Upstart’s third quarter was marked by solid year-over-year growth but drew a negative market reaction, as revenue modestly missed Wall Street’s expectations. Management attributed the results to conservative adjustments within its AI-driven credit decision models, which responded to macroeconomic signals by tightening loan approvals and raising interest rates. CEO David Girouard noted, “Our models responded to macroeconomic signals they observed by moderately reducing approvals and increasing interest rates,” leading to a lower conversion rate despite robust demand. The quarter also saw continued progress in new products, particularly in auto and home lending, yet the impact of model conservatism weighed on transaction volumes.
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that make re-ratings harder.
Unfortunately, the rich prices have haunted them over the past six months as the industry was flat while the S&P 500 was up 15.3%.
AI is rapidly transforming the mortgage-backed securities (MBS) market, moving from an experimental tool to an essential component of operations as of November 2025. This integration promises significant benefits in efficiency and insight, but simultaneously introduces new and amplified financial risks, drawing uncomfortable parallels to the conditions that contributed to the 2007 debt crisis. Financial [...]
Shares of AI lending platform Upstart (NASDAQ:UPST) fell 13.2% in the morning session after the company reported mixed third-quarter results and provided a weaker-than-expected revenue forecast for the fourth quarter. While the artificial intelligence (AI) lending platform's earnings per share of $0.52 beat the forecast of $0.42, its third-quarter revenue of $277.1 million fell just short of the $280.6 million expected. The primary concern for investors, however, was the company's forward-looking guidance. Management projected fourth-quarter revenue to be around $288 million, which was significantly below the Wall Street consensus estimate of $306.6 million. This downbeat outlook suggested that the company's growth could slow more than anticipated, leading to a negative reaction from the market despite the quarterly profit beat.
In a move underscoring a broader resurgence in corporate capital allocation strategies, LendingClub Corp (NYSE: LC) today announced a substantial $100 million stock repurchase program. This significant announcement, made on November 5, 2025, comes as the online lending pioneer prepares for its Investor Day, signaling robust confidence in its financial
AI lending platform Upstart (NASDAQ:UPST) fell short of the markets revenue expectations in Q3 CY2025, but sales rose 70.9% year on year to $277.1 million. Next quarter’s revenue guidance of $288 million underwhelmed, coming in 6.1% below analysts’ estimates. Its non-GAAP profit of $0.52 per share was 23.4% above analysts’ consensus estimates.
AI lending platform Upstart (NASDAQ:UPST) fell short of the markets revenue expectations in Q3 CY2025, but sales rose 70.9% year on year to $277.1 million. Next quarter’s revenue guidance of $288 million underwhelmed, coming in 6.1% below analysts’ estimates. Its non-GAAP profit of $0.52 per share was 23.4% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after blockbuster quarterly results from tech titans Apple and Amazon boosted investor confidence, supported by impressive earnings from key cloud and crypto leaders, Cloudflare and Coinbase.
