Upstart Holdings, Inc. · NASDAQ:UPST

Upstart — Q2 2025 Earnings Presentation

37 slides from Upstart's earnings presentation, Aug 5, 2025

Slide 1: Q2 2025 earnings
Q2 2025 earnings August 5, 2025
Slide 2: Forward looking statements
Forward looking statements This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to, information or predictions concerning our
Slide 3: Results and outlook
Results and outlook 3
Slide 4: Q2'25 results: accelerated growth and a return to GAAP profitability
Q2’25 results: accelerated growth and a return to GAAP proﬁtability Focused execution against our 2025 priorities Originations: $2.8B Total Revenue: $257M Net Income: ~$6M Adj. EBITDA: $53M +154% YoY +102% YoY GAAP proﬁtable 21% margin Note: Originations refers to Transaction Volume, Dollars. 4
Slide 5: Transaction Volume, Dollars ($M)
Transaction Volume, Dollars ($M) Q2’25 originations: $2.8B +154% YoY YoY Growth: -6% +30% +68% +89% +154% 5
Slide 6: Loan conversion funnel
Loan conversion funnel Q2’25 loans: 373K 23.9% Conversion Rate Transaction volume, # of loans Rate inquiries not ﬁlled 6
Slide 7: Total Revenue ($M)
Total Revenue ($M) Q2’25 Revenue: $257M +102% YoY Platform & referral fees Servicing & other fees Net interest income & fair value adj. YoY Growth: -6% +20% +56% +67% +102% Note: Amounts presented in charts may not sum to totals due to rounding. 7
Slide 8: Contribution Profit ($M)
Contribution Proﬁt ($M) Q2’25 Contribution: $141M 58% Contribution Margin Reﬂects a higher take rate along with customer acquisition and operational cost efﬁciencies driven by Model 22. Contribution Margin: 58% 61% 61% 55% 58% 8
Slide 9: GAAP Net Income (Loss) ($M)
GAAP Net Income (Loss) ($M) Q2’25 Net Income: ~$6M 2% Net Income Margin Net Margin: -43% -4% -1% -1% 2% 9
Slide 10: Adjusted EBITDA ($M)
Adjusted EBITDA ($M) Q2’25 Adjusted EBITDA: $53M 21% Adj. EBITDA Margin Adj. EBITDA Margin: -7% 1% 18% 20% 21% 10
Slide 11: Outlook
Outlook Q3’25 FY 2025 Total Revenue $280 million $1.055 billion Revenue from fees $275 million $990 million Net interest income $5 million $65 million Contribution Margin 58% - GAAP Net Income $9 million $35 million Non-GAAP Adjusted Net Income $44 million - Adjusted EBITDA $56 million - Adjusted EB
Slide 12: Technology and product highlights
Technology and product highlights 12
Slide 13: Q2'25 product progress: meta neural networks
Q2’25 product progress: meta neural networks Architectural upgrade drove a 17pp boost in separation accuracy vs. benchmark textbook credit model Neural networks reach the meta layer with Model 22 In Q2 we introduced neural networks to the top or “meta” layer of our core underwriting model to inform
Slide 14: Upstart AI supports scale and leads to radically better consumer experiences
Upstart AI supports scale and leads to radically better consumer experiences Q2’25: 92% of loans were fully automated, with no human intervention by Upstart Percentage of loans fully automated 14
Slide 15: More automation can drive higher loan volumes
More automation can drive higher loan volumes Breaking down the math - how we arrive at the percentage of loans fully automated in Q2’25 Step 1 Step 2 Step 3 92% 484K 369K ~342K of 373K funded rate oﬀers applications (76%) ~9 of 10 applications loans fully automated accepted and approved converted t
Slide 16: Personal loan originations ($M)
Personal loan originations ($M) Q2’25 originations $2.6B Personal loan originations grew 143% YoY. Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 # of loans 118,743 143,066 186,786 243,495 237,641 366,836 16
Slide 17: Personal loan originations by borrower segment ($M)
Personal loan originations by borrower segment ($M) Small dollar Core Super prime (720+) Q2’25 originations $2.6B Super prime made up 26% of personal loan originations. “Best rates for all” is unlocking value across the credit spectrum. Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 # of loans 118,743 143,066
Slide 18: Auto originations ($M)
Auto originations ($M) Q2’25 originations $114M Auto originations grew >6X versus Q2’24 and 87% sequentially. Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 # of loans 526 708 1,080 1,715 2,399 4,645 18
Slide 19: Home originations ($M)
Home originations ($M) Q2’25 originations $68M Home originations grew ~9X versus Q2’24 and 67% sequentially. Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 # of loans 111 126 283 453 666 1,118 Note: Home originations are deﬁned as: total committed amount the borrower can draw against. 19
Slide 20: Marketplace update
Marketplace update 20
Slide 21: Macroeconomic risk to consumer health has improved since mid-2024
Macroeconomic risk to consumer health has improved since mid-2024 Recent UMI trends signal improvement in borrower repayment behavior Note: UMI estimates the impact of the macroeconomy on actual credit losses based on Upstart-powered unsecured personal loan data, see: https://www.upstart.com/umi. UM
