Upstart Holdings announced a partnership with Bay Area credit union Tech CU to offer personal loans through its AI‑powered lending marketplace, with the first product launch scheduled for September 2025 and an auto‑refinance offering slated for early 2026. The deal gives Tech CU members access to Upstart’s automated platform while the credit union manages the application and closing process, creating a seamless digital borrowing experience for Tech CU’s 177,000‑member base.
In its Q3 2025 earnings, Upstart reported revenue of $277 million, up 71% year‑over‑year, and GAAP net income of $31.8 million, translating to an EPS of $0.23 versus the consensus estimate of $0.42—a beat of $0.19 or 45%. The strong earnings result was driven by a 128% year‑over‑year increase in transaction volume and a conversion rate jump to 20.6% from 16.3% in Q3 2024, underscoring the effectiveness of Upstart’s machine‑learning underwriting and high automation rate of 92% of loans in Q1 2025.
Revenue, however, fell slightly short of analyst expectations, coming in at $277 million against a consensus of $279.59 million. The modest miss was largely attributable to a 3% decline in the personal‑loan segment, partially offset by a 5% gain in the auto‑refinance segment, reflecting a shift in borrower demand amid tightening credit conditions and modest macro‑economic headwinds.
For the fourth quarter, Upstart guided to revenue of approximately $288 million and projected full‑year 2025 revenue of $1.035 billion, a slight upward revision from the prior guidance of $1.02 billion. The guidance reflects management’s confidence in sustained demand for its AI‑driven platform, while the modest increase signals a cautious stance on macro‑economic uncertainty.
After the earnings release, the market reacted with a 2.59% dip in after‑hours trading, a move largely driven by the revenue miss. Investors focused on the top‑line growth trajectory, noting that while earnings beat expectations, the slight shortfall in revenue raised concerns about potential slowdown in borrower activity.
Strategically, the partnership aligns with Tech CU’s goal of expanding digital lending services. With $4.8 billion in assets and a member base that has grown from 169,000 in 2023 to 177,000 today, Tech CU is positioning itself to offer more competitive loan products nationwide, leveraging Upstart’s AI platform to accelerate member onboarding and reduce underwriting costs.
Geographically, Tech CU’s members are concentrated in the Bay Area but the credit union has been expanding its footprint, opening a branch in Austin, Texas in early 2024 and planning a new branch in Idaho in 2025. The partnership will allow Tech CU to serve members across the United States, enhancing its national reach.
Upstart’s platform relies on proprietary machine‑learning models that assess borrower risk in real time, enabling 92% of loans to be fully automated. This high automation rate reduces processing time, improves conversion rates, and supports the scalability of the partnership with Tech CU.
Management emphasized the partnership’s benefits. CEO Dave Girouard said, “Our AI platform is performing exactly as designed, rapidly adapting to evolving macro signals while delivering strong results.” SVP of Lending Partnerships Michael Lock added, “Through Upstart’s AI‑powered platform, Tech CU can provide its members with a seamless digital borrowing experience.” Chief Lending Officer Josh Bluhm of Tech CU noted, “Partnering with Upstart allows us to leverage AI for faster, smarter, and more seamless lending options.”
The collaboration expands Upstart’s network of financial institution partners, reinforcing its position against competitors such as SoFi, LendingClub, and Avant. By integrating with a credit union that serves a diverse member base, Upstart can capture new borrower segments, drive originations, and strengthen its market share in the AI‑lending sector, which is projected to grow significantly in the coming years.
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