Upstart Holdings, Inc.UPST
Upstart Holdings, Inc. Revenue Disclosure
Revenue
Revenue from Fees, Net
The Company disaggregates revenue from fees by type of service for the years presented as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2023 | 2024 | 2025 | ||||||||||||||||||
| Revenue from fees, net: | ||||||||||||||||||||
| Platform and referral fees, net | $ | 414,120 | $ | 502,411 | $ | 792,979 | ||||||||||||||
| Servicing and other fees, net | 146,311 | 133,055 | 157,032 | |||||||||||||||||
| Total revenue from fees, net | $ | 560,431 | $ | 635,466 | $ | 950,011 | ||||||||||||||
Platform and Referral Fees, Net
Platform and referral fees, net consists of (i) platform and referral fees received from lending partners, (ii) subscription fees received from auto dealerships, and (iii) origination fees received from borrowers, as described below.
Platform and referral fees. The Company enters into contracts with its lending partner customers, to provide access to a cloud-based AI lending marketplace developed by the Company (the “Upstart platform”) to enable lending partners to originate unsecured personal and secured auto refinance loans. The Upstart platform includes a cloud-based application (through Upstart.com) for submitting loan applications, verifying information provided within submitted applications, risk underwriting (through a series of proprietary technology solutions), delivery of electronic loan offers, and if the offer is accepted by the borrower, electronic loan documentation signed by the borrower. Lending partners can specify certain parameters of loans they are willing to originate. Under these contracts, lending partners can choose to use Upstart’s referral services, which allow them to access new borrowers through Upstart’s marketing channels.
After origination, Upstart-powered loans are either retained by lending partners, purchased by the Company for immediate resale to institutional investors under loan sale agreements, or purchased and held by the Company. For loans not retained by the lending partners, the Company pays the lending partners a one-time loan premium fee upon completion of the minimum contractual holding period and a monthly loan trailing fee based on the amount and timing of principal and interest payments made by the borrowers of the underlying loans. Both the loan premium fees and loan trailing fees are consideration payable to customers, which are our lending partners, and are recorded as a reduction to platform and referral fees, net, which is part of revenue from fees, net, in the consolidated statements of operations and comprehensive income (loss). The Company recognized $8.1 million, $11.5 million, and $18.2 million of loan premium fees and loan trailing fees as contra-revenue within platform and referral fees, net during the years ended December 31, 2023, 2024 and 2025, respectively.
As of December 31, 2024 and 2025, the Company recognized $4.6 million and an immaterial amount of loan trailing fee liability, respectively, which is recorded at fair value and included within accrued expenses and other liabilities on the Company’s consolidated balance sheets. Refer to “Note 5. Fair Value Measurement” for additional information on changes in fair value associated with trailing fee liabilities.
The Company’s arrangements for platform and referral services typically consist of an obligation to provide one or both of these services to customers, on a when and if needed basis (a stand-ready obligation), and revenue is recognized as such services are performed. Additionally, the services have the same pattern and period of transfer, and when provided individually or together, are accounted for as a single combined performance obligation representing a series of distinct services.
Platform and referral services are typically provided under a fixed or variable price per unit based on a percentage of the value of loans originated each period with certain lending partners subject to minimum fees; however, pricing for these services may also be based on usage fees, calculated as a percentage of each loan originated. The nature of the Company’s promise is to stand-ready and provide continuous access to and process transactions through the platform. Platform and referral fees represent variable consideration as loan origination volume is not known at contract inception. These fees are determined each time a loan is originated. Fees for platform and referral services are generally billed and paid on a monthly basis, or settled on a daily basis. As such, the Company’s contracts with customers do not include a significant financing component.
Subscription fees. The Company enters into subscription agreements with auto dealerships to access Upstart Auto Finance software, a cloud-based solution that facilitates dealership operations and enables them to provide consumers with access to Upstart-powered auto loans. Subscription agreements generally have a contractual term of to six months with evergreen monthly renewals. The Company bills these customers on a monthly basis. Subscription fees are recognized over the contract term as the performance obligation is satisfied, and is included within platform and referral fees, net in the consolidated statements of operations and comprehensive income (loss). The Company recognized $3.8 million, $5.4 million, and $4.7 million of subscription fee revenue for the years ended December 31, 2023, 2024 and 2025, respectively.
