Upstart Holdings, Inc.

Q2 2026 total originations were $4.2 billion, up 50% year over year and 23% sequentially. Total revenue was approximately $365 million, up 42% year over year and 18% sequentially; fee revenue was $348 million, up 45% year over year and 26% sequentially. Contribution profit was $193 million, an all-time high, up 37% year over year and 41% sequentially; contribution margin was 55% versus 58% in Q2 2025 and 50% in Q1 2026. GAAP net income was approximately $17 million, up 195% year over year, with GAAP diluted EPS of $0.16; adjusted EBITDA was approximately $77 million with a 21% margin. Full-year 2026 guidance was reiterated at approximately $1.4 billion of total revenue, approximately $1.3 billion of fee revenue, and approximately $294 million of adjusted EBITDA, or roughly 21% of revenue. Management said UMI was 1.5 as of yesterday, at the top of the 1.4 to 1.5 range used in the original guidance, and assumed it stays around that level for the rest of the year.

Paul Gu framed the quarter as proof that the company can grow, protect credit performance, and expand margins at the same time. He said the team executed the plan laid out last quarter: reaccelerating core personal loans, improving Home and Auto profitability, and staying capital efficient. He also emphasized Upstart’s technology lead, saying the model accuracy gap versus traditional credit scoring widened again and that the company still has a large runway left to improve.

Andrea Blankmeyer highlighted that the business delivered across the key financial levers: originations, fee revenue, contribution profit, and GAAP profitability. She pointed to unsecured contribution margin of 62%, secured contribution margin improving to negative 35% from negative 96% in Q1, and fixed operating expenses expected to grow in the low single digits sequentially in both Q3 and Q4. She also noted year-to-date committed capital partnerships expected to add up to $10.8 billion in incremental capacity, 3 securitizations totaling roughly $1.7 billion in collateral, and stated SBC should be about $170 million for the full year, representing a low-to-mid-20s share of fixed expenses.

Analysts focused on take rate, secured-product distribution, the decision to sunset Auto Refinance, OpEx growth, UMI sensitivity, and funding mix. Management said the better take rate mostly came from mix shift toward core personal loans and improved secured-product economics, while also noting take rates are not the goal by themselves. On Auto Refinance, Paul Gu said it was a good product but didn’t make the cut versus higher-velocity opportunities, and on funding, Andrea said the company prefers a stable committed-capital base and expects to use the bank primarily to improve operations rather than change the third-party-funded model.