UPBOUND GROUP, INC.

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

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

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•our ability or that of our third-party retailers or other third parties with whom we do business to protect the integrity and security of customer, employee, supplier and third-party retailer or other third-party information, which may be adversely affected by hacking, computer viruses, cybersecurity attacks or similar disruptions;

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our ability or that of our third-party retailers or other third parties with whom we do business to protect the integrity and security of customer, employee, supplier and third-party retailer or other third-party information, from adverse effects of hacking, computer viruses, cybersecurity attacks or similar disruptions;

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•our available cash flow and our ability to generate sufficient cash flow to continue paying dividends;

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our available cash flow and our ability to generate sufficient cash flow to continue to fund the operations of our business;

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On January 31, 2025, we completed the acquisition of Brigit, a holistic financial health technology company that has helped millions of customers improve their financial health and literacy, find ways to earn and save money, access their earned wages before their regularly scheduled payday, build their credit through savings and protect themselves from identity theft. Its mission is to help customers build a better financial future. See Note 2 in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Current wording

On January 31, 2025, we completed the acquisition of Brigit, a holistic financial health technology company that has helped millions of customers improve their financial health and literacy, find ways to earn and save money, obtain early access to their earned wages ("cash advances"), build their credit through savings and protect themselves from identity theft. Its mission is to help customers build a better financial future. See Note 2 in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

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•At Brigit, continue to grow Brigit’s EWA, credit builder and other existing products and increase Brigit’s portfolio of products;

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At Brigit, continue to grow Brigit’s earned wages access, credit builder and other existing products and increase Brigit’s portfolio of products;

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•Upgrade and integrate technology platforms to allow for a more simplified and seamless consumer experience, third-party retailer and waterfall integration, consumer transaction process and coworker efficiency.

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Upgrade and integrate technology platforms to allow for an enhanced consumer experience, third-party retailer and waterfall integration, consumer transaction process and coworker efficiency.

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Dividend. On March 25, 2026, we announced that our board of directors approved a quarterly cash dividend of $0.39 per share for the first quarter of 2026. The dividend was paid on April 28, 2026 to our common stockholders of record as of the close of business on April 7, 2026.

Current wording

Dividend. On June 2, 2026, we announced that our board of directors approved a quarterly cash dividend of $0.39 per share. The dividend was paid on July 7, 2026 to our common stockholders of record as of the close of business on June 16, 2026.

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Rent-A-Center e-commerce revenue. In recent years, e-commerce revenues have increased over time as a percentage of total rentals and fees revenue in our Rent-A-Center segment. For the three months ended March 31, 2026 and 2025, e-commerce revenues represented approximately 28% and 27% 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 on 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 increased over time as a percentage of total rentals and fees revenue in our Rent-A-Center segment. For the six months ended June 30, 2026 and 2025, e-commerce revenues represented approximately 28% and 27% 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 on our financial statements in future periods or be ultimately favorable or unfavorable to our financial results.

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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 three months ended March 31, 2026 included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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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, 2026 included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Lease Charge-Offs (“LCOs”) (previously referred to as “skip / stolen losses”): Represents charge-offs of the net book value of unrecoverable on-rent merchandise with lease-to-own customers who are past due. This is typically expressed as a percentage of revenues for the applicable period. For the Rent-A-Center segment, LCOs exclude Get It Now, Home Choice and franchise-owned Rent-A-Center locations.

Current wording

Lease Charge-Offs (“LCOs”) (previously referred to as “skip / stolen losses”): Represents charge-offs of the net book value of unrecoverable on-rent merchandise with lease-to-own customers who are past due. This is typically expressed as a percentage of revenues for the applicable period. For the Rent-A-Center segment, LCOs exclude Get It Now, Home Choice and franchise-owned Rent-A-Center locations. For the Acima segment, LCOs exclude fraudulent lease-to-own contract losses.

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Brigit Net Advance Losses: Represents charge-offs of Brigit uncollectible customer cash advances that are more than 45 days past due. This is typically expressed as a percentage of total cash advances originated in the applicable period.

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Brigit Net Advance Losses: Represents charge-offs of Brigit uncollectible cash advances that are more than 45 days past due. This is typically expressed as a percentage of total cash advances originated in the applicable period.

