Upstart Holdings Reports $5.6 Million Net Income and $257.3 Million Revenue for Q2 2025

Upstart Holdings, Inc. reported a net income of $5.6 million for the three months ended June 30, 2025, a significant turnaround from the net loss of $54.5 million for the same period in 2024. Total revenue increased to $257.3 million, up from $127.6 million in the prior year. Revenue from fees, net, which constitutes the majority of Upstart's revenue, rose to $240.8 million compared to $130.5 million in the same quarter of the previous year. Operating expenses totaled $252.7 million, compared to $183.1 million in the prior year, with notable increases in sales and marketing, engineering and product development, and general, administrative, and other expenses.

The company's financial performance for the six months ended June 30, 2025, also showed improvement, with a net income of $3.2 million compared to a net loss of $119.1 million for the same period in 2024. Total revenue increased to $470.7 million from $255.4 million in the prior year. Revenue from fees, net, increased to $426.3 million from $268.6 million. Operating expenses totaled $470.6 million, compared to $378.4 million in the prior year, with increases in sales and marketing, customer operations, engineering and product development, and general, administrative, and other expenses.

Operationally, Upstart reported a significant increase in transaction volume, with the dollar amount of loans transacted on its platform rising to $2.8 billion for the three months ended June 30, 2025, compared to $1.1 billion for the same period in 2024. The number of loans transacted also increased to 372,599 from 143,900. The conversion rate, defined as the number of loans transacted divided by the number of rate inquiries, improved to 23.9% from 15.2%. The percentage of loans fully automated remained high at 92%, compared to 91% in the prior year.

Looking ahead, Upstart's future performance is subject to various factors, including its ability to improve its AI models, maintain diverse loan funding sources, and navigate the evolving regulatory landscape. The company's success also depends on its ability to manage credit risk, attract and retain lending partners, and effectively market its platform to borrowers. Upstart's financial results are also influenced by macroeconomic conditions, such as interest rates, inflation, and unemployment levels, which can impact borrower demand and credit performance.