Upstart Holdings Inc. (Upstart (UPST)) reported its first-quarter results after Tuesday's closing bell, and while the top line impressed, the bottom line left investors wanting more. The stock sank 14% in extended trading.
The AI lending platform posted adjusted earnings of 30 cents per share, missing the consensus estimate of 42 cents by nearly 29%. The miss was partly due to stock-based compensation expenses of 37 cents per share, which are excluded from adjusted figures. On the bright side, quarterly revenue came in at $308.21 million, beating the Street estimate of $303.68 million, according to market data.
Here are the key numbers from the quarter:
- Transaction Volume: 425,356 loans originated, up 77% year-over-year. Total originations hit roughly $3.4 billion, up 61%.
- Total Revenue: $308 million, up 44% year-over-year. Revenue from fees was $277 million, up 49%.
- Loss from Operations: $7.5 million, compared to a loss of $4.5 million in the first quarter of 2025.
- Adjusted EBITDA: $40.5 million, down from $42.6 million a year ago. Adjusted EBITDA margin fell to 13% from 20%.
“In Q1, we grew originations 61% and revenue 44% year-over-year — putting us comfortably on track to deliver on our full year outlook. We advanced our AI models, applied for a national bank charter, and grew rapidly in home and auto,” said Paul Gu, co-founder and CEO.
Despite the revenue beat, investors focused on the earnings miss and shrinking margins. Upstart stock was down 14.16% to $26.76 in Tuesday's extended trading.
