Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.

Upstart Holdings, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Key Points
CEO Paul Gu called the perception gap facing Upstart "quite severe."
The company has made its business much more resilient in the last few years.
Investors seem to be ignoring its long-term growth potential.
Upstart (NASDAQ:UPST), the AI lending platform, has been a publicly traded company for nearly six years, and it's taken investors on a wild ride.
After going public at the end of 2020, the stock skyrocketed during the heady bull market, and the business posted triple-digit revenue growth and strong profits thanks to low interest rates and stimulus payments during the pandemic.
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However, Upstart's momentum unwound in 2022 as interest rates rose, and the stock crashed, losing more than 95% of its value at one point.
Today, after years of bouncing up and down, the stock continues to trade at around $25 per share and has a market cap of just $2.5 billion.
While the business is in much better shape than it was a few years ago, as it's both growing rapidly and profitable on a generally accepted accounting principles (GAAP) basis, investors seem to have moved on, and that could be a huge opportunity.
Image source: Getty Images.
What's the misunderstanding
Speaking to The Motley Fool, Upstart CEO Paul Gu explained that Upstart had gone through three or four cycles of misunderstanding with investors as the stock has reacted to macro issues like rising interest rates or liquidity shortages over the years.
Gu acknowledged that the company could have done a better job of being clear with the market of what was under the company's control and what metrics it should be judged on. He characterized the gap between investor perception and the reality of the business as "quite severe," adding, "I don't think you can find hardly any companies growing at that rate (that we are) that are profitable that trade at multiples anywhere in our neighborhood."
Indeed, Upstart trades at a price-to-sales ratio of roughly 2, which doesn’t seem to reflect its growth potential. If it had a software-as-a-service business model, it would likely have a P/S ratio of at least 10.
Upstart is also a much more resilient business than it was a few years ago. After experiencing a funding and liquidity crisis in late 2022 as interest rates jumped, Upstart now has committed capital partners like Castlelake and Fortress that guarantee funding for the loans it originates on its platform.
It's also in the process of securing a bank charter, which will make it easier to launch new products, enter new states, and generally streamline the business, helping it both cut costs and increase revenues.
Where Upstart stands today
Through the first half of 2026, Upstart has delivered strong growth, with revenue up 35% to $625 million, and it earned a $0.10 per share GAAP profit. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $117.4 million.
The company's core personal loans business is highly profitable, but it's using that capital to fund investments in new businesses like home and auto loans, both of which are growing rapidly and represent massive addressable markets.
The company continues to target a compound annual growth rate of 35% from 2025 to 2028, and expects a 25% adjusted EBITDA margin in 2028. That would give it revenue of about $2.6 billion in 2028 and adjusted EBITDA of $650 million.
Can Upstart 10x?
Upstart is a unique company. Gu said it doesn't consider competition to be a significant factor and is more focused on winning over customers and partners by demonstrating that it has the best lending product, meaning it's the best at analyzing and predicting credit risk.
Given that credit is a huge market and the advantages of its AI technology, Upstart has significant long-term growth potential, and it's starting to pull some of those levers, including launching home and auto loans and filing for the Upstart Bank charter.
If Upstart can continue to deliver profitable growth in the 35% range, the stock will eventually respond. If it gets some help from the macro environment and interest rates start to fall, it wouldn't be surprising to see the stock skyrocket from here. A 10x gain is definitely a possibility.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
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Jeremy Bowman has positions in Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.

Could Upstart 10x From Here? The AI Fintech Platform Could Be the Most Misunderstood Stock on the Market

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At Upstart Holdings, a filing with the SEC revealed that on Thursday, Chief Executive Officer Paul Gu bought 50,000 shares of UPST, at a cost of $25.55 each, for a total investment of $1.28M. Upstart Holdings is trading up about 1.7% on the day Friday. Before this latest buy, Gu purchased UPST on 2 other occasions during the past twelve months, for a total investment of $5.3M at an average of $35.32 per share.
And at Alphatec Holdings, there was insider buying on Thursday, by CEO Patrick Miles who purchased 115,000 shares at a cost of $8.81 each, for a total investment of $1.01M. Alphatec Holdings is trading up about 13.3% on the day Friday. Miles was up about 14.4% on the buy at the high point of today's trading session, with ATEC trading as high as $10.08 in trading on Friday.

