Q226 Press Release

"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," said 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."

• Originations: $4.2 billion, up 50% year-over-year ("YoY"). 558,014 loans originated, up 50% YoY.
• Total Revenue: $365 million, up 42% YoY. Revenue from fees was $348 million, up 45% YoY.
• Income from Operations: $14.6 million, compared to $4.5 million in Q2 2025.
• Net Income: $16.5 million, up 195% YoY from $5.6 million in Q2 2025. Diluted net income per share was

  $0.16 compared with $0.05 in Q2 2025.
• Contribution Profit: All-time high of $193 million, up 37% YoY. Contribution Margin was 55%, versus 58% in Q2 2025.
• Adjusted EBITDA: $76.9 million, up 45% YoY from $53.1 million in Q2 2025. Adjusted EBITDA Margin was 21%, unchanged from Q2 2025. Results by Product Category1
• Unsecured: Revenue from fees was $326 million, up 38% YoY. Contribution 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.
• Secured (Auto and Home): Combined Contribution Margin was negative 35%, improved from negative 176% in Q2 2025 and up 61 percentage points from negative 96% in Q1 2026. Financial Outlook

  For full-year 2026, Upstart continues to expect:

• Total Revenue of approximately $1.4 billion
  • Revenue From Fees of approximately $1.3 billion
• Adjusted EBITDA (Margin % of Total Revenue) of approximately $294 million (21%)

  1 This disaggregation does not represent the Company's operating segments under U.S. GAAP. While Unsecured Lending is a reportable segment, Secured Products include two operating segments, Auto Lending and Other.

  Conference Call and Webcast Information
• Live Conference Call and Webcast at 1:30 p.m. PT on August 4, 2026. To access the call in the United States and Canada: 800-330-6710, conference code 7744842. To access the call outside of the United States and Canada: +1 312-471-1353, conference code 7744842. A webcast is available at ir.upstart.com.
• Event Replay: A webcast of the event will be archived for one year at ir.upstart.com.

Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart's platform includes personal loans, automotive loans, home equity lines of credit, and Upstart's new Cash Line product, a revolving line of credit. Upstart is based in Burlingame, California.

Sonya Banerjee ir@upstart.com

Eric Smith press@upstart.com

This press release 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, statements regarding our outlook for the full-year of 2026 and beyond. These statements may include words such as "anticipate", "becoming", "believe", "can have", "continue", "could", "estimate", "expect", "intend", "likely", "look forward", "may", "ongoing," "plan", "potential", "predict", "project", "should", "target", "will", "would," or the negative of these terms or other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events that do not relate strictly to historical or current facts. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities and the sustainability of our business and market position; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), Adjusted EBITDA, basic weighted-average share count, and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management's good faith beliefs and assumptions as of that time with respect to future events, including assumptions regarding macroeconomic conditions, credit performance, funding availability, and competitive dynamics, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), including "Risk Factors" in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at ir.upstart.com or the SEC's website at https://www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to manage the adverse effects of macroeconomic conditions and disruptions in the banking sector and credit markets, including inflation and related changes in interest rates and

monetary policy; our ability to access sufficient loan funding, including through securitizations, committed capital and other co-investment arrangements, whole loan sales, and warehouse credit facilities; the effectiveness of our credit decisioning models and risk management efforts, including reflecting the impact of macroeconomic conditions on borrowers' credit risk; our ability to retain existing, and attract new, lending partners; our future growth prospects and financial performance; our ability to manage risks associated with the loans on our balance sheet; our ability to improve and expand our platform and products; and our ability to operate successfully in a highly-regulated industry. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations.

Beginning in the second quarter of 2026, we refer to the metrics "Transaction Volume, Dollars" and "Transaction Volume, Number of Loans" as "Originations, Dollars" and "Originations, Number of Loans," respectively, to reflect management's internal terminology. We define Originations, Dollars as the aggregate of: (i) the total principal of loan originations for personal loans, small dollar loans, and auto loans, (ii) committed amounts for HELOCs, and

(iii) drawn amounts for unsecured revolving credit lines (Cash Line), in each case facilitated on our marketplace during the periods presented. We define Originations, Number of Loans as the total number of such originations, commitments, and draws, as applicable, facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a marketplace.

