Upstart Holdings, Inc. Q1 FY2026 earnings call

Paul Gu started by stating the goal to build a high-growth and high-return business. Originations and revenue growth in Q1, with factors like technology improvements, new product momentum, seasonality, and investments. Focus on platform and product strategy, including improving underwriting model, maximizing AI use, growth in auto, home, and new Cashline product. Andrea Blankmeyer discussed Q1 results, factors like newer products, seasonality, and investments, and full-year guidance. Paul emphasized capital efficiency, reinvesting profits, and bank charter benefits.

Originations grew 61% year over year and revenue grew 44%. Core personal loan originations were flat to Q4, showing better-than-seasonal performance. Auto originations grew more than 300% year over year and 30% sequentially, with auto retail up roughly 13 times year over year and nearly doubling sequentially. Home originations grew 250% year over year and 16% sequentially. Total revenue was approximately $308 million, up 44% year on year and 4% sequentially. Contribution profits were $137 million, up 34% year over year but down 2% sequentially. GAAP operating expenses were $516 million in Q1. Ended Q1 with just over $1 billion in loans held on balance sheet.

Reiterating full-year 2026 guidance: total revenues approximately $1.4 billion, revenue from fees approximately $1.3 billion, adjusted EBITDA approximately $294 million. Expect growth in absolute contribution profit dollars within at least five percentage points of fee revenue growth, marketing and OpEx growth to moderate, and adjusted EBITDA weighted toward the second half of the year.

Q: Mihir Bhatia asked about balancing near-term profit vs reinvestment and growth.

A: Paul Gu said on track for full-year guidance, reinvesting for long-term growth.

Q: Mihir Bhatia followed up on revolving product Cashline.

A: Paul Gu said it's out broadly, early days.

Q: Kyle David Peterson asked about expenses and bank application.

A: Andrea Blankmeyer discussed seasonality and no material bank application expenses this quarter.

Q: Simon Alistair Clinch asked about funding deal terms.

A: Paul Gu said risk sharing terms consistent and improving.

Q: Dan Dolev asked about cash flow and consumer health.

A: Andrea Blankmeyer and Paul Gu discussed cash flow and consumer stable.

Q: Peter Corwin Christiansen asked about conversion rate seasonality.

A: Paul Gu discussed seasonal effect and mix effects.

Q: James Eugene Faucette asked about forward flow and HELOC.

A: Paul Gu discussed deal terms and HELOC benefits.

Q: Analyst from Goldman Sachs asked about contribution profit and small-dollar product.

A: Andrea Blankmeyer and Paul Gu discussed contribution profit and small-dollar product impact.

Q: John Douglas Hecht asked about unit level and customer acquisition.

A: Paul Gu discussed marketing channels and strategy.

Q: Patrick Moley asked about bank charter timeline and buybacks.

A: Paul Gu discussed bank charter process and buyback considerations.

Q: Analyst from BTIG asked about bank economic implications.

A: Paul Gu discussed bank charter benefits.

Q: Giuliano Bologna asked about HELOC and auto revenue expectations.

A: Andrea Blankmeyer discussed revenue expectations.

Q: Robert Henry Wildhack asked about new product unit economics and Cashline.

A: Paul Gu discussed new product unit economics and Cashline target users.

Q: David Scharf asked about capital mix and margin increase.

A: Paul Gu discussed capital mix and margin increase expectations.