Friday 9/11 Insider Buying Report: UPST, ATEC

It has been about a month since the last earnings report for Upstart Holdings, Inc. (UPST). Shares have lost about 6.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Upstart due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Upstart Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Upstart Q2 Revenues Climb as Profitability Improves
Key Highlights
• Revenues: $364.7 million in second-quarter 2026, up 42% year over year.
• EPS: 16 cents, up 220% year over year from 5 cents in the prior-year quarter.
• Revenues from fees: $348 million, up 45% year over year, with platform/referral fees of $284.1 million, servicing/other fees of $54.8 million and loan sales fees of $9.1 million.
• GAAP net income: $16.5 million, up 195% year over year from $5.6 million in the prior-year quarter. Net income margin was 5% versus 2% a year earlier.
• Contribution profit: $193.1 million, up 37% year over year; contribution margin 55% compared to 58% in the prior-year quarter.
• Adjusted EBITDA: $76.9 million, up 45% year over year; adjusted EBITDA margin of 21% in second-quarter 2026.
• Originations: $4.2 billion, up 50% year over year; 558,014 loans originated, up 50% year over year.
Scale, Mix & Execution Drive Q2 Results
Top-line growth was driven by higher marketplace originations, stronger fee revenues and continued expansion beyond core unsecured lending. Total originations rose to $4.2 billion, while fee-based revenues reached $348 million, as platform/referral fees, servicing/other fees and newly separated loan sales fees all contributed to the second quarter.
Profitability improved despite higher operating costs. GAAP net income increased to $16.54 million, adjusted EBITDA reached $76.9 million and adjusted EBITDA margin was 21%. Contribution profit reached an all-time high of $193.1 million, though contribution margin declined to 55% from 58% a year ago as product mix continued to include faster-growing secured products with lower current margins.
Unsecured Lending Remains the Core Engine
Unsecured Lending, which includes personal loans, small-dollar loans and Cash Line, remained the largest contributor in the second quarter. Fee revenue rose 38% year over year to $326.3 million, while originations increased 38% year over year to $3.64 billion. Loan count reached 535,191 in the reported quarter.
Contribution profit in Unsecured Lending was $200.8 million compared with $147.3 million in prior-year quarter. Contribution margin was 62%, flat year over year and up six percentage points sequentially, supported by a larger mix of higher-margin core personal loans, lower customer acquisition costs as a percentage of originations and an expected seasonal pickup in demand.
Secured Products Continue to Scale
Secured products continued to grow rapidly, with fee revenue rising 465% year over year to $22 million. Secured originations reached $589 million, including $426 million from auto and $163 million from home products. Auto originations increased 264% year over year, while home originations rose 139%.
Margins in secured products remained negative but improved materially. Contribution margin was negative 35% compared with negative 176% in the prior-year quarter and negative 96% in the first quarter of 2026. Management attributed the improvement to better take rates, operational efficiencies, automation, funnel optimization and lower HELOC origination costs, which fell 15% sequentially.
Expenses Rise as Operating Leverage Emerges
Total operating expenses were $350.1 million, up 39% year over year and 11% sequentially. Management expects fixed expenses to grow at a low-single-digit sequential pace in the third and fourth quarters of 2026.
Funding & Balance Sheet Trends
Upstart ended the quarter with $456 million in cash and cash equivalents and $526.3 million in restricted cash. Loans at fair value totaled $1.06 billion, while beneficial interest assets were $545.9 million.
The balance sheet continued to reflect a capital-light marketplace model. Loans held on Upstart’s balance sheet accounted for just 5.9% of total outstanding loans, the lowest level in nearly two years.
Management Commentary & Outlook
Management maintained full-year 2026 guidance for total revenues of approximately $1.4 billion, fee revenues of about $1.3 billion and adjusted EBITDA of $294 million, implying a 21% margin.
Management highlighted progress in reaccelerating core personal loans, improving the profitability of Home and Auto, maintaining capital efficiency and driving a rebound in overall profitability. The company also received OCC conditional approval for its national bank charter in July 2026, with additional regulatory approvals and operational work; management’s targeted launch is in early 2027.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted -20.69% due to these changes.
VGM Scores
At this time, Upstart has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Upstart has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Upstart is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Moody's (MCO), a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Moody's reported revenues of $2.19 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $4.68 for the same period compares with $3.56 a year ago.
Moody's is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +8.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moody's. Also, the stock has a VGM Score of C.
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Upstart (UPST) Down 6.7% Since Last Earnings Report: Can It Rebound?

