Net interest income fell from $48.4M in 2025Q3 to negative $12.9M in 2026Q3 and net interest margin turned negative at -0.4%, so the company's earnings now depend on fee income of $383.4M that may not persist.
Upstart Holdings, Inc. (UPST) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Net Interest Income | 110.22M | 152.69M | 138.23M | 129.4M | 90.05M | 17.36M | 18.38M | 36.83M | 50.2M |
| NII Growth % | -47.92% | 10.46% | 6.83% | 43.69% | 418.74% | -5.56% | -50.09% | -26.64% | - |
| Net Interest Margin % | 3.3% | 5.13% | 5.84% | 6.41% | 4.65% | 0.95% | 3.85% | 9.36% | 7.77% |
| Interest Income | 173.95M | 204.23M | 186.36M | 169M | 105.58M | 20.63M | 26.41M | 63.31M | 76.68M |
| Interest Expense | 63.73M | 51.54M | 48.13M | 39.6M | 15.53M | 3.27M | 8.03M | 26.48M | 26.48M |
| Loan Loss Provision | -12.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26.48M |
| Non-Interest Income | 1.21B | 871.29M | 490.6M | 378.72M | 747.71M | 829.25M | 203.67M | 125.95M | 18.9M |
| Non-Interest Income % | 91.65% | 85.09% | 78.02% | 74.53% | 89.25% | 97.95% | 91.72% | 77.38% | 27.35% |
| Total Net Revenue | 1.32B | 1.02B | 628.83M | 508.12M | 837.76M | 846.61M | 222.05M | 162.78M | 69.1M |
| Revenue Growth % | 37.6% | 62.84% | 23.76% | -39.35% | -1.05% | 281.27% | 36.41% | 135.59% | - |
| Non-Interest Expense | 1.25B | 969.66M | 757.23M | 748.14M | 946.83M | 712.88M | 216.1M | 167.73M | 106.8M |
| Efficiency Ratio | 95.02% | 94.69% | 120.42% | 147.24% | 113.02% | 84.2% | 97.32% | 103.04% | 154.56% |
| Operating Income | 78.63M | 54.33M | -128.4M | -240.03M | -109.07M | 133.73M | 5.95M | -4.95M | -7.97M |
| Operating Margin % | 5.96% | 5.31% | -20.42% | -47.24% | -13.02% | 15.8% | 2.68% | -3.04% | -11.54% |
| Operating Income Growth % | - | 142.31% | 46.51% | -120.06% | -181.56% | 2147.58% | 220.3% | 37.95% | - |
| Pretax Income | 67M | 54.33M | -128.4M | -240.03M | -109.07M | 133.73M | 5.95M | -4.95M | -11.22M |
| Pretax Margin % | 5.08% | 5.31% | -20.42% | -47.24% | -13.02% | 15.8% | 2.68% | -3.04% | -16.24% |
| Income Tax | 1.89M | 728K | 185K | 107K | -409K | -1.71M | 371K | 74K | 0 |
| Effective Tax Rate % | 2.82% | 1.34% | -0.14% | -0.04% | 0.37% | -1.28% | 6.24% | -1.5% | 0% |
| Net Income | 65.11M | 53.6M | -128.58M | -240.13M | -108.67M | 135.44M | 5.98M | -466K | -12.32M |
| Net Margin % | 4.93% | 5.23% | -20.45% | -47.26% | -12.97% | 16% | 2.69% | -0.29% | -17.83% |
| Net Income Growth % | 102.13% | 141.69% | 46.45% | -120.98% | -180.23% | 2163.8% | 1383.91% | 96.22% | - |
| Net Income (Continuing) | 65.11M | 53.6M | -128.58M | -240.13M | -108.67M | 135.44M | 5.58M | -5.02M | -11.22M |
| EPS (Diluted) | 0.52 | 0.45 | -1.44 | -2.87 | -1.31 | 1.43 | 0.23 | -0.03 | -0.87 |
| EPS Growth % | 137.89% | 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 | 125.41M | 107.49M | 89.45M | 83.77M | 82.77M | 94.77M | 26.37M | 14.36M | 14.13M |
Quick answers to the most common questions about buying UPST stock.
For fiscal year 2025, Upstart Holdings, Inc. (UPST) reported total revenue of $1.02B. This represents a 1382.0% increase compared to $69.1M in 2018.
Upstart Holdings, Inc. (UPST) is profitable, generating $53.6M in net income for the fiscal year ending 2025 with a net profit margin of 5.2%.
Upstart Holdings, Inc. (UPST) reported an operating income of $54.3M, resulting in an operating profit margin of 5.3%. 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 100.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile non-interest fee dependence
Metrics are mathematically derived from official filings.
Net Interest Income Turns Negative
Based on Upstart's reported figures, net interest income swung from $48.4M in 2025Q3 to negative $12.9M in 2026Q3, a sharp reversal that signals instability in the spread earned on its funding and loan positions.
The reported quarterly NII series rises through 2025 and then collapses into negative territory in the latest quarter, which may reflect funding cost pressure, lower interest-earning balances, or mark-to-market effects on retained loans. The supplied data does not isolate these drivers, so the cause of the reversal warrants further investigation before attributing it to a specific rate or volume factor. Investors should monitor whether the negative print is a one-quarter anomaly or the start of sustained compression in core lending spreads.
Thin Net Interest Margin Under Pressure
Reported net interest margin moved from 1.7% in 2025Q3 to negative 0.4% in 2026Q3, leaving little room for the spread-based earnings model that a bank-style income statement depends on.
Margins in the 1.1% to 2.3% range over the observed period are thin relative to traditional depository institutions, consistent with a model where the platform earns most value from origination and fees rather than carrying loans for interest spread. The latest negative margin suggests asset yields may not be covering funding costs in that quarter, a condition that may not persist but deserves close monitoring. Peer comparison is limited because the supplied peer set includes mostly non-bank lenders with different margin structures.
Fee Income Carries the Earnings Base
Non-interest income reached $383.4M in 2026Q3, roughly 103.5% of total revenue, indicating earnings are now driven almost entirely by fee-based activity rather than net interest spread.
A fee share consistently above 80% across the ten quarters reflects a platform economy in which origination and marketplace fees dominate the revenue mix. This composition may offer some diversification from interest rate cycles but concentrates earnings in transaction volumes that can be cyclical with credit demand and partner activity. Investors should monitor the durability of these fee streams, since a slowdown in origination volume would leave the income statement with limited interest-based cushioning.
Efficiency Ratio Improving but Elevated
The efficiency ratio fell from 142.7% in 2024Q2 to 90.3% in 2026Q3, indicating non-interest expense has moved closer to total revenue, though it remains high by bank standards.
The improvement in efficiency suggests operating leverage is beginning to work as revenue scaled faster than cost, with the company reaching positive operating income in several recent quarters. An efficiency ratio near 90% still leaves a thin margin of safety, meaning modest revenue shortfalls could return the company to operating losses. Investors should monitor whether cost discipline holds as volume fluctuates.
Earnings Quality Depends on Volatile Fees
The strongest challenge is that reported net income of $36.6M in 2026Q3 rests on a $383.4M fee line while net interest income turned negative, so the profit may not repeat if fee volumes normalize.
Net income in the latest quarter coincides with a negative NII print and a negative provision, which may indicate reserve releases or reclassifications rather than repeatable core lending earnings. Because the supplied data does not isolate the drivers of these items, the sustainability of the reported profit warrants further investigation. Investors should monitor whether the next several quarters show positive NII and stable provisioning alongside fee income.