FPA Queens Road Small Cap Value Fund, managed by investment management firm First Pacific Advisors, noted in its Q2 2026 investor letter that Upbound Group (NASDAQ:UPBD), a provider of consumer leasing and retail solutions, appears inexpensive with a stock price currently trading below five times earnings. However, the fund stated that it has not actively increased its holdings in the stock due to Upbound Group's higher leverage and concerns about its "buy now, pay later" business. Upbound Group primarily serves subprime consumers through its Rent-a-Center and Acima brands, and despite the challenges faced by subprime consumers, the company's operating performance has remained stable. The company's deleveraging progress has been slow since its acquisition of Acima in 2021, and it acquired Brigit, an app offering payday loan subscription services, on January 31, 2025.