This AI lender is suggesting the U.S. economy is decelerating.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Aug. 26, 2026. The video was published on Aug.28, 2026.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!*
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*Stock Advisor returns as of August 28, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Down 30% in 2026, Is Upstart an AI Stock to Buy Right Now?

Key Points
The executive disposed of 18,945 shares across two trading sessions for a total transaction value of $566,000.
The activity reduced the executive's direct equity holdings by 6%.
This was a non-discretionary transaction executed to satisfy tax withholding obligations triggered by the vesting of restricted stock units.
Sanjay Datta, the president of capital & enterprise at Upstart Holdings, Inc. (NASDAQ:UPST), sold 18,945 shares of common stock on August 19 and August 20, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
$566,000
Shares sold
18,945
Post-transaction shares (directly held)
292,578
Post-transaction value
$8.4 million
Transaction value based on SEC Form 4 weighted average sale price ($29.87); post-transaction value based on the August 20 market close ($28.86).
Key questions
What is the significance of this transaction regarding the insider's sentiment?
The disposal was non-discretionary and facilitated through a sell-to-cover arrangement for tax obligations, which typically indicates routine portfolio management rather than a discretionary change in outlook.
How has the stock performed leading up to this disposal?
Shares were priced at $28.86 as of the August 20 market close, reflecting a roughly 55% decline over the 12-month period ending on the transaction date.
What remains of the executive's total equity exposure?
Datta continues to hold 292,578 shares directly and also holds derivative securities in the form of restricted stock units that represent a contingent right to receive additional common stock upon vesting.
What were the price levels for the share executions?
The shares were sold in multiple transactions at weighted average prices ranging from $27.98 to $31.50 per share, resulting in a total realization of approximately $566,000.
Company Overview
Share Price (as of market close 2026-08-20)
$28.86
Market Capitalization
$2.8 billion
Revenue (TTM)
$1.2 billion
Net Income (TTM)
$60.3 million
Company Snapshot
Upstart operates a cloud-based artificial intelligence lending platform that originates and facilitates unsecured personal loans, small-dollar loans, auto refinance, auto retail loans, auto secured personal loans, and home equity lines of credit across the United States.
The company generates revenue through its AI-powered lending platform by connecting borrowers with institutional lenders, capturing origination fees and ongoing servicing revenue across its Personal Lending, Auto Lending, and Other segments.
Upstart's primary customers include consumers seeking credit products and institutional lenders seeking to optimize credit risk assessment and loan origination through advanced artificial intelligence technology.
Upstart Holdings represents a significant player in the fintech lending space with a $2.8 billion market capitalization and $1.2 billion in TTM revenue. The company leverages proprietary AI technology to differentiate its lending platform from traditional credit assessment methodologies, enabling institutional lenders to make more efficient credit decisions. Despite recent market volatility reflected in a 54.82% one-year decline, Upstart maintains profitability with $60.3 million in TTM net income, positioning itself as a technology-driven alternative to conventional lending infrastructure.
What this transaction means for investors
Datta's sale splits across two days under the same non-discretionary sell-to-cover mechanics as the rest of Upstart's recent filings, and 18,945 shares is a small piece of the 292,578 he still holds directly. That's not really the question worth spending time on here.
The more useful question is whether Upstart is worth buying after the year it's had. Shares are down roughly 55% over the past 12 months and sit about two-thirds below their 52-week high near $85, even after a solid bounce this summer. As president of capital and enterprise, Datta's own team just locked in a new multi-year forward-flow agreement with Castlelake for up to $4 billion in loan purchases, a bigger lever on growth than his tax bill this week. The business backed that up with revenue up 42% to $365 million last quarter and a return to GAAP profitability at $16.5 million in net income. Analysts still see room to run, with a consensus price target above $40, but whether the recent rebound holds depends on whether growth continues once the macro headwinds management has flagged actually show up in the numbers.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,318,055!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 22, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.