Slide 22: Upstart has delivered solid returns to capital partners
Upstart has delivered solid returns to capital partners Net annualized return compared to the 2-year Treasury Yield If an investor invested equally in all Upstart cohorts since Q2 2023, they would now expect annualized returns of 11.3%, which represents an 7.1% spread over the 2-Year Treasury 2-Year
Slide 23: Value of Upstart's co-investments in committed capital partnerships
Value of Upstart’s co-investments in committed capital partnerships Upstart shares in the risk of our committed capital partnerships, via various forms of min/max: $0 - 1,212M minority co-investment. Capital co-invested min/max: $0 - 1,079M Cumulative outstanding amount Upstart has invested into the
Slide 24: Loans held by Upstart
Loans held by Upstart Q2’25: ~70% R&D - primarily Auto and Home ($M) R&D Personal loans Securitized loans Note: “R&D” loans are to test and evaluate our AI models for emerging products such as Auto and Home. Note: “Securitized” loans are from Q3’23 ABS, reﬂect GAAP treatment; Upstart’s retained valu
Slide 25: Financial appendix
Financial appendix 25
Slide 26: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet ($ in millions) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Assets Cash and cash equivalents $ 300.5 $ 374.8 $ 445.3 $ 788.4 $ 599.8 $ 395.9 Restricted cash 138.6 185.8 210.5 187.8 239.8 305.5 Loans (at fair value) (1) 1,080.9 820.6 65
Slide 27: Condensed Consolidated Balance Sheet (cont.)
Condensed Consolidated Balance Sheet (cont.) ($ in millions) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Liabilities and Stockholders’ Equity Liabilities: Payable to investors $ 59.1 $ 65.5 $ 60.8 $ 60.2 $ 83.1 $ 91.7 Borrowings 1,005.3 912.7 887.4 1,402.2 1,334.9 1,428.5
Slide 28: Condensed Consolidated Statement of Operations
Condensed Consolidated Statement of Operations (in millions, except share and per share data) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Revenue: Revenue from fees, net (1) $ 138.1 $ 130.5 $ 167.6 $ 199.3 $ 185.5 $ 240.8 Interest income, interest expense, and fair value
Slide 29: Revenue Breakout
Revenue Breakout (in millions) (1) This footnote is related to the table on slide 28. The following table presents revenue from fees disaggregated by type of service as follows: Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Revenue from fees, net: Platform and referral fees
Slide 30: Condensed Consolidated Statement of Cash Flows
Condensed Consolidated Statement of Cash Flows (in millions) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Cash ﬂows from operating activities Net income (loss) $ (64.6) $ (54.5) $ (6.8) $ (2.8) $ (2.4) $ 5.6 Adjustments to reconcile net income (loss) to net cash provided b
Slide 31: Condensed Consolidated Statement of Cash Flows (cont.)
Condensed Consolidated Statement of Cash Flows (cont.) (in millions) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net changes in operating assets and liabilities: Purchases of loans held-for-sale (796.5) (773.5) (1,056.2) (1,683.0) (1,345.3) (2,624.5) Proceeds from sale of
Slide 32: Condensed Consolidated Statement of Cash Flows (cont.)
Condensed Consolidated Statement of Cash Flows (cont.) (in millions) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Cash ﬂows from investing activities Purchases and originations of loans held-for-investment (46.2) (64.8) (85.6) (126.5) (149.9) (228.0) Proceeds from sale of
Slide 33: Condensed Consolidated Statement of Cash Flows (cont.)
Condensed Consolidated Statement of Cash Flows (cont.) (in millions) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Cash ﬂows from ﬁnancing activities Proceeds from borrowings 74.3 173.3 50.1 89.7 53.7 122.7 Proceeds from convertible notes issuance, net of debt issuance cost
Slide 34: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP ﬁnancial measures (in millions, except ratios) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total revenue $ 127.8 $ 127.6 $ 162.1 $ 219.0 $ 213.4 $ 257.3 Net income (loss) (64.6) (54.5) (6.8) (2.8) (2.4) 5.6 Net Income (Loss) Margin (51%) (43%) (
Slide 35: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP ﬁnancial measures (in millions, except ratios) Fiscal 2024 Fiscal 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Revenue from fees, net $ 138.1 $ 130.5 $ 167.6 $ 199.3 $ 185.5 $ 240.8 Income (loss) from operations (67.5) (55.5) (45.2) (4.8) (4.5) 4.5 Operating Margin
Slide 36: Key Operating Metrics & Non-GAAP Financial Measures
Key Operating Metrics & Non-GAAP Financial Measures ● We deﬁne Transaction Volume, Dollars as the total principal of loan originations (or committed amounts for HELOCs) facilitated on our marketplace during the periods presented. We deﬁne Transaction Volume, Number of Loans as the number of loan ori
Slide 37: Thank You
Thank You

