UPST

It has been about a month since the last earnings report for Upstart Holdings, Inc. (UPST). Shares have lost about 6.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Upstart due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Upstart Holdings, Inc. before we dive into how investors and analysts have reacted as of late. •    Revenues: $364.7 million in second-quarter 2026, up 42% year over year.•    EPS: 16 cents, up 220% year over year from 5 cents in the prior-year quarter.•    Revenues from fees: $348 million, up 45% year over year, with platform/referral fees of $284.1 million, servicing/other fees of $54.8 million and loan sales fees of $9.1 million.•    GAAP net income: $16.5 million, up 195% year over year from $5.6 million in the prior-year quarter. Net income margin was 5% versus 2% a year earlier.•    Contribution profit: $193.1 million, up 37% year over year; contribution margin 55% compared to 58% in the prior-year quarter.•    Adjusted EBITDA: $76.9 million, up 45% year over year; adjusted EBITDA margin of 21% in second-quarter 2026.•    Originations: $4.2 billion, up 50% year over year; 558,014 loans originated, up 50% year over year. Top-line growth was driven by higher marketplace originations, stronger fee revenues and continued expansion beyond core unsecured lending. Total originations rose to $4.2 billion, while fee-based revenues reached $348 million, as platform/referral fees, servicing/other fees and newly separated loan sales fees all contributed to the second quarter. Profitability improved despite higher operating costs. GAAP net income increased to $16.54 million, adjusted EBITDA reached $76.9 million and adjusted EBITDA margin was 21%. Contribution profit reached an all-time high of $193.1 million, though contribution margin declined to 55% from 58% a year ago as product mix continued to include faster-growing secured products with lower current margins. Unsecured Lending, which includes personal loans, small-dollar loans and Cash Line, remained the largest contributor in the second quarter. Fee revenue rose 38% year over year to $326.3 million, while originations increased 38% year over year to $3.64 billion. Loan count reached 535,191 in the reported quarter. Contribution profit in Unsecured Lending was $200.8 million compared with $147.3 million in prior-year quarter. Contribution margin was 62%, flat year over year and up six percentage points sequentially, supported by a larger mix of higher-margin core personal loans, lower customer acquisition costs as a percentage of originations and an expected seasonal pickup in demand. Secured products continued to grow rapidly, with fee revenue rising 465% year over year to $22 million. Secured originations reached $589 million, including $426 million from auto and $163 million from home products. Auto originations increased 264% year over year, while home originations rose 139%. Margins in secured products remained negative but improved materially. Contribution margin was negative 35% compared with negative 176% in the prior-year quarter and negative 96% in the first quarter of 2026. Management attributed the improvement to better take rates, operational efficiencies, automation, funnel optimization and lower HELOC origination costs, which fell 15% sequentially. Total operating expenses were $350.1 million, up 39% year over year and 11% sequentially. Management expects fixed expenses to grow at a low-single-digit sequential pace in the third and fourth quarters of 2026. Upstart ended the quarter with $456 million in cash and cash equivalents and $526.3 million in restricted cash. Loans at fair value totaled $1.06 billion, while beneficial interest assets were $545.9 million. The balance sheet continued to reflect a capital-light marketplace model. Loans held on Upstart’s balance sheet accounted for just 5.9% of total outstanding loans, the lowest level in nearly two years. Management maintained full-year 2026 guidance for total revenues of approximately $1.4 billion, fee revenues of about $1.3 billion and adjusted EBITDA of $294 million, implying a 21% margin. Management highlighted progress in reaccelerating core personal loans, improving the profitability of Home and Auto, maintaining capital efficiency and driving a rebound in overall profitability. The company also received OCC conditional approval for its national bank charter in July 2026, with additional regulatory approvals and operational work; management’s targeted launch is in early 2027. In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted -20.69% due to these changes. At this time, Upstart has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Upstart has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Upstart is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Moody's (MCO), a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago. Moody's reported revenues of $2.19 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $4.68 for the same period compares with $3.56 a year ago. Moody's is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +8.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moody's. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Moody's Corporation (MCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Upstart Holdings comes into focus today because the stock has delivered a steep decline of about 86.7% over the past five years, while the current valuation checks still suggest the shares screen as expensive rather than a clear bargain. Over the last five years, Upstart Holdings' share price has declined about 86.7%, which means long term shareholders have seen a very large erosion in value. As peer to peer lending platforms increasingly use AI underwriting, expectations for Upstart Holdings' growth from this trend can support a higher valuation. However, any concerns about the quality of those loans or credit losses may weigh on what investors are willing to pay. Across Simply Wall St's broader checks, Upstart Holdings currently passes 0 of 6 valuation tests. This means the stock leans expensive rather than looking like an obvious value opportunity on standard metrics, according to the latest scorecard. The issue now is whether Upstart Holdings' current share price fairly reflects these risks and opportunities after such a large long term decline. Find out why Upstart Holdings' -54.6% return over the last year is lagging behind its peers. The P/E ratio is often the first place investors look for a quick sense of how the market is pricing a company like Upstart Holdings relative to its earnings power. Upstart Holdings currently trades on a P/E of 46.5x, which is far above the Consumer Finance industry average of 9.9x and also higher than the peer average of 11.6x. A tailored fair P/E multiple for the stock is estimated at 42.0x based on its characteristics, which is still below where the shares trade today. That gap suggests investors are already paying a premium over what this framework implies would be a more typical multiple for the business. Because the peer to peer lending space is attracting attention as AI underwriting gains traction, there is clear interest in the Upstart Holdings story. However, the current P/E suggests a lot of this enthusiasm is already reflected in the price. On the P/E metric, Upstart Holdings currently appears overvalued compared with both its industry and its modelled fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation puzzle for Upstart Holdings leaves off and explain what kind of future growth, margins and earnings would need to occur for the stock to be worth materially more or less than today's price, using scenarios that live on the Community page. Each narrative links its figures to a clear view of how Upstart Holdings' growth, profitability and risk profile might evolve, which you can revisit as new information becomes available. Community views on Upstart Holdings are sharply split, with one camp focused on AI driven upside and the other on funding and regulatory risk. Bull case: 28% undervalued Read the full Bull Case to see why Upstart Holdings could be undervalued Bear case: 37% overvalued Read the full Bear Case to see why Upstart Holdings could be overvalued Do you think there's more to the story for Upstart Holdings? Head over to our Community to see what others are saying! For Upstart Holdings, the current picture leans toward overvalued on standard market multiples, even after applying a tailored P/E framework. The broader valuation checks are weak, so the stock does not screen as a clear value opportunity right now. The key question from here is whether Upstart can deliver the earnings quality and loan performance that would justify its premium P/E and reassure investors on funding and regulatory risks tied to AI driven underwriting. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UPST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Upstart (NASDAQ: UPST) has had its share of ups and downs since the fintech went public in late 2020. The company, which uses artificial intelligence (AI) to process loan requests, is currently in a downward trend, with the stock price sliding about 31% year to date. But there are some promising trends, illuminated in its recent second-quarter earnings, that bear watching. Let's look at them. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Upstart delivered strong results in Q2, beating estimates with revenue up 42% year over year to $365 million and net income jumping 195% to $16.5 million. The positive net income marked a return to profitability for Upstart after a $7 million net loss in the first quarter. But Upstart has been fairly consistently profitable over the past year, with positive net income in four of the past five quarters. Also, Upstart originated $4.2 billion in loans in Q2, up 50% year over year. It converted 19.7% of loan inquiries, down from 21.7% in the same quarter a year ago. And 91% of the loans it processed were fully automated, done in seconds by AI. This provides a huge advantage for Upstart that other banks can't match. The key statistic is the contribution margin. This a metric that examines how much profit Upstart makes on every $1 it lends, after subtracting all costs to process that loan. In Q2, Upstart generated a record $193 million in contribution profit, up 38% year over year. The contribution margin was 55%, down from 58% in the same quarter a year ago. The fact that 91% of the loans are processed quickly with no human intervention drives up that contribution margin and will continue to do so. That high contribution profit can then be used to invest back in the technology and other resources or pay down debt. Overall, it just improves the financials for the growing company. The other trend Upstart is seeing is that its revenue gains are outpacing its operating expenses, resulting in a higher operating margin. In Q2, its operating profit increased 224% to $14.6 million and its operating margin jumped from 2% to 4%. These trends are all pointing Upstart toward increased earnings. For the full year, Upstart anticipates $1.4 billion in revenue, up from $1 billion in 2025 and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $294 million, up from $230 million last year. Last month, Upstart received approval for a national bank charter and expects to launch its bank in early 2027. This will allow Upstart to collect deposits, which will, in turn, lower its cost of lending. Currently, Upstart pays fees to third-party banks to originate loans, but once it launches its own bank, it will eliminate some of those fees, further improving its contribution margin and unit economics. Upstart stock is still not cheap, with a forward P/E of 47. However, Wall Street is fairly bullish on its growth with a median price target of $39.50, suggesting 30% upside. Upstart may not be a strong buy right now, but it is moving in the right direction and could start to take off once it gets its bank charter. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. 91% of Upstart's Loans Were Fully Automated Last Quarter. No Bank Can Underwrite That Cheaply. was originally published by The Motley Fool

