Why Upstart Stock Was Climbing Today

Why Upstart Stock Was Climbing Today

Jeremy Bowman, The Motley Fool

Wed, August 5, 2026 at 6:21 PM GMT+3 3 min read

• UPST -1.62%
• NVDA -0.10%

Shares of Upstart (NASDAQ: UPST) were moving higher today after the AI-driven loan origination platform posted better-than-expected results in its second-quarter earnings report.

As of 10:22 a.m. ET, the stock was up 6.6% after gaining as much as 13.8% earlier in the session.

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Upstart impresses across the board

Upstart delivered another round of solid growth, with originations rising 50% to $4.2 billion and loans originated up 50% to 558,014.

Revenue rose 42% in the period to $364.7 million, which topped estimates at $351.5 million. Revenue from fees, which represents the core business, rose 45% to $348 million.

Upstart also delivered solid profitability improvements with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rising 45% to $76.9 million. Generally accepted accounting principles (GAAP) earnings per share increased from $0.05 to $0.16, as operating expenses grew slightly slower than revenue.

The company also made progress toward profitability in its emerging secured loan business, which includes auto and home loans.

CEO Paul Gu said, "We came into this quarter with a clear plan, and we executed it -- reaccelerating growth in core personal loans, moving our secured products rapidly toward profitability, and funding that growth without adding equity capital."

What's next for Upstart

The company maintained its full-year guidance, calling for revenue of $1.4 billion and adjusted EBITDA of $294 million.

That's likely a conservative forecast as it's below the run rate the company achieved in both categories in the second quarter, but it accounts for a slower first quarter. The lack of a rise in guidance may have restrained the stock's gains.

Upstart has struggled to win over investors and has underperformed the market recently as the business faces a number of risks, including rising interest rates and ensuring that its loans are funded.

However, if the company continues to deliver results like these, with surging GAAP profits, the stock should eventually break out of its funk.

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Jeremy Bowman has positions in Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.

Why Upstart Stock Was Climbing Today was originally published by The Motley Fool