Is Upstart Stock a Buy After Falling 55% This Year? Here's What to Know as One Insider Disposes of Shares

Key Points
The disposition involved 7,696.0 shares at $28.09 per share, representing a total transaction value of $216,000 on August 20, 2026.
The move reduced the total equity position by 6% and the direct ownership stake by 10%.
The insider maintains a position of 120,000 total shares, with 46,610 shares held indirectly through the Darling Family Trust.
The sale was a non-discretionary transaction executed to satisfy tax withholding obligations and does not reflect the insider’s market sentiment.
Scott Darling, the chief legal officer of Upstart Holdings, Inc. (NASDAQ:UPST), sold 7,696.0 shares of common stock on August 20, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
$216,181
Shares sold
7,696
Post-transaction shares (total)
119,916
Post-transaction shares (directly held)
73,306
Post-transaction shares (indirectly held)
46,610
Post-transaction value
$3.46 million
Transaction value based on SEC Form 4 weighted average sale price ($28.09); post-transaction value based on the August 20 market close ($28.86).
Key questions
What was the primary driver for this share disposition?
The transaction was a non-discretionary sale conducted automatically to cover tax liabilities associated with the vesting of restricted stock units.
How does this sale affect the reporting owner's long-term equity exposure?
While direct ownership decreased to 73,306 shares, the insider retains substantial exposure through 120,000 total shares, including a significant indirect position held by the Darling Family Trust.
What is the current scale of insider ownership at the company?
Following this transaction, insiders collectively hold 0.13% of the outstanding shares, with Scott Darling's total beneficial holdings valued at $3.46 million as of the August 20 market close.
Company Overview
Share Price (as of market close 2026-08-20)
$28.86
Market Capitalization
$2.8 billion
Revenue (TTM)
$1.2 billion
Net Income (TTM)
$60.3 million
Company Snapshot
Upstart is a fintech company operates a cloud-based artificial intelligence lending platform that originates unsecured personal loans, small dollar loans, auto refinance, auto retail loans, auto secured personal loans, and home equity lines of credit across the United States.
The company generates revenue through its three business segments--Personal Lending, Auto Lending, and Other--by leveraging proprietary AI technology to assess creditworthiness and facilitate lending transactions on its platform.
Upstart's primary customers include individual borrowers seeking consumer credit products and financial institutions utilizing the company's platform to originate and manage loans.
Upstart Holdings is a technology-enabled lending platform with a market capitalization of $2.8 billion and TTM revenue of $1.2 billion, demonstrating significant scale in the digital lending ecosystem. The company differentiates itself through its proprietary AI-driven underwriting capabilities, which enable faster loan origination and improved credit risk assessment compared to traditional lending methodologies. With headquarters in San Mateo, California, Upstart operates as a critical infrastructure provider in the consumer lending market, serving both individual borrowers and institutional lending partners.
What this transaction means for investors
Darling's sale is routine, tax withholding on vested RSUs, and 7,696 shares is a small piece next to the 120,000 he still holds when you count the Darling Family Trust.
That said, his office is the one that delivered perhaps Upstart's biggest news this year outside of earnings. The OCC granted conditional approval in July for Upstart to establish a nationally chartered bank, a four-and-a-half month process that Darling's legal team would have shepherded through the application. Annie Delgado, the risk officer proposed to run the new bank, put the stakes plainly when the approval landed, saying "it's important for the public to understand that efficiency doesn't diminish oversight." Upstart still needs sign-off from the FDIC and the Federal Reserve before the bank can open, and those approvals aren't guaranteed, the OCC rejected a similar application from Wise the very next day. Meanwhile, Upstart also locked in a new forward-flow agreement with Castlelake for up to $4 billion in loan purchases. Ultimately, important catalysts are in play here, and long-term investors should keep an eye on them.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,318,055!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 22, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.

