Upstart Holdings is nearing break-even profitability, driven by surging personal loan originations and rapid sales growth fueled by AI adoption in banking. Easing inflation and the likelihood of lower interest rates provide a favorable macro backdrop, potentially boosting credit demand and Upstart's lending operations. The company's accelerating adjusted EBITDA and strong transaction volumes support a moderate valuation, with significant upside if profitability is reached in 2025.
Zacks.com users have recently been watching Upstart (UPST) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
UPST plunges 32% in three months, but AI-driven lending growth and soaring revenues make the stock worth holding onto.
Upstart Holdings, Inc. (NASDAQ:UPST ) Barclays 15th Annual Emerging Payments and FinTech Forum Conference Call May 19, 2025 10:20 AM ET Company Participants Dave Girouard - Co-Founder and Chief Executive Officer Conference Call Participants Ramsey El-Assal - Barclays Capital, Inc. Ramsey El-Assal All right, all ready. Welcome back.
Zacks.com users have recently been watching Upstart (UPST) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Which AI-powered fintech stock, Upstart Holdings or Affirm Holdings, offers the better investment opportunity at present? Let's find out.
Artificial intelligence (AI) lending stock Upstart Holdings Inc (NASDAQ:UPST) was last seen down 11.9% at $45.27, brushing off upbeat first-quarter results as well as a strong full-year forecast, after the company's second-quarter outlook spooked investors.
While the top- and bottom-line numbers for Upstart (UPST) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Lending platform Upstart Holdings' first quarter results saw loan originations nearly double from a year ago, driven in part by automated processes, while management pointed to strong credit metrics among the lending platform's borrowers. Platform originations were up 89%, the company said, to $2.1 billion.
Upstart Holdings, Inc. (UPST) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to loss of $0.31 per share a year ago.
Shares of Upstart Holdings Inc. tumbled after hours on Tuesday after the artificial-intelligence lending platform forecast a second-quarter loss and sales that missed Wall Street's expectations.
Upstart's improving AI models are leading to higher conversion rates and lower delinquencies, increasing its partners' trust in its loans. The growing trust in Upstart's loans is being reflected in its committed capital deals, a departure from the at-will funding deals secured in prior years. Improving AI capabilities and increasing investments in automation are flowing through to Upstart's bottom line, significantly improving its profitability profile.