Upstart Disrupts the Credit Scoring Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 25 2026
0mins
Should l Buy UPST?
Source: Fool
- Innovative Credit Assessment: Upstart utilizes artificial intelligence to evaluate individual creditworthiness by considering over 2,500 variables, resulting in a 43% increase in loan approval rates without additional defaults, significantly enhancing acceptance among auto dealers.
- Loan Performance Growth: Since its inception in 2012, Upstart has originated over 5 million loans totaling more than $50 billion through over 100 lending partners, with nearly 1.5 million loans worth $11 billion issued last year, demonstrating strong market demand.
- Profitability Recovery: Upstart reported a net income of over $54 million last year, reversing a loss from 2024, indicating the company is achieving sustainable profitability, although growth this year may face economic headwinds.
- Market Competitive Advantage: While traditional credit bureaus like Equifax are launching similar AI-powered products, Upstart maintains a lead due to its ground-up development, making it a compelling growth stock for investors.
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Analyst Views on UPST
Wall Street analysts forecast UPST stock price to rise
13 Analyst Rating
7 Buy
4 Hold
2 Sell
Moderate Buy
Current: 28.960
Low
20.00
Averages
56.73
High
80.00
Current: 28.960
Low
20.00
Averages
56.73
High
80.00
About UPST
Upstart Holdings, Inc. is an artificial intelligence (AI) lending marketplace. The Company’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit (HELOCs), and small dollar loans. It applies artificial intelligence models and cloud applications to the process of underwriting consumer credit. Its AI marketplace connects consumers with its lending partner. Its consumers can access Upstart-powered loans via Upstart.com, through a lender-branded product on its lending partners’ own websites, and through auto dealerships that use its Upstart Auto Retail software. Its platform enables lenders provide a product their customers want, rather than letting customers seek loans from competitors. Its cloud-based software platform incorporates technologies and software development approaches to allow for development of new features, such as cloud-native technologies, data integrity and security, and configurable multi-tenant architecture, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Upstart's Earnings Report Disappoints Investors
- Disappointing Earnings: Upstart's latest earnings report failed to meet investor expectations, leading to a decline in stock price, which reflects market concerns about its future growth and could impact its financing capabilities and market confidence.
- Investor Confidence Shaken: Analysts noted that Upstart did not make it onto the current list of the top 10 recommended stocks, indicating a decline in its attractiveness to investors, which may lead to capital outflows.
- AI Market Expectations: Despite challenges, the demand for AI technology remains strong, suggesting potential new opportunities for Upstart, especially in collaborations with giants like Nvidia and Intel.
- Investment Return Comparison: Data from Motley Fool shows that previously recommended stocks like Netflix and Nvidia achieved significant returns, while Upstart has not kept pace with this trend, potentially affecting its reputation among investors and future investment appeal.
See More
MNDY Surges on AI-Driven Efficiency Gain
- Earnings Beat: monday.com (MNDY) reported Q1 revenue of $351.3 million, a 24% year-over-year increase that exceeded analyst expectations, showcasing the company's strong performance and growth potential in the market.
- Strategic Shift: Leadership highlighted the transition to consumption-based pricing and the successful rollout of its AI Work Platform as key drivers, which not only enhanced customer satisfaction but also strengthened competitive positioning in the market.
- Operational Leverage: CFO Eliran Glazer noted that internal AI productivity gains allow the company to scale revenue without increasing headcount, indicating a higher operational efficiency achieved in a complex environment.
- Strong Cash Flow: The firm generated over $102 million in adjusted free cash flow, providing substantial capital to further invest in autonomous AI agents, thereby enhancing the sustainability of future growth.
See More
Class Action Notice for Upstart Holdings Investors
- Class Action Timeline: Rosen Law Firm reminds investors who purchased Upstart Holdings securities between May 14, 2025, and November 4, 2025, to take action by June 8, 2026, to participate in the class action, as failure to act may result in loss of compensation rights.
- Lawsuit Background: The lawsuit alleges that Upstart made false and misleading statements during the class period, particularly regarding the accuracy of its Model 22 risk-separation processes and inflated loan approval rates, leading to unrealistic expectations about the company's future revenue and resulting in investor losses.
