Upstart (UPST) Q1 2025 Earnings
How Did UPST Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.87%.
Did UPST Beat Earnings? Q1 2025 Results
Yes. Upstart reported Q1 2025 earnings of $0.30 a share on May 6, 2025, beating the $0.17 consensus estimate by 75.8%. Revenue was $213.4M against a $201.3M estimate.
Upstart delivered a notably strong first quarter, with revenue of $213.37 million rising 54.0% year over year and comfortably clearing the $201.26 million consensus, while adjusted EPS of $0.30 beat the $0.17 estimate by 75.85%, reflecting a dramatic operational turnaround from the loss-heavy results of a year ago. The clearest driver behind the outperformance was a sharp rebound in loan origination volumes, with the AI lending marketplace facilitating $2.13 billion in originations, up 102% from the prior-year quarter, as conversion rates improved to 19.1% from 14.0% and 92% of loans were processed with no human involvement. Adjusted EBITDA swung to a positive $42.58 million from negative $20.34 million, and the GAAP net loss narrowed to just $2.45 million from $64.60 million a year earlier. A Bank of America upgrade citing improved fundamentals added further market confidence around the print. Management raised its full-year revenue outlook to approximately $1.01 billion and expects GAAP net income to turn positive in the second half of 2025, with Q2 revenue guided at approximately $225 million.
- Transaction volume up 102% YoY to 240,706 loans with total originations exceeding $2.1 billion (up 89% YoY)
- Conversion rate improved to 19.1% from 14.0% in Q1 2024
- 92% of loans fully automated, up from 90% a year ago
- Platform and referral fees grew 45% YoY to $151 million
- Net interest income swung positive as fair value adjustments improved significantly
- Adjusted EBITDA margin improved to 20% from (16%) in Q1 2024
“With an unparalleled pace of innovation, we continue to raise the bar in AI-enabled lending. In this foundational aspect of our economy, AI is clearly living up to its promise of delivering a radically better product for consumers.”
Upstart CEO, on the earnings call
What Was Upstart's Outlook in Q1 2025?
For Q2 2025, Upstart expects revenue of approximately $225 million (revenue from fees ~$210 million, net interest income ~$15 million), contribution margin of approximately 55%, GAAP net loss of approximately ($10) million, adjusted net income of approximately $25 million, and adjusted EBITDA of approximately $37 million. For full-year 2025, the company now expects revenue of approximately $1.01 billion (revenue from fees ~$920 million, net interest income ~$90 million), adjusted EBITDA margin of approximately 19%, and GAAP net income to be positive in the second half of the year and positive for the full calendar year.
UPST YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $213.4M | $138.5M | +54.1% |
| Operating Income | −$4.5M | −$2.3M | +93.0% |
| Net Income | −$2.4M | −$1.2M | +96.2% |
UPST Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.