Core Insights - Upstart (NASDAQ: UPST) reported stronger than expected Q3 earnings, driven by robust demand for its personal and auto loan products [1] - The fintech company exceeded both top and bottom line estimates by a significant margin [1] Financial Performance - The earnings report indicates a favorable performance, suggesting a positive trend in the company's financial health [1]

Company Performance - Upstart's revenue increased by 20% in Q3 to $162 million, surpassing analyst expectations, with CEO David Girouard stating the company is in "growth mode" [2] - Toast's stock has more than doubled this year, with an adjusted earnings forecast of $90 million to $100 million for the current quarter, exceeding estimates [2] Market Trends - Both Upstart and Toast experienced significant stock rallies, with Upstart soaring 46% and Toast jumping 14% following better-than-expected results [1][2] - The overall market saw a rally after Donald Trump's election victory, with the Nasdaq index rising 5.7% for the week, marking its second-best week of the year [3] Cryptocurrency Sector - Coinbase shares surged 48% for the week, bolstered by significant political contributions and potential regulatory changes favorable to the crypto industry [4] - Robinhood's stock rose 27% for the week, despite receiving a Wells Notice from the SEC, indicating ongoing regulatory scrutiny [5] - Bitcoin reached a new intraday high above $77,300, ending the week 11% higher, with other cryptocurrencies like Ether and Solana also outperforming Bitcoin [5] Other Fintech Companies - Block, the parent company of Square, reported Q3 revenue that fell short of Wall Street expectations, resulting in a slight stock drop [6] - Affirm, despite beating revenue and earnings estimates, saw its stock decline by 4.7% on Friday, although it remained slightly ahead of the Nasdaq for the week [6]

Core Insights - Upstart Holdings, Inc. reported a revenue of $162.14 million for Q3 2024, marking a year-over-year increase of 20.5% and exceeding the Zacks Consensus Estimate by 8.14% [1] - The company reported an EPS of -$0.06, which is an improvement compared to -$0.05 a year ago, and surpassed the consensus EPS estimate of -$0.14 by 57.14% [1] Financial Performance Metrics - Transaction Volume reached $1.58 million, exceeding the average estimate of $1.30 million from two analysts [3] - Revenue from fees, net was reported at $146.76 million, slightly below the average estimate of $155.07 million from five analysts, showing no year-over-year change [3] - Total interest income, interest expense, and fair value adjustments, net was reported at -$12.20 million, worse than the estimated -$5.13 million, with no year-over-year change [3] - Revenue from platform and referral fees, net was $134.20 million, surpassing the average estimate of $121.69 million, reflecting a year-over-year increase of 19.4% [3] - Revenue from servicing and other fees, net was $33.39 million, in line with the average estimate of $33.38 million, but showing a year-over-year decrease of 2.7% [3] Stock Performance - Upstart's shares have returned +28.5% over the past month, significantly outperforming the Zacks S&P 500 composite's +4.9% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Upstart's earnings show the company is firmly back in growth mode.Shares of artificial intelligence (AI)-powered lender Upstart (UPST 42.87%) rocketed 43.3% Friday, as of 11:25 a.m. ET.Upstart reported earnings yesterday evening showing improved results, likely due to inflation and interest rate expectations coming down. However, from today's reaction, it appears the positive results and guidance were even better than contemplated by investors heading into earnings.Fintech personal lending is turning around ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-------------------------------------------------------------------------|---------------------------------------------------------- ...

Upstart Holdings, Inc. (UPST) closed at $51.11 in the latest trading session, marking a +1.37% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 0.56%.Shares of the company witnessed a gain of 33.46% over the previous month, beating the performance of the Finance sector with its loss of 5.18% and the S&P 500's gain of 1.83%.Analysts and investors alike wi ...

The Federal Reserve cut interest rates for the first time since 2020. Upstart (UPST 2.08%) stock has rallied in recent months, going from as low as $20 per share in August to over $55 per share at the time of this writing. Despite its recent rally, however, it remains 86% below its all-time high price of $401 per share in October 2021. Consumer lenders have struggled with the higher interest rate environment over the past several years, but things look like they could be turning a corner. Last month, the Fe ...

