UPSTUPST
US • —
$35.43
P/E
80.18
PEG
—
FCF Yield
—
Rev Growth YoY
+57.7% YoY
Gross Margin
82.2%
Health Score
5/10
D/E Ratio
2.29
Confidence
MEDIUM
Business Snapshot
Upstart Holdings operates an AI-driven lending platform that partners with banks and credit unions to originate personal loans. The company generates revenue primarily through fees from loan origination and platform services, with its model assessing credit risk using machine learning rather than traditional FICO scores. It operates in the consumer lending market, positioning as a challenger to established credit bureaus and conventional underwriting approaches. The defining characteristic is the use of artificial intelligence to potentially approve more borrowers at lower loss rates than traditional models.
Financial Health
Gross margin stands at a strong 82.2%, though net margin is thin at 4.3%, indicating high operating costs relative to revenue. The balance sheet carries an elevated debt-to-equity ratio of 2.29x, signaling significant leverage, though the current ratio of 2.15x provides adequate short-term liquidity coverage...
Risk Assessment
- VALUATION — P/E of 80.18x is roughly 3.6x the sector average of 22x, representing a significant premium that leaves little room for error.
- DEBT / LIQUIDITY — Debt/equity of 2.29x indicates a highly leveraged capital structure, increasing financial risk.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER ACTIVITY — Insiders have sold 4 times versus 0 buys over the last 90 days, a clear net-selling signal.
- EARNINGS QUALITY — Only 2 out of the last 4 quarterly reports beat estimates, suggesting inconsistent earnings delivery against expectations....
Gross margin stands at a strong 82.2%, though net margin is thin at 4.3%, indicating high operating costs relative to revenue. The balance sheet carries an elevated debt-to-equity ratio of 2.29x, signaling significant leverage, though the current ratio of 2.15x provides adequate short-term liquidity coverage. Free cash flow is unavailable for assessment, making it impossible to determine whether the company is generating cash or burning through reserves. Return on equity of 7.3% suggests modest profitability relative to shareholder equity. The overall financial health is mixed — strong gross margins and liquidity are offset by high leverage, limiting the company's ability to reinvest organically or withstand a downturn.
- VALUATION — P/E of 80.18x is roughly 3.6x the sector average of 22x, representing a significant premium that leaves little room for error. - DEBT / LIQUIDITY — Debt/equity of 2.29x indicates a highly leveraged capital structure, increasing financial risk. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER ACTIVITY — Insiders have sold 4 times versus 0 buys over the last 90 days, a clear net-selling signal. - EARNINGS QUALITY — Only 2 out of the last 4 quarterly reports beat estimates, suggesting inconsistent earnings delivery against expectations.
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