Upstart stock is on track to drop below the $40 mark for the first time since late April as it plunges hard in premarket following its Q3 report.
- Despite the mixed results and weak outlook, the company stated that it continued to execute its 2025 game plan, which focuses on “rapid growth, profitability, and AI leadership.”
- The company also highlighted its “exceptional credit performance.”
- Upstart stock has lost about 25% for the year.
Upstart Holdings, Inc. (UPST) shares fell over 14% in Wednesday’s early premarket session as investors reacted to the cloud-based artificial intelligence (AI)-powered lending platform’s mixed third-quarter results and subpar outlook. The stock appears on track to break below the $40 psychological mark for the first time since late April.
UPST’s stock has been on a volatile ride this year, having assumed “meme status” amid strong retail interest.
What Retail Feels About UPST Stock After Q3 Print
On Stockwits, retail sentiment toward Upstart stock improved to ‘extremely bullish’ as of early Wednesday, improving from the ‘bullish’ mood observed the day before. The message volume also perked up to ‘extremely high’ levels. Over the 24 hours leading up to late Tuesday, retail chatter on the stream spiked by about 760%. The stock was among the top five trending equity tickers on the platform as of early Wednesday.
A bullish watcher said they were buying in the low $40s and hoped for a flip.
Another user urged fellow retailers to hold the stock, stating that the government shutdown will end soon.
Upstart’s Q3 Earnings Snapshot
San Mateo, California-based Upstart reported an adjusted profit of $0.50 for the third quarter of the fiscal year 2025, reversing from a loss of $0.06 a year ago. Revenue increased 71% year over year (YoY) to $277 million, as transaction volume rose 128%.
According to the Fiscal.ai-compiled consensus, the company was expected to report EPS of $0.42 and revenue of $279.62 million.
CEO Dave Girouard said, “In Q3, we continued to execute on our 2025 game plan of rapid growth, profitability, and AI leadership — all anchored in exceptional credit performance.” “The results include 80% year-on-year growth in originations with 71% growth in revenue, and a sixfold sequential increase in GAAP net income.”
The company guided fourth-quarter revenue to about $288 million and full-year revenue to $1.035 billion, below the average analyst’s estimates of $303.65 million and $1.06 billion, respectively.
Upstart stock has lost about 25% for the year.
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