Upstart Announces Fourth Quarter and Full Year 2025 Results

SAN MATEO, Calif.--( BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for the quarter and full year ended December 31, 2025. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.

“In 2025, we grew originations 86% and revenues 64% while growing headcount just 18% — a ratio any business would die for. And we re-established Upstart as a strongly profitable business,” said Dave Girouard, Co-founder and CEO of Upstart. “Our auto and home originations each grew 5X in 2025 — and accelerated even further in Q4.”

“Even with this epic growth, we reduced loans on our balance sheet by 20% quarter-over-quarter and expect this trend to continue. With 70% of funding for Auto and Home loans originated in Q4 coming from 11 different partners and an additional 13 signed for the coming year, we’re set up for a breakout in 2026,” Girouard said.

Fourth Quarter 2025 Highlights

Fiscal Year 2025 Highlights

1 Beginning in the fourth quarter of 2025, we revised the definition and underlying calculation methodology of Conversion Rate. Prior period figures have been recast to conform to the new definition and methodology. For additional information regarding this change, see “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Financial Outlook

Beginning in 2026, Upstart intends to provide annual financial guidance and discontinue issuing quarterly guidance, reflecting the company’s long-term focus and evolving disclosure framework. Upstart is also providing financial guidance for the 2025-2028 period.

For full-year 2026, Upstart expects:

For the 2025-2028 period, Upstart is targeting the following financial results:

Publishing Monthly Origination Volumes

As of today, Upstart began to publish its monthly origination volume, which corresponds to Transaction Volume, Dollars as reported in the company’s financial statements, and expects to continue to do so on a monthly basis. For more details, please read the press release or find the latest published numbers at upstart.com/volume.

“The opportunity to radically transform access to credit with AI is unimaginably large and we want to offer the world a courtside seat as this future unfolds,” Girouard said. “With these upgrades to our disclosures and guidance, investors can better understand both the near term dynamics and the long term potential of Upstart.”

Upstart’s Leadership Evolution

In addition, as part of an evolution in its leadership, Upstart today announced that Co-founder Paul Gu will become the company’s CEO on May 1st. For more information regarding this and other leadership changes, please read today’s press release. Upstart’s management team will address the leadership evolution during today’s webcast and conference call.

Conference Call and Webcast Information

About Upstart

Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans. Upstart is based in San Mateo, California.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding our outlook for the full-year of 2026 and beyond. These statements may include words such as “anticipate”, “becoming”, “believe”, “can have”, “continue”, “could”, “estimate”, “expect”, “intend”, “likely”, “look forward”, “may”, “ongoing,” “plan”, “potential”, “predict”, “project”, “should”, “target”, “will”, “would,” or the negative of these terms or other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events that do not relate strictly to historical or current facts. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities and the sustainability of our business and market position; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), Adjusted EBITDA, basic weighted-average share count, and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management’s good faith beliefs and assumptions as of that time with respect to future events, including assumptions regarding macroeconomic conditions, credit performance, funding availability, and competitive dynamics, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the “SEC”), including “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at ir.upstart.com or the SEC’s website at www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to manage the adverse effects of macroeconomic conditions and disruptions in the banking sector and credit markets, including inflation and related changes in interest rates and monetary policy; our ability to access sufficient loan funding, including through securitizations, committed capital and other co-investment arrangements, whole loan sales, and warehouse credit facilities; the effectiveness of our credit decisioning models and risk management efforts, including reflecting the impact of macroeconomic conditions on borrowers' credit risk; our ability to retain existing, and attract new, lending partners; our future growth prospects and financial performance; our ability to manage risks associated with the loans on our balance sheet; our ability to improve and expand our platform and products; and our ability to operate successfully in a highly-regulated industry. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations.

Key Operating Metrics and Non-GAAP Financial Measures

Beginning in the fourth quarter of 2025, we revised certain key operating metrics and non-GAAP financial measures. For additional information regarding these changes, refer to “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025.

We define Transaction Volume, Dollars as the total principal of loan originations (or committed amounts for HELOCs) facilitated on our marketplace during the periods presented. We define Transaction Volume, Number of Loans as the number of loan originations (or commitments issued for HELOCs) facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a marketplace.

