Upstart Holdings Inc (XSWX:UPST)

Q2 2026 Upstart Holdings Inc Earnings Call Transcript

Aug 4, 2026 / 08:30 PM GMT

Release Date Price: CHF24.46 (+3.86%)

Transcript 10-Q/A10-Q8-K

Key Points

Positve

Upstart Holdings Inc (UPST) delivered a strong Q2 2026, with total originations up 50% year-over-year and 23% sequentially, driven by a 27% quarter-over-quarter reacceleration in core personal loans.
The company achieved an all-time high contribution profit of $193 million and returned to GAAP profitability, reporting $17 million in net income and a 5% net income margin.
Secured products (auto and home) made significant progress toward profitability, with their combined contribution margin improving by 61 percentage points quarter-over-quarter, and the company expects to reach breakeven by Q4 2026.
Upstart Holdings Inc (UPST) strengthened its funding platform by closing three major institutional deals, including its largest ever, providing up to $5 billion in new committed capacity, and completed an upsized $569 million ABS issuance at the tightest spreads in three years.
The company's AI model continues to widen its accuracy lead, now 2.74 times more accurate than traditional credit scoring models, and it received conditional approval from the OCC for its bank charter, which is expected to unlock operational and regulatory efficiencies.
Capital discipline is evident as loans on the balance sheet declined to just 5.9% of total outstanding loans, the lowest level in almost two years, despite strong origination growth.

Negative

The macroeconomic environment remains a headwind, with UMI rising to 1.5%, at the top of the guidance range, which is expected to modestly pressure originations and fair value marks.
The company decided to sunset its auto refinance business, acknowledging it did not have the same growth velocity or potential as other bets in its portfolio.
Secured products are still operating at a negative contribution margin of -35%, and while improving rapidly, they continue to be a drag on overall profitability.
Fixed expenses increased 11% sequentially in Q2, partly due to investments in tech infrastructure, model infrastructure, and bank preparations, as well as one-time restructuring costs.
July originations growth slowed to 34% year-over-year from 50% in Q2, reflecting the impact of the higher UMI and a modest step-down from June.
The company maintained its full-year guidance despite strong Q2 results, citing the macro headwind from UMI, which may signal a more conservative outlook for the back half of the year.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

UPST.OQ - Upstart Holdings, Inc.
Q2 2026 Upstart Holdings Inc Earnings Call
Aug 04, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Please stand by.

Good afternoon and welcome to the Upstart second quarter 2026 earnings call. At this time, all participants are in a listen-only mode to prevent any background noise. Later, we will conduct a question-and-answer session and instructions will be given at that time. As a reminder, this conference call is being recorded. I would now like to turn the call over to Sonia Banerjee, Head of Investor Relations. Sonia, please go ahead.

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Unidentified_2 [2]
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Thank you. Welcome to the Upstart earnings call for the second quarter of 2026.

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