AI-powered lending platform Upstart (NASDAQ:UPST) reported Q2 CY2025 results topping the market’s revenue expectations , with sales up 102% year on year to $257.3 million. On top of that, next quarter’s revenue guidance ($280 million at the midpoint) was surprisingly good and 3.9% above what analysts were expecting. Its non-GAAP profit of $0.36 per share was 41.6% above analysts’ consensus estimates.
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Revenue: $257.3 million vs analyst estimates of $226.5 million (102% year-on-year growth, 13.6% beat)
Adjusted EPS: $0.36 vs analyst estimates of $0.25 (41.6% beat)
Adjusted EBITDA: $53.05 million vs analyst estimates of $37.02 million (20.6% margin, 43.3% beat)
The company lifted its revenue guidance for the full year to $1.06 billion at the midpoint from $1.01 billion, a 4.5% increase
EBITDA guidance for Q3 CY2025 is $56 million at the midpoint, above analyst estimates of $52.64 million
Operating Margin: 1.8%, up from -43.5% in the same quarter last year
Free Cash Flow was -$112.7 million compared to -$31.45 million in the previous quarter
Market Capitalization: $7.88 billion
“A year ago, you saw the first signs that Upstart was returning to growth mode – and today you can see it in full bloom,” said Dave Girouard, Co-founder and CEO of Upstart.
Founded by the former head of Google’s enterprise business, Upstart (NASDAQ:UPST) is an AI-powered lending platform facilitating loans for banks and consumers.
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Upstart’s demand was weak over the last three years as its sales fell at a 7.4% annual rate. This wasn’t a great result and is a rough starting point for our analysis.
This quarter, Upstart reported magnificent year-on-year revenue growth of 102%, and its $257.3 million of revenue beat Wall Street’s estimates by 13.6%. Company management is currently guiding for a 72.7% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 35.6% over the next 12 months, an acceleration versus the last three years. This projection is eye-popping and indicates its newer products and services will catalyze better top-line performance.
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