We define Conversion Rate as the Transaction Volume, Number of Loans in a period divided by the total number of rate inquiries received that we estimate to be legitimate, which we record when a borrower actively requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth.

We define Percentage of Loans Fully Automated as the total number of loans in a given period originated end-to-end with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period. Under this definition, “originated end-to-end” means (i) from initial rate request to final funding for personal loans, including small dollar loans, and (ii) from initial rate request to loan approval for auto loans and HELOCs, due to certain jurisdictions’ local requirements and external dependencies that require human action prior to funding.

To derive Contribution Profit, we subtract the sum of borrower acquisition costs as well as borrower verification and servicing costs from revenue from fees, net. To calculate Contribution Margin we divide Contribution Profit by revenue from fees, net.

We calculate Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense and certain payroll tax expenses, depreciation and amortization, expense on convertible notes, provision for income taxes, gain on debt extinguishment and reorganization expenses. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA and Adjusted EBITDA Margin includes interest expense from corporate debt and warehouse credit facilities which is incurred in the course of earning corresponding interest income.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included below. Upstart has not reconciled the forward-looking non-GAAP measures to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort.

UPSTART HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Data)

December 31,

2024

2025

Assets

Cash and cash equivalents

788,422

652,388

Restricted cash

187,841

404,624

Loans (at fair value) (1)

806,304

984,552

Property, equipment, and software, net

39,013

44,174

Operating lease right of use assets

43,455

16,410

Beneficial interest assets (at fair value)

176,848

396,216

Line of credit receivable (at fair value)

56,269

112,742

Non-marketable equity securities

41,250

Goodwill

67,062

Other assets (includes $51,358 and $138,582 at fair value as of December 31, 2024 and December 31, 2025, respectively)

160,494

255,387

Total assets

2,366,958

2,974,805

Liabilities and Stockholders’ Equity

Liabilities:

Payable to investors

60,173

107,659

Borrowings

1,402,168

1,829,145

Payable to securitization note holders (at fair value)

87,321

46,542

Accrued expenses and other liabilities (includes $15,883 and $15,219 at fair value as of December 31, 2024 and December 31, 2025, respectively)

133,800

171,495

Operating lease liabilities

50,278

21,149

Total liabilities

1,733,740

2,175,990

Stockholders’ equity:

Common stock, $0.0001 par value; 700,000,000 shares authorized; 93,469,721 and 98,033,361 shares issued and outstanding as of December 31, 2024 and December 31, 2025, respectively

Additional paid-in capital

1,044,366

1,156,361

Accumulated deficit

(411,157

)

(357,556

)

Total stockholders’ equity

633,218

798,815

Total liabilities and stockholders’ equity

2,366,958

2,974,805

Includes $102.9 million and $53.8 million of loans, at fair value, contributed as collateral for the consolidated securitization as of December 31, 2024 and 2025, respectively.

UPSTART HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Revenue:

Revenue from fees, net (1)

199,276

265,220

635,466

950,011

Interest income, interest expense, and fair value adjustments, net:

Interest income (2)

41,461

60,836

186,360

204,230

Interest expense (2)

(7,431

)

(8,078

)

(40,433

)

(31,664

)

Fair value and other adjustments (2)(3)

(14,342

)

(21,888

)

(144,865

)

(78,720

)

Total interest income, interest expense, and fair value adjustments, net

19,688

30,870

1,062

93,846

Total revenue

218,964

296,090

636,528

1,043,857

Operating expenses:

Sales and marketing

55,463

90,588

166,800

301,507

Customer operations

40,602

51,840

157,996

188,377

Engineering and product development

67,222

66,913

253,653

257,602

General, administrative, and other

60,427

67,830

230,935

253,740

Total operating expenses

223,714

277,171

809,384

1,001,226

Income (loss) from operations

(4,750

)

18,919

(172,856

)

42,631

Other income, net

6,136

5,299

18,793

24,324

Expense on convertible notes

(4,030

)

(5,056

)

(7,694

)

(19,872

)

Gain on debt extinguishment

—

33,361

7,246

Net income (loss) before income taxes

(2,644

)

19,162

(128,396

)

