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. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, незначительно вырос. Рынок на стороне быков.

Weak index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

The rising cost of living is putting consumer balance sheets under pressure, which is increasing the risk that people will default on their loans.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
*Stock prices used were the afternoon prices of Sept. 27, 2026. The video was published on Sept. 29, 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 $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — 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 September 30, 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.

Down Over 90%, Is it Finally Time to Buy This AI Stock?

Key Points
Upstart is a lender that uses AI to price loans.
It does not hold loans on its balance sheet; it syndicates them for third parties.
The company has struggled in past downturns, but it may have set itself up better for the future.
Lending is a tricky business. Interest income from payments may look stellar for years, but if just a small portion of these loan recipients stops paying, profits can be wiped away. A peculiar business in the lending "supply chain" is Upstart Holdings (NASDAQ: UPST).
The pandemic-era stock market darling uses artificial intelligence (AI) to price personal and auto loans before selling them to third parties. It is the middleman that tries to run with an asset-light balance sheet compared to banks, mitigating payback risks.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
But what happens if the lending markets freeze during a downturn? The answer could get quite scary. Here's why.
Pricing loans for third parties
Upstart is a technology-forward firm that has tried to build and hone AI models for pricing consumer loans. However, instead of acting as a bank itself, a bank will contract with Upstart to price its consumer loans, which Upstart will then try to sell to third parties to hold. As a middleman, Upstart will earn fee revenue for its services.
This seemed like a revolutionary idea that could potentially disrupt the entire loan pricing supply chain, such as the FICO score. Upstart's fee revenue was going vertical as it helped originate more and more loans. However, after the pandemic disruptions ended, Upstart's business went in the wrong direction, where banks realized its AI models were not "magic" and pricing risk much more intelligently.
The real concern was the freezing of Upstart's loan-buying partners, which forced Upstart to begin piling loans onto its balance sheet and take on lending risk. Originations fell, and Upstart was deeply unprofitable for years. To fix these issues, Upstart has sought committed capital partners, secured more loans, such as automotive loans, and trimmed its own costs to operate more efficiently. Over the last 12 months, it has now begun to generate a profit again.
Is Upstart stock a buy?
During the last lending downturn in 2022 and 2023, Upstart faced major risks as fee revenue dried up and it couldn't offload loans to third parties. In a future downturn, the business looks much better prepared to weather any storm that shows up.
Right now, Upstart shares are in a 94% drawdown, as investors remain sour on the business's prospects after the past few years. The company is only slightly profitable today and has never proven it can generate steady profits for shareholders. However, if you believe the profit recovery will continue, Upstart may do better over the market cycle because of the committed financing deals it has secured.
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 $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — 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.
*Stock Advisor returns as of September 26, 2026.
Brett Schafer 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 Lends Money It Doesn't Hold. What Does That Do to the Stock in a Downturn?

Key Points
Upstart seems to be grossly mispriced.
RH could soar if the housing market recovers.
Sweetgreen could finally be stabilizing.
Finding stocks that 10x isn't easy, but it happens more often than you might think. All of the Magnificent Seven stocks have been ten-baggers over their history, as have many other S&P 500 stocks.
Over a long enough time frame, successful companies at reasonable valuations can deliver returns of 900% or more. Sometimes it happens remarkably fast, as we saw with Micron and the rest of the memory sector this year. Who will be next? No one knows for sure, but below are three stocks I think have a strong chance of achieving that return over the next decade.
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 »
Image source: Getty Images.
1. Upstart
Upstart (NASDAQ:UPST) was a stock market darling for a brief time during the pandemic as the company posted triple-digit revenue growth and strong profits in 2021.
The stock crashed in 2022 as rising interest rates crushed the business and the hype. Today, Upstart, which is a loan originator that has built an AI model for credit, is still down 90% from its all-time high.
That seems like a mistake. Upstart is in a much stronger position than it was a few years ago. The business is profitable on a generally accepted accounting principles (GAAP) basis, and it's projecting 35% revenue growth through 2028. Upstart is also competing in a massive addressable market, especially after entering the home and auto loan markets, so it could be several times larger than it is today, with a market cap of just $2.4 billion.
Additionally, the company is in the process of securing a bank charter, which will make it easier to launch new products nationwide and lower its costs. After adjusting for stock-based compensation, as most tech companies do, Upstart is trading at a price-to-earnings ratio of around 13. That looks like a massive mispricing of this growth stock. If Upstart continues to execute, the stock will respond, and if interest rates eventually come down, the stock could skyrocket. Even without a macro tailwind, a 10x in ten years is within reach for a disruptive growth stock that looks significantly undervalued.
2. RH
RH (NYSE:RH), the home furnishings company formerly known as Restoration Hardware, was a top performer for much of its history, but it's struggled in the post-pandemic era as the housing market has stalled.
RH is now down more than 80% from its all-time high, even though the company has continued to deliver growth in a challenging macro environment, targeting revenue growth of 5.5%-7% in 2026 and an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 15%-16.2%.
The company will likely need some help from macroeconomic forces like interest rates to 10x, but at a market cap of just $2.4 billion, it's not unreasonable for it to get there.
RH has expanded into Europe and has extended the brand to guesthouses and jet and yacht charters. CEO Gary Friedman is a visionary, and he will continue to push the company in new directions and hold it to high standards. His previous bold bets, like shifting to a membership model, have paid off, and RH has clearly established itself as a luxury home furnishings retailer able to earn a premium.
The housing market won't be stagnant forever, and once it wakes up, RH is poised to capitalize on the rebound in demand, which could send profits and the stock soaring.
3. Sweetgreen
Sweetgreen (NYSE:SG) has been a disappointment since its 2021 IPO. The company is the leading fast-casual salad chain, but it's struggled to turn a profit and has faced pushback from customers over its high prices. Additionally, after years of billing its Infinite Kitchen as the future of the company, Sweetgreen sold the technology to Wonder, though it retained the rights to use it. More recently, it faced a setback from the cyclosporiasis outbreak.
Despite those challenges, there are signs that Sweetgreen could be turning the corner. Its restaurants remain popular with average unit volumes of $2.5 million, not far behind Chipotle. Its new wraps, which offer a handheld option at a lower price, have been popular, and the company has also introduced a turnaround plan to cut costs and improve profitability.
At a market cap of less than $1 billion, Sweetgreen seems priced as if it were slowly going out of business, rather than as a company with a significant growth opportunity ahead. If it can return to same-store sales growth and take steps toward profitability, the stock will be rewarded. With new store expansion over the next decade, it could reach a $9 billion market cap, making it a 10x stock.
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 $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% 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 September 20, 2026.
Jeremy Bowman has positions in RH, Sweetgreen, and Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool recommends RH and Sweetgreen. 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.