Upstart’s second quarter was marked by a strong market reaction, as investors responded positively to robust growth in core personal loan originations and improved profitability. Management emphasized that technology investments and a sharper focus on core unsecured lending enabled a 27% sequential increase in core personal loan originations, while secured products like Home and Auto showed rapid progress toward profitability. CEO Paul Gu highlighted the company’s ability to achieve “growth, credit performance, and profitability all at once,” attributing this to advancements in underwriting models and operational execution. This combination of accelerating core growth and operating leverage stood out as key drivers behind the quarter’s performance. Is now the time to buy UPST? Find out in our full research report (it’s free). Revenue: $364.7 million vs analyst estimates of $356.7 million (41.7% year-on-year growth, 2.3% beat) Adjusted EPS: $0.57 vs analyst estimates of $0.55 (2.7% beat) Adjusted EBITDA: $76.91 million vs analyst estimates of $64.81 million (21.1% margin, 18.7% beat) The company reconfirmed its revenue guidance for the full year of $1.4 billion at the midpoint Operating Margin: 4%, up from 1.8% in the same quarter last year Market Capitalization: $2.94 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kyle Peterson (Needham): Asked about the drivers behind improved take rates across products. CEO Paul Gu explained that both a focus on high-margin core personal loans and significant margin improvements in secured products contributed to the uplift. Simon Alistair Clinch (Rothschild & Company): Pressed on the decision to sunset the Auto Refinance business. Gu clarified this was due to lower growth prospects and the need to concentrate resources on higher-potential segments. William Nance (Goldman Sachs): Inquired about sustainability of take rate improvements in unsecured lending. CFO Andrea Blankmeyer noted the improvement stemmed from mix shift and seasonality, and expects relative stability in take rates moving forward. John Hecht (Jefferies): Sought clarity on optimal funding mix and automation levels for new products. Blankmeyer highlighted progress in committed capital partnerships, and Gu emphasized that automation rates remain well below their potential, especially in secured products. Robert Wildhack (Autonomous Research): Questioned the impact of recent originations slowdown and timing for Upstart Bank operations. Blankmeyer attributed the slowdown to UMI-driven macro headwinds and confirmed that bank operations should ramp quickly post-launch. In future quarters, the StockStory team will monitor (1) progress toward secured product breakeven margins, (2) the pace of technology-driven improvements in underwriting and automation, and (3) the rollout and operational impact of Upstart Bank. Additional signposts include the firm’s ability to maintain growth in third-party funding commitments and continued expansion in multi-loan customer cohorts. Upstart currently trades at $30.16, in line with $30.32 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Co-Founder and CEO - Paul Gu CFO - Andrea Blankmeyer Head of Investor Relations - Sonya Banerjee Operator: Good afternoon, and welcome to the Upstart Second Quarter 2026 Earnings Call. As a reminder, this conference call is being recorded. I would now like to turn the call over to Sonya Banerjee, Head of Investor Relations. Sonya, please go ahead. Sonya Banerjee: Thank you. Welcome to the Upstart earnings call for the second quarter of 2026. Joining me today are Paul Gu, our Co-Founder and CEO; and Andrea Blankmeyer, our CFO. During today's call, we will make forward-looking statements, which include statements about our outlook and business strategy. These statements are based on our expectations and beliefs as of today, which are subject to a variety of risks, uncertainties and assumptions, and should not be viewed as a guarantee of future performance. Actual results may differ materially as a result of various risk factors that have been described in our SEC filings. We assume no obligation to update any forward-looking statements as a result of new information or future events, except as required by law. Our discussion will include non-GAAP financial measures, which are not a substitute for our GAAP results. Reconciliations of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website. For the first time, this quarter, we'll discuss contribution margin separately for our unsecured and secured businesses. As a reminder, Upstart has one reportable segment, Unsecured Lending, formerly called Personal Lending. The name change is administrative only and does not affect the underlying disclosures. Our Auto and Home businesses are not separate reportable segments, but in certain earnings materials we refer to them collectively as secured products, which is derived by subtracting Unsecured Lending from total company results. With that, Paul, over to you. Paul Gu: Thanks, Sonya, and thank you, everyone, for joining us today. At the end of our last earnings call, I shared 4 key commitments and takeaways. I want to start back there today, right where I left off. First, I said that core personal loans are a superpower. Our technology lead there gives us unusually strong margins, and I told you we would reaccelerate its growth. Second, I said Home and Auto had found their fit with the market, and I told you we would turn their focus to improving profitability. Third, I told you that we'd stay capital efficient, even as we pursue the enormous opportunity in credit. And putting those together, I told you that we'd drive a rebound in profitability that would show we are on track for our full year guidance. Today, I'm pleased to report that we've executed exactly that plan. We grew core personal loan originations 27% quarter-on-quarter. That's a $526 million sequential increase, which is more than 3.5x the growth of the prior 3 quarters combined. It's also the lion's share of the growth in our Unsecured Lending segment. Because of our strength in this market, we achieved this re-acceleration while also driving our unsecured contribution margin up 6 percentage points compared to last quarter. At the same time, our secured products, Home and Auto, advanced rapidly towards profitability. Combined, their contribution margin improved by 61 percentage points in a single quarter, closing a large part of the remaining gap to breakeven, and they did so while still managing origination growth of 45% quarter-over-quarter. Combined, originations across all products grew 23% sequentially or $782 million compared to last quarter. Our third-party funding strategy delivered at an equal -- at an almost equally rapid pace, allowing us to support that growth without additional equity capital. While loans on our balance sheet increased marginally, they declined to just 5.9% of total outstanding loans, our lowest level in almost 2 years. Our strategy drove a rebound in our overall margins and profitability, including all-time high contribution profit and a return to GAAP profits. To put that in perspective, our previous peak in contribution profit was in Q4 of 2021. Back then, the business benefited from a much easier macroeconomic backdrop and the financial profile of being concentrated almost entirely in a single mature product. UMI was below 1, consumer charge-off rates were at historic lows across the industry, and the federal funds rate was near 0. The fact that we've reached a new profit peak in today's environment is a testament to the relentless power of compounding technology wins quarter-after-quarter, year-after-year. I always tell people that while our business is sensitive to macro conditions in the short term, its value in the long term will be determined only by the pace of our execution. Also, unlike 2021, we are now a multiproduct company. Our business today has a significant and growing share of secured products. Auto and Home made up about 14% of total originations in Q2, compared to just 1% back then. Building those businesses is showing up in our operating expenses now, ahead of the contribution profit we expect them to generate in the future. These products expand our market opportunity by many multiples and, combined with core personal loans, can fuel profit growth for years to come. Next, I want to highlight our progress in 3 areas: our models, our customer relationships, and our secured products. As always, our most important business lever, especially in core personal loans, is improving our models. In Q2, we shipped 3 new personal loan underwriting models, cumulatively adding more than 300 new variables. We also moved personal loan underwriting to a new distributed inference platform that is roughly 65% faster at the median relative to the prior architecture, even as it supports much greater complexity. The end result, our model's accuracy lead over a traditional credit scoring benchmark widened again this quarter. Our model is now 2.74x as accurate as a traditional model, and we're still early. 87.38% of the inaccuracy gap is left for us to solve. That's our runway. Turning to our customers. Q2 was another step towards becoming the most trusted brand in consumer credit. Approximately 1 in every 13 American adults has an Upstart account, and that number continues to grow. Investing in these relationships is important to us. In Q2, we originated more than 558,000 loans, a record high. Historical experience shows that each of those borrowers will take out roughly 1.5 loans over time. Recent cohorts are trending even stronger as the addition of new products like Home, Auto and Cash Line brings us closer to our vision of having the best products for every American's credit needs. We're also making it easier for consumers to return. In Q2, we launched a new model that allows us to better manage when we pull underwriting data from vendors, allowing us to re-engage existing accounts more frequently and at lower cost. Next, I'll talk about our secured products. In Home, we streamlined the borrower verification and closing processes. Our cost to originate a HELOC decreased 15% versus Q1, and we can close in 6 days while also offering borrowers rates that are on average more than 200 basis points lower than competitors. That combination, lower cost, speed to close and better pricing, is the basis for a durable competitive advantage that should support our continued growth in this market. In Auto retail, we continue to add rooftops and win wallet share. At the same time, because of the great value proposition we offer both dealers and car buyers, we began optimizing our take rates, a clear sign this business has moved from proving demand to improving unit economics. In Auto secured personal loans, we improved the efficiency of the funnel and upgraded our ability to automatically identify consumers with eligible vehicles, which lowers acquisition costs and directly supports product margins. Each of these secured products has the potential to be as important to Upstart as personal loans over time, and we're excited to continue investing in them. At the same time, capital discipline means holding an extraordinarily high bar for investments. And because of that, we decided to sunset our Auto Refinance business this quarter. While we're proud of what the team built over the past few years, it did not have the same velocity or potential as the other bets in our portfolio. Turning to funding. Since our May earnings call, we've closed 3 major institutional deals, including our largest ever, which together provide up to $5 billion in new committed capacity. We've also kept our streak intact, renewing every institutional capital partner at a 100% rate since 2023. Separately, we completed an upsized $569 million asset-backed securitization, our largest issuance since 2021 at the tightest spreads we've seen in 3 years. This activity is another vote of confidence in our ability to deliver strong returns to our capital partners. The average return of our last 12 quarterly vintages of loans exceeds U.S. treasuries by approximately 660 basis points, with every individual vintage exceeding treasuries by at least 425 basis points. Finally, a quick update on our bank charter. In July, we received conditional approval from the OCC following a rigorous review of our credit compliance and business practices. This process, plus the work remaining to receive regulatory approvals and stand up the bank, is one of the largest undertakings in Upstart's history. The bank does not change our strategy of funding loans primarily with third-party capital, but we expect it to unlock major operational and regulatory efficiencies, which will contribute to our financial goals over the coming years. We aim to launch in early 2027. Before I turn the call over to Andrea, I'll close with a few final thoughts. Q2 was our first quarter executing with a new management team. We defined a strategy and we executed it. At AI Day last year, I told you that lending's oldest truism assumes the technology stays constant, that you can't have growth, credit performance and profitability all at once. That's not the case for Upstart. This quarter, we delivered all 3. We grew, our credit performed, and we expanded margins. We didn't have to trade one for another, and that combination, not any single metric in isolation, is the clearest evidence that our AI advantage is real and compounding. You should expect us to double down in the second half of this year. We expect to compound wins across technology and marketing as we drive growth in core personal loans and profitability in secured loans. That's where the real durable value in this business lies, independent of any macro headwinds or tailwinds. And we will continue to steward every dollar of investor capital, expanding and deepening our third-party capital relationships and holding a high bar for operational investment. I want to close by thanking everyone at Upstart for an exceptional quarter. Andrea, over to you. Andrea Blankmeyer: Thanks, Paul, and good afternoon, everyone. As Sonya noted earlier, we renamed our sole reportable segment to Unsecured Lending this quarter, a naming change only with no impact to the underlying disclosures. As a quick reminder before I walk through the numbers, Unsecured Lending includes personal loans, small dollar loans and cash line, while secured, comprised of Auto and Home, isn't a separate reportable segment. It's derived by subtracting Unsecured Lending from total company results. This framing reflects a real shift in our business. We're no longer a single product company, and our unsecured and secured products are at different levels of maturity and have very different economics today. Our focus on shifting the mix in unsecured towards core means we are leaning into the most profitable part of our business. Secured, on the other hand, is still working towards breakeven contribution margin and has been improving quickly. Breaking these out separately is the clearest way to track both stories: the earnings power of our more mature unsecured segment and the additional profit engine we're building with our secured products. Turning to the quarter. Q2 was shaped by execution on the priorities we communicated last quarter and the numbers back it up directly: a re-acceleration in core personal loans, a step change in secured product contribution margin and a rebound in total company margins and profitability. I'll cite both year-over-year and sequential growth as I walk through our results; year-over-year for the long-term trajectory, sequential for how we executed against the plan. I'll close with what this all means for our full year outlook. Total originations were $4.2 billion, up 50% year-over-year and 23% sequentially. Within this, Unsecured Lending originations grew 38% year-over-year and 20% sequentially, with the latter reflecting a re-acceleration of core personal loan volume growth. At the same time, our secured products continue to scale, with Auto originations up 