Upstart Falls as Investors Fear Stall
Here's our initial take on Upstart Holdings' (NASDAQ: UPST) first-quarter financial report.Upstart's first-quarter financial results had a number of figures that looked good on a year-over-year basis. Loan origination volume in dollar terms was up 89% from last year's period to $2.1 billion. Revenue climbed 67%, while Upstart came close to breaking even under generally accepted accounting principles and reversed year-ago losses with positive adjusted net income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Conversion rates rose from 14% a year ago to 19.1%, helping the number of loans completed using the Upstart platform more than double from the first quarter of 2024. Key figures were higher than investors had generally anticipated.Upstart also had positive comments about its products and technology. New embedding algorithms are making the company's AI-powered personal loan underwriting more effective, and all but 8% of loans were fully automated on the platform. Upstart was also pleased to see more highly rated superprime borrowers take out loans, as those loans helped to balance Upstart's overall portfolio.Continue reading
Here's our initial take on Upstart Holdings' (NASDAQ: UPST) first-quarter financial report.
Upstart's first-quarter financial results had a number of figures that looked good on a year-over-year basis. Loan origination volume in dollar terms was up 89% from last year's period to $2.1 billion. Revenue climbed 67%, while Upstart came close to breaking even under generally accepted accounting principles and reversed year-ago losses with positive adjusted net income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Conversion rates rose from 14% a year ago to 19.1%, helping the number of loans completed using the Upstart platform more than double from the first quarter of 2024. Key figures were higher than investors had generally anticipated.
Upstart also had positive comments about its products and technology. New embedding algorithms are making the company's AI-powered personal loan underwriting more effective, and all but 8% of loans were fully automated on the platform. Upstart was also pleased to see more highly rated superprime borrowers take out loans, as those loans helped to balance Upstart's overall portfolio.
