Latest news with #UpstartHoldingsInc
Yahoo
08-04-2025
- Business
- Yahoo
Why Upstart Holdings Inc. (UPST) Went Up On Monday?
We recently published a list of . In this article, we are going to take a look at where Upstart Holdings Inc. (NASDAQ:UPST) stands against other AI stocks that dominate Monday's top performers. The stock market finished mixed on Monday as investors remained cautious over the escalating trade tensions globally, with President Donald Trump threatening to slap China with another 50-percent tariff if the latter does not withdraw a countermeasure. The Dow Jones declined by 0.91 percent, while the S&P 500 dropped by 0.23 percent. In contrast, the tech-heavy Nasdaq inched up by 0.10 percent. Meanwhile, 10 companies, predominantly in the Artificial Intelligence sector, bucked an overall market pessimism, posting strong gains during the day. In this article, we have identified Monday's top performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume. A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company. Upstart Holdings ended a two-day losing streak on Monday, adding 8.56 percent to close at $37.78 apiece as investor funds shifted anew to artificial intelligence stocks to mitigate risks from the escalating global trade tensions. On the same day, UPST announced that it would release its first quarter performance on May 6, 2025. A copy of its earnings release and presentation will be available on its website after market close. Founded in 2012, UPST operates as an AI lending marketplace and connects millions of consumers to more than 100 banks and credit unions that leverage its AI models and cloud applications to deliver credit products. With Upstart AI's models, lenders are able to approve more borrowers at lower rates. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar 'relief' loans. Overall, UPST ranks 9th on our list of AI stocks that dominate Monday's top performers. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UPST but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
12-02-2025
- Business
- Yahoo
Upstart Shares Surge 34% as AI-Driven Loan Growth Fuels Strong Q4
Upstart Holdings Inc. (UPST, Financials) shares soared 33.6% to $89.99 as of 3:05 p.m. ET on Wednesday, following the company's strong fourth-quarter results, which showcased AI-driven underwriting improvements and robust loan origination growth. Warning! GuruFocus has detected 4 Warning Signs with UPST. Driven by a 68% rise in loan origination volume, revenue grew 56% year over year to $219 million. Notable increases were seen in auto loans, HELOCs, and small-dollar relief loans; HELOC originations topped 1,000 loans with no defaults across 36 states. To further underwriting accuracy, the business has unveiled Model 19, which has an enhanced Payment Transition Model. From $1 million last quarter, Upstart recorded $39 million in adjusted EBITDA; its GAAP net loss dropped to $2.8 million. Thanks in part to better credit performance, net interest income went positive at $20 million. Supported by convertible debt, the company's financial sheet showed $806 million in loans down 28% year over year and $788 million in unrestricted cash. Upstart expects $1 billion in overall income for 2025; year-end GAAP profitability is projected. To help with its expansion, the business obtained a $150 million personal loan warehousing facility and $1.3 billion in capital commitments. Citing excellent finance availability and improved attitude, analysts voiced cautious optimism while highlighting questions about scalability, funding limits, and competition in the super-prime sector. Emphasizing a mixed approach between development and profitability, management showed more confidence than in Q3. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
12-02-2025
- Business
- Yahoo
Upstart Holdings Inc (UPST) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: $219 million in Q4, up 56% year over year and 35% quarter on quarter. Revenue from Fees: $199 million, up 30% year over year and 19% sequentially. Net Interest Income: Approximately $20 million in Q4. Origination Volume: Grew 33% sequentially and 68% year over year. Adjusted EBITDA: $39 million in Q4, positive for the second consecutive quarter. GAAP Net Loss: $2.8 million in Q4. Contribution Margin: 61% in Q4, flat versus the prior quarter. Loan Transactions: Approximately 246,000, up 89% from the prior year and 31% sequentially. Average Loan Size: Approximately $8,580, up from $8,400 in the prior quarter. Unrestricted Cash Position: $788 million at year-end. Loans on Balance Sheet: $806 million at year-end, down 28% from the prior year. Full Year 2024 Net Revenue: Approximately $637 million, up 24% from 2023. Full Year 2024 Adjusted EBITDA: $10.6 million, representing a 2% adjusted EBITDA margin. Warning! GuruFocus has detected 3 Warning Sign with UPST. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Upstart Holdings Inc (NASDAQ:UPST) reported a strong fourth quarter with a 33% increase in origination volume and a 35% increase in revenue sequentially. The company launched Model 19, which introduced the Payment Transition Model (PTM), enhancing model accuracy and risk separation. Upstart's auto refinance and HELOC products saw significant growth, with origination volumes increasing by approximately 60% sequentially. The company achieved a 25% sequential increase in the rate of delinquent borrowers making payments within 14 days of contact, demonstrating improved borrower outcomes. Upstart strengthened its balance sheet by refinancing convertible debt and raising almost $500 million, improving its cash position and liquidity. Despite improvements, Upstart Holdings Inc (NASDAQ:UPST) reported a GAAP net loss of $2.8 million for the fourth quarter. The company faces challenges in reducing the amount of loans held directly on its balance sheet, which rose sequentially in Q4. There is uncertainty regarding the macroeconomic environment, with potential rate increases posing a risk to future performance. The transition to one-year equity grants is expected to negatively impact stock-based compensation expenses. Upstart's contribution margin remained flat at 61% in Q4, indicating potential pressure on margins as the company scales. Q: How is Upstart thinking about the mix of funding moving forward, particularly between committed capital and other sources? A: Sanjay Datta, CFO, stated that the medium-term objective remains to have over 50% of capital committed, with the balance between bank and credit union balance sheet capital and at-will sources like ABS and hedge funds. In the short term, they are focusing on expanding borrower volumes and striking large deals with counterparties. Q: Can you break down what drove the upside in borrower demand this quarter? A: Sanjay Datta, CFO, explained that the increase in approvability and conversion was due to improvements in model accuracy, moderation in default rates, and the impact of rate cuts from last fall. These factors collectively contributed to lower APRs on the platform. Q: What is Upstart's view on risk retention in forming new sources of capital? A: Sanjay Datta, CFO, mentioned that Upstart maintains a target percentage of its platform underpinned by committed capital, with a single-digit percentage of total capital at risk from their balance sheet. There is an increasing appetite for risk in the securitization markets and loan asset purchasing. Q: How does Upstart plan to manage potential macroeconomic uncertainties in 2025? A: Dave Girouard, CEO, stated that Upstart takes a conservative position by not assuming changes in interest rates or the Upstart Macro Index (UMI). They build conservatism into their models to target modest overperformance if conditions remain stable, allowing for quick adjustments to any changes. Q: What are the main drivers of improved conversion rates, and how do these improvements affect loan buyers? A: Dave Girouard, CEO, highlighted that more accurate models and increased automation drive conversion improvements. Sanjay Datta, CFO, added that loan buyers are accustomed to Upstart's evolving models and that better models typically result in lower APRs for borrowers, rather than altering investor returns. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
