Upstart Holdings Reports Strong Revenue Growth Amid Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
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Should l Buy UPST?
Source: Fool
Upstart Holdings Inc. saw its stock price decline by 4.85% as it hit a 20-day low, despite positive market conditions with the Nasdaq-100 up 0.38% and the S&P 500 up 0.03%.
The company reported a remarkable 71% year-over-year revenue growth in Q3 2025, totaling $277 million, driven by a 128% increase in transaction volume. This strong performance highlights Upstart's effective AI-driven credit model, which enhances loan approval rates and reduces default risks. However, the stock has faced a significant decline of 29% over the past year, raising concerns about its long-term stability amid fluctuating interest rates and increased competition in the fintech sector.
Despite the recent stock decline, Upstart's robust revenue growth and market expansion potential suggest that it could still achieve significant future growth, particularly in personal and auto loans. Investors remain cautiously optimistic about the company's ability to navigate market challenges and capitalize on its innovative technology.
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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: 25.360
Low
20.00
Averages
56.73
High
80.00
Current: 25.360
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.
Analysis of Short Selling in Financial Stocks
- Concentration of Shorts: At the end of March, the most shorted financial stocks with market caps over $2 billion were primarily in fintech, alternative asset management, and mortgage-linked businesses, indicating investor caution towards firms exposed to credit, payments, and housing cycles.
- Short Interest Comparison: Among the top five most shorted stocks, Upstart Holdings had a short interest of 29.27%, while Shift4 Payments and Blue Owl Capital had 21.57% and 18.84% respectively, reflecting market skepticism about their profitability.
- Investor Confidence: In contrast, the least shorted stocks were dominated by large, diversified financial institutions like Mastercard and JPMorgan Chase, with Mastercard's short interest at just 0.71%, showcasing investor confidence in their stable earnings and resilience amid macro uncertainty.
- Market Dynamics Impact: As concerns grow over fintech and mortgage companies, investors may reassess the risks associated with these firms, potentially impacting their stock performance, especially in the context of an economic slowdown.
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Upstart Stock Rebounds with Promising Profit Outlook
- Return to Profitability: After three consecutive years of losses, Upstart became profitable again in 2025, marking a recovery in its business model, particularly as interest rates declined, which is expected to attract more investor attention.
- Accelerated Loan Growth: Following six consecutive rate cuts by the Fed in 2024 and 2025, Upstart's loan growth rate rebounded from -59% in 2023 to 115% in 2025, indicating a strong recovery in market demand.
- Optimistic Revenue Outlook: Analysts project Upstart's revenue and EPS to grow at CAGRs of 31% and 92%, respectively, from 2025 to 2028, reflecting the ongoing expansion of its customer base and market potential.
- Attractive Market Valuation: Despite Upstart's enterprise value of $3.3 billion, its price-to-sales ratio stands at only two times this year's sales, indicating historical undervaluation under its long-term growth potential, which may present a good buying opportunity for investors.
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Upstart Returns to Profitability Amidst Declining Interest Rates
- Return to Profitability: After three consecutive years of losses, Upstart achieved profitability again in 2025, indicating a gradual recovery of its business amidst declining interest rates, showcasing the company's resilience and potential in the market.
- Loan Growth Rebound: Following six consecutive rate cuts by the Fed in 2024 and 2025, Upstart's loan origination growth rate rebounded from -59% in 2023 to 28%, suggesting that its business model is regaining momentum in a low-interest environment.
- Revenue and Earnings Outlook: Analysts expect Upstart's revenue and EPS to grow at CAGRs of 31% and 92%, respectively, from 2025 to 2028, reflecting a continued expansion of its customer base and a recovery in market demand.
- Attractive Market Valuation: With an enterprise value of $3.3 billion, Upstart's current sales multiple of just 2 times indicates that its stock remains historically undervalued, potentially attracting more investors to its long-term growth prospects.
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- Market Performance Analysis: As of March 13, 2026, Miami International Holdings' stock price saw a slight increase of 0.03%, indicating investor confidence in its growth prospects, which may attract more capital inflow.
- Investor Attention: The video, published on March 30, 2026, suggests that analysts' recommendations on these stocks could influence investor decisions, potentially driving stock prices higher.
- Long-Term Investment Strategy: Analysts emphasize the strategy of selecting these growth stocks for long-term investment to capitalize on their potential high returns, reflecting a deep understanding of market trends and forward-looking positioning.
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- High-Frequency Trading Insight: Within HTZ, the $3 strike put option expiring on June 16, 2028, has recorded a trading volume of 8,010 contracts today, equating to about 801,000 shares, suggesting an increased investor expectation for a decline in future stock prices.
- WisdomTree Options Activity: WisdomTree Inc (WT) has reported an options trading volume of 24,315 contracts today, representing approximately 2.4 million shares, which is 81.6% of its average daily trading volume of 3 million shares over the past month, reflecting sustained investor interest in its stock.
