Upstart Holdings (UPST) reported Q3 earnings per share of 52 cents, surpassing the 42-cent estimate, but revenue of $277.1 million fell short of the $279.62 million consensus. Despite an 80% year-over-year increase in loan originations to $2.9 billion, the company's stock declined 6.57% in extended trading after it issued a Q4 revenue outlook of $288 million and lowered its fiscal 2025 revenue forecast to $1.03 billion, both below analyst expectations.
Upstart Holdings (UPST) experienced a 6.57% stock decline in extended trading following its Q3 earnings report, primarily driven by a revenue miss and a lowered forward outlook. The company reported Q3 revenue of $277.1 million, falling short of the $279.62 million consensus, despite beating EPS estimates with $0.52 per share against a $0.42 forecast. This mixed performance led to a moderately negative market sentiment. Operationally, Upstart demonstrated robust growth, with loan originations increasing 80% year-over-year to approximately $2.9 billion and transaction volume up 128% year-over-year to 428,056 loans. CEO Dave Girouard emphasized "rapid growth, profitability, and AI leadership," noting a sixfold sequential increase in GAAP net income, highlighting underlying business strength. However, investor concern appears to stem from the company's forward guidance. Upstart projected Q4 revenue of $288 million, below the $303.61 million analyst estimate, and subsequently lowered its fiscal 2025 revenue outlook to $1.03 billion from $1.05 billion, also missing the $1.05 billion consensus. This revised guidance likely overshadowed the strong operational metrics and Q3 EPS beat, contributing to the bearish market reaction and immediate stock pressure.
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moderately negative
Sentiment Score
-0.45
Ticker Sentiment
