Upstart Achieves Profitability and Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
0mins
Should l Buy UPST?
Source: CNBC
Upstart Holdings Inc. saw its stock rise by 6.14% as it crossed above the 20-day SMA, reflecting positive investor sentiment.
The company reported a significant turnaround, achieving a profit of $53.6 million in 2024 after three years of losses, alongside a remarkable 64% revenue growth totaling $1 billion. This recovery is attributed to a rebound in loan origination growth, which surged from -59% in 2023 to 115% in 2025, driven by declining interest rates and increased market demand. Analysts project continued growth, with revenue and EPS expected to rise at CAGRs of 31% and 92%, respectively, from 2025 to 2028, indicating strong future potential.
This positive outlook, combined with Upstart's innovative AI technology that enhances loan approval rates, positions the company favorably in the competitive lending market, despite rising competition from traditional credit agencies adopting similar technologies.
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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: 26.450
Low
20.00
Averages
56.73
High
80.00
Current: 26.450
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.
Class Action Filed Against Upstart Holdings Over AI Model Issues
- Lawsuit Background: A class action lawsuit has been filed by Gainey McKenna & Egleston against Upstart Holdings in the Northern District of California on behalf of investors who purchased shares between May 14, 2025, and November 4, 2025, alleging the company failed to disclose significant flaws in its AI model, resulting in investor losses.
- AI Model Issues: The complaint alleges that Upstart's 'Model 22' overreacted to negative macroeconomic signals during risk separation, leading to overstated loan approval rates and revenue expectations, rendering the company's FY 2025 revenue guidance unreliable.
- Financial Impact: Upon releasing its Q3 2025 financial results, Upstart acknowledged that issues with Model 22 had reduced borrower approval rates, negatively impacting revenues, with expectations that these adverse effects would continue into Q4, further undermining investor confidence.
- Investor Losses: Due to the company's failure to timely disclose the model's flaws, the market value of its securities plummeted, causing significant financial losses for the plaintiff and other class members, who are now seeking legal remedies to recover their losses.
See More
Shareholder Class Action Filed Against Upstart Holdings
- Lawsuit Allegations: A shareholder class action lawsuit has been filed against Upstart Holdings, alleging that the company issued false and misleading statements regarding its business and operations, resulting in significant investor losses and highlighting serious governance and transparency issues.
- Model Ineffectiveness: The lawsuit claims that the AI model, referred to as 'Model 22', overreacted to negative macroeconomic signals during risk separation processes, leading to overstated overall accuracy and loan approval rates, which directly impacted the company's revenue performance.
- Unreliable Revenue Guidance: Due to Model 22's overly conservative assessments of credit and macroeconomic conditions, Upstart's previously issued FY 2025 revenue guidance is deemed unreliable, potentially causing significant negative implications for future financial expectations.
- Legal Consultation Opportunity: Affected investors are encouraged to contact legal counsel before June 8, 2026, to discuss their legal rights, indicating that the company's legal risks may further impact its stock price and market confidence.
See More
DuPage Credit Union Chooses Upstart for Personal Loan Services
- DUPAGE CREDIT UNION: DuPage Credit Union has selected UPS as its partner for personal lending services.
- Strategic Partnership: This collaboration aims to enhance the credit union's offerings and improve customer experience in lending.
- Focus on Innovation: The partnership is expected to leverage UPS's expertise to introduce innovative lending solutions.
- Customer Benefits: Members of DuPage Credit Union will likely see improved access to personal loans and streamlined processes.
See More
AI's Potential to Replace Human Financial Advisors Raises Legal Concerns
- AI Financial Capability: Finance experts indicate that the financial capabilities of AI platforms are improving, suggesting that they may replace human financial advisors in the future; however, the absence of fiduciary duty raises significant legal challenges.
- Lack of Legal Accountability: Experts emphasize that AI lacks fiduciary responsibility and cannot bear the same consequences for mistakes as human advisors, necessitating caution for consumers relying on AI for specific personal finance calculations.
- Consumer Trust Levels: A survey reveals that 66% of Americans have used generative AI for financial advice, with 85% acting on the recommendations, indicating a growing consumer trust in AI, yet the unresolved legal accountability remains a concern.
- Need for Policy Change: Experts advocate for changes in government policy to provide fiduciary protections for consumers receiving financial advice from AI, as until such legal frameworks are established, consumers must remain vigilant in their financial decision-making.
See More
MarketBeat Weekly Recap – March 30 to April 3
Market Trends: Stock prices have been inversely related to oil prices, with stocks sinking as oil prices rose above $100 per barrel, influenced by geopolitical tensions in Iran affecting oil supply.
Earnings Reports: Upcoming earnings reports, particularly the March jobs report, are expected to set the tone for the market, with positive expectations potentially leading investors to look beyond current oil prices.
Investment Opportunities: Analysts highlight several stocks, including those in the AI sector and health care, as potential buys, emphasizing the importance of quality investments at depressed prices.
Sector Performance: Energy stocks are currently popular, but not all stocks in this sector are performing equally, with some companies like Valero Energy positioned well to capitalize on rising refining margins.
See More
Upstart Revolutionizes Lending with AI Technology
- Increased Approval Rates: Upstart's AI-powered algorithm utilizes over 2,500 data points to achieve a 43% higher loan approval rate compared to traditional methods, which not only reduces default rates but also enhances customer satisfaction and strengthens market competitiveness.
- Significant Revenue Growth: After navigating the turbulence caused by the COVID-19 pandemic, Upstart achieved a 64% revenue growth in 2024, totaling $1 billion, and successfully turned a profit of $53.6 million, demonstrating the resilience and potential of its business model.
