Upstart Stock Faces Decline After Q2 Earnings Release

Author: Owen Jenkins Updated: 08-06-2025 03:51 PM

Upstart Holdings, Inc. Stock Update

Upstart Holdings, Inc. (NASDAQ: UPST) is currently experiencing a downturn in its stock value. This decline follows the release of the company's second quarter financial results, which were shared with investors after market hours on the previous day. Despite the dip in stock price, the earnings report revealed positive outcomes that are worth exploring.

Financial Performance Highlights

For the second quarter, Upstart reported adjusted earnings per share of 36 cents, a notable achievement that exceeded the consensus estimate of 26 cents. Additionally, the company's sales reached $257.00 million, surpassing the anticipated figure of $225.28 million and marking an impressive year-over-year growth of 102%. These results reflect Upstart's strength in the important financial landscape.

Loans and Conversion Rates

In terms of loan origination, Upstart successfully facilitated 372,599 loans during the second quarter, a remarkable 159% increase compared to the same period last year. The conversion rate also saw an upward trend, rising from 15.2% to 23.9%. Furthermore, the company's GAAP net income turned around impressively, reporting $5.6 million compared to a loss of $54.5 million during the equivalent quarter of the previous year.

Outlook for Q3

Looking ahead, Upstart forecasts Q3 sales to be around $280.00 million, exceeding the consensus estimate of $267.47 million. This optimistic projection suggests that the company remains confident in its growth trajectory despite the challenges faced in the market.

Future Sales Guidance

Additionally, Upstart has revised its sales guidance for the fiscal year 2025, increasing it from $1.01 billion to $1.05 billion, contrasting the consensus estimate of $1.01 billion. This upward adjustment showcases the company’s bullish outlook for the near future.

Analyst Revisions on Stock Ratings

Following the release of financial results, analysts have taken various stances on Upstart's stock performance. Several prominent analysts have provided updates on their price targets:

B of A Securities analyst Nat Schindler has maintained a Neutral rating while adjusting the price target from $88 to $87.
Piper Sandler analyst Patrick Moley retains an Overweight rating and has increased the price target from $75 to $90.
Morgan Stanley analyst James Faucette holds an Equal-Weight rating and has raised the target price from $50 to $70.
Needham analyst Kyle Peterson maintained a Buy rating, increasing the price target from $70 to $82.

Current Market Performance

As of now, Upstart's stock is trading approximately 18.0% lower at $67.85. This decline in stock may appear concerning, yet the overall financial performance indicates resilience amidst fluctuations.

Frequently Asked Questions

What were Upstart's earnings for the second quarter?

Upstart reported adjusted earnings per share of 36 cents, surpassing the consensus estimate of 26 cents.

How much did Upstart's sales grow year-over-year?

Upstart's sales grew by 102%, reaching $257.00 million in the second quarter.

What is Upstart's sales forecast for Q3?

Upstart forecasts Q3 sales to be around $280.00 million, exceeding previous estimates.

How many loans did Upstart originate in Q2?

Upstart originated 372,599 loans in the second quarter, marking a 159% increase from the previous year.

What is the company's revised sales guidance for FY25?

Upstart raised its sales guidance for FY25 from $1.01 billion to $1.05 billion.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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