54,329

Provision for income taxes

111

526

185

728

Net income (loss)

(2,755

)

18,636

(128,581

)

53,601

Net income (loss) per share, basic

(0.03

)

0.19

(1.44

)

0.56

Net income (loss) per share, diluted

(0.03

)

0.17

(1.44

)

0.45

Weighted-average number of shares outstanding used in computing net income (loss) per share, basic

92,174,306

97,594,902

89,450,038

96,030,558

Weighted-average number of shares outstanding used in computing net income (loss) per share, diluted

92,174,306

112,223,816

89,450,038

107,492,735

__________

The following table presents revenue from fees disaggregated by type of service for the periods presented as follows:

UPSTART HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Revenue from fees, net:

Platform and referral fees, net

165,758

222,277

502,411

792,979

Servicing and other fees, net

33,518

42,943

133,055

157,032

Total revenue from fees, net

199,276

265,220

635,466

950,011

The following table presents interest income, interest expense and unrealized loss on loans, loan charge-offs, and other fair value adjustments, net related to the consolidated securitization as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Interest income, interest expense, and fair value adjustments, net related to consolidated securitization:

Interest income

5,882

3,140

28,968

16,593

Interest expense

(2,052

)

(1,307

)

(9,598

)

(6,313

)

Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net

(3,753

)

(2,126

)

(29,396

)

(11,114

)

Total interest income, interest expense, and fair value adjustments, net

(293

)

(10,026

)

(834

)

The following table presents components of fair value adjustments, net for the periods presented as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Fair value and other adjustments, net:

Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net

(18,374

)

(27,339

)

(111,175

)

(83,088

)

Realized loss on sale of loans, net

(1,418

)

(13,762

)

(15,983

)

(12,237

)

Fair value adjustments and realized gains (losses) on beneficial interests, net

5,450

19,213

(17,707

)

16,605

Total fair value and other adjustments, net

(14,342

)

(21,888

)

(144,865

)

(78,720

)

UPSTART HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

Year Ended December 31,

2024

2025

Cash flows from operating activities

Net income (loss)

(128,581

)

53,601

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Change in fair value of loans

125,002

(113,672

)

Change in fair value of servicing assets

16,490

18,646

Change in fair value of servicing liabilities

(1,246

)

(942

)

Change in fair value of beneficial interest assets

5,151

(33,184

)

Change in fair value of beneficial interest liabilities

12,568

16,579

Change in fair value of other financial instruments

4,130

(6,921

)

Stock-based compensation

133,400

131,950

Gain on loan servicing rights, net

(15,449

)

(28,003

)

Gain on debt extinguishment

(33,361

)

(7,246

)

Depreciation and amortization

20,549

24,835

Loan premium amortization

(17,021

)

(49,149

)

Non-cash interest expense and other

3,217

8,607

Net changes in operating assets and liabilities:

Purchases of loans held-for-sale

(4,309,268

)

(9,072,905

)

Proceeds from sale of loans held-for-sale

4,101,937

8,679,462

Principal payments received for loans held-for-sale

192,889

187,660

Principal payments received for loans held by consolidated securitization

47,997

37,885

Settlements of beneficial interest liabilities, net

(6,700

)

(21,598

)

Proceeds from beneficial interest assets (derivatives)

—

4,602

Settlements of beneficial interest assets (derivatives)

—

(4,575

)

Other assets

(8,690

)

(10,831

)

Operating lease liability and right-of-use asset

(807

)

(2,084

)

Accrued expenses and other liabilities

44,124

39,558

Net cash provided by (used in) operating activities

186,331

(147,725

)

Cash flows from investing activities

Purchases and originations of loans held-for-investment

(323,096

)

(1,033,027

)

Proceeds from sale of loans held-for-investment

—

395,731

Principal payments received for loans held-for-investment

145,266

320,364

Principal payments received for notes receivable and repayments of residual certificates

5,917

23,051

Acquisition and settlements of beneficial interest assets (hybrid instruments)

(67,753

)

(3,438

)

Proceeds from beneficial interest assets (hybrid instruments)

11,930

142,902

Issuance of line of credit receivable

—

(7,862

)

