Companies

Upstart Restores GAAP Profit After a First-Quarter Loss

The Tip Desk · August 4, 2026 · 3 min read

Originations reached $4.2 billion in the second quarter as the company posted $16.5 million of net income, or $0.16 a share.

Upstart Holdings (UPST), the artificial intelligence lending marketplace, returned to GAAP profitability in the quarter ended June 30, 2026, after a first-quarter operating and net loss. Income from operations was $14.6 million, compared with a $7.5 million loss in the prior quarter, and net income was $16.5 million, or $0.16 a share, versus a $6.6 million net loss, or $0.07 a share, in the first quarter.

The company executed a plan to re-accelerate growth in core personal loans, move secured products toward profitability, and fund that growth without adding equity capital. Originations were $4.2 billion and 558,014 loans, up 50% from a year earlier. That year-over-year rate slowed from the first quarter, when originations were roughly $3.4 billion and 425,356 loans, up 61% and 77% year over year.

Total revenue was $365 million, up 42% year over year. Revenue from fees was $348 million, up 45% year over year. Contribution profit reached an all-time high of $193 million, up 37% year over year. Contribution margin was 55%, versus 50% in the first quarter. Adjusted EBITDA was $76.9 million, up 45% year over year, with a 21% margin.

Unsecured lending, the Personal Lending segment renamed in the second quarter in an administrative change that did not affect results, remained the profit engine. Revenue from fees in the segment was $326 million, up 38% year over year. Contribution profit was $201 million, up 36% year over year. Contribution margin was 62%, unchanged from the year-ago quarter and up 6 percentage points from 56% in the first quarter.

Unsecured originations were $3.64 billion and 535,191 loans. Other products, which include auto lending and other operating segments that did not meet separate GAAP reporting criteria, accounted for $588.7 million of originations and 22,823 loans.

Secured auto and home products continued to narrow losses. Combined contribution margin was negative 35%, improved from negative 176% a year earlier and up 61 percentage points from negative 96% in the first quarter. Contribution profit from other segments was a $7.6 million loss.

Operating expenses rose with the business. Sales and marketing was $114.5 million, customer operations $61.3 million, engineering and product development $94.0 million, and general, administrative, and other $80.4 million. Total interest income, interest expense, and fair value adjustments, net, were $16.7 million. Loan sales fees, previously inside servicing and other fees, were presented separately beginning in the second quarter, with prior periods reclassified.

Conversion rate was 19.7%. The company intends to discontinue reporting that metric beginning in the first quarter of 2027. More than 90% of loans remained fully automated.

Cash and cash equivalents were $456.0 million at June 30, 2026, down from $652.4 million at year-end 2025. Borrowings were $2.00 billion. Stockholders’ equity was $797.5 million. In the six months ended June 30, 2026, the company repurchased $100.1 million of stock.

For full-year 2026, Upstart continues to expect total revenue of approximately $1.4 billion, revenue from fees of approximately $1.3 billion, and adjusted EBITDA of approximately $294 million, or a 21% margin, matching the outlook it restated after the first quarter. Co-founder and CEO Paul Gu said the company funded growth without adding equity capital and returned to GAAP profitability with an all-time-high contribution profit.

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Upstart Holdings, Inc. — all coverage and financials