UPBOUND GROUP, INC.UPBD

UPBOUND GROUP, INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 23, 20262 min read
Goodwill and Other Intangible Assets
Goodwill
In the fourth quarter of 2025, we completed a qualitative assessment for impairment of goodwill as of October 1, 2025, concluding it was not more likely than not that the carrying value of the net assets of our reporting units exceeded their respective fair values. Therefore, no impairment of goodwill existed as of December 31, 2025.
At both December 31, 2025 and 2024, the amount of goodwill attributable to the Acima segment was approximately $288.3 million. At December 31, 2025 and 2024, the amount of goodwill attributable to the Rent-A-Center segment was approximately $3.0 million and $1.9 million, respectively. At December 31, 2025, the amount of goodwill attributable to the Brigit segment was approximately $196.9 million.
A summary of the changes in recorded goodwill follows:
 Year Ended December 31,
(in thousands)20252024
Beginning goodwill balance$290,189 $289,750 
Additions from acquisitions197,969 439 
Ending goodwill balance$488,158 $290,189 
Other Intangible Assets
Amortizable intangible assets consist of the following:
  December 31, 2025December 31, 2024
 (Dollar amounts in thousands)
Avg.
Life
(years)
Gross
Carrying
Amount		Accumulated
Amortization		Gross
Carrying
Amount		Accumulated
Amortization
Customer relationships2$285,122 $153,624 $140,417 $140,193 
Merchant relationships10389,760 191,520 389,760 152,630 
Trade name747,800 28,844 40,000 22,108 
Non-compete agreements346,719 46,719 46,719 46,719 
Total other intangible assets$769,401 $420,707 $616,896 $361,650 
Aggregate amortization expense (in thousands):
Year Ended December 31, 2025$59,052 
Year Ended December 31, 2024$46,382 
Year Ended December 31, 2023$58,022 
Estimated amortization expense for each of the years ending December 31, is as follows:
(in thousands)Estimated
Amortization Expense
2026$60,283 
202760,205 
202855,203 
202954,158 
203053,564 
Thereafter66,181 
Total amortization expense$349,594 
In December 2025, we acquired a patent license with a fair value of $0.9 million.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 24, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Mar 2, 2020
2018Mar 1, 2019
2017Mar 1, 2018
2016Mar 1, 2017
2015Feb 29, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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