Upstart's Q4 Results Show Revenue Surge and Improved Outlook

Upstart sees remarkable growth in Q4 with revenue rising 56%. The company beats EPS expectations despite a net loss, indicating a potential rebound in stock prices driven by increased lender trust and robust future forecasts.

Date: 12-02-2025

AI Rating: 7

Upstart's Fourth Quarter Performance
Upstart has reported its fourth-quarter results that reflect substantial growth metrics, particularly in revenue. The company achieved a revenue increase of 56% year-over-year, climbing from $140 million to $219 million, which is a positive indicator for investors. This strong performance indicates a recovery from previous challenges due to the lending freeze sparked by high interest rates.

Earnings Per Share (EPS)
Upstart posted a GAAP loss of ($0.50) for Q4 FY23, but this is an improvement from a significantly larger loss of ($0.03) expected in Q4 FY24. The company has beaten expectations for EPS, showing progress in its financial health.

Key Metrics Analysis
In addition to the revenue growth, Upstart's Adjusted EBITDA soared by 6,164% reaching $38.8 million, which highlights the company’s ability to improve its operations despite reporting a loss. The reduction in net loss from $42.4 million last year to $2.8 million reflects significant operational improvements. The operating loss also decreased from $48 million to $4.8 million, further indicating a shift towards profitability.

Market Reactions and Future Guidance
Following the earnings report, Upstart shares surged by more than 25% in after-hours trading, driven by both the notable results and positive forecasts for 2025. Upstart projects a revenue growth rate of 57% for the upcoming year, with plans to achieve revenue of $1 billion. This optimism suggests potential for continued stock price appreciation, fueled by investor trust in its effective risk assessment tools.

Stocks: UPST