Origination fees. Origination fees are earned from borrowers on HELOCs originated by the Company. Origination fees were not material for the years ended December 31, 2023 and 2024, and were $7.6 million for the year ended December 31, 2025.
The Company had $19.0 million and $25.8 million of accounts receivable, excluding those that are settled on a daily basis, that are included in other assets on the consolidated balance sheets related to contracts with customers as of December 31, 2024 and 2025, respectively. The standard payment terms on accounts receivable are 30 days. The Company’s allowance for bad debt and bad debt expense were immaterial for the periods presented.
The Company capitalizes incremental costs of obtaining a contract with a customer, which are certain sales commissions paid to employees in connection with the acquisition of lending partners. Capitalized costs are amortized over the expected period of benefit, which we have determined, based on an analysis, to be three years. The Company applies the practical expedient to expense costs to obtain contracts with customers if the amortization period is one year or less. As of December 31, 2024 and 2025, the Company had $2.5 million and an immaterial amount, respectively, of contract costs capitalized within other assets on the consolidated balance sheets. During the years ended December 31, 2023, 2024 and 2025, the Company recognized an amortization expense of $3.2 million, $3.2 million, and an immaterial amount, respectively, of capitalized contracts costs to sales and marketing in the consolidated statements of operations and comprehensive income (loss) for the years presented.
Customers accounting for greater than 10% of total revenue were as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2023 | 2024 | 2025 | ||||||||||||||||||
| Customer A | * | 10% | 33% | |||||||||||||||||
| Customer B | 29% | 26% | 20% | |||||||||||||||||
| Customer C | 23% | 27% | * | |||||||||||||||||
| Customer D | 11% | * | * | |||||||||||||||||
__________
* Less than 10%
Customers accounting for greater than 10% of accounts receivable were as follows:
| December 31, 2024 | December 31, 2025 | |||||||||||||
| Customer D | * | 16% | ||||||||||||
| Customer E | 15% | 16% | ||||||||||||
__________
* Less than 10%
Servicing and Other Fees, Net
The Company also enters into contracts with lending partners and institutional investors, including securitization trusts and pass-through entities to provide loan servicing for the life of Upstart-powered loans. These services commence upon origination of these loans by lending partners and include collection, processing and reconciliations of payments received, institutional investor reporting and borrower customer support as well as distribution of funds to the holders of the loans. The Company charges the loan holder a monthly servicing fee calculated based on a predetermined percentage of the outstanding principal balance. Servicing fees also include certain ancillary fees charged on a per transaction basis for processing late payments and payments declined due to insufficient funds. Servicing fees are recognized in the period the services are provided.
The Company charges lending partners and institutional investors for collection agency fees related to their outstanding loan portfolio. The Company either performs borrower collection activities in-house, or outsources to third-party collection agencies, including for loans that are charged off. The Company has discretion in hiring the collection agencies and determining the scope of their work. As the principal in the arrangement, the Company recognizes gross revenue from collection agency fees in the period that the services are provided. Upstart also receives certain ancillary borrower fees inclusive of late payment fees and ACH fail fees. The total fees charged by collection agencies are recognized in the period incurred and reported as part of customer operations expenses.
Servicing and other fees, net also includes gains and losses on assets and liabilities recognized under loan servicing arrangements for loans retained by lending partners or loans sold to institutional investors. Such gains or losses are recognized based on whether the benefits of servicing are expected to be more or less than adequate compensation for servicing obligations performed by the Company. Servicing fees also include changes in fair value of loan servicing assets and liabilities. Refer to “Note 5. Fair Value Measurement” for additional information on changes in fair value associated with servicing assets and liabilities.
