Upstart (UPST) investor relations material

Executive summary

• Q1 2026 originations grew 61% year-over-year to $3.4 billion, with 425,356 loans originated, and total revenue increased 44% to $308 million, driven by a 49% rise in fee revenue.

• Net loss widened to $6.6 million from $2.4 million in Q1 2025, reflecting higher operating expenses, particularly in sales and marketing.

• Adjusted EBITDA was $40.5 million (13% margin), down from $42.6 million and a 20% margin a year ago.

• 91% of loans were fully automated, maintaining high operational efficiency and supporting scale.

• AI-driven lending platform continues to outperform traditional models, with ongoing investment in automation and product innovation.

Financial highlights

• Q1 2026 originations reached $3.4 billion, up 61% year-over-year and 8% sequentially, with transaction volume of 425,356 loans (up 77%).

• Total revenue was $308 million, up 44% year-over-year; fee revenue was $277 million, up 49% year-over-year.

• Contribution profit was $137 million, up 34% year-over-year, but contribution margin declined to 50% from 55% a year ago.

• Adjusted EBITDA margin was 13% for Q1, with net loss margin at (2)% of total revenue.

• Operating expenses grew 45% year-over-year to $316 million, with sales and marketing up 77%.

Outlook and guidance

• Full-year 2026 guidance reiterated: total revenue of ~$1.4 billion, fee revenue of ~$1.3 billion, and adjusted EBITDA of ~$294 million (21% margin).

• 2025-2028 total revenue CAGR targeted at 35%, with a 2028 adjusted EBITDA margin goal of 25%.

• Contribution profit growth expected to be within 5 percentage points of fee revenue growth.

• Adjusted EBITDA is expected to be weighted toward the second half of the year, with margin acceleration as OpEx growth moderates.

• Management expects continued growth in transaction volume and revenue, supported by AI model improvements and product initiatives.