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We report four operating segments: Acima, Rent-A-Center, Brigit and Mexico. The following briefly summarizes our financial performance for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 on a consolidated basis and for our operating segments.

Current wording

We report four operating segments: Acima, Rent-A-Center, Brigit and Mexico. The following briefly summarizes our financial performance for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 on a consolidated basis and for our operating segments.

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During the first three months of 2026, consolidated revenues and gross profit increased by approximately $43.4 million and $36.3 million, respectively, primarily due to increases in the Brigit and Acima segment revenues, partially offset by a decrease in Rent-A-Center segment revenues described below. Operating profit increased by approximately $14.8 million, primarily due to the increase in gross profit noted above and decreases in general and administrative expenses and other gains and charges of $6.7 million and $4.9 million, respectively, partially offset by increases in non-labor operating expenses of $31.3 million.

Current wording

During the first six months ended June 30, 2026, consolidated revenues and gross profit increased by approximately $49.3 million and $59.3 million, respectively, primarily due to an increase in Brigit segment revenues, partially offset by decreases in Rent-A-Center and Acima segment revenues described below. Operating profit increased by approximately $18.4 million, primarily due to the increase in gross profit noted above and decreases in general and administrative expenses and other gains and charges of $10.4 million and $15.9 million, respectively, partially offset by increases in non-labor operating expenses of $61.3 million.

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The Acima segment revenues increased approximately $11.4 million for the three months ended March 31, 2026, primarily due to increases in rentals and fees revenues of $12.6 million, primarily resulting from higher GMV in prior quarters and fewer customers electing early purchase options in 2026. Operating profit increased approximately $3.6 million for the three months ended March 31, 2026, primarily due to an increase in gross profit of $7.6 million, partially offset by an increase in non-labor operating expenses of $4.5 million. See“Segment Performance” below for further discussion of Acima segment operating results for the three months ended March 31, 2026.

Current wording

Acima segment revenues decreased approximately $4.1 million for the six months ended June 30, 2026, primarily due to lower merchandise sales revenues of $7.3 million, partially offset by fewer customers electing early purchase options in 2026 resulting in higher rentals and fees revenues of $3.5 million. Operating profit decreased approximately $5.0 million for the six months ended June 30, 2026, primarily due to increases in other gains and charges and non-labor operating expenses of $13.3 million and $3.4 million, respectively, partially offset by an increase in gross profit of $10.8 million. See“Segment Performance” below for further discussion of Acima segment operating results for the six months ended June 30, 2026.

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Revenues in our Rent-A-Center segment decreased approximately $7.4 million for the three months ended March 31, 2026, primarily due to decreases in merchandise sales and other revenues of $5.0 million and $3.6 million, respectively, primarily resulting from fewer customers electing early purchase options and lower franchise revenues. Operating profit decreased approximately $4.1 million for the three months ended March 31, 2026, primarily due to a decrease in gross profit of approximately $5.6 million driven by lower revenues, in addition to higher non-labor operating expenses of $5.5 million, partially offset by decreases in general and administrative expenses and operating labor expense of approximately $5.1 million and $1.3 million, respectively. See“Segment Performance” below for further discussion of Rent-A-Center segment operating results for the three months ended March 31, 2026.

Current wording

Revenues in our Rent-A-Center segment decreased approximately $8.2 million for the six months ended June 30, 2026, primarily due to decreases in merchandise sales and other revenues of $8.4 million and $6.8 million, respectively, primarily resulting from fewer customers electing early purchase options and lower franchise revenues, partially offset by an increase in rentals and fees revenues of $7.0 million. Operating profit decreased approximately $12.5 million for the six months ended June 30, 2026, primarily due to a decrease in gross profit of approximately $5.7 million driven by lower revenues, in addition to higher non-labor operating expenses and operating labor expenses of approximately $14.4 million and $1.0 million, respectively, partially offset by a decrease in general and administrative expenses of approximately $11.1 million. See“Segment Performance” below for further discussion of Rent-A-Center segment operating results for the six months ended June 30, 2026.

Previous wording

The Brigit segment revenues and gross profit increased by $35.8 million and $32.1 million, respectively, primarily due to the three months ended March 31, 2025 including two months of revenues after the Closing Date, compared to the three months ended March 31, 2026, which includes three months of revenues. See“Segment Performance” below for further discussion of Brigit segment operating results for the three months ended March 31, 2026.

