Upstart Holdings, Inc. announced outstanding financial results for the second quarter ended June 30, 2025, with total revenue reaching $257.291 million, a remarkable 102% increase year-over-year. Revenue from fees surged 84% year-over-year to $240.777 million.
A significant milestone was achieved as the company reported GAAP net income of $5.607 million, marking its first positive GAAP net income since Q2 2022, a quarter earlier than anticipated. Adjusted EBITDA for the quarter stood at $53 million.
Performance across all loan segments was robust: personal loan originations hit $2.8 billion, the highest volume in three years, with the conversion rate climbing to 24%. Auto lending grew 87% sequentially, crossing $100 million in quarterly originations, and HELOC originations grew 67% sequentially, nearing $100 million.
Small Dollar Loans also grew 40% sequentially, exceeding $100 million in quarterly originations, and accounted for nearly 16% of new borrowers. Upstart's loan servicing and collections efforts reduced year-over-year population-adjusted delinquency rates by 20% and raw delinquency rates by 32%, while automation cut people-related costs per current loan by 50% over 2024.
The company's funding ecosystem was strengthened, with committed capital now constituting well over 50% of its platform funding. Upstart also entered into a $100 million risk retention financing facility in June 2025 and successfully closed its second ABS deal of 2025 with improved execution.
For the full year 2025, Upstart significantly raised its total revenue guidance to approximately $1.055 billion (from $1.01 billion) and its revenue from fees to $990 million (from $920 million). Full-year GAAP net income is now projected to be approximately $35 million (up from at least breakeven), with an Adjusted EBITDA margin around 20%.
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