We define Conversion Rate as the Originations, Number of Loans in a period divided by the total number of rate inquiries received that we estimate to be legitimate, which we record when a borrower actively requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth. Cash Line is excluded because those borrowers may make multiple draws after the line has been initially approved, and those subsequent draws do not represent additional conversions.

We define Percentage of Loans Fully Automated as the total number of loans in a given period originated end-to-end with no human involvement required by the Company divided by the Originations, Number of Loans in the same period. Cash Line is excluded because those borrowers may make multiple draws after the line has been initially approved, and those subsequent draws do not represent additional automation. Under this definition, "originated end-to-end" means (i) from initial rate request to final funding for personal loans, including small dollar loans, and (ii) from initial rate request to loan approval for auto loans and HELOCs, due to certain jurisdictions' local requirements and external dependencies that require human action prior to funding.

To derive Contribution Profit, we subtract the sum of borrower acquisition costs as well as borrower verification and servicing costs from revenue from fees, net. To calculate Contribution Margin we divide Contribution Profit by revenue from fees, net.

We calculate Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense and certain payroll tax expenses, depreciation and amortization, expense on convertible notes, provision for income taxes, gain on debt extinguishment, net gain on lease modification and reorganization expenses, as applicable. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA and Adjusted EBITDA Margin include interest expense from corporate debt and warehouse credit facilities which is incurred in the course of earning corresponding interest income.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included below. Upstart has not reconciled the forward-looking non-GAAP measures to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort.

1. Includes $53.8 million and $36.3 million of loans, at fair value, contributed as collateral for the consolidated securitization as of December 31, 2025 and June 30, 2026, respectively.

   ‌Three Months Ended June 30, Six Months Ended June 30,

   2025 2026 2025	2026
   Revenue:
   Revenue from fees, net(1).......................... $ 240,777 $ 348,019 $ 426,252	$ 625,082
   Interest income, interest expense, and
   fair value adjustments, net:
   Interest income(3) ................................. 45,623 57,051 86,191	113,112
   Interest expense(3) ................................ (7,772) (12,531) (14,792)	(22,901)
   Fair value and other adjustments,
   net(4) ..................................................... (21,337) (27,831) (26,989)	(42,371)
   Total interest income, interest expense,
   and fair value adjustments, net 16,514 16,689 44,410	47,840
   Total revenue................................................... 257,291 364,708 470,662	672,922
   Operating expenses:
   Sales and marketing ................................. 73,105 114,512 132,075	218,967
   Customer operations................................. 46,246 61,319 86,747	116,414
   Engineering and product development..... 68,825 93,860 126,663	173,972
   General, administrative, and other ........... 64,573 80,378 125,131	156,448
   Total operating expenses ................................. 252,749 350,069 470,616	665,801
   Income from operations................................... 4,542 14,639 46	7,121
   Other income, net ............................................ 1,114 2,514 3,192	3,470
   Net income before income taxes ..................... 5,656 17,153 3,238	10,591
   Provision for income taxes .............................. 49 614 78	698
   Net income ...................................................... $ 5,607 $ 16,539 $ 3,160	$ 9,893
   Net income per share, basic............................. $ 0.06 $ 0.17 $ 0.03	$ 0.10
   Net income per share, diluted.......................... $ 0.05 $ 0.16 $ 0.03	$ 0.10
   Weighted-average number of shares outstanding used in computing net income per share, basic ................................................ 95,526,364 96,573,751 94,903,909	96,736,956
   Weighted-average number of shares outstanding used in computing net income per share, diluted ............................................. 102,852,284 109,720,846 103,177,583	101,414,541
   (1) The following table presents revenue from fees disaggregated by type of service for the periods presented:

   Three Months Ended June 30, Six Months Ended June 30,

   	2025	2026	2025	2026
   Revenue from fees, net:
   Platform and referral fees, net..................	$ 202,845	$ 284,066	$ 353,820	$ 508,684
   Servicing and other fees, net ....................	37,932	54,807	72,432	103,919
   Loan sales fees(2) ......................................	-	9,146	-	12,479
   Total revenue from fees, net............................	$ 240,777	$ 348,019	$ 426,252	$ 625,082

2. Represents fees we charge our third-party loan purchasers for facilitating certain forward-flow loan sales that are recognized as part of the sales proceeds received. Beginning in the second quarter of 2026, loan sales fees, which were previously included within servicing and other fees, net, are presented as a separate component of revenue from fees, net. Prior-period amounts have been reclassified to conform to the current-period presentation.

