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Upstart Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in transaction volume to $1,582,317,000 from $1,219,262,000 in the same quarter the previous year. This increase is attributed to model improvements and product initiatives.
Revenue from fees, net increased by 14% to $167,590,000, driven by a 30% increase in transaction volume, although servicing fees saw a slight decline.
Interest income, interest expense, and fair value adjustments, net increased by 55% to a loss of $5,450,000, due to a decrease in unfavorable fair value adjustments and an increase in interest income.
Operating expenses rose to $207,292,000 from $178,402,000, with increases in sales and marketing, customer operations, and engineering and product development expenses.
The company reported a net loss of $6,758,000 for the quarter, compared to a net loss of $40,315,000 in the previous year, with the improvement partly due to a gain on debt extinguishment of $33,361,000.
Adjusted EBITDA was $1,413,000, reflecting a decrease from $2,252,000 in the previous year, with the margin remaining at 1%.
Cash provided by operating activities was $297,257,000, while cash used in investing and financing activities was $159,817,000 and $50,540,000, respectively.
Upstart had a working capital of $595,536,000 as of September 30, 2024. The company continues to focus on expanding its loan funding capacity and improving its AI models.
The filing also details various financial agreements, including the issuance of 2.00% Convertible Senior Notes due 2029 and the repurchase of a portion of the outstanding 0.25% Convertible Senior Notes due 2026.
Upstart acknowledges the challenging macroeconomic environment and its impact on borrower demand and credit performance, with efforts to mitigate these through enhancements to its AI models and loan funding strategies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Upstart Holdings Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.