Prediction: These 3 Stocks Will 10x in the Next 10 Years

Key Points
SoFi got its bank charter in 2022, and it was one of the first fintechs to get one.
It has been transformative for the bank, allowing it to take deposits and fund its loans more effectively.
Upstart and Affirm have both applied for bank charters.
One of the challenges for nontraditional fintech lenders has been the expense associated with lending.
Because most of them do not have bank charters, they must partner with a traditional third-party bank to fund their loans. However, they must pay a fee or provide a cut of interest income earned on every loan they make using a third party. That eats into their profits.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
A federal bank charter would allow the fintechs to take deposits, because without one, they cannot. The deposits serve as an internal funding source, as loans can be made from the deposit base. With an internal funding source, these fintechs do not have to get third-party funding for loans, which, in turn, allows them to save on fees and collect all of the interest income.
Since fintechs started popping up more frequently over the past five or six years, federal regulators have been reluctant to grant bank charters to fintechs, imposing stringent requirements. But that has changed over the past couple of years as restrictions have eased. There has been a surge in the number of fintechs applying for, and getting, bank charters.
It is a development that could have a significant effect on the banking industry, as many of these fintechs are digital lenders with lower overhead costs. Plus, because they have lower overhead, they can offer higher deposit rates and lower interest rates on loans, thus attracting more customers. Many have partnerships or customers through their technology platforms that could provide them with an extensive reach.
Three of the largest and most successful fintechs -- SoFi Technologies (NASDAQ: SOFI), Upstart (NASDAQ: UPST), and Affirm (NASDAQ: AFRM) -- occupy different niches within the banking and payments universe, yet only one has the advantage of a full bank charter, at least right now.
The SoFi advantage
On Jan. 18, 2022, SoFi was one of the first fintechs to get a bank charter. It did so by acquisition, buying a small California bank, Golden Pacific, and then applying for the bank charter through it.
That was a pivotal moment in the history of SoFi, as it could begin taking deposits, funding its own loans, and expanding its business. It came, unfortunately, at a time when inflation was rising, the market was crashing, and interest rates were skyrocketing. It was a difficult environment for all banks -- fintechs and traditional -- so SoFi didn't get any immediate boost from it.
The bank charter was more about the long-term effect for SoFi rather than a short-term boost. Just look at its growth since then. In the quarter when SoFi got its charter, first-quarter 2022, it had already attracted $1.2 billion in deposits. In the latest quarter, second-quarter 2026, it had $45.5 billion in deposits. It had 3.9 million active customers or members using 5.9 million products in Q1 2022. This latest quarter, it had 15.8 million members using 24.4 million products.
Additionally, SoFi went from operating at a net loss of $110 million with earnings of -$0.14 per share four years ago to net income of $156 million, or $0.12 per share, in Q2 2026.
Upstart and Affirm
SoFi stock has struggled year to date, down about 36%, despite surging revenue, earnings, and membership growth. Some of this stems from a short-seller report that questioned some of SoFi's accounting practices, but a lot of it has to do with SoFi's high valuation. However, its valuation has dropped as investors have sold off, or perhaps taken profits after three straight huge years. SoFi stock returned 116% in 2023, 54% in 2024, and 70% in 2025.
SoFi's valuation is back down to a much more reasonable level, trading at 34 times earnings and 21 times forward earnings. It is starting to look like much more of a buying opportunity at these valuation levels.
As for Upstart and Affirm, they have both applied for national bank charters. Upstart got conditional approval for a bank charter in July, and it is expected to get final approval in early 2027.
Buy now, pay later provider Affirm applied for an industrial loan bank charter in January. It has not yet been granted any approvals. But if and when these two fintechs do get bank charters, it could be equally transformative for them, so keep an eye out for that.
Should you buy stock in SoFi Technologies right now?
Before you buy stock in SoFi Technologies, 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 SoFi Technologies 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 $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% 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 September 19, 2026.
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.

Upstart, Affirm, and SoFi All Lend to the Same Borrowers. Only One of Them Funds With Deposits.

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.
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 »
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!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — 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 September 13, 2026.
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.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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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.
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*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.
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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.