264% year-over-year and 62% sequentially, while Home grew 139% year-over-year and 14% sequentially. Total revenue was approximately $365 million, up 42% year-over-year and 18% sequentially. Revenue from fees was $348 million, up 45% year-over-year and 26% sequentially. Within that, Unsecured Lending contributed $326 million in revenue from fees, up 38% year-over-year and 23% sequentially. Secured products contributed $22 million, up 465% year-over-year and 86% sequentially. Take rate, defined as revenue from fees as a percentage of total originations, improved sequentially in both categories of products, about 24 basis points in unsecured and 81 basis points in secured. That's why fee revenue growth outpaced origination growth versus Q1. Net interest income and fair value adjustments totaled approximately $17 million, roughly flat year-on-year, but down sequentially, reflecting the impact of a higher UMI on fair value. Next, contribution profit, a non-GAAP metric defined as revenue from fees minus variable costs for borrower acquisition, verification and servicing. Contribution profit was $193 million in Q2, an all-time high for Upstart. That's up 37% year-over-year and up 41% or $56 million relative to Q1. The sequential increase was almost entirely driven by Unsecured Lending, with secured products representing less of a drag versus Q1. Contribution margin was 55% versus 58% in Q2 2025 and 50% in Q1 2026. The 5-point improvement versus Q1 was driven by margin gains in both our unsecured and secured products. Unsecured segment contribution margin increased to 62%, up 6 percentage points from 56% in Q1 and flat to Q2 2025, with the sequential improvement reflecting 3 things: one, a larger mix of higher-margin core personal loans; two, lower customer acquisition costs as a percentage of originations; and three, an expected seasonal pickup in demand. The re-acceleration in core personal loan volume was driven by a combination of model improvements, funnel improvements and efficient targeted customer acquisition, all reflecting our increased focus on the borrower category. Our secured products contribution margin increased to negative 35%, an improvement of 61 percentage points from negative 96% in Q1. This was driven by improved take rates and a greater operational efficiency across Auto and Home. Given this trajectory, we expect our secured products to reach contribution margin breakeven by Q4 of this year. In total, GAAP operating expenses were roughly $350 million in Q2, up 39% year-on-year and 11% sequentially. Variable expenses, comprised of borrower acquisition, verification and servicing costs, rose 55% year-on-year and 11% sequentially. Fixed expenses, defined as total operating expenses minus variable expenses, increased 28% year-over-year and roughly $19 millionfv or 11% sequentially. Looking ahead, we expect fixed expenses to grow in the low single digits sequentially in both Q3 and Q4. In Q2, we returned to GAAP profitability, generating approximately $17 million of net income, up 195% year-over-year, with a 5% net income margin. GAAP diluted EPS was $0.16, based on a weighted average diluted share count of 110 million. Adjusted EBITDA was approximately $77 million, up 45% year-over-year, with a 21% margin. We ended Q2 with approximately $1.06 billion in loans held on our balance sheet, up approximately $50 million or 5% from Q1. That increase was driven by our secured products, which continued to scale quickly. At the same time, our unsecured holdings declined and legacy securitized loans continued to run off. As a percentage of the total unpaid principal balance of all Upstart loans outstanding, loans on the balance sheet fell to roughly 5.9%, the lowest it's been in almost 2 years. Supported by consistent credit performance, we've continued to strengthen our capital platform. Year-to-date, we've signed committed capital partnerships that are expected to add up to $10.8 billion in incremental capacity. We also completed 3 securitizations for roughly $1.7 billion in total collateral and increased the proportion of Home and Auto loans funded by third parties. Looking ahead, we're reiterating our full year guidance. Total revenue of approximately $1.4 billion, fee revenue of approximately $1.3 billion and adjusted EBITDA of approximately $294 million, or roughly 21% of total revenue. Keep in mind, our guidance is informed by our most recent published read for UMI, which as of yesterday was 1.5, up 9% from the beginning of Q2 and at the top of the 1.4 to 1.5 range that framed our outlook when we initially shared our 2026 guidance in February. With UMI having trended higher over each of the last 3 months and now at the top of the guidance range, we are maintaining our guide. We expect the underlying strength of the business, as you saw in Q2, to offset this macro headwind. Our outlook assumes UMI holds roughly at this level through the rest of the year. To close, in Q2, we did what we said we were going to do, demonstrating that we could drive sequential improvement in contribution and overall profit margins by: one, reaccelerating the growth of core personal loans at an efficient customer acquisition cost; two, meaningfully improving the contribution margin profile of our secured products while maintaining strong growth; and three, managing fixed expenses. Along with preparing to launch Upstart Bank, these 3 areas remain our focus for the balance of 2026. And above all else, we will continue to prioritize consistent credit performance. Whatever the UMI context, if we execute across these domains, our platform will be stronger than ever as we exit 2026. With that, I'd like to turn it over to the operator to begin Q&A. Operator: And the first question will come from Kyle Peterson with Needham. Kyle Peterson: Nice results. I want to start out and dig a little more into the take rate. Great to see the uplift there. It sounds like it was across products. So I guess I just wanted to dig in, like, is there any mix at play there, whether it's in terms of where in the credit box some of these loans were originated at? Or is there anything pricing that you guys did to tweak that? Just any more color there would be great. Paul Gu: Yes. Thanks for the question, Kyle. We're really pleased with the results on profitability this quarter. And it's really a reflection of the strategy that we laid out at the end of last quarter's call. We said that really there are 2 important dynamics that are going to be happening through the rest of this year. One is we're going to be focused on re-acceleration growth in this core personal loan segment. That segment carries much higher margins. And because you can see in our results that segment grew much more than it's been growing in earlier quarters, there definitely -- that's contributing to higher margin results. And then on secured products, we very intentionally were focused on actually improving significantly the margins of Home and Auto, and we did exactly that in this quarter. That was our #1 goal for those products. And so you can see that the margins improved very substantially, 61 points in a single quarter. And obviously, that's going to help. So the answer is a bit of both. We're very focused on our core personal loan segment, where we're very, very strong, but also each of the sort of underlying businesses did really well on their margins too. Kyle Peterson: Great. That's really helpful. And then maybe switching gears, I wanted to talk about some of the secured products scaling and particularly on, like, potential distribution partnerships. I know some competitors in the space, especially in the HELOCs, have kind of used some of these as a way to really ramp up growth, partnering with some mortgage brokers or something that offer HELOCs. But I guess, like, how are you guys evaluating and incorporating these into the growth strategy of some of these secured products? And what do you guys have now and where do you see that going moving forward? Paul Gu: Yes. Each of our Home and Auto businesses have some differences in the distribution strategy. So you're absolutely right that in the Home business, we think ultimately it will be very important to have Home-specific partnerships. And so that's not something we've done yet, but it's very much on our road map. It's one of the areas that we want to invest in. And we think there's a lot of potential in just because our HELOC product is so strong in terms of really best-in-class prices that we can offer the borrowers plus sort of best-in-class experience. And I think putting those together delivers an exceptional product. And so distribution, obviously, will take it the distance. In our Auto product, there's 2 different Auto products. There's an Auto purchase product, and that's distributed at car dealerships via Upstart's specific proprietary software. And so that's a strategy that's been ramping really nicely, as you can see in the results. And one of the beautiful things about it is that unlike our pure consumer businesses, in addition to being able to grow by getting better models, better user experience, in other words, better conversion rates, the Auto purchase business can simply grow by getting to more car dealerships, and there are thousands and thousands of car dealerships in America that we aspire to scale to. And then we have some businesses that are more like our traditional personal loan business in being pure direct-to-consumer. Auto secured personal loans is like that. So each of the products has a distinct distribution strategy, and some of them are already fully in play and then some of them, like in HELOC, are still to come. Operator: And the next question will come from Simon Clinch with Rothschild & Company. Simon Alistair Clinch: And yes, nice quarter. I was wondering, Paul, could you talk a bit about the Auto refinance business that you're sunsetting? I'm curious because that strikes me as a business that would actually be quite important for just repeat business, generally speaking. So I'm wondering if you could just put a bit of color around sort of how that has fitted into your strategy there and why it doesn't necessarily belong there, aside from the economics. Paul Gu: Yes. We think and we thought that Auto refi is a good product. I think we built a good product over the last few years. And to your point, it is -- it was something that was relevant to returning customers. But ultimately, we just looked at the growth rate of that business and its potential compared to everything else that we were doing, all the bets that we had out there, and we wanted to concentrate on the ones that had the highest velocity and the biggest upside. And so we decided to just concentrate a little more. And so that one didn't make the cut, just a necessary consequence of capital discipline. Simon Alistair Clinch: Okay. Understood. And then maybe, Paul, if you could talk a bit more about, but as we see the improvements that you're continuing to drive within the secured lending margins, could you talk about some of the sort of low-hanging fruit that's left to be taken and how we should think about the future profitability of this business? If you can give any color on that, that would be useful. Paul Gu: Yes. There's still a lot of pretty well-defined, well-known work to be done on improving the profitability of the secured products. Broadly, they fall into 2 buckets. The first bucket is improving and optimizing where we take our economics. And you can -- so for example, you can imagine that in the Auto purchase business, there is an enormous variation in how sensitive any particular customer, any particular car purchase deal is to the take rate that we have on it. In some deals, we are offering an extremely unique value proposition. That car would not get sold otherwise. In other deals, we're competing in a more fiercely competitive market. And so the take rates there can really be optimized pretty significantly. And that is going to, over time, as our separation and our ability to underwrite the underlying credit grows and also our ability to just understand which deals are the competitive ones and which deals are the ones where we're adding a lot of value that, that is going to improve our economics there quite a bit. And then the other sort of big thematic category of how we improve profitability in new products is by making it more efficient to originate them. In particular, in secured products, there's quite a bit more cost involved in originating the loan, the verification, liens, all of the steps of the process. And so there's a lot of room there just for a combination of data integrations, automations and then ultimately bringing more sophisticated forms of AI to bear that can really automate a lot of the work away. So all of these things, I would say, have both very short-term components that will hit fast in a significant way and then also more of a kind of long-term trajectory where they'll just keep getting better as the underlying product differentiation and the value we create grows. Operator: And we'll take a question from Will Nance with Goldman Sachs. William Nance: I was wondering if you could talk a little bit about take rate dynamics on the Personal side. It just -- there seemed to be a couple of different mix shift dynamics between the positive seasonality benefits this quarter, the mix shift, I'm guessing, towards core personal as well as the pricing investments that you've talked about making. So just how would you kind of frame the puts and takes on that line item from here, given the nice improvement that you saw sequentially this quarter? Andrea Blankmeyer: Sure. Thanks for the question, Will. Yes, and so you sort of nailed it on the drivers of the improvement in take rate on the Unsecured segment this quarter, quarter-on-quarter were driven by the mix shift primarily to core. So the increase in growth we saw in core personal loans, where we have a higher take rate on average, as well as some lift that we get from seasonality where Q1 tends to be softer seasonally and have lower takes on average. All else, I