Upstart 2025 Q2 Earnings Strong Performance as Net Income Surges 110.3%

Upstart (UPST) delivered a strong Q2 2025 earnings report, significantly beating expectations with a net income turnaround and robust revenue growth. The results exceeded previous performance, with net income surging from a loss of $54.47 million to a profit of $5.61 million, while management provided confident forward-looking guidance.

Revenue
Driven by strong performance across revenue streams, Upstart’s total revenue for Q2 2025 surged 101.6% year-over-year to $257.29 million. Fees, net contributed the lion’s share of the revenue, amounting to $240.78 million, while interest income, interest expense, and fair value adjustments added another $16.51 million. This diverse and substantial top-line growth underscored the company’s expanding platform and product offerings.

Earnings/Net Income
Upstart returned to profitability in Q2 2025, reporting net income of $5.61 million, a dramatic 110.3% improvement from the $54.47 million net loss in the prior-year period. Earnings per share also turned positive, with EPS rising to $0.06 from a loss of $0.62 a year ago, reflecting strong cost discipline and operational efficiency.

Price Action
Following the earnings release, UPST shares saw mixed near-term price action, falling 1.34% during the latest trading day but gaining 2.72% over the past week and 11.92% month-to-date.

Post Earnings Price Action Review
A historical analysis of post-earnings performance showed that investors who bought UPST shares following a revenue beat and held for 30 days achieved a 215.57% return over the past three years. This outperformed the benchmark return of 0.00%, with a compound annual growth rate of 48.69% and no recorded maximum drawdown, highlighting the strategy’s low-risk, high-reward profile.

CEO Commentary
David J. Girouard, CEO, praised Q2 as an exceptional quarter marked by triple-digit revenue growth and early GAAP profitability. He credited the results to AI-driven model improvements, cost efficiencies, and strong performance in the Auto and Home segments. Girouard emphasized the company’s confidence in scaling AI lending, enhancing consumer experience, and expanding into new markets.

Guidance
For Q3 2025, Upstart expects total revenue of approximately $280 million, with GAAP net income of $9 million and adjusted EBITDA of $56 million. Full-year 2025 guidance includes total revenue of $1.055 billion and adjusted EBITDA margin of 20%, assuming a stable macroeconomic environment and interest rate scenario.

Additional News
On August 6, 2025, a report indicated that Upstart’s stock slumped following its Q2 earnings beat and solid guidance, though the article content was inaccessible. No new mergers and acquisitions, C-level executive changes, or dividend/buyback announcements were disclosed in the available information. The focus remained squarely on the company’s operational and financial turnaround.