Upstart (NASDAQ:UPST) Releases Quarterly Earnings Results, Misses Estimates By $0.46 EPS

Key Points

• Q1 results missed on EPS: Upstart reported EPS of ($0.07), missing the consensus by $0.46 while revenue beat at $308.21M, and the stock slid about 2.8% to $31.17 on the news.
• Heightened legal and analyst pressure: Multiple law firms have filed or are soliciting securities‑fraud suits and several analysts have cut price targets, creating increased litigation and valuation headwinds despite a consensus "Hold" rating.
• $100M buyback authorized amid insider selling: The board approved a $100 million repurchase program (up to ~3.2% of shares) while insiders, including the CFO, have recently sold stock.

Upstart (NASDAQ:UPST - Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($0.07) EPS for the quarter, missing the consensus estimate of $0.39 by ($0.46), FiscalAI reports. Upstart had a return on equity of 6.30% and a net margin of 5.13%.The business had revenue of $308.21 million during the quarter, compared to analyst estimates of $301.30 million.

Upstart Trading Down 2.8%

NASDAQ UPST traded down $0.91 on Tuesday, hitting $31.17. 6,409,662 shares of the stock traded hands, compared to its average volume of 4,926,792. The stock has a 50-day moving average of $28.59 and a 200 day moving average of $38.44. Upstart has a twelve month low of $23.97 and a twelve month high of $87.30. The company has a market capitalization of $2.98 billion, a P/E ratio of 74.21, a price-to-earnings-growth ratio of 0.92 and a beta of 2.26.

Insider Transactions at Upstart

In other Upstart news, CFO Sanjay Datta sold 7,982 shares of the company's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $29.86, for a total transaction of $238,342.52. Following the sale, the chief financial officer owned 276,688 shares in the company, valued at $8,261,903.68. This represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders sold a total of 9,481 shares of company stock worth $282,201 in the last 90 days. Corporate insiders own 16.67% of the company's stock.

Institutional Trading of Upstart

Institutional investors and hedge funds have recently bought and sold shares of the company. Orion Porfolio Solutions LLC acquired a new stake in Upstart during the second quarter valued at approximately $217,000. Captrust Financial Advisors acquired a new stake in shares of Upstart during the 2nd quarter worth approximately $216,000. Integrated Wealth Concepts LLC raised its position in shares of Upstart by 13.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 4,628 shares of the company's stock worth $213,000 after purchasing an additional 563 shares during the period. Acadian Asset Management LLC acquired a new stake in shares of Upstart during the 1st quarter worth approximately $208,000. Finally, NewEdge Advisors LLC raised its position in shares of Upstart by 20.0% during the 1st quarter. NewEdge Advisors LLC now owns 1,997 shares of the company's stock worth $92,000 after purchasing an additional 333 shares during the period. Institutional investors and hedge funds own 63.01% of the company's stock.

More Upstart News

Here are the key news stories impacting Upstart this week:

• Positive Sentiment: Partnership with Justice Federal Credit Union to expand access to Upstart’s lending platform — a business development that can help revenue and loan volume growth. Upstart Partners with Justice Federal Credit Union
• Neutral Sentiment: Recent positive momentum in April (Upstart jumped ~23% in April) provides context that the company can benefit from broader fintech rallies and favorable risk sentiment, but past gains don’t offset current legal/analyst headwinds. Why Upstart Jumped 23% in April
• Negative Sentiment: Multiple law firms have filed or are soliciting investor suits alleging securities fraud covering the May 14, 2025–Nov 4, 2025 class period — increased litigation risk and liability uncertainty typically pressure the stock. Representative notices: Berger Montague. Berger Montague Class Action Notice
• Negative Sentiment: Additional shareholder litigation solicitations and filings from multiple firms (Schall, Bernstein Liebhard, Rosen, Bronstein Gewirtz & Grossman, Gross Law Firm) are amplifying headline risk and putting a spotlight on the June 8, 2026 lead‑plaintiff deadline. Schall Law Firm Notice Bernstein Liebhard Alert
• Negative Sentiment: Analyst price‑target cuts reported alongside investor alerts (Morgan Stanley cut to $45, Goldman to $40 per Levi & Korsinsky notice) reduce short‑to‑medium term valuation support and can spur selling pressure. Levi & Korsinsky Investor Alert (mentions analyst cuts)

Upstart announced that its Board of Directors has initiated a stock buyback plan on Thursday, February 19th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to buy up to 3.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts recently commented on the company. Needham & Company LLC reiterated a "buy" rating and issued a $40.00 price target on shares of Upstart in a research note on Wednesday, March 11th. Compass Point upgraded Upstart from a "sell" rating to a "neutral" rating and boosted their price target for the stock from $20.00 to $30.00 in a research note on Tuesday, February 17th. BTIG Research reiterated a "buy" rating and issued a $43.00 price target on shares of Upstart in a research note on Thursday, April 9th. The Goldman Sachs Group upgraded Upstart from a "sell" rating to a "neutral" rating and cut their price target for the stock from $44.00 to $35.00 in a research note on Friday, February 13th. Finally, Citizens Jmp reiterated a "market underperform" rating and issued a $20.00 price target on shares of Upstart in a research note on Friday, February 13th. Six investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $48.00.

About Upstart

Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods.

Upstart's core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases.

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