UPSTCAUTIOUS

UPST Return on Equity (ROE) Analysis

7.9%

Updated 131h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; UPST's 7.9% means it earns $0.079 for every $1 of equity.

Sector Performance

30th percentile

UPST

7.9%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

7.0%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; UPST's 7.9% means it earns $0.079 for every $1 of equity.

This sits below the sector median of 13.5%, placing UPST in the 29th percentile among peers. The year-over-year change is N/A, while the quarter-over-quarter change is +12.9%, reflecting an improvement from the prior 7.0% reading. The low level relative to peers suggests weaker profitability efficiency, but the recent quarterly uptick offers some forward momentum. Given the still-subpar return compared to the sector, the combination of a below-median level and only a single-period gain points to elevated risk if improvement does not persist. This metric directly supports the overall CAUTIOUS verdict, as the current ROE does not demonstrate peer-competitive performance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about UPST?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are UPST's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.