Why Did Upstart Plunge 16.15% Despite Strong Q1 Earnings?

Generated by AI AgentAinvest Movers Radar
Wednesday, May 7, 2025 5:10 am ET1min read

Upstart's stock price plummeted by 16.15% in pre-market trading on May 7, 2025, marking a significant decline for the company.

Upstart reported a strong first quarter with revenue reaching $213 million, a 67% increase year-over-year. The company also reported a GAAP net loss of $2 million, which was described as "near breakeven." Loan originations reached 241,000, up 102% year-over-year but down 2% sequentially. The company slightly lifted its revenue guidance for the full year to $1.01 billion at the midpoint from $1 billion. EBITDA guidance for Q2 CY2025 is $37 million.

Despite the strong financial performance, Upstart's stock price dropped post-earnings call. The company projected second-quarter revenue of $225 million, with a full-year 2025 revenue target of $1.01 billion. The company anticipates achieving GAAP profitability by late 2025. However, the market reaction suggests that investors may have been expecting even stronger guidance or performance.

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