KBRA Assigns Preliminary Ratings to Upstart's ABS Securitization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 15 2026
0mins
Source: Newsfilter
- Issuance Size: Upstart Securitization Trust 2026-2 issues $320.14 million in asset-backed securities (ABS), marking the 50th ABS securitization from loans originated through Upstart's online platform, indicating sustained growth potential in the consumer loan market.
- Credit Enhancement Levels: Preliminary ratings show credit enhancement levels of 66.05% for Class A-1 and A-2 notes, 51.80% for Class B notes, 41.20% for Class C notes, and 20.50% for Class D notes, reflecting varying degrees of investor protection that could influence market acceptance.
- Collateral Pool Size: As of the March 17, 2026 statistical cutoff date, the collateral pool for UPST 2026-2 will include approximately $400.2 million in loans, with auto secured personal loans comprising about 5.0%, providing investors with a diversified asset base.
- Rating Methodology: KBRA applied its Consumer Loan ABS Global Rating Methodology and ESG Global Rating Methodology, along with operational reviews of Upstart, ensuring the accuracy and transparency of the ratings, thereby enhancing market confidence in its credit assessments.
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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: 30.720
Low
20.00
Averages
56.73
High
80.00
Current: 30.720
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 Holdings Faces Class Action Lawsuit for Securities Violations
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Upstart Holdings for violations of §§10(b) and 20(a) of the Securities Exchange Act, affecting securities purchased between May 14, 2025, and November 4, 2025, potentially impacting numerous investors' rights.
- False Statements Allegation: The complaint alleges that Upstart made false and misleading statements during the class period, overstating the accuracy of its 'Model 22' AI, which negatively impacted business performance, leading to investor losses once the truth was revealed.
- Legal Consultation Opportunity: Affected shareholders are encouraged to contact the Schall Law Firm before June 8, 2026, to participate in the lawsuit and seek compensation for losses, highlighting the company's potential legal liabilities.
- Market Reaction Impact: As the market becomes aware of the poor performance of Upstart's AI models, investor confidence is likely to wane, potentially leading to further declines in stock price and affecting the company's future financing and strategic business development.
See More
Upstart Holdings Faces Securities Fraud Class Action Lawsuit
- Lawsuit Deadline: Upstart Holdings, Inc. is facing a securities fraud class action lawsuit with a deadline of June 8, 2026, for investors to file necessary documents to participate, while those who do not will remain absent class members and may miss out on potential recoveries.
- Investor Eligibility: The lawsuit targets investors who purchased Upstart securities between May 14, 2025, and November 4, 2025, alleging that the company and its senior officers made materially false and misleading statements regarding business operations, growth prospects, and financial stability, resulting in artificially inflated stock prices.
- Loss Claims: Investors claim significant losses due to the disclosure of these false statements, highlighting potential issues with the company's transparency and compliance, which could negatively impact its future market performance.
- Legal Representation Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993, showcasing its success in class action litigation, which may encourage more investors to join the lawsuit seeking compensation.
See More
Reminder for Upstart Holdings Class Action
- Class Action Notice: Rosen Law Firm reminds investors who purchased Upstart Holdings securities between May 14, 2025, and November 4, 2025, that they must apply to be lead plaintiff by June 8, 2026, or risk losing their right to compensation in the class action lawsuit.
- Fee Arrangement: Investors participating in the class action will not incur any upfront costs, as attorney fees will be collected through a contingency fee arrangement, thereby lowering the financial barrier for investors to seek compensation without out-of-pocket expenses.
- 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 process and inflated loan approval rates, which resulted in investor losses when the truth was revealed to the market.
- Law Firm's Strength: 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 first in 2017 for the number of securities class action settlements, demonstrating its expertise and resource advantages in this field.
See More
Shareholder Class Action Filed Against Upstart Holdings
- Class Action Initiated: Bernstein Liebhard LLP announces a class action lawsuit on behalf of investors who purchased Upstart Holdings, Inc. (NASDAQ: UPST) securities between May 14, 2025, and November 4, 2025, alleging misrepresentations regarding the company's loan approval rates, revenues, and growth, which may have led to investor losses.
