Upstart Holdings, Inc. Stock Price, News & Analysis

Upstart Holdings, Inc. (NASDAQ: UPST), leading AI lending marketplace, announced its third-quarter 2024 results, ending September 30, 2024. Revenue reached $162 million, a 20% increase YoY and 27% sequentially. Total fee revenue was $168 million, up 14% YoY and 28% sequentially. 188,149 loans were originated, totaling $1.6 billion, up 30% YoY and 43% sequentially. Conversion rate improved to 16.3% from 9.5% YoY. Despite a GAAP net loss of $6.8 million, an improvement from the $40.3 million loss YoY, adjusted net loss was $5.3 million, down from $3.9 million YoY. Adjusted EBITDA was $1.4 million, down from $2.3 million YoY. For Q4 2024, Upstart projects revenue of $180 million and adjusted EBITDA of $5 million.

Upstart has launched T-Prime, a new lending program within its Referral Network targeting affluent 'super prime' borrowers with credit scores above 720. Fourteen lenders have already joined the initiative, which aims to help banks and credit unions leverage competitive funding costs to serve this demographic. The program combines competitive rates with instant, automated approvals, with approximately 90% of Upstart-powered loans in 2024 approved instantly without document uploads. T-Prime loan offers are currently available on Upstart.com and will soon expand to partner sites.

KBRA has assigned preliminary ratings to three classes of notes issued by Upstart Securitization Trust 2024-1, a $208.001 million consumer loan ABS backed by unsecured consumer loans. The preliminary ratings reflect initial credit enhancement levels of 45.50% for Class A notes, 35.50% for Class B notes, and 20.50% for Class C notes. This marks Upstart's 44th ABS securitization of unsecured consumer loans originated through its online platform. Credit enhancement includes overcollateralization, excess spread, a non-declining cash reserve account, and subordination.

WECU, a Washington-based credit union with over 160,000 members and $2.7 billion in assets, has partnered with Upstart (NASDAQ: UPST) to provide personal loans to members. Through the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet WECU's credit policies will receive tailored offers and transition to a WECU-branded experience. The partnership, which began in December 2023, aims to expand access to fair loans while improving members' financial well-being.

Upstart, the AI-driven lending marketplace, has announced a significant partnership with Blue Owl Capital. Blue Owl's Alternative Credit strategy has committed to purchasing up to $2 billion of consumer loans from Upstart's platform over an 18-month period. This agreement includes an initial acquisition of a $290 million personal loan portfolio, which was completed in September.

The collaboration aims to enhance the efficiency of consumer lending for both borrowers and lenders. Blue Owl's data science capabilities and experience in consumer finance will be leveraged in this partnership. ATLAS SP Partners, majority-owned by Apollo funds, will provide debt financing for the loan purchases.

This partnership represents one of Upstart's largest purchase commitments to date and is expected to accelerate their efforts in expanding access to affordable credit.

Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, has announced the release date for its third quarter fiscal year 2024 business and financial results. The results will be disclosed on Thursday, Nov. 7, 2024, after the market close. Following the release, Upstart will host a conference call and live webcast at 1:30 p.m. PT / 4:30 p.m. ET on the same day.

Investors can access the earnings press release and investor presentation on Upstart's investor relations website at ir.upstart.com prior to the conference call. The live webcast will also be accessible on this website, with an archived version available after the call. For those wishing to join via phone, dial-in numbers have been provided for both domestic and international participants.

MIT Federal Credit Union (MIT FCU), a Massachusetts-based credit union serving over 35,000 members, has partnered with Upstart (NASDAQ: UPST) to provide personal loans to new and existing members. MIT FCU joined the Upstart Referral Network in March 2024, allowing qualified personal loan applicants on Upstart.com who meet MIT FCU's credit policies to receive tailored offers and transition into an MIT FCU-branded experience to complete the online member application and closing process.

Rui Domingos, President & CEO of MIT FCU, stated that the partnership with Upstart aims to expand their personal loan offering to meet more members' needs. Michael Lock, Senior VP of Lending Partnerships at Upstart, highlighted that the partnership enables MIT FCU to reach and gain new members across its field of membership while expanding access to affordable credit.

Upstart Holdings, Inc. (NASDAQ: UPST) has announced the pricing of $375 million aggregate principal amount of 2.00% Convertible Senior Notes due 2029. The offering was upsized from the previously announced $300 million. The notes will be convertible at an initial rate of 21.9029 shares of Upstart's common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $45.66 per share. Upstart estimates net proceeds of about $365.9 million, which will be used to pay for capped call transactions, repurchase a portion of its outstanding 2026 Notes, and for general corporate purposes. The company also entered into capped call transactions to offset potential dilution.

Upstart Holdings (NASDAQ: UPST) has announced its intention to offer $300 million in Convertible Senior Notes due 2029 to qualified institutional buyers. The company may also grant an option for an additional $45 million. The notes will be convertible into cash, Upstart common stock, or a combination thereof. Upstart plans to use the proceeds to:

• Fund capped call transactions to offset potential dilution
• Repurchase a portion of its outstanding 0.25% Convertible Senior Notes due 2026
• General corporate purposes

The offering may impact Upstart's stock price due to hedging activities by option counterparties and holders of the 2026 Notes. The notes will only be offered to qualified institutional buyers under Rule 144A.