Current wording

The Brigit segment revenues and gross profit increased by $55.0 million and $50.2 million, respectively, for the six months ended June 30, 2026, partially due to only five months being included in operating results for the six months ended June 30, 2025 following the Closing Date, in addition to an increase in Brigit subscription customers during the six months ended June 30, 2026. See“Segment Performance” below for further discussion of Brigit segment operating results for the six months ended June 30, 2026.

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The Mexico segment revenues and gross profit increased by 19.6% and 17.3% for the three months ended March 31, 2026, respectively, primarily due to positive impacts of exchange rate fluctuations. See“Segment Performance” below for further discussion of Mexico segment operating results for the three months ended March 31, 2026.

Current wording

The Mexico segment revenues and gross profit increased by 16.9% and 14.7% for the six months ended June 30, 2026, respectively, primarily due to positive impacts of exchange rate fluctuations. See“Segment Performance” below for further discussion of Mexico segment operating results for the six months ended June 30, 2026.

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Cash flow from operations was $170.7 million for the three months ended March 31, 2026. As of March 31, 2026, we held $98.4 million of cash and cash equivalents and had outstanding indebtedness of $1.5 billion.

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Cash flow from operations was $294.0 million for the six months ended June 30, 2026. As of June 30, 2026, we held $105.3 million of cash and cash equivalents and had outstanding indebtedness of $1.4 billion.

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Revenue. Total revenues increased by $43.3 million, or 3.7%, to $1,219.7 million for the three months ended March 31, 2026, from $1,176.4 million for the three months ended March 31, 2025. This increase was primarily due to increases of approximately $35.8 million and $11.4 million in the Brigit and Acima segments, respectively, partially offset by a decrease of approximately $7.4 million in the Rent-A-Center segment, as discussed further in the “Segment Performance” section below.

Current wording

Revenue. Total revenues increased by $5.9 million, or 0.5%, to $1,163.4 million for the three months ended June 30, 2026, from $1,157.5 million for the three months ended June 30, 2025. This increase was primarily due to increases of approximately $19.2 million and $2.9 million in the Brigit and Mexico segments, respectively, partially offset by decreases of approximately $15.4 million and $0.7 million in the Acima and Rent-A-Center segments, respectively, as discussed further in the “Segment Performance” section below.

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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 $0.1 million to $149.1 million for the three months ended March 31, 2026, as compared to $149.2 million for the three months ended March 31, 2025. Operating labor expressed as a percentage of total revenue was 12.2% for the three months ended March 31, 2026, as compared to 12.7% for the three months ended March 31, 2025.

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 increased by $3.2 million or 2.2% to $152.3 million for the three months ended June 30, 2026, as compared to $149.1 million for the three months ended June 30, 2025. Operating labor expressed as a percentage of total revenue was 13.1% for the three months ended June 30, 2026, as compared to 12.9% for the three months ended June 30, 2025.

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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 $31.3 million, or 14.3%, to $250.3 million for the three months ended March 31, 2026, as compared to $219.0 million for the three months ended March 31, 2025, primarily due to increases of $19.5 million, $5.5 million and $4.5 million in the Brigit, Rent-A-Center and Acima segments, respectively. The increase in the Brigit segment was primarily due to the three months ended March 31, 2025 including two months of expenses after the Closing Date, compared to the three months ended March 31, 2026 which includes three months of expenses, resulting in higher advertising expenses and net advance losses of $9.4 million and $8.9 million, respectively. Non-labor operating expenses expressed as a percentage of total revenue was 20.5% for the three months ended March 31, 2026, compared to 18.6% for the three months ended March 31, 2025.

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 $30.2 million, or 13.1%, to $260.3 million for the three months ended June 30, 2026, as compared to $230.1 million for the three months ended June 30, 2025, primarily due to increases of $20.5 million, $8.9 million and $1.7 million in the Brigit, Rent-A-Center and Mexico segments, respectively, partially offset by a decrease of $1.1 million in the Acima segment. The increase in the Brigit segment was primarily due to higher advertising expenses and customer advance losses of $9.1 million and $7.6 million, respectively, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Non-labor operating expenses expressed as a percentage of total revenue was 22.4% for the three months ended June 30, 2026, compared to 19.9% for the three months ended June 30, 2025.