Repayments of line of credit receivable

—

3,515

Purchases of property and equipment

(837

)

(347

)

Capitalized software costs

(9,153

)

(18,060

)

Net cash used in investing activities

(237,726

)

(177,171

)

Cash flows from financing activities

Proceeds from borrowings

387,281

294,218

Proceeds from convertible notes issuance, net of debt issuance costs paid to lender

913,440

678,270

Payment of debt issuance costs to third parties

(3,945

)

(3,150

)

Repayments of borrowings

(357,352

)

(317,097

)

Payments for repurchases of convertible notes

(325,344

)

(224,154

)

Purchase of capped calls

(40,883

)

(55,200

)

Settlement of capped calls

580

564

Principal payments made on securitization notes

(55,368

)

(40,592

)

Payable to investors

12,385

47,486

Net proceeds related to stock-based award activities

29,077

25,300

Net cash provided by financing activities

559,871

405,645

Change in cash, cash equivalents and restricted cash

508,476

80,749

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of year

467,787

976,263

Cash, cash equivalents and restricted cash at end of year

976,263

1,057,012

UPSTART HOLDINGS, INC.

KEY OPERATING AND NON-GAAP FINANCIAL METRICS

(In Thousands, Except Per Share Data and Ratios, or as Noted)

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Transaction Volume, Dollars

2,107,473

3,195,693

5,930,029

11,003,995

Transaction Volume, Number of Loans (1)

245,663

455,788

697,092

1,497,149

Conversion Rate (2)

18.0

19.4

15.1

19.4

Percentage of Loans Fully Automated (3)

Contribution Profit

121,898

140,773

381,533

531,094

Contribution Margin

Adjusted EBITDA

38,775

63,694

10,594

230,486

Adjusted EBITDA Margin

__________

Transaction Volume, Number of Loans is shown in ones for the periods presented.

Beginning in the fourth quarter of 2025, we revised the definition and underlying calculation methodology of Conversion Rate. Prior period figures have been recast to conform to the new definition and methodology. For additional information regarding this change, see “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Beginning in the fourth quarter of 2025, we revised the definition and underlying calculation methodology of Percentage of Loans Fully Automated. Prior periods have not been adjusted, as the impact was immaterial. For additional information regarding this change, see “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Revenue from fees, net

199,276

265,220

635,466

950,011

Income (loss) from operations

(4,750

)

18,919

(172,856

)

42,631

Operating Margin

(27

Sales and marketing, net of borrower acquisition costs (1)

11,231

11,110

41,783

45,270

Customer operations, net of borrower verification and servicing costs (2)

7,456

6,871

29,080

25,697

Engineering and product development

67,222

66,913

253,653

257,602

General, administrative, and other

60,427

67,830

230,935

253,740

Interest income, interest expense, and fair value adjustments, net

(19,688

)

(30,870

)

(1,062

)

(93,846

)

Contribution Profit

121,898

140,773

381,533

531,094

Contribution Margin

__________

Borrower acquisition costs were $44.2 million and $79.5 million for the three months ended December 31, 2024 and 2025, respectively, and were $125.0 million and $256.2 million for the years ended December 31, 2024 and 2025, respectively. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses.

Borrower verification and servicing costs were $33.1 million and $45.0 million for the three months ended December 31, 2024 and 2025, respectively, and were $128.9 million and $162.7 million for the years ended December 31, 2024 and 2025, respectively. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses.

Three Months Ended

December 31,

Year Ended

December 31,

2024

2025

2024

2025

Total revenue

218,964

296,090

636,528

1,043,857

Net income (loss)

(2,755

)

18,636

(128,581

)

53,601

Net Income (Loss) Margin

(20

Adjusted to exclude the following:

Stock-based compensation and certain payroll tax expenses (1)

32,087

33,015

139,726

138,696

Depreciation and amortization

4,699

6,461

20,549

24,835

Reorganization expenses

603

—

4,382

—

Expense on convertible notes

4,030

5,056

7,694

19,872

Gain on debt extinguishment

—

(33,361

)

(7,246

)

Provision for income taxes

111

526

185

728

Adjusted EBITDA

38,775

63,694

10,594

230,486

Adjusted EBITDA Margin

__________

Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.