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Analysis of Short Selling in Financial Stocks
- Concentration of Shorts: At the end of March, the most shorted financial stocks with market caps over $2 billion were primarily in fintech, alternative asset management, and mortgage-linked businesses, indicating investor caution towards firms exposed to credit, payments, and housing cycles.
- Short Interest Comparison: Among the top five most shorted stocks, Upstart Holdings had a short interest of 29.27%, while Shift4 Payments and Blue Owl Capital had 21.57% and 18.84% respectively, reflecting market skepticism about their profitability.
- Investor Confidence: In contrast, the least shorted stocks were dominated by large, diversified financial institutions like Mastercard and JPMorgan Chase, with Mastercard's short interest at just 0.71%, showcasing investor confidence in their stable earnings and resilience amid macro uncertainty.
- Market Dynamics Impact: As concerns grow over fintech and mortgage companies, investors may reassess the risks associated with these firms, potentially impacting their stock performance, especially in the context of an economic slowdown.
See More
Upstart Stock Rebounds with Promising Profit Outlook
- Return to Profitability: After three consecutive years of losses, Upstart became profitable again in 2025, marking a recovery in its business model, particularly as interest rates declined, which is expected to attract more investor attention.
- Accelerated Loan Growth: Following six consecutive rate cuts by the Fed in 2024 and 2025, Upstart's loan growth rate rebounded from -59% in 2023 to 115% in 2025, indicating a strong recovery in market demand.
- Optimistic Revenue Outlook: Analysts project Upstart's revenue and EPS to grow at CAGRs of 31% and 92%, respectively, from 2025 to 2028, reflecting the ongoing expansion of its customer base and market potential.
- Attractive Market Valuation: Despite Upstart's enterprise value of $3.3 billion, its price-to-sales ratio stands at only two times this year's sales, indicating historical undervaluation under its long-term growth potential, which may present a good buying opportunity for investors.
See More
Upstart Returns to Profitability Amidst Declining Interest Rates
- Return to Profitability: After three consecutive years of losses, Upstart achieved profitability again in 2025, indicating a gradual recovery of its business amidst declining interest rates, showcasing the company's resilience and potential in the market.
- Loan Growth Rebound: Following six consecutive rate cuts by the Fed in 2024 and 2025, Upstart's loan origination growth rate rebounded from -59% in 2023 to 28%, suggesting that its business model is regaining momentum in a low-interest environment.
- Revenue and Earnings Outlook: Analysts expect Upstart's revenue and EPS to grow at CAGRs of 31% and 92%, respectively, from 2025 to 2028, reflecting a continued expansion of its customer base and a recovery in market demand.
- Attractive Market Valuation: With an enterprise value of $3.3 billion, Upstart's current sales multiple of just 2 times indicates that its stock remains historically undervalued, potentially attracting more investors to its long-term growth prospects.
See More
Miami International Holdings and Upstart Growth Potential Analysis
- Growth Potential Assessment: Motley Fool contributors Jason Hall and Tyler Crowe highlight Miami International Holdings (MIAX) and Upstart (UPST) as growth stocks with the potential to double over the long term, reflecting optimistic market expectations for both companies' future performance.
- Market Performance Analysis: As of March 13, 2026, Miami International Holdings' stock price saw a slight increase of 0.03%, indicating investor confidence in its growth prospects, which may attract more capital inflow.
- Investor Attention: The video, published on March 30, 2026, suggests that analysts' recommendations on these stocks could influence investor decisions, potentially driving stock prices higher.
- Long-Term Investment Strategy: Analysts emphasize the strategy of selecting these growth stocks for long-term investment to capitalize on their potential high returns, reflecting a deep understanding of market trends and forward-looking positioning.
See More
Surge in Options Trading Volume for Hertz and WisdomTree
- Hertz Options Volume: Hertz Global Holdings Inc (HTZ) has seen an options trading volume of 50,202 contracts today, representing approximately 5 million shares, which accounts for 83.4% of its average daily trading volume of 6 million shares over the past month, indicating strong market interest in its stock.
- High-Frequency Trading Insight: Within HTZ, the $3 strike put option expiring on June 16, 2028, has recorded a trading volume of 8,010 contracts today, equating to about 801,000 shares, suggesting an increased investor expectation for a decline in future stock prices.
- WisdomTree Options Activity: WisdomTree Inc (WT) has reported an options trading volume of 24,315 contracts today, representing approximately 2.4 million shares, which is 81.6% of its average daily trading volume of 3 million shares over the past month, reflecting sustained investor interest in its stock.
- Bullish Call Options Trend: For WT, the $15 strike call option expiring on September 18, 2026, has seen a trading volume of 12,041 contracts today, representing about 1.2 million shares, indicating a bullish sentiment in the market regarding WT's future price increase.
See More
UPSTART HOLDINGS INC: MIZUHO REDUCES TARGET PRICE FROM $66 TO $51
Company Overview: USTARTHOLDINGS INC is involved in financial services and has made a significant announcement regarding its stock price.
Target Price Adjustment: Mizuhō has reduced the target price for USTARTHOLDINGS from $66 to $51, indicating a shift in market expectations.
See More