3. For the three and six months ended June 30, 2026, interest income and interest expense include dividend income earned on certain cash accounts and expense on convertible senior notes, respectively, which were previously included in other income, net. Refer to "Note 1. Description of Business and Significant Accounting Policies" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 for details.

4. The following table presents components of fair value and other adjustments, net for the periods presented as follows:

Unrealized loss on loans, loan charge-offs, and

other fair value adjustments, net ........................ $ (18,878) $ (15,586) $ (40,204) $ (33,773)

1. "Originations, Dollars" and "Originations, Number of Loans" were previously referred to as "Transaction Volume, Dollars" and "Transaction Volume, Number of Loans," respectively. See "Key Operating Metrics and Non-GAAP Financial Measures" above for additional information.

2. Originations, Number of Loans is shown in ones for the periods presented.

3. Beginning in the fourth quarter of 2025, we revised the definition and underlying calculation methodology of Conversion Rate. Prior period figures have been recast to conform to the new definition and methodology. For additional information regarding this change, see "Key Operating and Non-GAAP Financial Metrics" in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition, we intend to discontinue reporting this metric beginning in the first quarter of 2027. See "Key Operating and Non-GAAP Financial Metrics" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 for additional information.

The following table provides disaggregated information for Originations, Dollars and Originations, Number of Loans for the periods presented:

1. Refer to "Note 14. Segment Information" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 for additional information regarding our Unsecured Lending segment and related Contribution Profit.

2. Includes Auto Lending and Other operating segments, which did not meet the separate reporting or aggregation criteria under GAAP.

3. Originations, Number of Loans, is shown in ones for the periods presented.

The following table presents financial information, including Contribution Profit, for our Unsecured Lending segment:

1. Beginning in the second quarter of 2026, we renamed our Personal Lending operating segment to Unsecured Lending. The name change was administrative in nature and had no impact to the segment results or our condensed consolidated financial statements.

2. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses.

3. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses.

The following table presents a reconciliation of total Contribution Profit to Net income before income taxes:

Reconciling items:.......................................................

Sales and marketing, net of borrower acquisition

costs(2)..................................................................... (12,170) (12,228) (22,578) (24,426)

Customer operations, net of borrower verification

and servicing costs(3) ..............................................

(6,947)

(8,715)

(12,907)

(16,278)

Engineering and product development .................. (68,825) (93,860) (126,663) (173,972)

Interest income, interest expense, and fair value

adjustments, net...................................................... 16,514 16,689 44,410 47,840

Net income before income taxes ................................. $ 5,656 $ 17,153 $ 3,238 $ 10,591

1. Includes Auto Lending and Other operating segments, which did not meet the separate reporting or aggregation criteria under GAAP.

2. Borrower acquisition costs were $60.9 million and $102.3 million for the three months ended June 30, 2025 and 2026, respectively, and were $109.5 million and $194.5 million for the six months ended June 30, 2025 and 2026, respectively. Borrower acquisition costs consist of sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses.

3. Borrower verification and servicing costs were $39.3 million and $52.6 million for the three months ended June 30, 2025 and 2026, respectively, and were $73.8 million and $100.1 million for the six months ended June 30, 2025 and 2026, respectively. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses.

Contribution Margin ....................................... 58 % 55 % 57 % 53 %

1. Borrower acquisition costs were $60.9 million and $102.3 million for the three months ended June 30, 2025 and 2026, respectively, and were $109.5 million and $194.5 million for the six months ended June 30, 2025 and 2026, respectively. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses.

2. Borrower verification and servicing costs were $39.3 million and $52.6 million for the three months ended June 30, 2025 and 2026, respectively, and were $73.8 million and $100.1 million for the six months ended June 30, 2025 and 2026, respectively. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses.

Adjusted EBITDA........................................... $ 53,053 $ 76,905 $ 95,630 $ 117,374

1. Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.