- Counsel Selection Advice: Rosen Law Firm emphasizes the importance of selecting a law firm with a proven track record, noting that many firms issuing notices lack the necessary resources and experience to effectively litigate securities class actions.
- Historical Performance: The firm has recovered over $438 million for investors in 2019 alone and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its strong capabilities and influence in the securities class action arena.
See More
Upstart's Quarterly Report Disappoints Investors
- Disappointing Earnings Report: Upstart's recently completed quarterly report failed to meet investor expectations, leading to a decline in stock prices and reflecting market concerns about future growth.
- Strong Investor Reaction: The stock price of Upstart saw a significant drop during afternoon trading on May 7, 2026, indicating investor dissatisfaction with the company's performance.
- Eroded Market Confidence: The lack of positive guidance in the earnings report has shaken investor confidence in Upstart, potentially impacting its future financing capabilities.
- Need for Strategic Reevaluation: In light of investor discontent, Upstart may need to reassess its business strategy to restore market confidence and drive stock price recovery.
See More
Reminder of Class Action Lawsuit for Upstart Holdings Investors
- Class Action Notification: Rosen Law Firm reminds investors who purchased Upstart Holdings (NASDAQ: UPST) securities between May 14, 2025, and November 4, 2025, that they must apply to be lead plaintiffs by June 8, 2026, or risk losing the opportunity to represent other investors in the class action.
- Fee Arrangement: Investors participating in the class action will not incur any upfront costs, as the law firm operates on a contingency fee basis, which alleviates the financial burden on investors and encourages broader participation from affected parties.
- Lawsuit Background: The lawsuit alleges that Upstart made false and misleading statements during the class period, resulting in investor losses when the true information was revealed, particularly noting that Model 22's risk-separation process overreacted to negative macroeconomic signals, adversely affecting the company's revenue guidance.
- Law Firm Credentials: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked No. 1 by ISS Securities Class Action Services in 2017, underscoring its expertise and influence in this legal domain.
See More
Upstart Holdings Faces Class Action Lawsuit
- Lawsuit Background: Upstart Holdings is facing a class action lawsuit on behalf of investors who purchased securities between May 14, 2025, and November 4, 2025, alleging that its latest AI model, Model 22, overreacted to negative macroeconomic signals, leading to unreliable financial forecasts.
- Financial Impact: In Q3 2025, Upstart disclosed it missed earnings expectations due to Model 22's overreaction, which reduced borrower approval and conversion rates, prompting a negative revision of its FY 2025 revenue guidance.
- Stock Price Volatility: Following the lawsuit announcement, Upstart's stock price fell by $4.49, or approximately 9.7%, from $46.24 on November 4, 2025, to $41.75, indicating market concerns over the company's financial stability.
- Investor Action: Investors must apply by June 8, 2026, to become lead plaintiffs in the lawsuit, which allows them to represent other investors and influence litigation strategy and settlement decisions, ensuring their rights are protected.
See More
Upstart's Earnings Report Disappoints Investors
- Disappointing Earnings: Upstart's latest earnings report failed to meet investor expectations, leading to a decline in stock price, which reflects market concerns about its future growth and could impact its financing capabilities and market confidence.
- Investor Confidence Shaken: Analysts noted that Upstart did not make it onto the current list of the top 10 recommended stocks, indicating a decline in its attractiveness to investors, which may lead to capital outflows.
- AI Market Expectations: Despite challenges, the demand for AI technology remains strong, suggesting potential new opportunities for Upstart, especially in collaborations with giants like Nvidia and Intel.
- Investment Return Comparison: Data from Motley Fool shows that previously recommended stocks like Netflix and Nvidia achieved significant returns, while Upstart has not kept pace with this trend, potentially affecting its reputation among investors and future investment appeal.
See More
MNDY Surges on AI-Driven Efficiency Gain
- Earnings Beat: monday.com (MNDY) reported Q1 revenue of $351.3 million, a 24% year-over-year increase that exceeded analyst expectations, showcasing the company's strong performance and growth potential in the market.