- Key Filing Deadline: Investors must file papers by June 8, 2026, to serve as lead plaintiff, representing other class members in directing the litigation, while those who choose not to participate will be considered absent class members and may not share in any recovery.
- Fee Structure: All representation is on a contingency fee basis, meaning shareholders incur no fees or expenses, which reduces the financial burden on investors and encourages more affected shareholders to participate in the lawsuit.
- Law Firm Credentials: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has been recognized multiple times in The National Law Journal’s “Plaintiffs’ Hot List” for its success in litigating hundreds of class actions, showcasing its strong reputation and expertise in securities litigation.
See More
Upstart Launches AI-Powered Credit Assessment Algorithm
- AI Algorithm Innovation: Upstart's AI-powered algorithm analyzes over 2,500 data points, gradually enhancing its predictive capabilities, which significantly improves credit assessment accuracy and efficiency compared to the traditional FICO scoring system, potentially transforming the lending industry.
- Loan Origination Growth: In Q1 2026, Upstart originated 425,356 loans, a 77% increase year-over-year, with 91% of loans processed fully automated, indicating widespread application of its AI technology in credit approvals, enhancing customer experience and market competitiveness.
- Record Revenue: Upstart generated $308 million in revenue during Q1, representing a 44% year-over-year growth, and despite a net loss of $6.6 million due to increased operating expenses, the adjusted EBITDA of $40 million highlights its profitability potential.
- Broad Market Outlook: Upstart forecasts $1.4 billion in revenue for 2026, with expectations to exceed $2.5 billion by 2028; if AI fully replaces traditional credit assessments, Upstart could tap into a $1 trillion annual revenue opportunity, underscoring its strategic significance.
See More
Upstart's AI Algorithm Fuels Credit Growth and Revenue Surge
- Significant Revenue Growth: Upstart generated a record $308 million in revenue during Q1 2026, representing a 44% year-over-year increase, showcasing the effectiveness of its AI algorithm in credit assessment, with expectations of reaching $1.4 billion in revenue for the year, further solidifying its market position.
- Surge in Loan Originations: The company originated 425,356 loans in Q1, a 77% increase from the previous year, with personal loans making up the majority, indicating strong demand and rapid growth potential in the credit market.
- Efficient Approval Process: Upstart's AI system enabled 91% of loan applications to be fully automated, reducing approval times from days to minutes, significantly enhancing customer experience and strengthening competitive advantage in the market.
- Future Growth Outlook: Management forecasts a compound annual growth rate of 35% through 2028, potentially exceeding $2.5 billion in revenue, indicating substantial long-term growth potential for Upstart in the global credit market.
See More
Upstart Holdings Faces Class Action Lawsuit for Securities Violations
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Upstart Holdings for violations of §§10(b) and 20(a) of the Securities Exchange Act, affecting securities purchased between May 14, 2025, and November 4, 2025, potentially impacting numerous investors' rights.
- False Statements Allegation: The complaint alleges that Upstart made false and misleading statements during the class period, overstating the accuracy of its 'Model 22' AI, which negatively impacted business performance, leading to investor losses once the truth was revealed.
- Legal Consultation Opportunity: Affected shareholders are encouraged to contact the Schall Law Firm before June 8, 2026, to participate in the lawsuit and seek compensation for losses, highlighting the company's potential legal liabilities.
- Market Reaction Impact: As the market becomes aware of the poor performance of Upstart's AI models, investor confidence is likely to wane, potentially leading to further declines in stock price and affecting the company's future financing and strategic business development.
See More
Upstart Holdings Faces Securities Fraud Class Action Lawsuit
- Lawsuit Deadline: Upstart Holdings, Inc. is facing a securities fraud class action lawsuit with a deadline of June 8, 2026, for investors to file necessary documents to participate, while those who do not will remain absent class members and may miss out on potential recoveries.
- Investor Eligibility: The lawsuit targets investors who purchased Upstart securities between May 14, 2025, and November 4, 2025, alleging that the company and its senior officers made materially false and misleading statements regarding business operations, growth prospects, and financial stability, resulting in artificially inflated stock prices.
