SAN MATEO — Upstart Holdings, which operates an artificial intelligence (AI) lending marketplace, announced financial results for the quarter and full year ended December 31, 2024. Shares in the company rocketed over 30% on the news Wednesday.
“In Q4 of 2024, our business grew dramatically across all product categories, delivered Adjusted EBITDA at levels not seen since the first quarter of 2022, and came within a whisker of returning to GAAP profitability,” said Dave Girouard, co-founder and CEO of Upstart. “We launched into 2025 with unparalleled energy and optimism for the future of Upstart AI lending and the mission we’re on together.”
Fourth Quarter 2024 Financial Highlights
- Total Revenue was $219 million, up 56% year-over-year (“YoY”) and up 35% quarter-over-quarter (“QoQ”). Total fee revenue was $199 million, an increase of 30% YoY, and up 19% QoQ.
- Transaction Volume and Conversion Rate: 245,663 loans were originated, totaling $2.1 billion, up 68% YoY and up 33% QoQ. Our Conversion Rate was 19.3%, up from 11.6% in Q4 2023.
- Income (Loss) from Operations was ($4.8) million, up from ($47.5) million in Q4 2023.
- Net Income (Loss) and EPS: GAAP net income (loss) was ($2.8) million, up from ($42.4) million in Q4 2023. Adjusted net income (loss) was $29.9 million, up from ($9.7) million in Q4 2023. Accordingly, GAAP diluted earnings per share was ($0.03), and diluted adjusted earnings per share was $0.26 based on the weighted-average common shares outstanding during the quarter.
- Contribution Profit was $122 million in the fourth quarter of 2024, up 28% YoY, with a Contribution Margin of 61% compared to 63% in Q4 2023.
- Adjusted EBITDA was $38.8 million, up from $0.6 million in the same quarter of the prior year. Adjusted EBITDA Margin was 18% of total revenue, up from 0% in Q4 2023.
Fiscal Year 2024 Financial Highlights
- Total Revenue was $637 million, up 24% YoY. Total fee revenue was $635 million, up 13% YoY.
- Transaction Volume and Conversion Rate: 697,092 loans were originated, totaling $5.9 billion, up 28% YoY. Our Conversion Rate was 16.5% in 2024, up from 9.7% in 2023.
- Income (Loss) from Operations was ($173) million, up from ($257) million in 2023.
- Net Income (Loss) and EPS: GAAP net income (loss) was ($129) million, up from ($240) million in 2023. Adjusted net income (loss) was ($17.8) million, up from ($46.9) million in 2023. Accordingly, GAAP diluted earnings per share was ($1.44), and diluted adjusted earnings per share was ($0.20) based on the weighted-average common shares outstanding during the year.
- Contribution Profit was $382 million in 2024, up 8% YoY, with a Contribution Margin of 60% compared to 63% in 2023.
- Adjusted EBITDA was $10.6 million, up from ($17.2) million in 2023. 2024 Adjusted EBITDA Margin was 2% of total revenue, up from (3)% in 2023.
Financial Outlook
For the first quarter of 2025, Upstart expects:
- Revenue of approximately $200 million
- Revenue From Fees of approximately $185 million
- Net Interest Income (Loss) of approximately $15 million
- Contribution Margin of approximately 57%
- GAAP Net Income (Loss) of approximately ($20) million
- Adjusted Net Income (Loss) of approximately $16 million
- Adjusted EBITDA of approximately $27 million
- Basic Weighted-Average Share Count of approximately 95 million shares
- Diluted Weighted-Average Share Count of approximately 105 million shares
For full year 2025, Upstart expects:
- Revenue of approximately $1 billion
- Revenue From Fees of approximately $920 million
- Net Interest Income (Loss) of approximately $80 million
- Adjusted EBITDA Margin of approximately 18%
- GAAP Net Income to be at least breakeven
