Upstart Holdings, Inc. (UPST) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to a loss of $0.17 per share a year ago.
I rate UPST a buy, as macroeconomic and company-specific tailwinds position it for a breakout with interest rates expected to decline. UPST's fundamentals are improving: Q1 revenue up 67% YoY, transaction volume up 89%, and contribution margin strong at 55%. Auto loans and HELOCs are rapidly growing segments, with HELOC originations up 6x YoY, offering significant future growth potential.
I initiate a Buy rating on Upstart Holdings, Inc. with a fair value of $118, citing its differentiated AI-driven loan origination platform. Upstart's AI models leverage 2,500+ variables, enabling automated, accurate, and scalable loan underwriting, reducing default risks for financial partners. Recent partnerships, robust funding supply, and strong transaction/revenue growth support my bullish outlook, with 60% revenue growth expected in FY25.
The risks are real—especially the debt and funding dependence, yet I see a path to $100 per share by summer 2026. Upstart's AI-driven lending platform is rebounding, with expected 60% y/y revenue growth and a path to $1B in 2025 revenues. Valuation is attractive at 7x forward sales, but a $735M net debt overhang and potential dilution remain key risks.
Besides Wall Street's top-and-bottom-line estimates for Upstart (UPST), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2025.
The latest trading day saw Upstart Holdings, Inc. (UPST) settling at $79.22, representing a -3.08% change from its previous close.
In the closing of the recent trading day, Upstart Holdings, Inc. (UPST) stood at $81.74, denoting a -1.9% move from the preceding trading day.
Upstart (UPST) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Upstart Holdings, Inc. (UPST) closed the most recent trading day at $82.7, moving 1.7% from the previous trading session.
Upstart (UPST) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Upstart Holdings, Inc. (UPST) reached $78.36 at the closing of the latest trading day, reflecting a +1.01% change compared to its last close.
Upstart Holdings, Inc. (UPST) reached $75.62 at the closing of the latest trading day, reflecting a -4.31% change compared to its last close.