Upstart Shares Fall After Q1 Profit Shortfall Despite Revenue Growth

Upstart Holdings Inc. (UPST) shares fell to $28.71 from $31.17 before its first-quarter earnings update, as investors focused on weaker profitability despite strong revenue growth. Management said loan originations benefited from improvements in its AI underwriting models, stronger core personal loan performance and growth in newer auto and home lending products. CEO Paul Gu cited product expansion and model gains as key drivers of the quarter. CFO Andrea Blankmeyer said higher marketing and operating costs, continued hiring and front-loaded investments weighed on profit year over year. Investors are now watching margin improvement in auto and home loans, slower operating expense growth, funding stability and regulatory progress on Upstart’s national bank charter application.