- Strategic Shift: Leadership highlighted the transition to consumption-based pricing and the successful rollout of its AI Work Platform as key drivers, which not only enhanced customer satisfaction but also strengthened competitive positioning in the market.
- Operational Leverage: CFO Eliran Glazer noted that internal AI productivity gains allow the company to scale revenue without increasing headcount, indicating a higher operational efficiency achieved in a complex environment.
- Strong Cash Flow: The firm generated over $102 million in adjusted free cash flow, providing substantial capital to further invest in autonomous AI agents, thereby enhancing the sustainability of future growth.
See More
Class Action Notice for Upstart Holdings Investors
- Class Action Timeline: Rosen Law Firm reminds investors who purchased Upstart Holdings securities between May 14, 2025, and November 4, 2025, to take action by June 8, 2026, to participate in the class action, as failure to act may result in loss of compensation rights.
- Lawsuit Background: The lawsuit alleges that Upstart made false and misleading statements during the class period, particularly regarding the accuracy of its Model 22 risk-separation processes and inflated loan approval rates, leading to unrealistic expectations about the company's future revenue and resulting in investor losses.
- Counsel Selection Advice: Rosen Law Firm emphasizes the importance of selecting a law firm with a proven track record, noting that many firms issuing notices lack the necessary resources and experience to effectively litigate securities class actions.
- Historical Performance: The firm has recovered over $438 million for investors in 2019 alone and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its strong capabilities and influence in the securities class action arena.
See More
Upstart's Quarterly Report Disappoints Investors
- Disappointing Earnings Report: Upstart's recently completed quarterly report failed to meet investor expectations, leading to a decline in stock prices and reflecting market concerns about future growth.
- Strong Investor Reaction: The stock price of Upstart saw a significant drop during afternoon trading on May 7, 2026, indicating investor dissatisfaction with the company's performance.
- Eroded Market Confidence: The lack of positive guidance in the earnings report has shaken investor confidence in Upstart, potentially impacting its future financing capabilities.
- Need for Strategic Reevaluation: In light of investor discontent, Upstart may need to reassess its business strategy to restore market confidence and drive stock price recovery.
See More
Reminder of Class Action Lawsuit for Upstart Holdings Investors
- Class Action Notification: Rosen Law Firm reminds investors who purchased Upstart Holdings (NASDAQ: UPST) securities between May 14, 2025, and November 4, 2025, that they must apply to be lead plaintiffs by June 8, 2026, or risk losing the opportunity to represent other investors in the class action.
- Fee Arrangement: Investors participating in the class action will not incur any upfront costs, as the law firm operates on a contingency fee basis, which alleviates the financial burden on investors and encourages broader participation from affected parties.
- Lawsuit Background: The lawsuit alleges that Upstart made false and misleading statements during the class period, resulting in investor losses when the true information was revealed, particularly noting that Model 22's risk-separation process overreacted to negative macroeconomic signals, adversely affecting the company's revenue guidance.
- Law Firm Credentials: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked No. 1 by ISS Securities Class Action Services in 2017, underscoring its expertise and influence in this legal domain.
See More
Upstart Holdings Faces Class Action Lawsuit
- Lawsuit Background: Upstart Holdings is facing a class action lawsuit on behalf of investors who purchased securities between May 14, 2025, and November 4, 2025, alleging that its latest AI model, Model 22, overreacted to negative macroeconomic signals, leading to unreliable financial forecasts.
- Financial Impact: In Q3 2025, Upstart disclosed it missed earnings expectations due to Model 22's overreaction, which reduced borrower approval and conversion rates, prompting a negative revision of its FY 2025 revenue guidance.
- Stock Price Volatility: Following the lawsuit announcement, Upstart's stock price fell by $4.49, or approximately 9.7%, from $46.24 on November 4, 2025, to $41.75, indicating market concerns over the company's financial stability.
- Investor Action: Investors must apply by June 8, 2026, to become lead plaintiffs in the lawsuit, which allows them to represent other investors and influence litigation strategy and settlement decisions, ensuring their rights are protected.
See More
