Upstart Holdings, Inc. Reports Robust Growth in Q4 2024 and Full-Year Results

In the fourth quarter of 2024, Upstart achieved a total revenue of $219 million, reflecting a remarkable 56% year-over-year (YoY) increase and a 35% quarter-over-quarter (QoQ) rise. The total fee revenue reached $199 million, which is a 30% increase YoY and a 19% increase QoQ.

The company originated 245,663 loans, totaling $2.1 billion, representing a substantial 68% increase YoY and a 33% increase QoQ. The conversion rate also improved significantly, climbing to 19.3% from 11.6% in Q4 2023.

While Upstart reported an income (loss) from operations of ($4.8) million—an improvement from ($47.5) million in the same quarter the previous year—the net income (loss) was ($2.8) million, up from ($42.4) million in Q4 2023. Adjusted net income (loss) saw a positive shift to $29.9 million, compared to a loss of ($9.7) million in Q4 2023.

GAAP diluted earnings per share were reported at ($0.03), while diluted adjusted earnings per share were at $0.26.

Upstart recorded a contribution profit of $122 million with a contribution margin of 61%, slightly down from 63% in Q4 2023. Adjusted EBITDA soared to $38.8 million, a significant leap from $0.6 million in the same quarter a year ago, corresponding to an adjusted EBITDA margin of 18%.

For the full year 2024, Upstart reported total revenue of $637 million, marking a 24% increase YoY. Total fee revenue reached $635 million, showing a 13% increase compared to the previous year.

The total number of loans originated for the year was 697,092, totaling $5.9 billion, representing a 28% increase YoY. The yearly conversion rate improved to 16.5%, up from 9.7% in 2023.

The income (loss) from operations for the year was ($173) million, an improvement from ($257) million in 2023. The GAAP net income (loss) was ($129) million, which is a reduction from ($240) million the previous year, while adjusted net income (loss) improved to ($17.8) million from ($46.9) million.

Contribution profit for 2024 was $382 million, up 8% YoY, with a contribution margin of 60%. Adjusted EBITDA was reported at $10.6 million, a recovery from a loss of ($17.2) million in 2023.

Looking ahead, Upstart provided an optimistic outlook for the first quarter of 2025, expecting revenue of approximately $200 million, with revenue from fees estimated at about $185 million. The company anticipates a contribution margin of approximately 57% and projects a GAAP net loss of around ($20) million, while adjusted net income is expected to reach approximately $16 million.

For the full year 2025, Upstart forecasts revenue of approximately $1 billion, with revenue from fees expected to be around $920 million. The company aims to achieve breakeven GAAP net income.

In a bid to further engage with investors and showcase its technological advancements, Upstart has announced “Upstart AI Day,” scheduled for May 14, 2025, in New York City. This event will feature discussions on the company’s technology, business model, and strategic vision, and will be accessible via a live audio webcast on Upstart’s investor relations website.

Upstart Holdings, Inc. has demonstrated significant growth and resilience in its financial performance throughout 2024, with promising indicators for the year ahead. As the company positions itself for a strong future in AI lending, stakeholders and investors alike will be keenly observing its progress in the coming quarters.