Revenue scaled to $308.2 million by 2026Q1, yet operating margins remain inconsistent, fluctuating from a 11.2% peak in 2025Q3 to a -2.4% loss in 2026Q1.
| Net Interest Income | 119.15M | 152.69M | 138.23M | 129.4M | 90.05M | 17.36M | 18.38M | 36.83M | 50.2M |
| NII Growth % | -22.51% | 10.46% | 6.83% | 43.69% | 418.74% | -5.56% | -50.09% | -26.64% | - |
| Net Interest Margin % | 4.02% | 5.13% | 5.84% | 6.41% | 4.65% | 0.95% | 3.85% | 9.36% | 7.77% |
| Interest Income | 163.66M | 204.23M | 186.36M | 169M | 105.58M | 20.63M | 26.41M | 63.31M | 76.68M |
| Interest Expense | 34.15M | 51.54M | 48.13M | 39.6M | 15.53M | 3.27M | 8.03M | 26.48M | 26.48M |
| Loan Loss Provision | 10.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26.48M |
| Non-Interest Income | 999.68M | 871.29M | 490.6M | 378.72M | 747.71M | 829.25M | 203.67M | 125.95M | 18.9M |
| Non-Interest Income % | 85.93% | 81.01% | 72.47% | 69.15% | 87.63% | 97.57% | 88.52% | 66.55% | 19.77% |
| Total Revenue | 1.16B | 1.08B | 676.96M | 547.72M | 853.29M | 849.89M | 230.08M | 189.27M | 95.58M |
| Revenue Growth % | 230.06% | 58.87% | 23.6% | -35.81% | 0.4% | 269.39% | 21.56% | 98.02% | - |
| Non-Interest Expense | 1.07B | 969.66M | 757.23M | 748.14M | 946.83M | 712.88M | 216.1M | 167.73M | 106.8M |
| Efficiency Ratio | 91.94% | 90.16% | 111.86% | 136.59% | 110.96% | 83.88% | 93.93% | 88.62% | 111.74% |
| Operating Income | 49.23M | 54.33M | -128.4M | -240.03M | -109.07M | 133.73M | 5.95M | -4.95M | -7.97M |
| Operating Margin % | 4.23% | 5.05% | -18.97% | -43.82% | -12.78% | 15.74% | 2.59% | -2.61% | -8.34% |
| Operating Income Growth % | - | 142.31% | 46.51% | -120.06% | -181.56% | 2147.58% | 220.3% | 37.95% | - |
| Pretax Income | 50.19M | 54.33M | -128.4M | -240.03M | -109.07M | 133.73M | 5.95M | -4.95M | -11.22M |
| Pretax Margin % | 4.31% | 5.05% | -18.97% | -43.82% | -12.78% | 15.74% | 2.59% | -2.61% | -11.74% |
| Income Tax | 783K | 728K | 185K | 107K | -409K | -1.71M | 371K | 74K | 0 |
| Effective Tax Rate % | 1.56% | 1.34% | -0.14% | -0.04% | 0.37% | -1.28% | 6.24% | -1.5% | 0% |
| Net Income | 49.4M | 53.6M | -128.58M | -240.13M | -108.67M | 135.44M | 5.98M | -466K | -12.32M |
| Net Margin % | 4.25% | 4.98% | -18.99% | -43.84% | -12.73% | 15.94% | 2.6% | -0.25% | -12.89% |
| Net Income Growth % | 174.37% | 141.69% | 46.45% | -120.98% | -180.23% | 2163.8% | 1383.91% | 96.22% | - |
| Net Income (Continuing) | 49.4M | 53.6M | -128.58M | -240.13M | -108.67M | 135.44M | 5.58M | -5.02M | -11.22M |
| EPS (Diluted) | 0.51 | 0.45 | -1.44 | -2.87 | -1.31 | 1.43 | 0.23 | -0.03 | -0.87 |
| EPS Growth % | 153.87% | 131.25% | 49.83% | -119.08% | -191.61% | 521.74% | 807.69% | 96.26% | - |
| EPS (Basic) | - | 0.56 | -1.44 | -2.87 | -1.31 | 1.73 | 0.27 | -0.03 | -0.87 |
| Diluted Shares Outstanding | 96.9M | 107.49M | 89.45M | 83.77M | 82.77M | 94.77M | 26.37M | 14.36M | 14.13M |
Cyclical Funding Market Volatility
According to quarterly financial disclosures, Upstart's revenue expanded from $138.5 million in 2024Q1 to $308.2 million by 2026Q1, reflecting a volatile but upward trajectory that appears heavily dependent on the availability of third-party capital to fund the underlying loan originations across the platform.
The revenue growth trend suggests that the company is successfully scaling its transaction volume, yet the lack of consistent sequential growth indicates sensitivity to external credit market conditions. Investors should monitor whether this expansion is driven by sustainable platform adoption or temporary surges in loan demand that may not persist in a higher-rate environment.
As reported in recent income statements, Upstart maintains gross margins consistently above 90%, peaking at 97.1% in 2025Q2, which highlights the inherent scalability of its software-driven fee model compared to traditional lenders that carry significant interest-bearing assets on their balance sheets.
While these margins appear structurally superior to peers like LendingClub, they may be misleading if the company is forced to retain more loans on its balance sheet, which would introduce credit risk and potentially compress future margins. The stability of these margins warrants further investigation into whether the company can maintain such efficiency if it shifts toward a more capital-intensive lending model.
Based on the provided income statement data, Upstart's operating income has struggled to scale proportionally with revenue, fluctuating from a loss of $64.6 million in 2024Q1 to a modest profit of $19.2 million in 2025Q4, before slipping back into a loss in 2026Q1.
The inability to maintain consistent operating profitability suggests that the company's cost structure remains heavily weighted toward fixed engineering and marketing expenses. This lack of operating leverage indicates that the business model may require significantly higher transaction volumes to achieve sustainable profitability, leaving it vulnerable to periods of market contraction.
Analysis of the company's financial filings reveals that stock-based compensation remains a persistent expense, consistently exceeding $30 million per quarter, which significantly impacts net income and suggests that reported earnings may overstate the true cash-generating capacity of the underlying business operations.
The reliance on equity-based incentives to retain specialized AI talent appears to be a structural drag on profitability that investors should carefully adjust for when evaluating the company's true earnings power. This practice may mask the actual cash burn required to sustain the platform's competitive edge in a highly technical and talent-competitive industry.
Based on the reported figures, the company's return to a net loss of $6.6 million in 2026Q1 highlights the inherent risk of a volume-based revenue model that relies on external institutional capital, which may evaporate during periods of macroeconomic uncertainty or credit market tightening.
Short-sellers would likely focus on the company's inability to maintain profitability during the most recent quarter, suggesting that the AI-driven moat may not be sufficient to offset the cyclicality of the credit markets. The reliance on third-party funding sources appears to be the primary point of failure, as any disruption in capital availability directly translates into immediate revenue and margin pressure.
Quick answers to the most common questions about buying UPST stock.
Upstart Holdings, Inc. (UPST) is profitable, generating $53.6M in net income for the fiscal year ending 2025 with a net profit margin of 5.0%.
Upstart Holdings, Inc. (UPST) reported an operating income of $54.3M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Upstart Holdings, Inc. (UPST) generated $1.02B in gross profit for the year, representing a gross profit margin of 95.2%. This demonstrates the company's core pricing power and production efficiency.