Upstart Q4 2024 Earnings Report

Key Takeaways

Upstart reported strong revenue growth in Q4 2024, with a 56% YoY increase in total revenue and a significant reduction in net loss. Adjusted net income turned positive at $29.9 million, while operating losses narrowed substantially. The company achieved its highest adjusted EBITDA since Q1 2022 and improved its conversion rate to 19.3%.

Total Revenue

$219M

Previous year: $140M

+56.1%

EPS

$0.26

Previous year: -$0.11

-336.4%

Transaction Volume

$2.11B

Previous year: $1.25B

+68.2%

Conversion Rate

19.3%

Previous year: 11.6%

+66.4%

Loans Originated

245.66K

Previous year: 129.66K

+89.5%

Cash and Equivalents

$788M

Previous year: $468M

+68.5%

Total Assets

$2.37B

Previous year: $2.02B

+17.3%

Upstart Revenue

Upstart EPS

Upstart Revenue by Segment

Forward Guidance

Upstart expects revenue of approximately $200 million in Q1 2025, with an adjusted net income of $16 million and an adjusted EBITDA of $27 million. For the full year 2025, revenue is projected to reach $1 billion, with a positive GAAP net income.

Positive Outlook

Projected revenue of $1 billion for FY 2025
Expected return to GAAP profitability in 2025
Q1 2025 adjusted EBITDA forecasted at $27 million
Revenue from fees projected at $920 million in FY 2025
Improved contribution margin expected at 57% in Q1 2025

Challenges Ahead

Q1 2025 GAAP net loss expected at $20 million
Operating margin improvements still needed
Higher interest costs could impact profitability
Competitive pressures in AI lending remain a challenge
Macroeconomic uncertainties could impact loan demand