- Loss Claims: Investors claim significant losses due to the disclosure of these false statements, highlighting potential issues with the company's transparency and compliance, which could negatively impact its future market performance.
- Legal Representation Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993, showcasing its success in class action litigation, which may encourage more investors to join the lawsuit seeking compensation.
See More
Reminder for Upstart Holdings Class Action
- Class Action Notice: Rosen Law Firm reminds investors who purchased Upstart Holdings securities between May 14, 2025, and November 4, 2025, that they must apply to be lead plaintiff by June 8, 2026, or risk losing their right to compensation in the class action lawsuit.
- Fee Arrangement: Investors participating in the class action will not incur any upfront costs, as attorney fees will be collected through a contingency fee arrangement, thereby lowering the financial barrier for investors to seek compensation without out-of-pocket expenses.
- 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 process and inflated loan approval rates, which resulted in investor losses when the truth was revealed to the market.
- Law Firm's Strength: 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 first in 2017 for the number of securities class action settlements, demonstrating its expertise and resource advantages in this field.
See More
Shareholder Class Action Filed Against Upstart Holdings
- Class Action Initiated: Bernstein Liebhard LLP announces a class action lawsuit on behalf of investors who purchased Upstart Holdings, Inc. (NASDAQ: UPST) securities between May 14, 2025, and November 4, 2025, alleging misrepresentations regarding the company's loan approval rates, revenues, and growth, which may have led to investor losses.
- Key Filing Deadline: Investors must file papers by June 8, 2026, to serve as lead plaintiff, representing other class members in directing the litigation, while those who choose not to participate will be considered absent class members and may not share in any recovery.
- Fee Structure: All representation is on a contingency fee basis, meaning shareholders incur no fees or expenses, which reduces the financial burden on investors and encourages more affected shareholders to participate in the lawsuit.
- Law Firm Credentials: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has been recognized multiple times in The National Law Journal’s “Plaintiffs’ Hot List” for its success in litigating hundreds of class actions, showcasing its strong reputation and expertise in securities litigation.
See More
Upstart Launches AI-Powered Credit Assessment Algorithm
- AI Algorithm Innovation: Upstart's AI-powered algorithm analyzes over 2,500 data points, gradually enhancing its predictive capabilities, which significantly improves credit assessment accuracy and efficiency compared to the traditional FICO scoring system, potentially transforming the lending industry.
- Loan Origination Growth: In Q1 2026, Upstart originated 425,356 loans, a 77% increase year-over-year, with 91% of loans processed fully automated, indicating widespread application of its AI technology in credit approvals, enhancing customer experience and market competitiveness.
- Record Revenue: Upstart generated $308 million in revenue during Q1, representing a 44% year-over-year growth, and despite a net loss of $6.6 million due to increased operating expenses, the adjusted EBITDA of $40 million highlights its profitability potential.
- Broad Market Outlook: Upstart forecasts $1.4 billion in revenue for 2026, with expectations to exceed $2.5 billion by 2028; if AI fully replaces traditional credit assessments, Upstart could tap into a $1 trillion annual revenue opportunity, underscoring its strategic significance.
See More
Upstart's AI Algorithm Fuels Credit Growth and Revenue Surge
- Significant Revenue Growth: Upstart generated a record $308 million in revenue during Q1 2026, representing a 44% year-over-year increase, showcasing the effectiveness of its AI algorithm in credit assessment, with expectations of reaching $1.4 billion in revenue for the year, further solidifying its market position.
- Surge in Loan Originations: The company originated 425,356 loans in Q1, a 77% increase from the previous year, with personal loans making up the majority, indicating strong demand and rapid growth potential in the credit market.
- Efficient Approval Process: Upstart's AI system enabled 91% of loan applications to be fully automated, reducing approval times from days to minutes, significantly enhancing customer experience and strengthening competitive advantage in the market.
- Future Growth Outlook: Management forecasts a compound annual growth rate of 35% through 2028, potentially exceeding $2.5 billion in revenue, indicating substantial long-term growth potential for Upstart in the global credit market.
See More