- Intensifying Market Competition: Despite Upstart's achievement of 1.5 million loan originations, the vast U.S. lending market still offers significant growth opportunities, with traditional credit agencies like Equifax and TransUnion beginning to adopt AI technology, posing a potential threat to Upstart's market share.
- Technological Lead Advantage: Although competition is increasing, Upstart has built substantial experience in AI applications since its founding in 2012, and is expected to maintain a competitive edge for the foreseeable future, even though its long-term market position may face challenges.
See More
Class Action Filed Against Upstart Holdings Over AI Model Issues
- Lawsuit Background: A class action lawsuit has been filed by Gainey McKenna & Egleston against Upstart Holdings in the Northern District of California on behalf of investors who purchased shares between May 14, 2025, and November 4, 2025, alleging the company failed to disclose significant flaws in its AI model, resulting in investor losses.
- AI Model Issues: The complaint alleges that Upstart's 'Model 22' overreacted to negative macroeconomic signals during risk separation, leading to overstated loan approval rates and revenue expectations, rendering the company's FY 2025 revenue guidance unreliable.
- Financial Impact: Upon releasing its Q3 2025 financial results, Upstart acknowledged that issues with Model 22 had reduced borrower approval rates, negatively impacting revenues, with expectations that these adverse effects would continue into Q4, further undermining investor confidence.
- Investor Losses: Due to the company's failure to timely disclose the model's flaws, the market value of its securities plummeted, causing significant financial losses for the plaintiff and other class members, who are now seeking legal remedies to recover their losses.
See More
Shareholder Class Action Filed Against Upstart Holdings
- Lawsuit Allegations: A shareholder class action lawsuit has been filed against Upstart Holdings, alleging that the company issued false and misleading statements regarding its business and operations, resulting in significant investor losses and highlighting serious governance and transparency issues.
- Model Ineffectiveness: The lawsuit claims that the AI model, referred to as 'Model 22', overreacted to negative macroeconomic signals during risk separation processes, leading to overstated overall accuracy and loan approval rates, which directly impacted the company's revenue performance.
- Unreliable Revenue Guidance: Due to Model 22's overly conservative assessments of credit and macroeconomic conditions, Upstart's previously issued FY 2025 revenue guidance is deemed unreliable, potentially causing significant negative implications for future financial expectations.
- Legal Consultation Opportunity: Affected investors are encouraged to contact legal counsel before June 8, 2026, to discuss their legal rights, indicating that the company's legal risks may further impact its stock price and market confidence.
See More
DuPage Credit Union Chooses Upstart for Personal Loan Services
- DUPAGE CREDIT UNION: DuPage Credit Union has selected UPS as its partner for personal lending services.
- Strategic Partnership: This collaboration aims to enhance the credit union's offerings and improve customer experience in lending.
- Focus on Innovation: The partnership is expected to leverage UPS's expertise to introduce innovative lending solutions.
- Customer Benefits: Members of DuPage Credit Union will likely see improved access to personal loans and streamlined processes.
See More
AI's Potential to Replace Human Financial Advisors Raises Legal Concerns
- AI Financial Capability: Finance experts indicate that the financial capabilities of AI platforms are improving, suggesting that they may replace human financial advisors in the future; however, the absence of fiduciary duty raises significant legal challenges.
- Lack of Legal Accountability: Experts emphasize that AI lacks fiduciary responsibility and cannot bear the same consequences for mistakes as human advisors, necessitating caution for consumers relying on AI for specific personal finance calculations.
- Consumer Trust Levels: A survey reveals that 66% of Americans have used generative AI for financial advice, with 85% acting on the recommendations, indicating a growing consumer trust in AI, yet the unresolved legal accountability remains a concern.
- Need for Policy Change: Experts advocate for changes in government policy to provide fiduciary protections for consumers receiving financial advice from AI, as until such legal frameworks are established, consumers must remain vigilant in their financial decision-making.
See More
MarketBeat Weekly Recap – March 30 to April 3
Market Trends: Stock prices have been inversely related to oil prices, with stocks sinking as oil prices rose above $100 per barrel, influenced by geopolitical tensions in Iran affecting oil supply.
Earnings Reports: Upcoming earnings reports, particularly the March jobs report, are expected to set the tone for the market, with positive expectations potentially leading investors to look beyond current oil prices.
Investment Opportunities: Analysts highlight several stocks, including those in the AI sector and health care, as potential buys, emphasizing the importance of quality investments at depressed prices.
Sector Performance: Energy stocks are currently popular, but not all stocks in this sector are performing equally, with some companies like Valero Energy positioned well to capitalize on rising refining margins.
See More
Upstart Revolutionizes Lending with AI Technology
- Increased Approval Rates: Upstart's AI-powered algorithm utilizes over 2,500 data points to achieve a 43% higher loan approval rate compared to traditional methods, which not only reduces default rates but also enhances customer satisfaction and strengthens market competitiveness.
- Significant Revenue Growth: After navigating the turbulence caused by the COVID-19 pandemic, Upstart achieved a 64% revenue growth in 2024, totaling $1 billion, and successfully turned a profit of $53.6 million, demonstrating the resilience and potential of its business model.
- Intensifying Market Competition: Despite Upstart's achievement of 1.5 million loan originations, the vast U.S. lending market still offers significant growth opportunities, with traditional credit agencies like Equifax and TransUnion beginning to adopt AI technology, posing a potential threat to Upstart's market share.
- Technological Lead Advantage: Although competition is increasing, Upstart has built substantial experience in AI applications since its founding in 2012, and is expected to maintain a competitive edge for the foreseeable future, even though its long-term market position may face challenges.
See More
