Upstart Holdings Inc. (NASDAQ:UPST) shares were trading about 5% higher Tuesday but reversed course and are recently down about 2% lower after the company reported mixed third-quarter results, beating revenue estimates, missing on earnings per share, and lowering its 2026 revenue guidance.
- Upstart stock is building positive momentum. Why is UPST stock trading higher?
Upstart Beats on Revenue but Misses on Earnings per Share
Upstart reported third-quarter earnings per share of 33 cents, missing the consensus estimate of 63 cents. It reported revenue of $370.522 million, up 34% from a year earlier, beating the consensus estimate of $361.074 million. Net income rose 15% to $36.6 million. Originations rose 44% to $4.1 billion, with a record 574,089 loans, up 34%. Contribution profit was a record $218 million, up 48%, at a margin of 60%, and adjusted EBITDA rose 26% to $89.3 million, for a margin of 24%, down from 26% a year earlier.
"Macro comes and goes, but alpha compounds," said Paul Gu, Upstart’s co-founder and CEO. He said technology and marketing advances drove record contribution profit and that Upstart supported platform growth with proportionately less equity capital.
Secured Products Turn Contribution Margin Positive Ahead of Plan; October Originations Reach $1.249B
In unsecured lending, revenue from fees was $330 million, up 30%, and contribution profit was $212 million, up 35%, at a margin of 64%, up 2 percentage points. In its secured category, auto and home loans, the combined contribution margin was positive 17%, compared with negative 179% a year earlier and negative 35% in the second quarter. Upstart said the category reached a positive contribution margin one quarter ahead of its target. Upstart also said October originations were $1.249 billion, averaging $48.1 million per day.
Upstart Lowers Its 2026 Revenue Guidance
Upstart lowered its 2026 revenue guidance to about $1.32 billion from $1.40 billion, versus the consensus estimate of $1.416 billion. It expects total revenue of about $1.35 billion and adjusted EBITDA of about $260 million, a 19% margin, compared with its prior target of $294 million. Gu said macro is putting pressure on the company’s near-term outlook, though the progress gives him more confidence in its long-term potential.
Upstart Shares Edge Lower
UPST Price Action: At the time of publication, Upstart shares are trading 2.86% lower at $20.70, according to data from Benzinga Pro.
Image via Shutterstock