In This Article:
-
Revenue: $213 million, up 67% year-on-year.
-
Revenue from Fees: $185 million, up 34% year-over-year.
-
Net Interest Income: $28 million, exceeding outlook by $13 million.
-
Platform Originations: Grew 89% year-on-year.
-
Adjusted EBITDA: 20% for the first time in three years.
-
GAAP Net Loss: $2 million.
-
Adjusted Earnings Per Share: $0.30 based on a diluted weighted average share count of 104 million.
-
Loans Held on Balance Sheet: $726 million, down 21% from the prior year.
-
Unrestricted Cash: Approximately $600 million, down from $788 million in the prior quarter.
-
HELOC Originations: Grew 52% quarter-on-quarter and more than 6x compared to a year ago.
-
Auto Lending Originations: Grew 42% sequentially and almost 5x compared to a year ago.
-
Small Dollar Product Originations: Grew 7% sequentially and almost tripled year-on-year.
-
Contribution Margin: 55% in Q1, down 6 percentage points from the prior quarter.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Platform originations grew 89% year-on-year, indicating strong demand and effective model improvements.
-
Revenue increased by 67% year-on-year, with adjusted EBITDA reaching 20% for the first time in three years.
-
Home and auto originations showed significant growth, with home originations up 52% and auto up 42% sequentially.
-
Upstart achieved a 92% automation rate for loans, enhancing efficiency and borrower experience.
-
The company signed a significant partnership with Fortress for committed capital, enhancing funding stability.
Negative Points
-
Contribution margin decreased to 55%, down 6 percentage points from the prior quarter, due to lower take rates in prime segments.
-
GAAP net loss was reported at $2 million, despite revenue growth.
-
The macroeconomic environment remains uncertain, with potential risks from reinflation and trade policies.
-
Funding mix remains a challenge, with reliance on committed partnerships due to less reliable securitization markets.
-
Take rates are under pressure in the super prime segment due to competitive alternatives, impacting overall margins.
Q & A Highlights
Q: Can you provide more details about the Walmart partnership? A: David Girouard, CEO: We signed a one-year agreement with Walmart's fintech, OnePay, to offer our products to Walmart customers. This partnership aligns with our goal of providing the best rates and processes for everyone. It's an exciting opportunity to deliver value to American consumers.
Q: How are your conversion rates expected to trend for the rest of the year? A: David Girouard, CEO: Conversion rates increased from 14% a year ago to 19% in the most recent quarter. We aim to drive them higher with better models and improved automation. Factors like lower Fed rates could also help, but it's a mix of macro conditions and our technology.