Upstart's Stock Surges 5.98% on $550 Million Trading Volume 175th Most Active Stock Amid Profit Turnaround and Expansion into Prime Markets

Upstart (UPST) surged 5.98% on August 28, 2025, with a trading volume of $550 million, a 60.06% increase from the previous day, ranking 175th in market activity. The fintech company reported Q2 2025 results on August 5, showing a 102% year-over-year revenue jump to $257 million, surpassing estimates, and a shift from a $54.5 million net loss in Q2 2024 to a $5.6 million profit. Transaction volume rose 154% to $2.82 billion, driven by a 159% year-over-year increase in loan originations. Management highlighted progress in core metrics but warned of potential margin compression as the company expands into competitive prime and super-prime lending segments.

The company’s AI-driven platform, which automates loan approvals for banks and credit unions, saw 372,599 loans originated in Q2 2025, doubling the count from the prior year. The conversion rate improved to 23.9%, up 8.7 percentage points, while 92% of loan approvals were fully automated. Growth in auto loans and home equity lines of credit (HELOCs) accelerated, with HELOCs expanding to 75% of the U.S. population. Strategic partnerships, including a collaboration with Walmart’s OnePay fintech and institutional investor Fortress, strengthened funding sources, with over 50% now secured through committed agreements.

Profitability metrics improved across the board, including an 85% year-over-year rise in contribution profit to $140.5 million and a positive adjusted EBITDA of $53.1 million, reversing a $9.3 million loss in Q2 2024. However, management cautioned that expanding into lower-margin prime and super-prime markets could pressure take rates. For Q3 2025, Upstart raised its full-year revenue forecast to $1.055 billion and projected $35 million in GAAP net income, assuming no macroeconomic improvements and excluding new partnerships like the Walmart initiative.

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