Upstart (NASDAQ:UPST) Releases Earnings Results, Beats Expectations By $0.13 EPS

Upstart (NASDAQ:UPST) issued its earnings results on Tuesday. The company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.13, FiscalAI reports. The business had revenue of $370.52 million during the quarter, compared to analyst estimates of $362.68 million. Upstart had a return on equity of 7.13% and a net margin of 4.84%. Upstart’s revenue was up 33.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.23 earnings per share.

Here are the key takeaways from Upstart’s conference call:

• Q3 execution was strong despite worsening macro conditions. Contribution Profit reached a record $218 million, up 48% year over year, while total originations rose 44% to $4.1 billion and fee revenue increased 41% to $364 million.
• Secured lending reached profitability ahead of schedule. Secured contribution margin improved to positive 17% from negative 35% in Q2, driven by better loan-sale terms, increased automation, and improved conversion and monetization.
• Higher borrower delinquencies, inflation, and interest rates are pressuring originations and balance-sheet income. Upstart lowered its full-year outlook to approximately $1.35 billion in revenue and $260 million in Adjusted EBITDA, versus prior guidance of $1.4 billion and $294 million, respectively.
• The company reported improving capital efficiency, with equity capital used falling to 9% of platform loans from 11.6% a year ago and loans held directly on its balance sheet declining to 4.8%. Upstart expects its bank, subject to regulatory approval, to launch in early 2027 and potentially release cash by shifting much of the existing loan book to deposit funding.
• Management remains confident in long-term growth from technology, marketing, and a broader customer ecosystem. More than 555,000 borrowers took out loans in Q3, including over 250,000 returning customers, while the company plans to refocus its secured products on growth in 2027 after establishing positive margins.

Upstart Price Performance

Shares of NASDAQ UPST traded up $0.28 during midday trading on Tuesday, reaching $21.59. 4,015,285 shares of the stock were exchanged, compared to its average volume of 4,650,365. Upstart has a 12 month low of $20.60 and a 12 month high of $52.10. The company has a market capitalization of $2.10 billion, a price-to-earnings ratio of 44.02, a P/E/G ratio of 0.85 and a beta of 2.43. The business has a 50-day simple moving average of $25.15 and a two-hundred day simple moving average of $29.89.

Analyst Ratings Changes

Several research firms recently issued reports on UPST. Loop Capital started coverage on shares of Upstart in a research report on Tuesday, September 8th. They issued a “hold” rating and a $34.00 price target for the company. Citizens Jmp lowered their price objective on Upstart from $20.00 to $18.00 and set a “market underperform” rating on the stock in a research note on Thursday, October 15th. Piper Sandler increased their target price on Upstart from $46.00 to $51.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. BTIG Research reissued a “buy” rating and issued a $43.00 target price on shares of Upstart in a report on Tuesday, September 22nd. Finally, Wall Street Zen upgraded Upstart from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Seven equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $42.94.

Key Stories Impacting Upstart

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Upstart reported third-quarter revenue of $370.52 million, up 33.7% year over year and above analysts’ $362.68 million consensus estimate. Adjusted earnings of $0.33 per share also exceeded the $0.20 expectation, while net income and return on equity were positive. MarketBeat earnings report
• Positive Sentiment: The company highlighted continued platform activity, including new client wins and October originations data. It also raised its outlook for revenue from fees, suggesting demand for its artificial-intelligence lending platform remains resilient. Upstart beats expectations article
• Neutral Sentiment: Unusually heavy options activity preceded the report, with traders purchasing 44,446 call options—156% above average volume. This indicates elevated speculative interest but does not establish a clear fundamental direction.
• Neutral Sentiment: Investors are also monitoring Upstart’s effort to obtain a banking charter, which could eventually support funding flexibility and product expansion, although the timing and outcome remain uncertain. Yahoo Finance Upstart analysis
• Negative Sentiment: Despite the earnings and revenue beats, management lowered portions of its 2026 outlook, including revenue expectations in some reports, and reduced EBITDA guidance because of challenging macroeconomic conditions. The weaker profitability outlook appears to be outweighing the quarterly beat for investors. Benzinga Upstart shares article

Insiders Place Their Bets

In other Upstart news, CEO Paul Gu acquired 50,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average price of $25.55 per share, with a total value of $1,277,500.00. Following the purchase, the chief executive officer owned 130,000 shares of the company’s stock, valued at $3,321,500. This represents a 62.50% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Andrea Blankmeyer sold 3,000 shares of Upstart stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $29.33, for a total value of $87,990.00. Following the transaction, the chief financial officer owned 152,208 shares in the company, valued at approximately $4,464,260.64. This represents a 1.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 148,652 shares of company stock worth $4,133,720. 17.29% of the stock is owned by corporate insiders.

Upstart Company Profile

Upstart Holdings, Inc (NASDAQ: UPST) operates an artificial intelligence-powered lending marketplace. Its platform connects consumers seeking credit with banks and credit unions, using data-driven underwriting models designed to evaluate applicants beyond traditional credit-score-based methods.

The company provides technology for several lending categories, including personal loans, automotive retail and refinance lending, home equity lines of credit, and small-dollar lending. Upstart’s platform supports financial institutions with application processing, risk assessment, loan origination, and related automation, while offering consumers a digital borrowing experience.

Founded in 2012, Upstart is headquartered in San Mateo, California, and primarily serves the United States.