How Does Upstart Holdings Make its Money?
Upstart is an AI lending platform that partners with banks and credit unions to make better lending decisions. The company’s AI models use over 1,600 variables — including education, employment history, and income trajectory — to assess credit risk, going far beyond the traditional FICO score. Upstart claims its models can approve 44% more borrowers with 36% lower loss rates compared to traditional credit models. The company connects borrowers seeking personal loans, auto loans, home equity lines of credit, and small business loans with bank and credit union partners who fund the loans. Upstart earns fees for each loan originated through its platform. The company went through a turbulent period in 2022-2023 as rising interest rates crushed loan demand, but volumes have been recovering.
Upstart Holdings (UPST) Business Model
Upstart Holdings operates in the fintech sector. Below is a summary of Upstart Holdings’ revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Upstart Holdings’ 2024 fiscal year filings with the SEC.
Upstart Holdings Competitors
Upstart Holdings’s key competitors and comparable public companies in the fintech sector include SoFi, Affirm, Block (Square), and Robinhood. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Upstart Holdings stacks up by comparing their revenue breakdown, margins, and growth metrics.
Upstart Holdings Competitors
Upstart Holdings’s key competitors and comparable public companies in the fintech sector include SoFi, Affirm, Block (Square), and Robinhood. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Upstart Holdings stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Platform Fees (Personal Loans) | $450 | $300 | +50.0% |
| Platform Fees (Auto Loans) | $100 | $80 | +25.0% |
| Servicing & Other Fees | $80 | $70 | +14.3% |
| Total Revenue | $630 | $510 | +23.5% |
Platform Fees (Personal Loans) — 71% of Revenue
Platform Fees (Auto Loans) — 16% of Revenue
Servicing & Other Fees — 13% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $630 | $510 |
| Cost of Revenue | $370 | $310 |
| Gross Profit | $260 | $200 |
| Operating Expenses | $400 | $450 |
| Operating Income | $-140 | $-250 |
| Net Income | $-130 | $-240 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 41.3%
- Operating Margin: -22.2%
- Revenue Growth: 23.5%
Is Upstart Holdings Profitable?
Upstart Holdings (UPST) profitability depends on the reporting period and business cycle. Review the income statement above for the latest figures.
What to Watch
- Loan origination volume recovery as interest rates moderate and funding partners return
- AI model performance through full credit cycles — proving accuracy in defaults
- Auto lending and HELOC product expansion driving diversification beyond personal loans
- Funding partner acquisition — the key bottleneck to growth since Upstart doesn’t hold loans
Upstart Holdings (UPST) Financial Summary
Upstart Holdings (UPST) is a fintech company that generated $630 in total revenue in fiscal year 2024. Revenue grew 23.5% year-over-year. For a deeper look at Upstart Holdings’ revenue breakdown, business segments, and financial performance, review the detailed analysis above.