Upstart Holdings, Inc. (UPST): Results of Operations and Financial Condition
Upstart Holdings, Inc. (UPST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Upstart Announces Second Quarter 2026 Results BURLINGAME, Calif. – August 4, 2026 – Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for the quarter ended June 30, 2026. Upstart wil
How this was made
The 30-second read
Why it matters
This is a primary earnings disclosure with both quarterly metrics and explicit guidance, which can drive estimate revisions and near-term positioning ahead of the scheduled conference call.
Market read
Originations, revenue growth, GAAP profitability, and all-time-high contribution profit plus full-year guidance are the key decision inputs for traders updating forward models.
What to watch
Contribution margin for unsecured was up, but secured margin remains negative; traders should watch whether the secured improvement rate can sustain toward breakeven while maintaining funding without equity dilution.
Upstart Announces Second Quarter 2026 Results
Total Revenue increased 42% YoY, originations increased 50% YoY, the company returned to GAAP profitability, and Contribution Profit reached an all-time high of $193 million. Full-year 2026 guidance was continued.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Originationsother | $4.2 billion | – | up 50% YoY |
| Originations, Number of Loansother | 558,014 loans originated | – | up 50% YoY |
| Total RevenueGAAP | $365 million | – | up 42% YoY |
| Revenue from Feesother | $348 million | – | up 45% YoY |
| Income from OperationsGAAP | $14.6 million | – | – |
| Net IncomeGAAP | $16.5 million | – | up 195% YoY |
| Diluted net income per shareGAAP | $0.16 | – | – |
| Contribution Profitnon-GAAP | $193 million | – | up 37% YoY |
| Contribution Marginnon-GAAP | 55% | – | – |
| Adjusted EBITDAnon-GAAP | $76.9 million | – | up 45% YoY |
| Adjusted EBITDA Marginnon-GAAP | 21% | – | unchanged from Q2 2025 |
| Secured (Auto and Home) Combined Contribution Marginnon-GAAP | negative 35% | up 61 percentage points from negative 96% in Q1 2026 | – |
| Cash and cash equivalentsGAAP | $455,957 | – | – |
| Restricted cashGAAP | $526,320 | – | – |
| Loans (at fair value)GAAP | $1,064,239 | – | – |
| Property, equipment, and software, netGAAP | $49,421 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| UnsecuredContribution Profit of $201 million was up 36% YoY, while Contribution Margin was 62%, unchanged from Q2 2025 and up 6 percentage points from 56% in Q1 2026. | Revenue from fees was $326 million | – | up 38% YoY |
full-year 2026 outlook
- RevenueTotal Revenue of approximately $1.4 billion; Revenue From Fees of approximately $1.3 billion
- NoteAdjusted EBITDA (Margin % of Total Revenue) of approximately $294 million (21%)
What drove it
- Originations were $4.2 billion, up 50% YoY, across 558,014 loans originated, also up 50% YoY.
- Revenue from fees was $348 million, up 45% YoY, and represented the principal stated source of total revenue growth.
- Unsecured revenue from fees was $326 million, up 38% YoY, with Contribution Margin of 62%.
- Secured (Auto and Home) combined Contribution Margin improved to negative 35% from negative 176% in Q2 2025 and negative 96% in Q1 2026.
Concerns
- Contribution Margin was 55%, versus 58% in Q2 2025.
- Secured (Auto and Home) combined Contribution Margin remained negative 35%.
- The filing identifies risks around macroeconomic conditions, disruptions in banking and credit markets, funding availability, credit performance, lending-partner retention, loans held on the balance sheet, competition, and regulation.
What to watch
- Whether full-year 2026 Total Revenue reaches approximately $1.4 billion, including Revenue From Fees of approximately $1.3 billion.
- Whether full-year 2026 Adjusted EBITDA reaches approximately $294 million, or 21% of Total Revenue.
- Whether secured-products Contribution Margin continues to improve from negative 35%.
- Whether Unsecured Contribution Margin sustains its 62% level and whether consolidated Contribution Margin improves from 55%.
- Funding availability through securitizations, committed capital and other co-investment arrangements, whole loan sales, and warehouse credit facilities.
Balance sheet and cash flow
- Cash and cash equivalents: $455,957 as of June 30, 2026, compared with $652,388 as of December 31, 2025.
- Restricted cash: $526,320 as of June 30, 2026, compared with $404,624 as of December 31, 2025.
- Loans (at fair value): $1,064,239 as of June 30, 2026, compared with $984,552 as of December 31, 2025.
- Property, equipment, and software, net: $49,421 as of June 30, 2026, compared with $44,174 as of December 31, 2025. All balance-sheet figures are presented in thousands.
