six months ended June 30, 2025, compared to 32.5% and 31.3% for the three and six months ended June 30, 2024, primarily due to an increase in merchandise sales as a percent of total revenue.

Current wording

Gross Profit. Gross profit increased for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, driven primarily by the increase in revenues described above. Gross profit as a percentage of segment revenues decreased to 29.3% and 30.0% for the three and nine months ended September 30, 2025, compared to 30.7% and 31.1% for the three and nine months ended September 30, 2024, primarily due to the conversion of Acceptance Now locations to the Acima Holdings Lease Management platform.

Previous wording

Operating Profit. Operating profit as a percentage of segment revenues increased to 13.2% and 12.4% for the three and six months ended June 30, 2025, compared to 12.7% and 10.9% for the three and six months ended June 30, 2024. The increases in operating profit margin were primarily due to increases in gross profit as described above and decreases in operating labor of approximately $2.2 million and $4.2 million for the three and six months ended June 30, 2025, respectively. Merchandise losses in our Acima locations due to LCOs, expressed as a percentage of revenues, were approximately 9.3% and 9.1% for the three and six months ended June 30, 2025, respectively, compared to 9.6% for both the three and six months ended June 30, 2024. Merchandise losses in our Acima locations due to other merchandise losses, expressed as a percentage of revenues, were 0.4% and 0.3% for the three and six months ended June 30, 2025, respectively, and were negligible for both the three and six months ended June 30, 2024. Other merchandise losses include unrepairable and missing merchandise and loss/damage waiver claims.

Current wording

Operating Profit. Operating profit as a percentage of segment revenues was 10.2% and 11.7% for the three and nine months ended September 30, 2025, compared to 11.3% and 11.1% for the three and nine months ended September 30, 2024. The decreases in operating profit margin were primarily due to decreases in gross profit as a percentage of segment revenues as described above and increases in merchandise losses. Merchandise losses in our Acima locations due to LCOs, expressed as a percentage of revenues, were approximately 9.7% and 9.3% for the three and nine months ended September 30, 2025, respectively, compared to 9.2% and 9.5% for the three and nine months ended September 30, 2024, respectively. Merchandise losses in our Acima locations due to other merchandise losses, expressed as a percentage of revenues, were 0.4% for both the three and nine months ended September 30, 2025, and were 0.3% and 0.2% for the three and nine months ended September 30, 2024, respectively. Other merchandise losses include unrepairable and missing merchandise and loss/damage waiver claims.

Previous wording

Gross Profit. Gross profit decreased for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, driven primarily by the decrease in revenues described above. Gross profit as a percentage of segment revenues was 67.9% and 66.9% for the three and six months ended June 30, 2025, respectively, as compared to 67.1% for both the three and six months ended June 30, 2024.

Current wording

Gross Profit. Gross profit decreased for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, driven primarily by the decrease in revenues described above. Gross profit as a percentage of segment revenues was 68.1% and 67.3% for the three and nine months ended September 30, 2025, respectively, as compared to 66.9% and 67.0% for the three and nine months ended September 30, 2024, respectively. Higher gross profit as a percentage of revenues for the three months ended September 30, 2025 was primarily due to mix-shift changes between lease merchandise product categories.

Previous wording

Operating Profit. Operating profit as a percentage of segment revenues was 13.5% for both the three and six months ended June 30, 2025, compared to 14.2% and 14.7% for the three and six months ended June 30, 2024, respectively. The decrease in operating profit margin for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, was primarily due to an increase in general and administrative expenses of $6.3 million and $10.3 million for the three and six months ended June 30, 2025, respectively. The increases in general and administrative expenses were primarily driven by increases in the allowance for doubtful accounts related to franchising trade receivables. Merchandise losses in our Rent-A-Center lease-to-own stores due to LCOs, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 4.7% for both the three and six months ended June 30, 2025, compared to 4.2% and 4.5% for the three and six months ended June 30, 2024, respectively. Merchandise losses in our Rent-A-Center lease-to-own stores due to other merchandise losses, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 1.0% and 0.9% for the three and six months ended June 30, 2025, respectively, compared to approximately 1.6% and 1.3% for the three and six months ended June 30, 2024, respectively. Other merchandise losses include unrepairable and missing merchandise and loss/damage waiver claims.

Current wording

Operating Profit. Operating profit as a percentage of segment revenues was 12.2% and 13.1% for the three and nine months ended September 30, 2025, respectively, compared to 15.1% and 14.9% for the three and nine months ended September 30, 2024, respectively. The decrease in operating profit margin for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, was primarily due to an increase in other gains and charges of $12.5 million and $6.5 million for the three and nine months ended September 30, 2025, respectively, primarily due to impairment charges and shutdown costs related to closure of refranchised locations. The decrease in operating profit margin for the nine months ended September 30, 2025 was also attributable to an increase in general and administrative expenses of $10.6 million, primarily driven by increases in the allowance for doubtful accounts related to franchising trade receivables. Merchandise losses in our Rent-A-Center lease-to-own stores due to LCOs, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 4.7% for both the three and nine months ended September 30, 2025, compared to 4.9% and 4.6% for the three and nine months ended September 30, 2024, respectively. Merchandise losses in our Rent-A-Center lease-to-own stores due to other merchandise losses, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 1.0% and 0.9% for the three and nine months ended September 30, 2025, respectively, compared to approximately 1.3% for both the three and nine months ended September 30, 2024. Other merchandise losses include unrepairable and missing merchandise and loss/damage waiver claims.

Previous wording

Revenues. Revenues for the three and six months ended June 30, 2025 included $36.3 million and $60.3 million in subscription revenue, $10.9 million and $16.6 million in transfer fee revenue and $4.7 million and $6.8 million in marketplace revenue, respectively.

Current wording

Revenues. Revenues for the three and nine months ended September 30, 2025 included $39.2 million and $99.5 million in subscription revenue, $12.4 million and $29.0 million in transfer fee revenue and $6.1 million and $12.9 million in marketplace revenue, respectively.