Upstart Holdings, Inc. (UPST) shares ended the last trading session 15% higher at $54.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 23.6% gain over the past four weeks. The optimism surrounding the stock can be attributed to Upstart's growing partner network. The company's artificial intelligence (AI)-based lending platform has been selected by several banks and credit unions, which is contributing well to th ...

Core Insights - Upstart Holdings, Inc. has experienced a remarkable 114.3% gain over the past six months, significantly outperforming the Financial Select Sector SPDR Fund and the S&P 500, which gained 16.7% and 14.8% respectively [1] - The surge in Upstart's stock price is primarily attributed to macroeconomic shifts, particularly the U.S. Federal Reserve's interest rate policies, which have improved the outlook for the company [1][2] Financial Performance - The Federal Reserve's recent decision to cut rates by 50 basis points is expected to increase loan demand, benefiting Upstart's AI-driven loan assessment model [2] - Upstart's annual revenue run rate has halved from around $1 billion due to previous aggressive interest rate hikes, but further rate cuts could lead to a surge in loan originations and revenue recovery [3] - Second-quarter 2024 revenues declined to $128 million, highlighting the need for favorable rate cuts to regain lost ground [4] Sales Estimates - Zacks Consensus Estimate for the current quarter (September 2024) is $150.14 million, with projections for the next quarter (December 2024) at $160.68 million and for the current year (December 2024) at $566.15 million, reflecting a year-over-year growth estimate of 10.24% [5] - For the next year (December 2025), the sales estimate is projected at $687.15 million, indicating a growth rate of 21.37% [5] Earnings Estimates - Zacks Consensus Estimate for earnings in the current quarter (September 2024) is -$0.14, with expectations of -$0.02 for the next quarter (December 2024) and -$0.62 for the current year (December 2024) [7] - The earnings estimate for the next year (December 2025) is projected at $0.49, showing a significant potential recovery [7] Competitive Advantage - Upstart's use of AI has automated 91% of its loan approval process, providing a competitive edge over traditional lenders like SoFi and LendingClub [8] - This automation allows Upstart to offer lower annual percentage rates (APRs) to riskier borrowers without compromising credit performance, unlike its competitors who rely on traditional credit assessment methods [9] Market Expansion - Upstart has expanded its loan portfolio beyond personal loans to include auto loans, home equity lines of credit, and small-dollar relief loans, diversifying its revenue streams [10] Valuation Concerns - Upstart's current valuation is high, with a forward 12-month price-to-earnings (P/E) multiple of 183.41X, significantly above the industry average of 15.04X, raising concerns about potential vulnerability to market shifts [11] Conclusion - While Upstart has shown extraordinary gains, its premium valuation suggests limited near-term upside, but long-term growth prospects remain promising due to AI innovations and favorable interest rate trends [13]

Deal Overview - Upstart Holdings has sold up to $2 billion of consumer installment loans to Blue Owl Capital, including $290 million of personal loans already disbursed and future loans under a forward-flow agreement over the next 18 months [1] - The deal represents one of Upstart's largest purchase commitments ever, according to Upstart CFO Sanjay Datta [2] Upstart's Business Performance - Upstart achieved record highs in contribution margin (67% in Q2) and positive cash flow during its August earnings call [3] - 88% of Upstart's unsecured loans are fully automated, enabling faster scaling of originations and a more efficient loan application process [3] Blue Owl's Strategic Moves - Blue Owl recently completed its acquisition of Atalaya Capital Management, which manages over $10 billion in assets as of June 30 [4] - The Atalaya acquisition expands Blue Owl's alternative credit presence and strengthens its position in direct lending [5] Industry Trends - Upstart has been pivoting to private credit, evidenced by its recent deals with Castlelake LP, Eltura Capital Management, Centerbridge Partners, and Ares Management [3] - Blue Owl is expanding into additional credit products, aligning with its acquisition of Atalaya and the Upstart deal [2][4]