Free cash flow remains highly erratic, swinging from a $176.8 million inflow in 2024Q3 to a $145.4 million outflow in 2023Q4, reflecting sensitivity to external capital market conditions.
| Cash from Operations | -134.24M | -147.72M | 186.33M | -111.71M | -657.86M | 168.35M | 15.7M | 31.58M | 50.34M |
| Operating CF Growth % | -133.83% | -179.28% | 266.8% | 83.02% | -490.76% | 972.52% | -50.3% | -37.26% | - |
| Net Income | 49.4M | 53.6M | -128.58M | -240.13M | -108.67M | 135.44M | 5.58M | -5.02M | -11.22M |
| Depreciation & Amortization | 18.43M | 24.84M | 20.55M | 24.9M | 13.51M | 7.54M | 2.28M | 774K | 314K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 29.05M | 0 | 42.28M |
| Other Non-Cash Items | -381.98M | -384.75M | 126.34M | -51.81M | -683.61M | -103.06M | -50.98M | 31.99M | 2.98M |
| Working Capital Changes | 69.34M | 26.64M | 34.63M | -19.71M | -5.04M | 55.24M | 18.25M | 33K | 13.93M |
| Cash from Investing | -98.6M | -177.17M | -237.73M | -118.45M | -114.13M | -143.88M | 136.52M | 45.43M | -137.24M |
| Purchase of Investments | 0 | 0 | 0 | 0 | -6.25M | -40M | -9.65M | 0 | -421.12M |
| Sale/Maturity of Investments | 0 | 0 | 11.93M | 0 | 0 | 0 | 97.34M | 8.76M | 1.23M |
| Net Investment Activity | 0 | 0 | 11.93M | 0 | -6.25M | -40M | 87.69M | 8.76M | -419.89M |
| Acquisitions | 0 | 0 | 11.93M | 0 | 0 | -16.76M | -87.69M | 0 | 8.91M |
| Other Investing | -98.25M | -176.82M | -260.75M | -116.93M | -99.05M | -78.69M | 142.12M | 40.68M | -137.42M |
| Cash from Financing | 457.07M | 405.64M | 559.87M | 165.49M | 113.21M | 855.43M | 79.05M | -119.19M | 135.77M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -177.88M | 0 | 0 | 0 | 0 |
| Stock Issued | 12.4M | 25.3M | 29.08M | 21.3M | 20.02M | 263.93M | 159.49M | 0 | 292.7M |
| Net Stock Activity | 12.4M | 25.3M | 29.08M | 21.3M | -157.87M | 263.93M | 159.49M | 0 | 292.7M |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K |
| Other Financing | -26.05M | -10.3M | -31.86M | -48.78M | -16.84M | -55.6M | 1.75M | -4.48M | -2M |
| Net Change in Cash | 91.81M | 80.75M | 508.48M | -64.68M | -658.77M | 879.91M | 231.27M | -42.17M | 48.87M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 1.06B | 976.26M | 467.79M | 532.47M | 1.19B | 311.33M | 80.07M | 122.24M | 73.38M |
| Cash at End | 931.33M | 1.06B | 976.26M | 467.79M | 532.47M | 1.19B | 311.33M | 80.07M | 122.24M |
| Interest Paid | 36.1M | 43.48M | 43.12M | 36.55M | 12.47M | 3.27M | 0 | 26.87M | 0 |
| Income Taxes Paid | 494K | 590K | 258K | 0 | 328K | 2.3M | 0 | 0 | 0 |
| Free Cash Flow | -146.49M | -166.13M | 176.34M | -123.8M | -680.77M | 153.24M | 10.09M | 26.3M | 49.29M |
| FCF Growth % | -228.38% | -194.21% | 242.44% | 81.82% | -544.26% | 1418.41% | -61.63% | -46.64% | - |
Cyclical Funding Market Volatility
As reported in recent financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -26.54 in 2024Q3 to 5.82 in 2025Q4, indicating that reported earnings provide little visibility into the company's actual cash-generating capabilities.
The extreme volatility in the conversion of net income to operating cash flow suggests that non-cash fair value adjustments and working capital swings dominate the bottom line. Investors should monitor this divergence, as it implies that accounting profits may not reflect the underlying liquidity reality of the platform's loan-origination business.
Based on quarterly data, free cash flow trajectory is characterized by extreme swings, ranging from a peak of $176.8 million in 2024Q3 to a low of -$145.4 million in 2023Q4, reflecting the company's sensitivity to external capital market conditions and loan retention strategies.
The lack of a consistent positive FCF trend suggests that the business model is currently unable to generate reliable internal funding for its operations. This instability appears to be a direct consequence of the company's reliance on institutional funding, which can fluctuate significantly based on macroeconomic credit conditions.
According to recent SEC filings, working capital changes have been a primary driver of cash flow volatility, with a notable $44.7 million inflow in 2025Q4 contrasting sharply with a $42.7 million outflow in 2025Q1, highlighting the impact of loan-related timing differences on cash balances.
These fluctuations suggest that the company's cash position is heavily influenced by the timing of loan originations and the subsequent sale or retention of those assets. Such sensitivity warrants further investigation into how changes in loan-holding periods impact the company's short-term liquidity requirements.
Based on reported figures, stock-based compensation consistently exceeds $30 million per quarter, which, when compared to the company's erratic operating cash flow, suggests that the true cash burn required to sustain operations is significantly higher than what is captured in standard net income metrics.
The persistent reliance on equity-based incentives appears to be a critical mechanism for talent retention, yet it effectively obscures the true cost of operations. Investors should consider that if these expenses were settled in cash, the company's liquidity position would likely appear substantially more constrained.
Quick answers to the most common questions about buying UPST stock.
Upstart Holdings, Inc. (UPST) generated $-147.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Upstart Holdings, Inc. (UPST) reported negative free cash flow of $166.1M in 2025, indicating capital requirements exceeded cash from operations.
Upstart Holdings, Inc. (UPST) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.