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Other Gains and Charges. Other gains and charges decreased by $4.9 million to $38.4 million for the three months ended March 31, 2026, as compared to $43.3 million for the three months ended March 31, 2025. The decrease in other gains and charges was driven primarily by a decrease of $6.6 million in estimated legal accruals and related litigation and defense expenses as described in Note 11 of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, partially offset by an increase of $1.0 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, and other compensation and transaction costs.

Current wording

Other Gains and Charges. Other gains and charges decreased by $11.1 million to $54.4 million for the three months ended June 30, 2026, as compared to $65.5 million for the three months ended June 30, 2025. The decrease in other gains and charges was driven primarily by a decrease of $33.6 million in estimated legal accruals and related litigation and defense expenses as described in Note 11 of our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, partially offset by an increase of $13.3 million related to Acima fraudulent lease-to-own contract losses as discussed above, $5.3 million related to stock compensation expense associated with the vesting of a portion of the Brigit acquisition equity consideration, and $4.0 million related to store consolidations during the three months ended June 30, 2026.

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Operating Profit. Operating profit increased by $14.8 million, or 23.7%, to $77.4 million for the three months ended March 31, 2026, as compared to $62.6 million for the three months ended March 31, 2025, primarily due to increases in gross profit and decreases in general and administrative expenses and other gains and charges, partially offset by an increase in non-labor operating expenses, as described above. Operating profit expressed as a percentage of total revenue was 6.3% for the three months ended March 31, 2026, compared to 5.3% for the three months ended March 31, 2025.

Current wording

Operating Profit. Operating profit increased by $3.6 million, or 6.9%, to $54.3 million for the three months ended June 30, 2026, as compared to $50.7 million for the three months ended June 30, 2025, primarily due to increases in revenues and gross profit, in addition to decreases in general and administrative expenses and other gains and charges, partially offset by an increase in non-labor operating expenses, as described above. Operating profit expressed as a percentage of total revenue was 4.7% for the three months ended June 30, 2026, compared to 4.4% for the three months ended June 30, 2025.

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Income Tax Expense. Income tax expense increased by $4.8 million to $15.5 million for the three months ended March 31, 2026, as compared to $10.7 million for the three months ended March 31, 2025, primarily due to the increase in earnings before income taxes for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Current wording

Income Tax Expense. Income tax expense increased by $0.3 million to $7.7 million for the three months ended June 30, 2026, as compared to $7.4 million for the three months ended June 30, 2025, primarily due to the increase in earnings before income taxes partially offset by a lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

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 March 31, 2026 increased by $5.1 million, or 1.4%, to $357.6 million as compared to $352.5 million for the three months ended March 31, 2025. The increase was primarily attributable to an increase of approximately $8.4 million in the Acima segment, driven by an increase in rentals and fees revenues, partially offset by a decrease of approximately $4.4 million in the Rent-A-Center segment. Cost of rentals and fees expressed as a percentage of rentals and fees revenue decreased to 39.0% for the three months ended March 31, 2026, as compared to 39.2% for the three months ended March 31, 2025.

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 six months ended June 30, 2026 decreased by $2.4 million, or 0.3%, to $708.2 million as compared to $710.6 million for the six months ended June 30, 2025. The decrease was primarily attributable to a decrease of approximately $6.3 million in the Rent-A-Center segment, partially offset by increases of approximately $2.0 million and $1.9 million in the Acima and Mexico segments, respectively, driven by an increase in rentals and fees revenue. Cost of rentals and fees expressed as a percentage of rentals and fees revenue decreased to 38.9% for the six months ended June 30, 2026, as compared to 39.4% for the six months ended June 30, 2025.

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 decreased by $1.8 million, or 0.7%, to $267.9 million for the three months ended March 31, 2026, from $269.7 million for the three months ended March 31, 2025, primarily attributable to a decrease of $4.6 million in the Acima segment, driven by lower merchandise sales, partially offset by an increase of approximately $2.6 million in the Rent-A-Center segment. The gross margin percent of merchandise sales decreased to (16.4)% for the three months ended March 31, 2026, from (14.2)% for the three months ended March 31, 2025, primarily resulting from lower early purchase option exercises in the Rent-A-Center segment for the three months ended March 31, 2026.