Analysis
Upstart reported a materially stronger second quarter, led by marketplace expansion and fee growth. Originations were $4.2 billion, up 50% YoY, while 558,014 loans originated also increased 50% YoY. Total Revenue rose 42% YoY to $365 million, and Revenue from Fees rose 45% YoY to $348 million. The company reported Income from Operations of $14.6 million, compared with $4.5 million in Q2 2025, and Net Income of $16.5 million, up 195% YoY from $5.6 million.
Profitability improved across the reported measures. Diluted net income per share was $0.16 compared with $0.05 in Q2 2025. Adjusted EBITDA was $76.9 million, up 45% YoY from $53.1 million, while Adjusted EBITDA Margin held at 21%, unchanged from Q2 2025. Contribution Profit reached an all-time high of $193 million, up 37% YoY. Consolidated Contribution Margin was 55%, however, versus 58% in Q2 2025, making the relationship between revenue growth and contribution-margin retention a key point of attention.
The product detail indicates that Unsecured Lending remained the main reported earnings contributor. Unsecured Revenue from Fees was $326 million, up 38% YoY, and Unsecured Contribution Profit was $201 million, up 36% YoY. Its Contribution Margin was 62%, unchanged from Q2 2025 and 6 percentage points above 56% in Q1 2026. Secured products remained unprofitable at the contribution-margin level, but combined Contribution Margin improved sharply to negative 35% from negative 176% in Q2 2025 and negative 96% in Q1 2026.
On the balance sheet, cash and cash equivalents were $455,957 as of June 30, 2026, compared with $652,388 as of December 31, 2025, while restricted cash was $526,320 compared with $404,624. Loans at fair value were $1,064,239 compared with $984,552. The supplied document excerpt does not include the full balance sheet, debt balances, or cash-flow statement, so the uses of cash and period cash generation cannot be assessed from the provided text.
For full-year 2026, Upstart continued to expect Total Revenue of approximately $1.4 billion, including Revenue From Fees of approximately $1.3 billion, and Adjusted EBITDA of approximately $294 million, or 21% of Total Revenue. The outlook maintains a 21% Adjusted EBITDA Margin while the company pursues further volume growth and improvement in secured-products economics. No previous outlook was provided, so reported results cannot be compared with prior guidance.
Management, verbatim
We came into this quarter with a clear plan, and we executed against it — re-accelerating growth in core personal loans, moving our secured products rapidly toward profitability, and funding that growth without adding equity capital. The results speak for themselves: originations up 50% year-over-year and we returned to GAAP profitability, with an all-time-high Contribution Profit.
Paul Gu, Co-founder and CEO
We've built a technology advantage that keeps compounding, and we've barely scratched the surface of the opportunity in front of us.
Paul Gu, Co-founder and CEO
Not in the filing
stated, not guessed- Previous-release outlook, required to assess results versus prior guidance.
- GAAP gross profit and gross margin.
- Operating expenses.
- GAAP and non-GAAP tax rate.
- Non-GAAP net income and non-GAAP EPS.
- Operating cash flow and free cash flow.
- Debt balances and debt maturities.
- Share repurchases, dividends, and other capital-return activity.
- Secured (Auto and Home) revenue from fees or total revenue.
- Revenue for the Auto Lending and Other operating segments.
- Quarterly forward guidance.
- Complete balance-sheet data, liabilities, and equity because the supplied filing text is truncated after the beginning of the balance-sheet table.
- Cash-flow statement and complete income-statement reconciliation tables because they are not included in the supplied excerpt.
- Prior-quarter comparisons for total revenue, revenue from fees, operating income, net income, EPS, Contribution Profit, and Adjusted EBITDA.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K (Item 2.02) attaches Upstart’s Q2 2026 results press release and includes full-year 2026 financial outlook.
Ticker impact
Upstart reported Q2 2026 results with originations up 50% YoY, returned to GAAP profitability, and raised full-year 2026 revenue and EBITDA expectations.
Likely positive bias for the stock into the earnings call, with follow-through dependent on whether secured-product margin trajectory continues.
The 8-K includes concrete quarterly performance (revenue, net income, contribution profit) and explicit full-year guidance (revenue and Adjusted EBITDA margin), which are direct inputs to forward estimates and risk appetite.
Market effects
Re-accelerating unsecured originations and improving secured-product contribution margin can influence sentiment toward AI credit decisioning and marketplace lenders.
Primarily US-focused equity sentiment for fintech and consumer credit exposure.
Limited direct global spillover, but it can affect broader risk appetite for growth-oriented fintech names.
Counterpoint
Secured products still show negative contribution margin, so the profitability narrative may be less durable if credit losses or funding costs worsen.
Key entities
- companyUpstart Holdings, Inc.
AI lending marketplace reporting Q2 2026 results and full-year 2026 outlook in an SEC 8-K.
- executivePaul Gu
Co-founder and CEO quoted on execution, growth re-acceleration, and profitability return.