An Upstart Insider Filing Involves $216,000. Here's How It Connects to a New Bank Charter

Key Points
The transaction involved 10,175 shares at a weighted average price of $29.35 per share, representing a total value of $298,600.
This sale included a non-discretionary event executed to satisfy tax withholding obligations triggered by the vesting of restricted stock units.
Part of the activity was conducted under a Rule 10b5-1 trading plan that the insider adopted on May 16.
Andrea Blankmeyer, the chief financial officer of Upstart Holdings, Inc. (NASDAQ:UPST), sold 10,175 shares in a non-discretionary transaction on August 17 and August 19, according to an SEC Form 4 filing.
Transaction summary
Transaction value
$298,636
Shares sold
10,175
Post-transaction shares (directly held)
152,208
Post-transaction value
$4.66 million
Transaction value based on SEC Form 4 weighted average sale price ($29.35); post-transaction value based on the August 19 market close ($30.60).
Key questions
What was the primary driver for this share disposition?
Blankmeyer's sale of 10,175 shares was a non-discretionary transaction required to cover tax withholding obligations associated with the settlement of restricted stock units. This automated process does not reflect the insider's discretionary outlook on the company's valuation.
How does this impact the insider's total equity exposure?
The CFO maintains a direct position of 152,208 shares following the sale, representing 0.2% of the company's total shares outstanding. She also continues to hold derivative securities in the form of restricted stock units.
What is the current performance context for the stock?
Shares were priced at $29.11 as of the August 18 market close, and the company has recorded a -50% one-year total return as of the August 19 transaction date.
Company Overview
Share Price (as of market close 2026-08-18)
$29.11
Market Capitalization
$2.8 billion
Revenue (TTM)
$1.2 billion
Net Income (TTM)
$60.3 million
Company Snapshot
Upstart operates a cloud-based artificial intelligence lending platform offering unsecured personal loans, small-dollar loans, auto refinance, auto retail loans, auto secured personal loans, and home equity lines of credit across the United States.
The company generates revenue through its AI-powered lending platform by originating and facilitating loans across three primary segments: Personal Lending, Auto Lending, and Other, leveraging proprietary machine learning models to assess creditworthiness and manage credit risk.
Upstart's primary customers include consumers seeking credit products and financial institutions that utilize the company's platform to originate and manage loans, targeting a broad market of borrowers across personal and automotive lending categories.
Upstart Holdings operates as a leading cloud-based AI lending platform with a market capitalization of $2.8 billion and TTM revenue of $1.2 billion, demonstrating significant scale in the fintech lending sector. The company's competitive advantage derives from its proprietary artificial intelligence technology, which enables more accurate credit risk assessment and streamlined loan origination processes compared to traditional lending methodologies. Headquartered in San Mateo, California, Upstart has established itself as a critical infrastructure provider for both direct consumer lending and institutional lending partners seeking to modernize their credit assessment capabilities.
What this transaction means for investors
Blankmeyer's sale is routine tax withholding on vested RSUs, and 10,175 shares barely touches the 152,208 she still holds directly. Nothing about the timing points to any read on the stock, especially given it landed right as Upstart posted one of its stronger quarters in years.
More importantly for long-term investors, Blankmeyer explained on the earnings call why Upstart didn't raise its full-year guidance despite beating expectations. Revenue came in at $365 million for the second quarter, up 42% year over year, and net income hit $16.5 million, up sharply from $5.6 million a year earlier as contribution profit reached an all-time high of $193 million. But Blankmeyer pointed to the Upstart Macro Index climbing to 1.5%, near the top of the range that framed the original 2026 outlook, as the reason management held guidance steady rather than raising it. CEO Paul Gu framed the quarter simply, saying "we came into this quarter with a clear plan, and we executed against it." Upstart is down steeply this past year, facing much of the same pressures plaguing fintechs and even some software names more broadly, but with expectations reset, a turnaround could certainly be in play if recent momentum holds or better yet, improves.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,318,055!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 22, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.

