The stock of Upstart Holdings (UPST) is up 25% after the online lender delivered better-than-expected financial results and provided upbeat forward guidance.
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The company, which uses artificial intelligence (AI) to inform its lending decisions, announced an earnings per share (EPS) loss of -$0.03, which was better than a loss of -$0.04 expected among analysts. Revenue of $219 million was up 56% from a year earlier and ahead of the $181.9 million expected on Wall Street.
The company also reported that it saw more than 245,000 new loans originated in the final quarter of last year. In terms of guidance, Upstart’s management team said they expect first-quarter 2025 revenue of $200 million, which topped the $184.6 million expected among analysts. The company also said it expects Q1 2025 earnings of $27 million, which is triple the $9 million that was anticipated on Wall Street.
Upstart is an AI lending platform that partners with banks and credit unions to provide consumer loans using non-traditional variables such as education and employment to predict creditworthiness.
Hot Streak
UPST stock has been on a hot streak lately, having doubled its share price in the last six months. However, the stock is down more than 80% from its all-time high of $390 set in October 2021 during the Covid-19 bull market.
Despite this latest earnings beat, Upstart’s revenue is down from peak levels seen during the pandemic. The company has struggled with weaker demand for its loans due to higher interest rates in recent years, though it returned to growth in 2024.
Is UPST Stock a Buy?
The stock of Upstart Holdings has a consensus Hold rating among six Wall Street analysts. That rating is based on two Buy, three Hold, and one Sell recommendations issued in the last three months. The average UPST price target of $76 implies 12.86% upside from current levels. These ratings are likely to change after today’s financial results.