The following table presents the components of servicing and other fees, net as part of revenue from fees, net in the Company’s consolidated statements of operations and comprehensive income (loss):
| Year Ended December 31, | ||||||||||||||||||||
| 2023 | 2024 | 2025 | ||||||||||||||||||
| Servicing fees | $ | 107,008 | $ | 89,323 | $ | 100,164 | ||||||||||||||
| Borrower fees | 29,139 | 26,444 | 29,375 | |||||||||||||||||
| Collection agency fees | 15,865 | 16,405 | 14,434 | |||||||||||||||||
| Other fees | 743 | 677 | 2,760 | |||||||||||||||||
| Net gain (loss) on servicing rights and fair value adjustments | (6,444) | 206 | 10,299 | |||||||||||||||||
| Total servicing and other fees, net | $ | 146,311 | $ | 133,055 | $ | 157,032 | ||||||||||||||
Interest Income, Interest Expense, and Fair Value Adjustments, Net
Interest income, interest expense, and fair value adjustments, net is comprised of interest income, interest expense and net changes in the fair value of financial instruments held in the Company’s normal course of business at fair value, including loans, derivatives, beneficial interests, notes receivable and residual certificates, trailing fee liabilities, payable to securitization note holders, and line of credit receivable.
The following table presents components of the interest income, interest expense, and fair value adjustments, net presented in the Company’s consolidated statements of operations and comprehensive income (loss):
| Year Ended December 31, | ||||||||||||||||||||
| 2023 | 2024 | 2025 | ||||||||||||||||||
Interest income(1) | $ | 168,996 | $ | 186,360 | $ | 204,230 | ||||||||||||||
Interest expense(1) | (34,894) | (40,433) | (31,664) | |||||||||||||||||
| Fair value and other adjustments, net: | ||||||||||||||||||||
Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net(1) | (130,440) | (111,175) | (83,088) | |||||||||||||||||
Realized loss on sale of loans, net | (24,042) | (15,983) | (12,237) | |||||||||||||||||
Fair value adjustments and realized gains (losses) on beneficial interests, net | (26,489) | (17,707) | 16,605 | |||||||||||||||||
Total fair value and other adjustments, net | (180,971) | (144,865) | (78,720) | |||||||||||||||||
| Total interest income, interest expense, and fair value adjustments, net | $ | (46,869) | $ | 1,062 | $ | 93,846 | ||||||||||||||
__________
(1) Includes interest income, interest expense and unrealized loss on loans, loan charge-offs, and other fair value adjustments, net related to the consolidated securitization as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2023 | 2024 | 2025 | ||||||||||||||||||
| Interest income, interest expense, and fair value adjustments, net related to consolidated securitization: | ||||||||||||||||||||
| Interest income | $ | 19,697 | $ | 28,968 | $ | 16,593 | ||||||||||||||
| Interest expense | (6,733) | (9,598) | (6,313) | |||||||||||||||||
| Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net | (5,496) | (29,396) | (11,114) | |||||||||||||||||
| Total interest income, interest expense, and fair value adjustments, net | $ | 7,468 | $ | (10,026) | $ | (834) | ||||||||||||||
Interest Income
As of December 31, 2024 and 2025, the Company has recorded $8.2 million and $10.2 million, respectively of accrued interest income in on the consolidated balance sheets. Accrued interest income on the line of credit receivable was immaterial as of both December 31, 2024 and 2025.
Interest Expense
Interest expense is primarily related to interest recorded on the Company’s borrowings on warehouse credit facilities and interest expense related to the consolidated securitization. Interest expense includes accrued interest incurred but not paid. Interest expense also includes changes in fair value of the interest rate caps. Accrued interest expenses for the warehouses were immaterial as of December 31, 2024 and 2025.
Fair Value and Other Adjustments, Net
Fair value and other adjustments, net include changes in fair value of financial instruments, other than loan servicing assets and liabilities and interest rate caps. These adjustments are recorded in the Company’s consolidated statements of operations and comprehensive income (loss) and include both realized and unrealized changes to the value of related assets and liabilities. Refer to “Note 5. Fair Value Measurement” for additional information.
Fair value and other adjustments, net also includes amounts received from borrowers for previously charged-off loans held on the Company’s consolidated balance sheets. These amounts are recognized in the period when amounts are received. Amounts received from borrowers for previously charged-off loans were $7.2 million, $14.6 million, and $17.6 million for the years ended December 31, 2023, 2024 and 2025, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 18, 2022 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.