Upstart's CFO Sold Stock as the Company Returned to Profit. Here's What to Know

Key Points
Investors must take the time to understand the business model, focusing on how a company generates revenue.
Early-stage fintech enterprises that are consistently profitable can be interesting opportunities.
Upstart, the AI-powered lending platform, is a worthwhile business for investors to study.
If investors want to pick individual companies for their portfolios, more work is required than if they choose to go the passive route. Researching businesses takes time and effort. It's not always an easy process. But curiosity can take you far, especially if you're searching in an exciting industry.
When analyzing a fintech stock, for instance, here are two of the most important factors that investors should look at before coming to an informed conclusion. Upstart Holdings (NASDAQ: UPST) can provide a valuable case study on this topic.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Do you understand the business model?
Some of the greatest investors ever, like Peter Lynch and Warren Buffett, focused relentlessly on owning companies that they knew very well. This seems like an obvious requirement, but it's easy to fool yourself into thinking that you have a solid understanding. In the fintech world, many companies look similar. It's critical to figure out their specific business models and how they make money.
There's no denying that Upstart is one of the most exciting companies in this corner of the market. That's probably because it has been working on artificial intelligence (AI) capabilities ever since it was founded more than a decade ago. It's not just hopping on the bandwagon of the latest technological trend.
This business has developed (and continues to improve) an AI-powered credit assessment tool that looks at over 3,000 unique variables about potential borrowers. The objective is to better analyze the default risk, while providing more access to credit to borrowers who might not be approved by traditional lenders. This is a challenger to the entrenched FICO scoring model.
Upstart generates revenue by providing its AI tool to lending partners, including more than 100 banks and credit unions, and collecting fees any time a loan gets approved. The company currently offers personal loans, auto loans, and home equity lines of credit. Now that it's received a bank charter, it's planning to launch Upstart Bank in early 2027, allowing it to accept consumer deposits.
Upstart aims to not keep these loans on its balance sheet, instead offloading them to capital providers. As of June 30, it did carry $1.1 billion in loans on its books. but 94.1% of loans outstanding were held by third parties.
Growth has been volatile. As expected, Upstart is heavily exposed to the changing macroeconomic climate. When interest rates are declining low, demand from borrowers picks up. This drives rapid transaction volume and revenue growth, as was experienced during 2021.
However, when credit conditions tighten, the business's expansion hits the brakes. This is what happened in 2023.
Upstart management is forecasting revenue of $1.4 billion in 2026. This would be 40% higher than last year's total. Maybe the biggest uncertainty is how this company performs over an entire credit cycle. It hasn't yet been tested in a recession (not including the short pandemic-driven 2020 downturn). This presents a risk.
Is the company reporting positive earnings?
Profitability is another key part of judging fintech stocks. These kinds of businesses are generally characterized by fast growth. Their leadership teams invest aggressively in research and development and marketing to capture what they believe to be significant market opportunities. Consequently, reporting positive GAAP earnings is an afterthought in the early stages.
Because Upstart's loan activity and revenue trends have been choppy historically, so too has its bottom-line performance. The business generated $135 million in net income in 2021. It followed with three straight years of operating in the red, with cumulative net losses from 2022 through 2024 of $478 million.
Last year, Upstart turned things around. It posted $54 million in net income.
The encouraging part is that this company has proven that it can report profits. The main question centers on its ability to do so in a sustainable manner.
Once Upstart proves it can grow revenue and net income consistently over a long period of time, the business becomes more attractive as an investment candidate.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,189!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,330,956!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 22, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

