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Upstart Q3 net income up on record contribution profit 

By Reuters News


Overview

  • AI lending marketplace's Q3 revenue rose 34% yr/yr

  • Q3 net income grew 15% yr/yr, with EPS at $0.33

  • Company achieved record contribution profit and positive margin in secured products ahead of plan


Outlook

  • Upstart expects 2026 revenue from fees of about $1.32 bln

  • Company sees 2026 total revenue of about $1.35 bln

  • Upstart expects 2026 adjusted EBITDA of about $260 mln, or 19% margin


Result Drivers

  • TECHNOLOGY AND MARKETING - Co said advances in technology and marketing drove record contribution profit, per CEO Paul Gu

  • SECURED PRODUCTS - Co said secured products reached positive contribution margin earlier than planned

  • LOAN ORIGINATIONS - Co reported record loan originations, up 44% yr/yr in dollar terms and 34% in number of loans


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Fees Revenue

$364.03 mln

Q3 EPS

$0.33

Q3 Net Income

$36.58 mln

Q3 Operating Expenses

$334.52 mln

Q3 Pretax Profit

$37.24 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the consumer lending peer group is "buy"

  • Wall Street's median 12-month price target for Upstart Holdings, Inc. is $38.50, about 80.7% above its November 2 closing price of $21.31

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 2 - Business loan demand softened last quarter, Fed survey shows

  • Nov 2 - Tempus AI Q3 revenue slightly beats estimates; raises guidance

  • Nov 2 - Palantir Q3 revenue jumps 96%, beats analyst expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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