10-Q · May 5, 2026
Upstart Holdings, Inc. reported Q1 2026 results with a revenue increase of 53.2% year-over-year to $308 million, and a loss per share of $0.07, which is wider than expected. The company expects substantial growth in…
Earnings analysis · 10-Q
UPST earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Upstart delivered a strong top-line quarter, with revenue of $364.7 million, up 42% year over year and 32% sequentially, while GAAP EPS improved to $0.16 from $0.05 a year ago and a $0.07 loss in Q1. Originations…
Read full summary
Upstart delivered a strong top-line quarter, with revenue of $364.7 million, up 42% year over year and 32% sequentially, while GAAP EPS improved to $0.16 from $0.05 a year ago and a $0.07 loss in Q1. Originations increased 50% to $4.227 billion, driven by model and product improvements, though contribution margin declined 3 points to 55% as borrower-acquisition spending rose. The principal offset is capital intensity: first-half operating cash outflow was $269.9 million, with $1.064 billion of loans held on balance sheet and $1.688 billion of convertible notes outstanding.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.16
What stood out
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Revenue accelerated to $364.7M
Q2 total revenue rose 42% year over year to $364.7 million from $257.3 million and increased 32% sequentially from $277 million in Q1 2026. Revenue from fees rose 45% to $348.0 million, led by 40% growth in platform and referral fees to $284.1 million.
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GAAP profitability strengthened
GAAP net income increased to $16.5 million from $5.6 million a year ago, lifting diluted EPS to $0.16 from $0.05. Operating income improved to $14.6 million from $4.5 million, and operating margin expanded to 4% from 2%.
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Originations grew 50% to $4.23B
Originations grew 50% year over year to $4.227 billion and loan count grew 50% to 558,014. Management attributed growth primarily to model improvements and product initiatives that increased qualified borrower demand.
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Adjusted EBITDA rose 45%
Contribution profit increased 37% to $193.1 million and adjusted EBITDA increased 45% to $76.9 million. The adjusted EBITDA margin held at 21% despite higher investment in acquisition, engineering, and infrastructure.
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Cash balance supports buyback activity
The company held $456.0 million of cash and cash equivalents at June 30, 2026 and repurchased 3.2 million shares for $100.1 million during the first six months. It retained $122.1 million under its authorization for further repurchases.
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Committed funding supports marketplace scale
Marketplace funding diversification remains meaningful: institutional investors purchased 61% of first-half originations, lending partners retained or purchased 31%, and 8% was held on balance sheet. More than 50% of funding is through committed-capital and co-investment arrangements.
What to watch
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Operating cash burn increased sharply
Operating cash use worsened to $269.9 million in the first six months of 2026 from $133.6 million in the prior-year period, principally reflecting $517.7 million of net purchases and originations of loans held-for-sale. Capital expenditures were $4.8 million and capitalized software costs were $8.4 million in the period.
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Large balance-sheet loan exposure
Loans held on balance sheet reached $1.064 billion at June 30, including $540.3 million of R&D loans and $487.6 million of non-R&D loans. A hypothetical 20% credit-risk shock would reduce the value of loans outside the consolidated securitization by $19.5 million.
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Elevated macro risk and weak loan vintages
The filing highlights continued macro and model risk: UMI was approximately 1.50 at June 30, implying roughly 50% incremental repayment risk versus its 1.0 baseline. Personal-loan vintages from Q2 2023 through Q1 2024 and Q4 2024 are forecast to underperform their target returns.
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Unit-margin pressure from acquisition costs
Contribution margin compressed to 55% from 58% a year earlier as direct expenses rose to $154.9 million from $100.2 million. Sales and marketing expense increased 57% to $114.5 million, or 31% of revenue versus 28%.
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Debt and financing exposure remain high
Liquidity and refinancing obligations remain substantial: convertible notes total $1.688 billion, including $66.5 million due in August 2026. The company had drawn $251.8 million on warehouse facilities and $92.0 million on its risk-retention facility at quarter end.
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Bank-charter approval remains incomplete
Risk-factor disclosure now specifically flags bank-charter execution: the OCC has conditionally approved Upstart Bank, N.A., but FDIC deposit-insurance approval remains pending. The filing notes that bank operations could add significant costs and may not produce anticipated funding benefits.
Management's outlook
The 10-Q does not provide a quantitative revenue or EPS outlook; outlook was deferred to earnings materials outside this filing.
Earlier filings 4
10-K · February 10, 2026
Upstart positions itself as an AI-first lending marketplace with scale in data and automation: its personal loan model uses over 2,500 variables trained on nearly 104 million repayment events and 91% of loans were fully…
10-K · February 14, 2025
Upstart positions itself as an AI-driven lending marketplace with a stated competitive moat built on machine-learning models and a large training dataset; the 2024 filing highlights product expansion (personal, auto,…
10-Q · August 7, 2024
Upstart reported Q2 revenue of $127,630 (from the condensed statement) and a GAAP net loss of $54,470 for the three months ended June 30, 2024. Operating loss widened to $55,486 while operating cash flow for the six…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.