Upstart Holdings — Q2 2025 Earnings Presentation on 6ix

Upstart — Q2 2025 Earnings Presentation

Slide 1: Q2 2025 earnings

Slide 2: Forward looking statements

Slide 3: Results and outlook

Slide 4: Q2'25 results: accelerated growth and a return to GAAP profitability

Slide 5: Transaction Volume, Dollars ($M)

Slide 6: Loan conversion funnel

Slide 7: Total Revenue ($M)

Slide 8: Contribution Profit ($M)

Slide 9: GAAP Net Income (Loss) ($M)

Slide 10: Adjusted EBITDA ($M)

Slide 11: Outlook

Slide 12: Technology and product highlights

Slide 13: Q2'25 product progress: meta neural networks

Slide 14: Upstart AI supports scale and leads to radically better consumer experiences

Slide 15: More automation can drive higher loan volumes

Slide 16: Personal loan originations ($M)

Slide 17: Personal loan originations by borrower segment ($M)

Slide 18: Auto originations ($M)

Slide 19: Home originations ($M)

Slide 20: Marketplace update

Slide 21: Macroeconomic risk to consumer health has improved since mid-2024

Slide 22: Upstart has delivered solid returns to capital partners

Slide 23: Value of Upstart's co-investments in committed capital partnerships

Slide 24: Loans held by Upstart

Slide 25: Financial appendix

Slide 26: Condensed Consolidated Balance Sheet

Slide 27: Condensed Consolidated Balance Sheet (cont.)

Slide 28: Condensed Consolidated Statement of Operations

Slide 29: Revenue Breakout

Slide 30: Condensed Consolidated Statement of Cash Flows

Slide 31: Condensed Consolidated Statement of Cash Flows (cont.)

Slide 32: Condensed Consolidated Statement of Cash Flows (cont.)

Slide 33: Condensed Consolidated Statement of Cash Flows (cont.)

Slide 34: Reconciliation of non-GAAP financial measures

Slide 35: Reconciliation of non-GAAP financial measures

Slide 36: Key Operating Metrics & Non-GAAP Financial Measures

Slide 37: Thank You