would say, is sort of relatively consistent quarter-on-quarter. As we look out over the remainder of the year, expect sort of relative consistency with where we are on take rates today. We'll expect to continue to focus on driving growth in our core personal loan sort of segment, which has strong take rates, but ultimately are not optimizing for take rate itself, but for driving high-quality revenue and ultimately contribution profit dollars to the platform. William Nance: Got it. That's very helpful. If I could squeeze in another one just on the OpEx. I hear you on the sequential growth trajectory from the second quarter. Just maybe more broadly with OpEx up almost 30% year-over-year, just can you talk about how you're thinking about the growth algorithm there in OpEx and incremental margins over a longer period of time? Andrea Blankmeyer: Absolutely. Yes. So as Paul had alluded to in his comments, part of the reason we're seeing some of the fixed cost growth this year is a factor -- is related to the fact that we're investing forward in our newer products and our secured products as those are driving towards contribution margin profitable. We made some of those investments in Q1, here in Q2, seeing the roll forward of some of those into Q2 as well as some incremental investments that we made in Q2 related to tech infrastructure and model infrastructure, as well as starting to look ahead for bank preparations. We also did a onetime restructuring in the quarter that had some severance expense associated with it. And so really, as I look at this year, a lot of the investments that we've made to support the business and our objectives have largely been made in the first part of this year, which is why we've signaled and demonstrated that we expect to grow fixed OpEx at a pretty moderate rate going forward through the remainder of the year in the low single digits, which should deliver real operating leverage this year, and we expect to continue that trajectory in outer years. Operator: And the next question will come from Dan Dolev with Mizuho. Dan Dolev: Great to see those results. Congrats. Two quick questions. First, on your conversion rate, it has increased to 19.7%. Just wanted to know kind of the DNA of your new borrower in terms of FICO. What can you tell us about it? And then I have a quick follow-up. Paul Gu: Yes. I mean, we don't tend to think a lot about our borrower in terms of FICO scores for 2 reasons. One, of course, is our core DNA as a company is that's the thing that we think could be improved in terms of how borrowers are understood, and that's what we do every day. But second, more just down to earth, I would say, we've just expanded so significantly in terms of the number of products that we have, the number of use cases, the range of consumers that we serve. We are moving towards this world where we think that we're going to have the best credit product for every type of credit need that any American might have. And so we're really serving a pretty full spectrum of people that are just new to credit or trying to repair their credit, all the way to people who are really prime and can qualify for really, really great rates, have a home. And so we're getting that full spectrum. And so one of the things you may see in our earnings materials is that we left a note that we're going to be replacing the conversion rate metric and sunsetting that particular one just because it's so sensitive to the mixes that it's a little hard to interpret. And so that's what I would say about it. It's like we're serving pretty full spectrum. Having said that, this particular quarter again, I'll just go back to this sort of main point that we did put a lot of focus on re-accelerating core personal loans, and, like, that product tends to be kind of a product that tends to serve borrowers who are maybe in the medium sort of FICO score regions. That's historically where it's been and continues to be. And that product, we did put a lot of emphasis on this particular quarter. Dan Dolev: Great. And my quick follow-up, of course, on the guide. Amazing results. You're not raising the guide. I take this as just simply being conservative. Andrea Blankmeyer: So we are very pleased with the results that we saw in Q2 and are seeing very much kind of strong underlying business performance. And we are seeing UMI at the end of Q2 and as of the print yesterday around 1.5, which is at the high end of the range that we set when we set guidance at the beginning of the year of 1.4 to 1.5. And so that represents a modest headwind on originations and our fair value marks. So sort of taking all of that in combination is the context in which we're maintaining our guide on a full year basis. Operator: And we'll take a question from Peter Christiansen with Citi. Peter Christiansen: Andrea, I was wondering if you could just interpret some of your previous comments on UMI just a little bit more, help us understand. So I think you mentioned that the base business is still doing really well. So you feel good about the outlook for the year. Is that a function of some of the new capital, third-party capital that you brought in the door or -- and/or I would say, maybe some of the new product areas? Is that what's giving you confidence about maintaining the outlook despite that the UMI has gone up? Paul Gu: Pete, it's really all of the above. Starting with our core personal loans business, that's really the centerpiece of what we're focused on and what we're doing. That's driving a lot of the financial results that we're excited about in Q2, and it's going to continue driving a lot of the results the rest of this year. We -- as Andrea said, we've been executing, we think, at a really high level against our priorities and the pieces of the puzzle that are within our control. We are sailing against a modest macro headwind with UMI up to that 1.5 level. And so there are some puts and takes there in the short term on how that affects originations and the trajectory of originations the rest of this year. But certainly, the personal loans numbers matter a lot to the financials of the business. We definitely also expect that the secured products are going to continue on the trajectory they're on. And we -- in particular, we're really focused on getting those products to contribution profitable. And so we have a lot of confidence we're going to drive that this year. And so that will, of course, help as well. But there's no achieving the numbers without core personal loans. Peter Christiansen: Fair. Fair enough. And then it looks like you talked about repeat borrowers. It's been up quite a bit versus previous years. Just curious if you could take us through that dynamic. And to what degree is that contributing to a lower borrower acquisition and verification cost? Paul Gu: Yes. I mean that trend has really been playing out gradually over a lot of years now. So it's not any kind of, like, big sharp change in Q2 specifically. But really, the thing that's been happening is if you think about Upstart in the early years, we had a single product. We had personal loans. Our accounts didn't even offer support for people to take out second loans in the early days. And we really thought of our business as a transactional business. We're very focused on this conversion rate metric, which is really a measure of you come in the door, do you get a loan. And it was a very onetime transactional metric. And over the years, increasingly, as we've rolled out new products that could serve people in different circumstances across their credit lifetime, that's Auto and Home and Cash Line and small dollar product, those products have given us the ability and the relevance to people to be relevant for a long time and to hopefully serve them with more products over time. We've also invested a lot in the experience of coming back to Upstart and making it way easier, way faster to do that, and that continues to be a focus area for us. And the net result of those things is that you can see in our earnings materials for the first time we've shared a set of metrics around how many loans the average borrower gets over time. That historically was in the kind of 1.5 range. And you can see in more recent cohorts, it's trending above that, and we think that's exactly what you should continue to expect given the investments we're making in more products and better experience. Operator: And the next question comes from Mihir Bhatia with Bank of America. Mihir Bhatia: I want to just zoom in a little bit more on the EBITDA guide just between the quarters Q3, Q4 cadence. I think your guidance implies about 24%, 25% EBITDA margin in the back half of the year. And I think you've mentioned secured breaks even in the Q4. You have fixed costs increasing single digits. So maybe, like, just talk a little bit about the cadence between Q3 and Q4. Is there some seasonality in there too? Or should we just expect step function increases each quarter? Andrea Blankmeyer: Yes. Thanks for the question. We told you last quarter that the guide was back half weighted. We're continuing to see that here with the EBITDA expected to ramp in the second half of the year. Hopefully, the trajectory you've seen from us here in Q2 going from 13% EBITDA margin to 21% EBITDA margin this quarter versus last quarter is showing a strong trajectory. And then really as we sort of look ahead over the remainder of the year, I would say it's just continued progress against the key levers that we operated against in Q2 and expect to continue to deliver against as we move through the year. So continued progress growing our core personal loan segment, which is really the profit and contribution profit engine of the business. That will be further boosted by improving the contribution profit profile and unit economics of our secured products as we ramp through the year, again, an expectation we expect to be contribution profit positive in Q4. And all of that supported by fixed cost growth discipline. So with fixed costs growing at a moderate low single-digit level as we progress in each quarter of the year. Mihir Bhatia: All right. And then maybe if I could just ask a little bit about competitive intensity in core. When you clearly re-engaged this quarter, you had, I think, better growth than you had in the last few quarters in that subsegment, if you will. Can you talk a little bit about what you're seeing from there? Is your pricing power expanding? Is it holding? Like, is there anything in the 2Q data that gives you more confidence that the moat, if you will, is widening there? Paul Gu: Yes. I mean, this has been an area we've gotten a lot of questions over the past couple of quarters. And we've always tried to tell people that our advantage in core personal loans is very significant. It's very durable. And that's driven by how much differentiation we've created over a decade-plus of working on building differentiated models for understanding the credit risk of this borrower, being able to separate that risk between people much more and less likely to default. And I think it just sort of is much clearer in the results this quarter. You can see that not only did we grow in core personal loans, we grew while actually improving the margins there. The sort of CAC actually came down. I mean, none of those things, I would say, in isolation are really the whole story, but it really does come back to this core truism of lending that if you don't have differentiated technology, then you can only choose between one of high growth, profitability and credit performance. Maybe you can get 2, but certainly can't get all 3. And that's something that we have in our core personal loan business, just the ability to achieve all of those things at once because the level of technology differentiation is so large. And the primary difference between this quarter and earlier ones really comes back to one of management focus. We were extremely focused this quarter on this core segment, and it showed up in the results, and we think that's something that can continue. Operator: And moving on to John Hecht with Jefferies. John Hecht: I appreciate the broken out detail in secured versus unsecured. First one is just trying to get -- maybe, Andrea, your thoughts on thinking about the next couple of years. What would you like to see in terms of the mix of funding from, like, forward flow versus ABS? Do you have any kind of balance in mind that you think is optimal? Andrea Blankmeyer: Sure. Yes, it's a great question. I think one thing that has been the real progress that the company has made over the last few years is mix shifting our capital base towards committed capital partnerships. And so today, well over half of our capital is from committed capital partnerships. And you sort of heard the stats from us on the renewals and the overall quantum of commitments we've gotten year-to-date. That, I would say, is probably the most important for us is the ability to ensure that we have a stable, resilient funding base that is committed through -- on average, these terms are 12 to 24 months. And so as we look out over kind of the 1-, 2-, 3-year time horizon, most important for us will be continuing to scale this capital base in a sustainable way, potentially sort of tapping different investor bases as we look to do so. Ultimately, most importantly, looking to find that right balance between at-will securitization with sort of focus on the committed capital that allows us to have real visibility into the commitments over multi-months and ideally over time, multiyear time horizon. John Hecht: Okay. And then a separate question on the secured products. I know in the core product or the unsecured product, your turnaround time is very, very quick because of the technological base. What is the turnaround time for a HELOC or an Auto loan? How does that compare to your perspective on industry standards? And how much more room do you have to go on that product category -- on that level of that product? Paul Gu: Yes. Today, they're far slower than personal loans or unsecured products, but we do think