Shares of Upbound Group (UPBD) plummeted 5.02% in pre-market trading on Thursday following the release of its third-quarter 2025 results and revised full-year guidance. The furniture and appliance rental company's stock decline comes amid a mix of financial updates and leadership changes.
Upbound Group reported third-quarter revenue of $1.2 billion, surpassing analyst estimates of $1.152 billion. However, the company narrowed its full-year 2025 adjusted earnings per share (EPS) guidance to $4.05-$4.15 from the previous range of $4.05-$4.40, falling short of the consensus estimate of $4.24. Additionally, Upbound lowered its FY25 adjusted EBITDA outlook to $500 million-$510 million from the earlier projection of $515 million-$535 million, while maintaining its revenue forecast of $4.6 billion-$4.75 billion.
In a separate announcement, Upbound Group named Hal Khouri as its new Executive Vice President and Chief Financial Officer, effective November 10. Khouri, who joins from consumer lender goeasy, will take over the CFO role from current CEO Fahmi Karam. While this leadership transition aims to strengthen the company's financial management, it appears that investors are more focused on the disappointing guidance update, leading to the significant stock decline in early trading.
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