How to Judge a Fintech Stock Before You Buy It

Key Points
Shares of Upstart have slumped about 31% year to date.
The bank had a strong Q2 with 91% of its loan originations handled by AI.
Upstart recently got approval for a bank charter, which should improve its unit economics.
Upstart (NASDAQ: UPST) has had its share of ups and downs since the fintech went public in late 2020. The company, which uses artificial intelligence (AI) to process loan requests, is currently in a downward trend, with the stock price sliding about 31% year to date.
But there are some promising trends, illuminated in its recent second-quarter earnings, that bear watching. Let's look at them.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The advantages of the AI lending platform
Upstart delivered strong results in Q2, beating estimates with revenue up 42% year over year to $365 million and net income jumping 195% to $16.5 million.
The positive net income marked a return to profitability for Upstart after a $7 million net loss in the first quarter. But Upstart has been fairly consistently profitable over the past year, with positive net income in four of the past five quarters.
Also, Upstart originated $4.2 billion in loans in Q2, up 50% year over year. It converted 19.7% of loan inquiries, down from 21.7% in the same quarter a year ago. And 91% of the loans it processed were fully automated, done in seconds by AI.
This provides a huge advantage for Upstart that other banks can't match. The key statistic is the contribution margin. This a metric that examines how much profit Upstart makes on every $1 it lends, after subtracting all costs to process that loan.
In Q2, Upstart generated a record $193 million in contribution profit, up 38% year over year. The contribution margin was 55%, down from 58% in the same quarter a year ago. The fact that 91% of the loans are processed quickly with no human intervention drives up that contribution margin and will continue to do so.
That high contribution profit can then be used to invest back in the technology and other resources or pay down debt. Overall, it just improves the financials for the growing company.
New bank charter to improve unit economics
The other trend Upstart is seeing is that its revenue gains are outpacing its operating expenses, resulting in a higher operating margin. In Q2, its operating profit increased 224% to $14.6 million and its operating margin jumped from 2% to 4%.
These trends are all pointing Upstart toward increased earnings. For the full year, Upstart anticipates $1.4 billion in revenue, up from $1 billion in 2025 and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $294 million, up from $230 million last year.
Last month, Upstart received approval for a national bank charter and expects to launch its bank in early 2027. This will allow Upstart to collect deposits, which will, in turn, lower its cost of lending. Currently, Upstart pays fees to third-party banks to originate loans, but once it launches its own bank, it will eliminate some of those fees, further improving its contribution margin and unit economics.
Upstart stock is still not cheap, with a forward P/E of 47. However, Wall Street is fairly bullish on its growth with a median price target of $39.50, suggesting 30% upside. Upstart may not be a strong buy right now, but it is moving in the right direction and could start to take off once it gets its bank charter.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

91% of Upstart's Loans Were Fully Automated Last Quarter. No Bank Can Underwrite That Cheaply.

