Fee RevenueThere is downside risk to fee take rate estimates, as higher transaction volumes may not translate into higher revenue due to lower fee revenue take rates.
Revenue Guidance2Q25 revenue guidance of USD225mn disappointed markets, as management cited potential re-inflation could make things less affordable for consumers.
Valuation ConcernsRemain Equal-weight given UPST is still trading at ~62x GAAP EPS estimate, and would look to become more constructive if durable evidence of model improvements is seen.