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 decreased by $12.5 million, or 2.5%, to $478.8 million for the six months ended June 30, 2026, from $491.3 million for the six months ended June 30, 2025, primarily attributable to a decrease of $16.9 million in the Acima segment, driven by lower merchandise sales, partially offset by an increase of approximately $3.8 million in the Rent-A-Center segment. The gross margin percent of merchandise sales decreased to (15.9)% for the six months ended June 30, 2026, from (14.7)% for the six months ended June 30, 2025, primarily resulting from lower early purchase option exercises in the Rent-A-Center segment for the six months ended June 30, 2026.

Previous wording

Gross Profit. Gross profit increased by $36.4 million, or 6.6%, to $586.5 million for the three months ended March 31, 2026, from $550.1 million for the three months ended March 31, 2025, primarily due to increases of $32.1 million and $7.6 million in the Brigit and Acima segments, respectively, partially offset by a decrease of $5.6 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 48.1% for the three months ended March 31, 2026, from 46.8% for both the three months ended March 31, 2025.

Current wording

Gross Profit. Gross profit increased by $59.3 million, or 5.3%, to $1,181.3 million for the six months ended June 30, 2026, from $1,122.0 million for the six months ended June 30, 2025, primarily due to increases of $50.2 million, $10.8 million and $3.9 million in the Brigit, Acima and Mexico segments, respectively, partially offset by a decrease of $5.7 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 49.6% for the six months ended June 30, 2026, from 48.1% for both the six months ended June 30, 2025.

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 decreased by $6.7 million, or 10.5%, to $57.1 million for the three months ended March 31, 2026, as compared to $63.8 million for the three months ended March 31, 2025, primarily due to a decrease in bad debt expense of $4.2 million related to franchising trade receivables. General and administrative expenses expressed as a percentage of total revenue was 4.7% for the three months ended March 31, 2026, compared to 5.4% for the three months ended March 31, 2025.

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 $10.4 million, or (8.2)%, to $116.8 million for the six months ended June 30, 2026, as compared to $127.2 million for the six months ended June 30, 2025, primarily due to a decrease in bad debt expense of $8.1 million related to franchising trade receivables. General and administrative expenses expressed as a percentage of total revenue was 4.9% for the six months ended June 30, 2026, compared to 5.4% for the six months ended June 30, 2025.

Previous wording

Gross Profit. Gross profit increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, driven primarily by the increase in revenues described above. Gross profit as a percentage of segment revenues increased to 29.9% for the three months ended March 31, 2026, compared to 29.3% for the three months ended March 31, 2025, primarily due to fewer customers electing early purchase options in 2026.

Current wording

Gross Profit. Gross profit increased for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, primarily driven by fewer customers exercising early purchase options. Gross profit as a percentage of segment revenues increased to 32.8% and 31.3% for the three and six months ended June 30, 2026, respectively, compared to 31.5% and 30.4% for the three and six months ended June 30, 2025, respectively, primarily due to fewer customers exercising early purchase options.

Previous wording

Operating Profit. Operating profit as a percentage of segment revenues increased to 11.9% for the three months ended March 31, 2026, compared to 11.6% for the three months ended March 31, 2025. The increase in operating profit for the three months ended March 31, 2026 is primarily due to the increase in gross profit. Merchandise losses in our Acima locations due to LCOs, expressed as a percentage of segment revenues, were approximately 8.8% for the three months ended March 31, 2026, compared to 8.9% for the three months ended March 31, 2025. Merchandise losses in our Acima locations due to other merchandise losses, expressed as a percentage of segment revenues, were approximately 0.5% and 0.3% for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Operating Profit. Operating profit as a percentage of segment revenues decreased to 12.2% and 12.0% for the three and six months ended June 30, 2026, respectively, compared to 13.2% and 12.4% for the three and six months ended June 30, 2025, respectively. The decrease in operating profit for the three and six months ended June 30, 2026 was primarily due to an increase in other charges of $13.3 million for both the three and six months ended June 30, 2026, related to Acima fraudulent lease-to-own contract losses as discussed above, partially offset by the increase in gross profit described above. Merchandise losses in our Acima locations due to LCOs, expressed as a percentage of segment revenues, were approximately 8.8% for both the three and six months ended June 30, 2026, compared to 9.3% and 9.1% for the three and six months ended June 30, 2025, respectively. Merchandise losses in our Acima locations due to other merchandise losses, expressed as a percentage of segment revenues, were approximately 0.5% for both the three and six months ended June 30, 2026 compared to 0.4% and 0.3% for the three and six months ended June 30, 2025, respectively.

Previous wording

Revenues. The decrease in revenue for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily due to decreases in merchandise sales and other revenues of $5.0 million and $3.6 million, respectively, primarily resulting from fewer customers electing early purchase options and lower franchise revenues.

Current wording

Revenues. The decrease in revenue for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, was primarily due to decreases in merchandise sales of $3.5 million and $8.4 million, respectively, primarily resulting from fewer customers electing early purchase options and lower franchise revenues, partially offset by increases in rentals and fees of $5.9 million and $7.0 million, respectively.

Previous wording

Gross Profit. Gross profit decreased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, driven primarily by the decrease in revenues described above. Gross profit as a percentage of segment revenues was 65.9% for the three months ended March 31, 2026, as compared to 66.0% for the three months ended March 31, 2025.

Current wording

Gross Profit. Gross profit decreased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, driven primarily by the decrease in revenues described above. Gross profit as a percentage of segment revenues was 67.9% and 66.9% for both the three and six months ended June 30, 2026 and three and six months ended June 30, 2025.

Previous wording

Operating Profit. Operating profit as a percentage of segment revenues was 12.9% for the three months ended March 31, 2026, compared to 13.6% for the three months ended March 31, 2025. The decrease in operating profit margin for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily driven by the decrease in gross profit described above. Merchandise losses in our company-owned 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 the three months ended March 31, 2026, compared to 4.6% for the three months ended March 31, 2025. Other merchandise losses in our company-owned Rent-A-Center lease-to-own stores, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 0.8% for both the three months ended March 31, 2026 and 2025. 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 11.7% and 12.3% for the three and six months ended June 30, 2026, respectively, compared to 13.5% for both the three and six months ended June 30, 2025, respectively. The decrease in operating profit margin for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, was partially driven by the decrease in gross profit described above, in addition to increases in merchandise losses, advertising expenses, and insurance costs. Merchandise losses in our company-owned Rent-A-Center lease-to-own stores due to LCOs, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 5.0% and 4.8% for the three and six months ended June 30, 2026, respectively, compared to 4.7% for both the three and six months ended June 30, 2025. Other merchandise losses in our company-owned Rent-A-Center lease-to-own stores, expressed as a percentage of Rent-A-Center lease-to-own revenues, were approximately 1.1% and 1.0% for the three and six months ended June 30, 2026, respectively, compared to 1.0% and 0.9% for the three and six months ended June 30, 2025, respectively. Other merchandise losses include unrepairable and missing merchandise and loss/damage waiver claims.

Previous wording

Revenues. The increase in revenues for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, was primarily due to the three months ended March 31, 2025 including two months of revenues after the Closing Date, compared to the three months ended March 31, 2026 which includes three months of revenues. The Brigit segment revenues included increases of $24.5 million, $6.6 million and $4.6 million in subscription revenue, transfer fee revenue and marketplace revenue, respectively.

Current wording

Revenues. The increase in revenues for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, was partially due to the six months ended June 30, 2025 including only five months of revenues after the Closing Date, in addition to an increase in Brigit subscription customers. The Brigit segment revenues included increases of $37.5 million, $9.0 million and $7.6 million in subscription revenue, transfer fee revenue and marketplace revenue, respectively.

Previous wording

Gross Profit. Gross profit as a percentage of segment revenues was 88.6% for the three months ended March 31, 2026, as compared to 87.4% for the three months ended March 31, 2025. The increase was primarily due to mix-shift changes between subscriptions and fees product categories.

Current wording

Gross Profit. Gross profit as a percentage of segment revenues was 90.2% and 89.3% for the three and six months ended June 30, 2026, respectively, as compared to 88.5% and 88.1% for the three and six months ended June 30, 2025, respectively. The increase was primarily due to mix-shift changes between subscriptions and fees product categories.

Previous wording

Operating Profit. Operating profit as a percentage of segment revenues was 27.4% for the three months ended March 31, 2026, compared to 27.7% for the three months ended March 31, 2025. Net advance losses expressed as a percentage of total cash advances originated were approximately 3.5% and 2.4% for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Operating Profit. Operating profit as a percentage of segment revenues was 10.6% and 18.8% for the three and six months ended June 30, 2026, respectively, compared to 20.2% and 23.0% for the three and six months ended June 30, 2025, respectively, primarily driven by increases in net advance losses and advertising expenses. Net advance losses expressed as a percentage of total cash advances originated were approximately 3.6% for both the three and six months ended June 30, 2026. Net advance losses expressed as a percentage of total cash advances originated were approximately 2.6% for both the three and six months ended June 30, 2025.

Previous wording

Revenues. Revenues were positively impacted by exchange rate fluctuations of approximately $3.1 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. On a constant currency basis, revenues for the three months ended March 31, 2026 increased approximately $0.5 million, compared to the three months ended March 31, 2025.

Current wording

Revenues. Revenues were positively impacted by exchange rate fluctuations of approximately $2.5 million and $5.4 million for the three and six months ended June 30, 2026, respectively, as compared to the three and six months ended June 30, 2025. On a constant currency basis, revenues for the three and six months ended June 30, 2026 increased approximately $0.3 million and $1.0 million, respectively, compared to the three and six months ended June 30, 2025.

Previous wording

Gross Profit. Gross profit was positively impacted by exchange rate fluctuations of approximately $2.1 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. On a constant currency basis, gross profit for the three months ended March 31, 2026 increased by approximately $0.1 million as compared to the three months ended March 31, 2025. Gross profit as a percentage of segment revenues was 70.0% for the three months ended March 31, 2026, compared to 71.5% for the three months ended March 31, 2025.

Current wording

Gross Profit. Gross profit was positively impacted by exchange rate fluctuations of approximately $1.7 million and $3.8 million for the three and six months ended June 30, 2026, respectively, as compared to the three and six months ended June 30, 2025. On a constant currency basis, gross profit for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was relatively flat. On a constant currency basis, gross profit for the six months ended June 30, 2026, increased by approximately $0.2 million, as compared to the six months ended June 30, 2025. Gross profit as a percentage of segment revenues was 70.1% for both the three and six months ended June 30, 2026, compared to 71.4% for both the three and six months ended June 30, 2025.

Previous wording

Operating Profit. Operating profit was minimally impacted by exchange rate fluctuations for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. On a constant currency basis, operating profit for the three months ended March 31, 2026 decreased by approximately $1.3 million as compared to the three months ended March 31, 2025. Operating profit as a percentage of segment revenues decreased to (0.4)% for the three months ended March 31, 2026, compared to 6.7% for the three months ended March 31, 2025.

Current wording

Operating Profit (Loss). Operating profit (loss) was negatively impacted by exchange rate fluctuations of approximately $0.1 million for both the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025. On a constant currency basis, operating profit (loss) for the three and six months ended June 30, 2026 decreased by approximately $2.1 million and $3.4 million, respectively, as compared to the three and six months ended June 30, 2025. Operating profit (loss) as a percentage of segment revenues decreased to (1.3)% and (0.9)% for the three and six months ended June 30, 2026, respectively, compared to 9.9% and 8.4% for the three and six months ended June 30, 2025.

Previous wording

Overview. For the three months ended March 31, 2026, we generated $170.7 million in operating cash flow, used cash in the amount of $236.2 million for debt repayments, $23.1 million for dividends, $18.8 million for customer cash advance originations net of collections, and $16.0 million for capital expenditures, and had cash proceeds from indebtedness of $105.0 million. We ended the first quarter of 2026 with $98.4 million of cash and cash equivalents and outstanding indebtedness of $1.5 billion.

Current wording

Overview. For the six months ended June 30, 2026, net cash provided by operating activities was $294.0 million, and we received $205.0 million in cash proceeds from indebtedness. During the same period, we used $353.4 million for debt repayments, $46.0 million for dividends, $42.6 million for customer cash advance originations net of collections, and $31.5 million for capital expenditures. We ended the second quarter of 2026 with $105.3 million of cash and cash equivalents and outstanding indebtedness of $1.4 billion.