Key Points
Upstart uses artificial intelligence (AI) to determine the credit-worthiness of potential borrowers.
The company approved a record number of loans during the second quarter, resulting in revenue growth of more than 40%.
Upstart stock looks like a bargain right now, which is why I'm predicting significant gains.
The timing can certainly be debated, but I think the artificial intelligence (AI) boom began in November 2022, when OpenAI released ChatGPT, which amassed 100 million users in just two months. However, many companies were developing and even successfully monetizing AI long before that moment.
Upstart (NASDAQ: UPST) has developed AI models to assess the creditworthiness of potential borrowers for its lending partners since 2014. In many cases, those models are more reliable than the best human-led assessment methods, which still rely on Fair Isaac's FICO credit scoring system.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Upstart's revenue soared during the first half of 2026, and yet its stock is down almost 35% for the year (as of Aug. 12). I think the market is too pessimistic. Here's why I predict the stock will double by the time we enter 2027.
Upstart's AI assessment methods are transformational
Upstart's AI algorithm considers more than 2,500 data points to determine a potential borrower's creditworthiness, and it can do so almost in real time to deliver rapid decisions. It would take a human assessor days or even weeks to process an equivalent amount of data. Moreover, the FICO credit scoring system that most banks rely upon only considers five key metrics, including a person's existing debts and repayment history.
Upstart's AI-powered approach is proving superior in practice because its underwriting model is now 2.74 times as accurate as a traditional credit model, and it's constantly improving as it ingests more data. The result is a better overview of the risk posed by each loan to the bank that originates the loan, potentially leading to higher approval rates and more suitable interest rates for each borrower. That is why a growing number of banks turn to the company to assess loan applicants.
Upstart approved a record 558,014 loans worth $4.2 billion during the second quarter, and both numbers grew by 50% year over year. Unsecured personal loans continued to be the company's bread and butter, accounting for $3.6 billion of that total. But originations in the secured category -- which includes car loans and home equity lines of credit (HELOCs) -- soared by 218% to a record $589 million.
Those numbers are a drop in the bucket compared to Upstart's long-term opportunity. Chairman Dave Girouard believes AI will replace human-driven loan assessment methods during the next decade, leaving $25 trillion in global originations and $1 trillion in fee revenue on the table for the companies that are leading the transition.
Rapid revenue and earnings growth
Upstart doesn't lend its own money to consumers, except in some cases where it's conducting research and development. It gets paid a fee by banks and other funding partners to use its AI technology to originate loans on their behalf, so it has a relatively low-risk business model.
The company generated $364.7 million in revenue during the second quarter, a robust 42% increase from the year-ago period. It also delivered $16.5 million in generally accepted accounting principles (GAAP) net income, nearly triple its year-ago result of $5.6 million.
Upstart also generated $76.9 million in adjusted (non-GAAP) earnings before interest, tax, depreciation, and amortization (EBITDA) in the second quarter, up 45%. This is the company's preferred measure of profitability because it excludes one-off and noncash expenses such as stock-based compensation.
Simply put, Upstart is growing quickly and profitably, which isn't always easy.
Why Upstart stock could double by 2027
Aside from Upstart's consistently strong operating performance, its valuation is the other big reason I think its stock could double during the next few months. It's trading at a price-to-sales (P/S) ratio of just 2.6 as I write this, far below its three-year average of 5.5.
Further, management forecasts $1.4 billion in total annual revenue for 2026, placing Upstart stock at a forward P/S ratio of 2.1.
That suggests Upstart stock would have to soar by 162% by the end of this year just to match its three-year average P/S ratio of 5.5. In my opinion, the stock is trading at a discount right now because interest rates may rise during over the next few months, which could slow the economy and reduce consumer demand for credit. However, Upstart proved its ability to navigate high interest rates in 2022 and 2023, and its business emerged stronger than ever.
If rates don't rise, I think investor sentiment will improve, and the stock will have an easier path to double from here. In any case, I currently own the stock myself, and I don't plan to sell before the end of 2026.
Should you buy stock in Upstart right now?
Before you buy stock in Upstart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Anthony Di Pizio has positions in Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool recommends Fair Isaac. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	52.67 13.03
Price/Sales	2.33 2.18
P/B	3.34 1.23
P/FCF	0.00 10.61

Indicator	TTM Median
ROE	7.94 11.06
ROA	2.03 1.26
ROI	0.00 7.84
Net Worth	3.01 1.01
Quick Ratio	0.00 1.42
Current Ratio	0.49 0.98

Indicator	TTM Median
Net Profit Margin	4.90 17.61
Operating Margin	4.01 25.00
Gross Margin	82.42 71.94
Return on tangible equity	8.70 12.96

Indicator	TTM Median
EPS	0.18 0.71
EPS Forecast	0.30 0.70
Revenue	365.00M 90.00M
Gross Profit	303.00M —
EBITDA	0.00 —

Upstart Holdings, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue