Upstart Holdings, Inc. ( (UPST) ) has released its Q1 earnings. Here is a breakdown of the information Upstart Holdings, Inc. presented to its investors.
Upstart Holdings, Inc. is a leading AI lending marketplace that connects consumers to banks and credit unions, leveraging AI models to offer superior credit products. In its first quarter of 2025 earnings report, Upstart showcased significant growth in transaction volume and revenue, with a notable improvement in its financial performance compared to the previous year. The company originated over 240,000 loans, doubling the volume from the same period last year, and reported a total revenue of $213 million, marking a 67% year-over-year increase.
Key financial metrics highlighted in the report include a substantial rise in transaction volume to $2.1 billion, a conversion rate increase to 19.1%, and a significant reduction in GAAP net loss to $2.4 million from $64.6 million a year ago. The company also reported a positive adjusted EBITDA of $42.6 million, a stark contrast to the negative $20.3 million reported in the first quarter of 2024.
Upstart’s strategic focus on AI innovation in lending continues to yield results, with 92% of loans being fully automated. The company’s contribution profit increased by 26% to $102 million, although the contribution margin slightly decreased to 55%. The company also improved its adjusted net income to $31.2 million, reflecting a positive shift in its financial trajectory.
Looking ahead, Upstart anticipates continued growth with projected revenue of $225 million in the second quarter of 2025 and a full-year revenue expectation of approximately $1.01 billion. The management remains optimistic about achieving positive GAAP net income in the second half of the year, indicating a promising outlook for the company’s financial health and market position.