Upstart Holdings (UPST) | News Based Sentiment Analysis

• On September 2, 2025, Upstart reported a remarkably strong second quarter, with total revenue jumping 102% year-over-year to $257 million, exceeding the $225.4 million analyst estimate. This growth was driven by a 154% year-over-year increase in loan originations, reaching $2.8 billion – the highest volume in three years – and the company achieved GAAP profitability with a net income of $5.6 million, a significant turnaround from a $54.5 million loss in the same quarter last year.
• Following the strong Q2 results, Upstart raised its full-year 2025 revenue guidance to approximately $1.05 billion, and projected a GAAP net income of $35 million, signaling increased confidence. This positive outlook led to an upgrade from Juxtaposed Ideas to a “Buy” rating on September 10, 2025, based on strengthening performance metrics and accelerating growth.
• Upstart is actively diversifying its lending network, securing partnerships with Cornerstone Community Financial Credit Union on August 27, 2025, and ABNB Federal Credit Union on August 13, 2025, to broaden its personal loan offerings. CEO Dave Girouard highlighted at the Goldman Sachs Communacopia and Technology Conference on September 8, 2025, that over 90% of loans on the platform are now approved instantly using AI.
• The company is expanding into new lending verticals, with auto originations growing more than sixfold year-over-year and home originations increasing nearly ninefold, now collectively representing over 10% of quarterly volume. This diversification aims to capture significant market share, particularly in the home equity loan space.
• Zacks reported on September 12, 2025, that Upstart Holdings, Inc. (UPST) gained while the broader market declined, predicting an EPS of $0.42 (an 800% year-over-year increase) and revenue of $281.02 million (a 73.32% year-over-year increase) for the current quarter.
• Looking at the full fiscal year 2025, Zacks Consensus Estimates project earnings of $1.66 per share and revenue of $963.44 million, representing increases of +930% and +51.36%, respectively, from the previous year. This positive outlook contributed to Upstart Holdings, Inc. receiving a Zacks Rank of #2 (Buy).
• Dave Girouard, Upstart’s Co-founder and CEO, participated in a fireside chat at the Goldman Sachs Communacopia and Technology Conference on September 8, 2025, emphasizing the importance of AI in Upstart’s credit models and their continuous improvement. He clarified Upstart functions as a “lending marketplace” and anticipates offering 4 to 5 products in the near future.

The Investment Story: September was a strong month for Upstart, marked by continued growth, profitability, and strategic expansion into new lending verticals. The company’s AI-powered platform and diversified lending network are driving impressive results and attracting positive attention from analysts.

What It Means for Investors: The positive financial performance and analyst upgrades suggest Upstart’s turnaround is gaining momentum, potentially justifying its current valuation. Investors should monitor the company’s ability to sustain this growth and navigate potential macroeconomic headwinds.

Looking Ahead: Investors should closely watch Upstart’s Q3 2025 earnings report to assess whether the company can maintain its momentum. Monitoring loan volume growth, continued access to funding, and the impact of potential interest rate changes will also be crucial.

The Bottom Line: Upstart is demonstrating a compelling recovery story, driven by its AI-powered lending platform, expanding network, and successful securitization efforts. While risks remain, the company’s recent performance and strategic initiatives suggest significant potential for future value creation.