Upstart(US:UPST)2025-11-04 21:06Financial Performance - In Q3 2025, Upstart reported a 80% year-on-year growth in originations, totaling approximately $2.9 billion[3]. - Total revenue for Q3 2025 was $277 million, reflecting a 71% increase year-on-year, with revenue from fees at $259 million, up 54% year-on-year[6]. - GAAP net income for Q3 2025 was $31.8 million, an improvement from a loss of $6.8 million in Q3 2024, resulting in diluted net income per share of $0.23[6]. - Contribution profit reached $147 million, up 44% year-on-year, with a contribution margin of 57%[6]. - Adjusted EBITDA for Q3 2025 was $71.2 million, significantly up from $1.4 million in Q3 2024, with an adjusted EBITDA margin of 26%[6]. - Total revenue for the nine months ended September 30, 2025, was $747,767, compared to $417,564 in the same period of 2024, marking an increase of 79%[40]. - Adjusted net income for Q3 2025 was $59,963, a significant turnaround from a loss of $5,325 in Q3 2024[43]. - The company reported a net income of $31,805 for Q3 2025, a significant improvement from a net loss of $6,758 in Q3 2024, highlighting a positive trend in profitability[40]. Operational Metrics - Upstart expects to originate approximately 428,056 loans in Q4 2025, representing a 128% year-over-year increase[6]. - The conversion rate improved to 20.6% in Q3 2025, up from 16.3% in Q3 2024[6]. - The number of loans processed increased to 428,056 in Q3 2025, up from 188,149 in Q3 2024, indicating a growth of 127%[32]. - The percentage of loans fully automated remained stable at 91% across both Q3 2024 and Q3 2025, reflecting consistent operational capabilities[32]. - Borrower acquisition costs for the nine months ended September 30, 2025, totaled $176.8 million, compared to $80.8 million in the same period of 2024, indicating increased investment in customer acquisition[36]. Balance Sheet - Total assets increased to approximately $2.9 billion as of September 30, 2025, compared to $2.37 billion at the end of 2024[20]. - The company’s total liabilities rose to approximately $2.16 billion as of September 30, 2025, up from $1.73 billion at the end of 2024[20]. - Upstart's cash and cash equivalents decreased to $489.8 million as of September 30, 2025, down from $788.4 million at the end of 2024[20]. - Cash, cash equivalents, and restricted cash at the end of the period for September 30, 2024, were $655,767, compared to $836,905 for the same period in 2025, indicating a decrease of 21.6%[30]. Year-over-Year Comparisons - Total revenue for the three months ended September 30, 2024, was $162,140, a decrease from $277,105 in the same period of 2025, representing a decline of 41.4%[23]. - Net income for the three months ended September 30, 2024, was a loss of $6,758, compared to a net income of $31,805 for the same period in 2025, indicating a significant turnaround[23]. - Revenue from fees, net for the nine months ended September 30, 2024, was $436,190, while for the same period in 2025, it increased to $684,791, reflecting a growth of 56.9%[23]. - Operating expenses for the three months ended September 30, 2024, totaled $207,292, compared to $253,439 in the same period of 2025, showing a decrease of 18.2%[23]. - The company experienced a gain on debt extinguishment of $33,361 for the three months ended September 30, 2024, compared to $7,246 in the same period of 2025[23]. - The total fair value and other adjustments, net for the three months ended September 30, 2024, were $(35,477), while for the same period in 2025, it was $(29,843), indicating an improvement[25]. Transaction Volume - Transaction volume for the three months ended September 30, 2025, reached $2,854,296, representing a significant increase from $1,582,317 in the same period of 2024[32].