Upstart transaction volume up 61% but profit margin compressed as marketing spend surged 77%

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

• high

  Adjusted EBITDA margin fell from 20% to 13% as sales/marketing expense jumped 77% YoY, outpacing 49% revenue growth; Contribution Margin compressed 500bp to 50% as borrower acquisition costs surged.

  MD&A: Adjusted EBITDA and Contribution Margin verify on EDGAR →
• high

  Credit performance disclosure shows Q1 2023–Q4 2025 loan vintages now expected to return 10.8% after fees, down 140bp from prior 12.2% forecast; company removed long-term (2018–2024) performance baseline entirely.

  MD&A: Credit Performance verify on EDGAR →
• high

  Maximum exposure to losses under committed capital arrangements nearly doubled from $554M to $1,078M; convertible debt principal increased $457M to $1,688M, with new 2032 Notes issued.

  MD&A: Committed Capital & Convertible Notes verify on EDGAR →