Upstart Holdings, Inc. (UPST)
Upstart is a technology company that uses artificial intelligence to help banks decide who to lend money to, aiming to make credit more accessible.
Is Upstart Holdings, Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: High gross margins suggest a scalable software business model. Worth weighing: High volatility as shown by the beta of 2.3. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Upstart Holdings, Inc. actually fallen?
Over the last 2 years of daily prices, Upstart Holdings, Inc. fell as much as −73% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Upstart becomes a standard tool for the majority of US banks
Regulatory changes limiting the use of AI in lending
What does Upstart Holdings, Inc. do?
Upstart acts as a digital middleman, using clever software to analyse loan applicants beyond just their traditional credit score. They charge banks a fee for every loan processed through their platform. What really matters is how well their AI performs when the economy gets bumpy, since that dictates whether banks keep using their service.
On our factor screen it looks strongest on growth and value, and weakest on momentum.
- !Pays no dividend - the whole return rides on the share price
- ✓Growing - revenue up about 45% over the year
- !High P/E of 67 - big growth is already priced in
- !Carries a lot of debt - roughly 2.7x its equity
- Growth screens high (91/100)
- High gross margins suggest a scalable software business model
- Strong revenue growth indicates high demand for their technology
- Uses modern AI to potentially improve financial inclusion
- Momentum screens low (6/100)
- Income screens low (16/100)
- Sensitive to interest rate changes which impact loan demand
- Regulatory scrutiny regarding the use of AI in financial decisions
- Dependence on a limited number of banking partners
What do Upstart Holdings, Inc.'s numbers mean?
How much money does Upstart Holdings, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Upstart Holdings, Inc. pay a dividend?
No - Upstart Holdings, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.
When does Upstart Holdings, Inc. report earnings, and how did recent quarters go?
Upstart Holdings, Inc. is next scheduled to report on about 2026-08-04 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-05-05 | $0.43 | $0.30 | Missed -29% |
| 2026-02-10 | $0.46 | $0.50 | Beat +8% |
| 2025-11-04 | $0.42 | $0.52 | Beat +23% |
| 2025-08-05 | $0.25 | $0.36 | Beat +42% |
| 2025-05-06 | $0.17 | $0.30 | Beat +76% |
| 2025-02-11 | $-0.04 | $0.26 | Beat +750% |
Across the last 6 quarters here, Upstart Holdings, Inc. came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Financial Services
What are the scenarios for Upstart Holdings, Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Upstart Holdings, Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- High gross margins suggest a scalable software business model
- Strong revenue growth: How fast the company's sales grew versus a year ago. indicates high demand for their technology
- Uses modern AI to potentially improve financial inclusion
- High volatility as shown by the beta of 2.3
- No dividend payments for those seeking regular income
- Low net margin: How much of each £1 of sales becomes profit after all costs. Higher = more profitable per sale. suggests high operating costs relative to profit
- Sensitive to interest rate changes which impact loan demand
- Regulatory scrutiny regarding the use of AI in financial decisions
- Dependence on a limited number of banking partners
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained period of declining revenue growth
- Evidence that the AI model is not performing better than traditional credit scoring
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.