they're industry-leading. In HELOC, for example, we're doing it in about 6 days, and industry standard, if you go into a bank or credit union, it could be weeks or months. So very, very significantly faster. We actually think there's still a lot of room to go on these things, and that's where a lot of the work I talked about in improving the margins of these products will come from. It's actually reducing the complexity of the process, automating the process. And of course, in addition to being cheaper to do, you also make it faster to do, which is a borrower experience benefit. So that's a very, very high focus for us, and we are expecting to see a lot of wins there in the rest of this year. Operator: And the next question will come from Giuliano Bologna with Compass Point. Giuliano Anderes-Bologna: Congrats on the great results. One thing I'd be curious about asking, and this is hopefully a mooted question, there's a new disclosure for loan sale fees. I'm curious if that's related to the gains that you're charging on forward flow deals for HELOC and Auto, or if it's one or the other? Andrea Blankmeyer: Thanks for the question, Giuliano. Yes, those are primarily related to our secured products and our fees associated with forward flow arrangements. Historically, they've been a sort of immaterial amount, reached materiality here in Q2, have pulled it out as a separate line item. Giuliano Anderes-Bologna: And kind of going back to the guide and the kind of interplay around the -- also commentary around expenses continuing to move higher. One thing I'm curious about is, is there an expectation that there is kind of a step-up in stock-based comp and kind of continuation of the step-up that we experienced in 2Q for the balance of the year? And is that one of the levers that should flow through as part of that step-up in expenses? Andrea Blankmeyer: That's a great question. Thanks for that. So in Q2, about half of the fixed expense growth that we saw quarter-on-quarter, so about half of the $19 million, was driven by an increase in stock-based comp. About $4 million of that $9 million increase was discrete to the quarter, and it is not expected to repeat in Q3 and Q4. About $4 million of that is related to kind of the full quarterization, if you will, of performance-based RSUs granted in March for the first time rolling through for a full quarter. So about $7 million, $8 million in total of the increase in stock-based comp quarter-on-quarter can be attributed to those 2 factors. As you can see, inherent in those 2 factors, we don't expect that those will repeat quarter-on-quarter going forward. And so if you sort of step back on a full year basis for stock-based comp, we expect SBC to be about $170 million on a full year basis, representing as a percent of fixed expenses, something in the low to mid-20s and a modest reduction versus last year. Giuliano Anderes-Bologna: That's very helpful. And maybe one brief one. I'm curious when I think -- there's been a little bit of increase in, like, Auto and Home loans on the balance sheet. And I'm curious where things stand in terms of securing some final agreements on -- in terms of distribution to kind of continue to execute a lot of those loans off the balance sheet going forward. Paul Gu: Yes. Great question. Funding progress has been really strong. As Andrea mentioned, we've added a lot of new funding deals in the last quarter alone, more than $5 billion of committed capital. And some of the new deals that we're signing are flowing into our Home and Auto products. And so we're very happy with the progress on those products. And generally, what I would direct everyone to think about in terms of the net of the funding math is how much originations grew and how much landed on the balance sheet. And if you think about sort of those numbers compared to each other, you can sort of infer that we must be adding a lot of third-party capital, both in the core business and in our new businesses, and we're very excited about where that's headed. Operator: And the next question comes from James Faucette with Morgan Stanley. James Faucette: I wanted to ask one operational question and then kind of one question on lending philosophy. On the operational question, I noticed that your completely automated origination percentage went down slightly, like, 100 basis points, obviously not a lot, from a very high level at 92%. Just wondering, does that imply that we're bumping up against kind of the top of that range? Or do you think you can push it higher and, I would imagine, drive better profitability that way? Paul Gu: No, I don't think that -- I don't think we're at the limits of automating. But really, there's a lot of mix effects under the hood. And if you think about the different products, they vary a lot. Certainly, it's the case that you can only get to 100%. But the reason that we put out every quarter this nice graph in our earnings deck that shows the percent of people that are -- the percent of applications that are approved in addition to the percent of loans that are fully automated is that because automated loans convert at such a higher rate compared to nonautomated ones, and this is dominated by our unsecured products like personal loans, there's still a lot of room for that to go up. That's only 77% of applications being approved automatically. So that number can still go up. And then that math is even more extreme if you think about the new products and the discussion we've already had about Home and Auto, you can imagine that the levels of automation there are significantly lower, and there's just so much more room for those products to run. And so as they scale, they're going to become a larger part of this math, and there will be more room for them to contribute by raising their levels of automation. James Faucette: Got it. And then philosophically, I wanted to just follow up on the UMI and the trajectory there versus kind of how you're thinking about how aggressively you want to be lending. I think the way that you characterized UMI and what it's done directionally and how that impacts your outlook for the year makes sense. But at the same time, I'm wondering, as you're lending against a little bit higher UMI score, what's your visibility? Or how do you think about proving out whether you're getting the type of performance from the loans and whether it be in terms of payback rates or delinquencies, et cetera, versus what you would expect? Just trying to sensitize ourselves on an ongoing basis to UMI's moves and its impact on your willingness to lend. Paul Gu: Yes. I mean, measuring and predicting credit performance, that's kind of what we do every day, right? So I mean, starting from UMI, obviously it's up over the last few months. And we have a lot of confidence in that system. It's something we've invested a tremendous amount in over the last couple of years. And we think we've got the fastest and most precise understanding of macro effects in consumer credit of anyone out there. And so we trust that system to be able to read what's going on. We published just this kind of one blended number, but under the hood, there's a lot more sophistication, ability to understand what's going on with different segments of consumers, almost arbitrary sort of combinations of segments and characteristics. That's kind of what that deep learning-based approach makes possible. And so we give our models a lot of power to react to the latest in what's going on and to price that risk into how we're underwriting new loans. And then what we expect coming out the other end is that we're going to have properly calibrated performance, and that basically means loans that deliver returns similar to the returns that we're targeting. And so when we share every quarter results about how credit performance is, the number of basis points were, performance exceeding treasuries, those are all indications that credit is going in the right direction. And then, of course, ultimately, this is about whether our capital partners, our third-party capital partners, are happy with the returns. And given the 100% renewal rates we're seeing, the sort of longer deals, the longer commitments people are making, bigger commitments people are making, I think you can see that the credit performance and the returns have been incredibly strong for our partners. Operator: And we'll take a question from David Scharf with Citizens Capital Markets. David Scharf: And congrats on such strong results. I wanted to follow up on, I guess, a couple of questions on the capital side. And the first relates to loan retention. I thought it was very positive on an actual dollar -- absolute dollar basis, it looks like the amount of core personal loans retained on the balance sheet is going down. And Paul, you've kind of referred to it as core, maybe more mature, higher margin at various points on the call. To the extent that it's no longer sort of an R&D-ish product, should investors think about a time line or a specific target or goal at which point the company possibly feels like it doesn't have to tie up capital in retaining any of the personal loan product? Andrea Blankmeyer: That's a great question. And so when we think about the uses of our balance sheet at Upstart, again, I'll point everyone back to 5.9% of our total principal outstanding is what we're retaining on our balance sheet. So the vast majority of what we originate, we are selling through to third parties and holding a minority on our balance sheet. Ultimately, our balance sheet really serves 2 purposes for us. One is for the purpose of R&D. And the second is just having to do with kind of timing of loan sales and aggregation of sales. On the first point on R&D, we're doing sort of less R&D overall versus a year ago as a percentage of total originations. But we still have some R&D sitting inside each of our product categories. That includes inside of Personal Lending and our Unsecured Lending as well as some continued R&D in Auto and Home. So you'll sort of probably continue to see investment there that we're making around different areas that we're working on from a credit perspective or product structuring perspective and loans that are going on the balance sheet. And then second has to do with loan sale timing and aggregations. And that also, as we anticipate something, we'll continue to use the balance sheet for as we just think about timing of loan sales, some of which might cross over month end and quarter end marks. And so sort of ` back and answering your question, I'd say both on unsecured and personal loans as well as in an aggregate, we have no sort of goal, which is to bring our balance sheet down to 0 or to structurally we must reduce it period-on-period forever here on out. As long as we have a strong capital position, strong liquidity position, we're very happy to use our balance sheet to support these 2 strategic objectives. David Scharf: Got it. No, I appreciate that. That's great color and detail, Andrea. And just, I guess, as a follow-up, switching to the capital partner side, the flow partners. It looks like, I guess, it's about $1.3 billion of cumulative sort of co-invested capital. Notwithstanding the qualitative advantages of co-investing, obviously having some skin in the game and aligning kind of interest, can you talk to perhaps the calculus that the company undertakes when analyzing co-investing capital versus perhaps lower loan sale prices without co-investing? And I only ask because other fintech lenders we talk to, pretty much all of their forward flow arrangements are all out whole loan sales. There's no co-investment. And just wanted to get some more color on sort of how you quantify the advantage of sort of committing some capital in that regard. Paul Gu: Yes, it's a great question. And we don't view the nature of our capital co-investments or putting the skin in the game as being similar to or comparable to someone that's selling loans at a discount. We think these are great loans. They're performing well. We expect to earn returns on these loans. For us, actually the essential calculus, the reason we switched to this type of deal structure where we would commit some co-invest is that we wanted to lock in longer commitments from our partners. And I think that's something that's relatively unique in the market is that we've got deals that are committed out 24 months in terms of the capital that investors are going to invest. And this is strategically so valuable for us because we want to have predictability in our funding supply for loans, and we want that to be immune to changes in the macro environment, changes to the market environment, changes to there's a liquidity shock or bank goes down or the ABS market seize up. We don't want any of that to have unpredictable impacts on the supply of funding for our loans. And from a partner perspective, one of the challenges they face with making a multiyear commit like that, many of them now have is that they know what our loans look like today. They know how we're underwriting today, but they don't know what we're going to be doing a year from now or 2 years from now. And so how do they get comfortable making a commitment to buy loans in 2028 when they don't know how we're going to be underwriting at that time. And so skin in the game is our answer to that problem. And as you can see by the number of deals we're signing and the size of those deals, the length of those deals, this is an arrangement that's working. And we think fundamentally, it's a good trade to bring in that predictability and commitment of capital in exchange for a small piece of skin in the game, which will -- we expect generally to produce nice returns for us. David Scharf: Got it. No, that's very helpful. It's probably -- I think that duration planning is an underappreciated aspect of your capital plan. Operator: And we'll take a question from Rob Wildhack with Autonomous Research. Robert Wildhack: A question on the July volume number that came out last week. Originations were up 50% in the second quarter, pretty consistent month-to-month, and July drops to 34% growth. I don't think there's really a comp issue versus July of last year. The UMI is up a little, but not a ton. So just wondering if there's anything to call out with that slowdown. And then any additional context you can give on volume growth through the remainder of the year. Andrea Blankmeyer: Rob, thanks for the question. So July is -- we saw sort of a modest step down versus June, and June was kind of flattish to May as we think about the originations trajectory. And so sort of that trending that we see is partially reflective of sort of the UMI context that was occurring over the course of Q2. And so what we're seeing in July represents -- is inclusive of some of that modest headwind from the uptick of UMI from beginning of Q2, up about 9% by the end of the quarter and is reflective of that. And so that's kind of the UMI impact. And as we've alluded to before, to the extent UMI goes up, that has created some headwind for originations. If UMI goes down, that provides tailwinds. All that macro context is happening. But ultimately, as we look out over the remainder of the year, the thing that we're kind of most focused on are the levers that we control in the business to drive sustainable, durable and accretive growth. The same levers we've been pulling in Q2 around driving our model and technology wins, improving customer experience and driving more efficiency across our marketing channels and optimization across our marketing channels. Those are the key levers that over the last few years in Upstart's history have sort of driven our sustained growth. And as we look out over the near term, we expect to continue to drive growth. And sort of the UMI context will always move around in the background, but ultimately we're focused on those controllable drivers. Robert Wildhack: Okay. And then one more on the bank and the bank charter now that you're starting to accumulate the necessary approvals. We understand the operational benefits of the bank charter. But I was wondering if you could shed some light on how you're going to run the bank once it's running. I'm curious how much capital you think you're going to seed the bank with -- and then how quickly you think you can, a, start originating loans through the bank and what portion you might do? And b, how quickly you plan on scaling deposits? Any other details you could provide there would be great. Andrea Blankmeyer: Sure. On the capital side, we haven't disclosed the specifics around the capital plan, but I can share that we are sufficiently capitalized at Upstart today to launch the bank and are looking forward to that. From a sort of how quickly we can sort of turn on the operations of the bank across different -- a number of different dimensions, on the lending side, we expect pretty quickly to move the bulk to all of our originations through to Upstart Bank from the current partners that we're originating with today and also expect to be able to raise deposits within a relatively short period of time after bank launch. And so all in all, I expect sort of the core elements of the operations of the bank to be up and running relatively shortly after the launch of the bank. Operator: And I will now turn the conference back over to Sonya Banerjee. Sonya Banerjee: Thank you. For the first time this quarter, we invited retail investors to submit questions through X. We received a number of thoughtful submissions, and we've selected a few themes to answer today. So Paul, starting with the first one, you've talked a lot about LTV efforts and have stated Upstart is deliberately not maximizing take rate today. As the models improve, how much pricing power is accruing that you're choosing not to harvest? And how do you think about pulling the lever on take rate over the long term? Paul Gu: Yes, it's a great question. Over the last couple of quarters, one of the themes we've talked about is investing in our customer relationships. That's something that's really important to us. We're talking more and more about that, sharing more and more metrics about that, and we expect to continue doing that. The reason it's so important to us is that we expect to have products that can serve customers across their entire life cycle. So getting customers in the door, getting consumers into our ecosystem, even if they don't take out a loan and then, of course, even more for the ones who do, is extremely valuable to us and will pay continuing dividends over time. So that's really valuable to do. And so we don't want to over-monetize our consumer. We don't want to sort of maximize the margin that we can squeeze out of every transaction. Even though in some of our products, like core personal loans, our pricing power is frankly fairly enormous, and we certainly could take it to a higher level. But that's not what we're choosing to do today. We want to take a healthy margin, reflective of how much value we're adding to that consumer, but leave plenty on the table for that consumer to sort of to keep for themselves. And I think we think that's something that's going to accrue to our brand, accrue to the relationship. And so we're going to keep on doing that. In terms of the magnitude of that, we haven't shared any specific metrics around this. But I will just say that this is not -- we didn't achieve our Q2 results by turning the screws on take rates in our core business. That's not a primary strategy for us today. And if anything, over the coming quarters, when we have the opportunity to, we're going to look to invest more into our customer relationships, not less. Sonya Banerjee: Thank you. Next question. You say the model is at an 87% error with lots of room left, improving roughly linearly. How much of that residual is irreducible? Isn't there a natural limit to prediction accuracy? And how do you know you're not close to it? Paul Gu: Yes. I mean physics is real. So there's definitely sort of limits to what can be done in the physical world, and there's limits to predictability. But the really, really good news is that the starting point and the point of comparison is a pretty low bar. And that bar is, if you think about how consumer loans have been underwritten for most of human history, it's been something that you underwrote with people and then you underwrote with really simple scorecards, really sort of simple 3-digit numbers about people. And none of those metrics were particularly accurate at understanding credit risk. And so when you look at these metrics about -- if you were to start from a starting point of a totally random and then advance to what a human underwriter could do, what a sort of traditional scorecard could do, you actually only solve a pretty small fraction of all the inaccuracy that's out there. And what we've done over the past now 12 years of working on this problem in personal loans and less in new products is we've got to this 2.74x as accurate as those traditional models. But actually, that leaves just a ton of room still on the table. And that's just because the starting point is so, so inaccurate that we actually haven't seen any decline -- any diminishing marginal returns to our investments in better models and AI, more data. And so we're pretty confident that at least in the foreseeable future, our models are going to keep getting better. They're going to keep increasing separation. And therefore, we're going to be able to keep differentiating in our value prop to the customer and ultimately win more of them. Sonya Banerjee: Great. And then the third and final question, what do you believe the market is still missing about Upstart? And what specific milestones should shareholders watch over the next 12 months that could help close this valuation gap? Paul Gu: Yes, a lot. I would say that all year, really, there's probably been a bigger gap between how we at Upstart see the business and how the market sees us than we've ever experienced in our life as a public company. From our perspective, the business is stronger than it's ever been. We've got tech that's the best it's ever been, committed capital that is bigger and longer than it's ever been. We've got more customers. We've got traction in Home and Auto. We think of all these as sort of wins that are valuable. They add up no matter what kind of macro environment you're in, whether it's a UMI of 1.5 or UMI of 1 or UMI of 0.5. And those things we are going to keep delivering on through the execution that we did just like in Q2. And then there's sort of the opportunity ahead in the business, which is like consumer credit is just massive. It's a trillion-dollar market if you look across the different types of consumer credit just in the U.S. And AI is sort of the perfect technology to transform that. And of course, we, as a company, we've been working on this particular type of AI relevant to credit, relevant to consumer finance for over 10 years now. We've got a 10-year plus head start to be the one to do it. And I think that the market, when they look at us, has really been focused on -- a lot of the basics, like, can we keep growing? Can we do it profitably? Can we fund the loans that all that growth is generating? And so for us, like, what we need to do first is just tackle those doubts head-on and prove that we can do those things. And I think ultimately, the market will decide what it decides. But I think the good news is that with those focuses, almost no matter what kind of valuation framework the market wants to use for us, at the end of the day, all of them go up with profit. And so if the market, at some point, doesn't want to bet on our future, then we can just earn the profits to bet on our own. Operator: Thank you. And that does conclude today's conference. We do thank you for your participation, and have an excellent day. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. Upstart (UPST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Upstart Holdings, Inc.? Here are five stocks we like better. Upstart delivered strong Q2 growth and returned to profitability: Originations rose 50% year over year to $4.2 billion, revenue increased 42% to approximately $365 million, and GAAP net income reached $17 million. Contribution profit hit a record $193 million, with margins improving across unsecured and secured lending. Secured lending expanded while funding capacity strengthened: Auto and Home originations grew sharply, and Upstart expects secured products to reach contribution-margin breakeven by Q4. The company secured up to $5 billion in new institutional funding capacity and completed a $569 million securitization, while discontinuing auto refinance. Full-year guidance was maintained despite higher macroeconomic risk: Upstart continues to forecast approximately $1.4 billion in 2026 revenue and $294 million in adjusted EBITDA. The company also received conditional approval for its bank charter and aims to launch Upstart Bank in early 2027. MarketBeat Week in Review – 03/30 - 04/03 Upstart (NASDAQ:UPST) reported second-quarter 2026 results marked by accelerating loan originations, higher contribution margins and a return to GAAP profitability, while reaffirming its full-year financial outlook despite a higher macroeconomic risk indicator. Chief Executive Officer Paul Gu said the company executed on priorities outlined last quarter: reaccelerating its core personal-loan business, improving the profitability of its Home and auto products, and expanding third-party funding without raising equity capital. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Upstart Surges on Record Revenue but Wall Street Remains Divided Total originations reached $4.2 billion, up 50% from a year earlier and 23% sequentially. Core personal-loan originations increased 27% from the first quarter, or by $526 million, while total unsecured-lending originations rose 38% year over year and 20% sequentially. Upstart changed the name of its sole reportable segment to unsecured lending from personal lending; the change was administrative and did not alter disclosures. Revenue totaled approximately $365 million, an increase of 42% year over year and 18% from the prior quarter. Fee revenue was $348 million, rising 45% from a year earlier and 26% sequentially. Unsecured lending generated $326 million of fee revenue, while secured products, consisting of Home and auto offerings, produced $22 million. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Why Upstart’s Bank Charter Bet Could Change Everything Chief Financial Officer Andrea Blankmeyer said fee-revenue growth exceeded origination growth because take rates improved in both categories. Unsecured take rate improved by about 24 basis points sequentially, while secured take rate increased by 81 basis points. Blankmeyer attributed unsecured improvement largely to a greater mix of higher-margin core personal loans and seasonal demand, while noting that the company is focused on contribution profit rather than maximizing take rates. Contribution profit, defined by the company as fee revenue less variable costs for borrower acquisition, verification and servicing, reached a record $193 million. The figure was up 37% year over year and 41% from the first quarter. Total contribution margin was 55%, compared with 50% in the prior quarter. Unsecured contribution margin was 62%, up six percentage points sequentially. Secured-products contribution margin improved to negative 35%, from negative 96% in the first quarter. GAAP net income was approximately $17 million, producing a 5% net income margin and diluted earnings per share of $0.16. Adjusted EBITDA was approximately $77 million, up 45% year over year, with a 21% margin. → TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Blankmeyer said Upstart expects secured products to reach contribution-margin breakeven by the fourth quarter. The company said the improvement in those products reflected higher take rates and operational efficiencies across auto and Home lending. Auto originations increased 264% from a year earlier and 62% sequentially, while Home originations rose 139% year over year and 14% from the first quarter. Gu said auto and Home accounted for about 14% of total originations during the quarter, compared with approximately 1% in the fourth quarter of 2021. In its Home business, the company said it reduced the cost to originate a home equity line of credit by 15% from the first quarter and can close HELOCs in six days. Gu said the company’s HELOC rates are, on average, more than 200 basis points below competitors’ rates. He added that Home-specific distribution partnerships have not yet been established but are on the company’s roadmap. In auto lending, Upstart said it began optimizing take rates in its auto-purchase business and improved its ability to identify consumers with eligible vehicles for auto secured personal loans. However, the company decided to sunset its auto-refinance business. Gu said the product was relevant for returning customers but did not have the same growth velocity or potential as other investments. Upstart said it closed three institutional funding deals since its May earnings call, including its largest-ever transaction, providing up to $5 billion in committed capacity. Year to date, the company has signed capital partnerships expected to add $10.8 billion in incremental capacity. The company also completed an upsized $569 million asset-backed securitization, its largest issuance since 2021 and its tightest spreads in three years, according to Gu. Loans held on Upstart’s balance sheet ended the quarter at approximately $1.06 billion, up about $50 million sequentially. Yet those holdings represented 5.9% of total unpaid principal balance of Upstart loans outstanding, the lowest level in nearly two years. Gu said the company has renewed every institutional capital partner since 2023. He said co-investment arrangements with funding partners are intended to secure longer-term committed capital rather than serve as a discount on loan sales. Upstart received conditional approval from the Office of the Comptroller of the Currency in July for its bank charter. The company aims to launch Upstart Bank in early 2027 and said the bank is not expected to change its strategy of primarily using third-party capital to fund loans. Blankmeyer said Upstart believes it is sufficiently capitalized to launch the bank and expects to move the bulk of its loan originations through the bank relatively quickly after launch. Upstart reiterated its full-year 2026 outlook for approximately $1.4 billion in total revenue, $1.3 billion in fee revenue and $294 million in adjusted EBITDA, representing roughly a 21% EBITDA margin. The outlook assumes that the company’s UMI measure, which it uses to assess the macroeconomic credit environment, remains around 1.50 for the remainder of the year. Blankmeyer said UMI was 1.50 as of the day before the call, up 9% from the beginning of the second quarter and at the top end of the 1.40 to 1.50 range underpinning the company’s original annual guidance. Management said the higher UMI creates a modest headwind for originations and fair-value marks, but it expects business execution to offset that pressure. Fixed operating expenses are expected to rise at a low-single-digit sequential rate in both the third and fourth quarters, following investments in secured products, technology infrastructure, model infrastructure and bank preparations. Upstart Holdings, Inc operates a cloud-based lending marketplace that leverages artificial intelligence and machine learning to assess borrower creditworthiness. The company partners with banks and credit unions, providing its proprietary AI models and underwriting platform to facilitate consumer credit products. By focusing on non‐traditional data points—such as education, employment history and other real‐time indicators—Upstart seeks to improve approval rates and lower loss rates compared with conventional credit scoring methods. Upstart's core offering centers on unsecured personal loans, which borrowers can use for purposes such as debt consolidation, home improvements or major purchases. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Upstart Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Upstart Holdings Inc (NASDAQ: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 (NASDAQ: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. 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. Warning! GuruFocus has detected 5 Warning Signs with UPST. Is UPST fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the drivers behind the significant improvement in take rates across both unsecured and secured products?A: Paul Gu (CEO) explained that the profitability gains reflect the strategy laid out last quarter. The reacceleration of growth in the high-margin core personal loan segment was a primary driver. Additionally, the company intentionally focused on improving the margins of home and auto products, which improved by 61 percentage points in a single quarter. The improvement is a result of both the mix shift towards core personal loans and operational efficiency gains across the secured product lines. Q: How should we think about the puts and takes on the take rate dynamics for the personal loan side, given the mix shift and seasonality?A: Andrea Blankmeyer (CFO) stated that the sequential improvement in the unsecured segment's take rate was driven primarily by the mix shift to core personal loans, which carry a higher take rate, and seasonal benefits. She noted that all else was relatively consistent quarter-on-quarter. Looking forward, the company expects relative consistency in take rates, focusing on driving high-quality revenue and contribution profit dollars rather than optimizing for take rate itself. Q: Given the strong Q2 results, why is the company not raising its full-year guidance?A: Andrea Blankmeyer (CFO) explained that while the company is pleased with Q2 performance, the UMI (Upstart Macro Index) has risen to 1.5%, at the top of the range that framed the initial 2026 guidance. This represents a modest headwind on originations and fair value marks. The company is maintaining its guidance, expecting the underlying strength of the business to offset this macro headwind, with the outlook assuming UMI holds roughly at this level for the rest of the year. Q: Can you discuss the decision to sunset the auto refinance business and how it fits into the broader strategy?A: Paul Gu (CEO) acknowledged that auto refi was a good product, but after reviewing the growth rate and potential compared to other bets in the portfolio, the company decided to concentrate on initiatives with the highest velocity and biggest upside. The decision was a necessary consequence of maintaining capital discipline and holding an extraordinarily high bar for investments. Q: What are the remaining levers to improve profitability in the secured products (auto and home)?A: Paul Gu (CEO) outlined two main buckets for improving secured product profitability. First, optimizing take rates by understanding which deals are highly competitive versus those where Upstart adds significant value, allowing for better pricing. Second, reducing the cost to originate by automating processes like verification and liens through data integrations and AI. He noted there are both short-term wins and a long-term trajectory of improvement as the products mature. Q: Can you provide more detail on the fixed expense growth trajectory and the factors driving it?A: Andrea Blankmeyer (CFO) explained that the fixed cost growth is partly due to forward investments in newer secured products and preparations for the bank charter. Q2 included a one-time restructuring with severance expense. She noted that most investments for the year were made in the first half, and the company expects fixed expenses to grow in the low single-digits sequentially in Q3 and Q4, delivering real operating leverage. Q: How should we think about the cadence of EBITDA margins between Q3 and Q4, given the guidance implies a ramp in the back half?A: Andrea Blankmeyer (CFO) reiterated that the guidance is back-half weighted, with EBITDA expected to ramp. The trajectory from Q1 (13% margin) to Q2 (21% margin) demonstrates strong progress. The continued improvement will be driven by growth in the core personal loan segment, improving unit economics in secured products (expected to reach contribution margin breakeven in Q4), and disciplined fixed cost growth. Q: What is the company's strategy regarding co-investing capital with partners versus selling loans at a discount?A: Paul Gu (CEO) stated that the co-investment structure is not about selling loans at a discount; the loans are performing well and expected to generate returns. The central calculus is to lock in longer commitments (up to 24 months) from capital partners, providing predictability and stability in funding supply. The "skin in the game" is an answer to partners' concerns about committing to loans underwritten under future, unknown conditions. This arrangement has been successful, as evidenced by the size and length of recent deals. Q: Can you provide more color on the slowdown in July originations growth and the outlook for the remainder of the year?A: Andrea Blankmeyer (CFO) attributed the modest step-down in July to the UMI increasing by 9% over the course of Q2, which creates a headwind for originations. She emphasized that the company is focused on controllable levers like model improvements, customer experience, and marketing efficiency to drive sustainable growth, with UMI context moving in the background. Q: How will the company run the bank once it launches, and how quickly will it scale operations?A: Andrea Blankmeyer (CFO) stated that the company is sufficiently capitalized to launch the bank. On the lending side, they expect to move the bulk of originations through Upstart Bank relatively quickly. They also expect to be able to raise deposits within a short period after launch, with core elements of the bank's operations up and running shortly after launch. Q: How much pricing power is accruing that the company is choosing not to harvest, and how do you think about pulling the take rate lever long-term?A: Paul Gu (CEO) explained that while pricing power in core personal loans is "fairly enormous," the company is deliberately choosing not to maximize take rates. The strategy is to invest in customer relationships by offering healthy margins while leaving value on the table for consumers. This approach is expected to accrue to the brand and relationship over time. He emphasized that Q2 results were not achieved by increasing take rates in the core business, and the company may look to invest more into customer relationships in the future. Q: How much of the residual error in the model is irreducible, and how do you know you're not close to the natural limit of prediction accuracy?A: Paul Gu (CEO) acknowledged that there are physical limits to predictability, but noted that the starting point of comparison is a "pretty low bar" (traditional scorecards). For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Dave Inc. DAVE is slated to release second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $3.69 and $169.75 million, respectively. While the consensus mark for second-quarter 2026 EPS has been revised slightly southward over the past 30 days, it suggests a 17.52% improvement year over year. The Zacks Consensus Estimate for quarterly revenues implies a notable year-over-year increase of 28.89%.For the current year, the Zacks Consensus Estimate for Dave’s revenues is pegged at $714.10 million, indicating a rise of 28.85% year over year. The consensus mark for 2026 EPS stands at $16.80, calling for a 27.47% expansion from the year-ago period. Image Source: Zacks Investment Research Over the trailing four quarters, the company’s EPS surpassed the Zacks Consensus Estimate on each occasion, with an average beat of 45.78%. This is depicted in the graph below: Dave Inc. price-eps-surprise | Dave Inc. Quote Our proven model predicts an earnings beat for DAVE this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.DAVE currently carries a Zacks Rank of 2 and has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Dave’s second-quarter results are expected to show whether the post-tax-refund rebound became durable overall. ExtraCash demand is expected to have supported growth as average advance size and disbursement activity recovered from first-quarter softness. Continued member additions, reactivation and retention are also likely to have contributed to higher monthly transacting members and revenues.Monetization remains a key focus. Removing the $15 fee cap for new members and introducing a second draw may have benefited ExtraCash utilization, average advance size and ARPU. The completed rollout of the $3 subscription fee is expected to have improved revenue visibility, while Dave Card spending is likely to have added transaction-based revenues. Credit performance will be another test. CashAI v5.5 optimization, along with progress toward v6.0, is expected to have strengthened underwriting and kept delinquencies controlled despite higher originations. Management said second quarter momentum had remained favorable, so investors need to watch whether the 28-day past-due rate stayed near last year’s level or improved further again.Margins present a mixed setup. Better credit performance and the absence of the first quarter’s unusual reserve build are expected to have supported gross margin recovery. However, marketing spending, product-development hiring and Coastal funding fees are likely to have affected margins in the quarter under review, as revenue growth supported operating leverage.The Coastal funding transition may also have shaped the outlook. Lower funding needs could have strengthened liquidity, but related fees are likely to have affected margins in the quarter under review. Overall, the second quarter is expected to reveal whether Dave balanced originations, ARPU growth and credit control without allowing investment to weaken profitability. The stock has been a standout performer. Over the past three months, DAVE has rallied more than 51%. Meanwhile, peers like Upstart Holdings, Inc. UPST and SoFi Technologies, Inc. SOFI have shown a mixed trend. UPST has declined 5.6%, while SOFI has advanced 12.5%, while the S&P 500 composite has risen 2.3%. Image Source: Zacks Investment Research After the sharp rally, valuation is the biggest pushback on DAVE. The stock trades at 6.36X forward 12-month sales per share versus 2.80X for the Zacks sub-industry. This is no longer cheap, but it looks fair for a fintech growing revenues around 28% to 30%, producing strong adjusted EBITDA and buying back stock. On the other hand, SoFi Technologies trades at 4.29X forward 12-month sales per share, while Upstart Holdings trades near 1.67X forward 12-month sales per share. Dave deserves some premium because its margins and capital efficiency are improving quickly, especially after the Coastal funding transition. Image Source: Zacks Investment Research Dave’s second-quarter setup supports a constructive investment thesis. Recovering ExtraCash demand, higher advance sizes and continued member growth are expected to have supported revenues, while fee changes and second-draw functionality may have benefited ARPU. CashAI improvements are likely to have strengthened credit performance, though faster originations, heavier marketing and product hiring are expected to have affected margins in the quarter under review. The Coastal funding transition may have constrained gross margin initially, but it could improve liquidity and lower funding costs over time. With scalable growth, improving monetization and disciplined credit trends, the stock appears attractive for investors seeking upside at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Upstart Holdings, Inc. (UPST) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.72%. A quarter ago, it was expected that this company would post earnings of $0.39 per share when it actually produced earnings of $0.3, delivering a surprise of -23.08%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Upstart, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $364.71 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.77%. This compares to year-ago revenues of $257.29 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Upstart shares have lost about 32.7% since the beginning of the year versus the S&P 500's gain of 11%. While Upstart has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Upstart was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.63 on $364.43 million in revenues for the coming quarter and $2.25 on $1.43 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ridgepost Capital, Inc. (RPC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.1% higher over the last 30 days to the current level. Ridgepost Capital, Inc.'s revenues are expected to be $80.22 million, up 10.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Ridgepost Capital, Inc. (RPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BURLINGAME, Calif., August 04, 2026--(BUSINESS WIRE)--Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for the quarter ended June 30, 2026. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com. "We came into this quarter with a clear plan, and we executed against it — re-accelerating growth in core personal loans, moving our secured products rapidly toward profitability, and funding that growth without adding equity capital. The results speak for themselves: originations up 50% year-over-year and we returned to GAAP profitability, with an all-time-high Contribution Profit," said Paul Gu, Co-founder and CEO. "We've built a technology advantage that keeps compounding, and we've barely scratched the surface of the opportunity in front of us." Second Quarter 2026 Highlights Originations: $4.2 billion, up 50% year-over-year ("YoY"). 558,014 loans originated, up 50% YoY. Total Revenue: $365 million, up 42% YoY. Revenue from fees was $348 million, up 45% YoY. Income from Operations: $14.6 million, compared to $4.5 million in Q2 2025. Net Income: $16.5 million, up 195% YoY from $5.6 million in Q2 2025. Diluted net income per share was $0.16 compared with $0.05 in Q2 2025. Contribution Profit: All-time high of $193 million, up 37% YoY. Contribution Margin was 55%, versus 58% in Q2 2025. Adjusted EBITDA: $76.9 million, up 45% YoY from $53.1 million in Q2 2025. Adjusted EBITDA Margin was 21%, unchanged from Q2 2025. Results by Product Category1 Unsecured: Revenue from fees was $326 million, up 38% YoY. Contribution Profit of $201 million was up 36% YoY, while Contribution Margin was 62%, unchanged from Q2 2025 and up 6 percentage points from 56% in Q1 2026. Secured (Auto and Home): Combined Contribution Margin was negative 35%, improved from negative 176% in Q2 2025 and up 61 percentage points from negative 96% in Q1 2026. Financial Outlook For full-year 2026, Upstart continues to expect: Total Revenue of approximately $1.4 billion Adjusted EBITDA (Margin % of Total Revenue) of approximately $294 million (21%) Conference Call and Webcast Information Live Conference Call and Webcast at 1:30 p.m. PT on August 4, 2026. To access the call in the United States and Canada: 800-330-6710, conference code 7744842. To access the call outside of the United States and Canada: +1 312-471-1353, conference code 7744842. A webcast is available at ir.upstart.com. Event Replay: A webcast of the event will be archived for one year at ir.upstart.com. About Upstart Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart’s platform includes personal loans, automotive loans, home equity lines of credit, and Upstart’s new Cash Line product, a revolving line of credit. Upstart is based in Burlingame, California. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding our outlook for the full-year of 2026 and beyond. These statements may include words such as "anticipate", "becoming", "believe", "can have", "continue", "could", "estimate", "expect", "intend", "likely", "look forward", "may", "ongoing," "plan", "potential", "predict", "project", "should", "target", "will", "would," or the negative of these terms or other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events that do not relate strictly to historical or current facts. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities and the sustainability of our business and market position; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), Adjusted EBITDA, basic weighted-average share count, and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management’s good faith beliefs and assumptions as of that time with respect to future events, including assumptions regarding macroeconomic conditions, credit performance, funding availability, and competitive dynamics, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), including "Risk Factors" in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at ir.upstart.com or the SEC’s website at www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to manage the adverse effects of macroeconomic conditions and disruptions in the banking sector and credit markets, including inflation and related changes in interest rates and monetary policy; our ability to access sufficient loan funding, including through securitizations, committed capital and other co-investment arrangements, whole loan sales, and warehouse credit facilities; the effectiveness of our credit decisioning models and risk management efforts, including reflecting the impact of macroeconomic conditions on borrowers' credit risk; our ability to retain existing, and attract new, lending partners; our future growth prospects and financial performance; our ability to manage risks associated with the loans on our balance sheet; our ability to improve and expand our platform and products; and our ability to operate successfully in a highly-regulated industry. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations. Key Operating Metrics and Non-GAAP Financial Measures Beginning in the second quarter of 2026, we refer to the metrics "Transaction Volume, Dollars" and "Transaction Volume, Number of Loans" as "Originations, Dollars" and "Originations, Number of Loans," respectively, to reflect management’s internal terminology. We define Originations, Dollars as the aggregate of: (i) the total principal of loan originations for personal loans, small dollar loans, and auto loans, (ii) committed amounts for HELOCs, and (iii) drawn amounts for unsecured revolving credit lines (Cash Line), in each case facilitated on our marketplace during the periods presented. We define Originations, Number of Loans as the total number of such originations, commitments, and draws, as applicable, facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a marketplace. We define Conversion Rate as the Originations, Number of Loans in a period divided by the total number of rate inquiries received that we estimate to be legitimate, which we record when a borrower actively requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth. Cash Line is excluded because those borrowers may make multiple draws after the line has been initially approved, and those subsequent draws do not represent additional conversions. We define Percentage of Loans Fully Automated as the total number of loans in a given period originated end-to-end with no human involvement required by the Company divided by the Originations, Number of Loans in the same period. Cash Line is excluded because those borrowers may make multiple draws after the line has been initially approved, and those subsequent draws do not represent additional automation. Under this definition, "originated end-to-end" means (i) from initial rate request to final funding for personal loans, including small dollar loans, and (ii) from initial rate request to loan approval for auto loans and HELOCs, due to certain jurisdictions’ local requirements and external dependencies that require human action prior to funding. To derive Contribution Profit, we subtract the sum of borrower acquisition costs as well as borrower verification and servicing costs from revenue from fees, net. To calculate Contribution Margin we divide Contribution Profit by revenue from fees, net. We calculate Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense and certain payroll tax expenses, depreciation and amortization, expense on convertible notes, provision for income taxes, gain on debt extinguishment, net gain on lease modification and reorganization expenses, as applicable. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA and Adjusted EBITDA Margin include interest expense from corporate debt and warehouse credit facilities which is incurred in the course of earning corresponding interest income. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included below. Upstart has not reconciled the forward-looking non-GAAP measures to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804170448/en/ Contacts Investors Sonya [email protected] Press Eric [email protected]

According to data from Fiscal.ai, analysts expect the company to post $0.55 earnings per share on revenue of $352.23 million for the quarter. Shares of the company have edged higher for three straight sessions, with the stock price jumping more than 7% at close on Monday, the highest in over two months. In July 2026, Upstart said that it had facilitated about $1.4 billion in total preliminary loan originations across 27.4 effective origination days, averaging $51.0 million per day. Shares of Upstart Holdings Inc. (UPST) edged 0.75% higher in the overnight session late Monday, seemingly on track to continue its three-day winning streak. The lending platform is slated to report its second-quarter (Q2) earnings results on Tuesday after the closing bell. Wall Street expects another quarter of topline growth; however, investors will be watching if the rising macro-driven credit risks will have any impact on the company’s outlook. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox According to data from Fiscal.ai, analysts expect the company to post $0.55 in earnings per share on revenue of $352.23 million for the quarter, implying increases of about 37% and nearly 53%, respectively, from the previous comparable quarter. In July 2026, Upstart said that it had facilitated about $1.4 billion in total preliminary loan originations across 27.4 effective origination days, averaging $51.0 million per day. However, the company said that its Upstart Macro Index (UMI), which estimates how changing economic conditions affect loan defaults within its ecosystem, registered at 1.50, the highest level since January. The company said that a UMI of 1.50 is about 50% above what Upstart would expect in a normal economy and had increased from about 49% above normal in the prior reading. “UMI has remained above 1.0 since early 2022, reflecting a sustained period of elevated default risk relative to Upstart's long-run baseline, but remains below the series' peak of 1.68, reached in 2024,” the company said in a statement. On Stocktwits, retail sentiment around UPST stock improved from ‘bearish’ to ‘neutral’ territory over the past 24 hours even as message volumes rose 333% in the same time. The stock jumped more than 7% at close on Monday, the highest in over two months. One user said, “$UPST oooh is this the earnings run up?..Could we see $35 again?..” A bullish user commented, “$UPST The UPST Q2 report must be excellent.” However, another user said, “$UPST This is a stock with a P/E of 70+. There is no way this goes up after earnings, unless the netincome is significantly above expectations.” Wall Street analysts have a 12-month price target of $39.80 on the company, implying an upside of more than 35% from its last close. UPST stock has declined nearly 36% so far in 2026. For updates and corrections, email newsroom[at]stocktwits[dot]com. Aashika Suresh has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: CLARITY Act Showdown: Bill Hagerty Pushes Senate Vote Before Midterm Politics Take Over Melius Research's Ben Reitzes Says Chip Stocks Selloff Was The 'Exclamation Point' — 'Semis Are Ripping, And I Think They Should Be' UONEK Q2 2026 Earnings Summary