Upstart's stock remains under pressure, falling 50% from its January peak as market skepticism persists despite record originations and a return to GAAP profitability.
Upstart reported record revenue and returned to GAAP profitability, but GAAP EPS missed, operating expenses grew faster than revenue, cash flows remained negative, and the stock has declined after every earnings beat for five consecutive quarters.
Upstart Holdings reported record Q2 revenue of $365 million and a return to GAAP profitability, yet shares continue to struggle. Despite beating analyst estimates for six consecutive quarters, the stock has declined post-earnings each time as investors remain wary of rising operating expenses, negative cash flows, and potential credit cycle risks.
Investors are prioritizing concerns over rising operating expenses, negative cash flows, and the sustainability of the AI lending model during periods of macroeconomic tightening.