Upstart Shows Record Loan Origination Growth, Stock Soars

Upstart Holdings, Inc. (NASDAQ: UPST ) shares are trading higher after the company reported better-than-expected second-quarter sales results. Adjusted EPS of 56 cents exceeded the analyst expectations of 53 cents. Revenue of $364.7 million increased 42% Y/Y and 18% Q/Q, surpassing estimates of $351.5 million, driven by higher loan originations and stronger fee revenue. Fee revenue totaled $348 million, up 45% Y/Y and 26% Q/Q, including $326 million from unsecured lending and $22 million from secured products, which increased 465% Y/Y and 86% Q/Q, respectively. Adjusted EBITDA increased 45% Y/Y to approximately $77 million, representing a 21% margin, in the quarter. Contribution profit reached a record $193 million, up 37% Y/Y and 41% Q/Q, while contribution margin improved to 55% from 50% in the first quarter of 2026. The margin expansion was supported by a higher-margin personal loa...