Slides
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Q3 2025 earnings November 4, 2025
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Forward looking statements 2 This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to, information or predictions concerning our future financial performance, including our financial outlook for Q4 2025 and the full fiscal year 2025 under the heading “Outlook” and management’s estimates under the heading “Marketplace update,” projected growth and other strategies, business plans and objectives, potential market and growth opportunities, competitive position, technological or market trends, and industry environment. These statements may include words such as “aim”, "anticipate", “becoming”, "believe", "can have", “continue”, “could”, “estimate”, “expect”, “intend”, “likely”, “look forward”, “may”, “ongoing”, “plan”, “potential”, “predict”, "project”, "intend", "should", “target”, “aim”, "believe", "may", "will", "should", “becoming”, “look forward”, “could”, "can have", "likely", "will", “would” or the negative of these terms or other comparable terminology in connection with any discussion of the timing or nature of future operating or financial performance or other events that do not relate strictly to historical or current facts. Forward-looking statements are based on information available at the time those statements are made or management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements and should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the "SEC"), including “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at ir.upstart.com or the SEC’s website at www.sec.gov. These risks and uncertainties include, but are not limited to: our ability to manage the adverse effects of macroeconomic conditions and disruptions in the banking sector and credit markets, including inflation and related changes in interest rates and monetary policy; our ability to access sufficient loan funding, including through securitizations, committed capital and other co-investment arrangements, whole loan sales and warehouse credit facilities; the effectiveness of our credit decisioning models and risk management efforts, including reflecting the impact of macroeconomic conditions on borrowers’ credit risk; our ability to retain existing, and attract new, lending partners; our future growth prospects and financial performance; our ability to manage risks associated with the loans on our balance sheet; our ability to improve and expand our platform and products; and our ability to operate successfully in a highly-regulated industry. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. This presentation includes non-GAAP financial measures, including contribution profit, contribution margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per share. These non-GAAP financial measures are in addition to, and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures. For example, other companies may calculate similarly-titled non-GAAP financial measures differently. Refer to slides 35-36 for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP. Note: Amounts presented in charts may not sum to year-to-date totals due to rounding.
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Results and outlook 3
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4 Q3’25 results: profitable growth amidst model responsiveness to macro signals Focused execution against our 2025 priorities Originations: $2.9B +80% YoY Net Income: $32M 11% margin Adj. EBITDA: $71M 26% margin Note: Originations refers to Transaction Volume, Dollars. Total Revenue: $277M +71% YoY
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Transaction Volume, Dollars ($M) Q3’25 originations: $2.9B +80% YoY 5 YoY Growth: +30% +68% +89% +154% +80%
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Loan conversion funnel 6 Q3’25 loans: 428K 20.6% Conversion Rate Reduced conversion reflects model response to evolving macro signals, which have recently improved Transaction volume, # of loans Rate inquiries not filled Conversion Rate: 16.3% 19.3% 19.1% 23.9% 20.6% Note: Prior to Q3’25, HELOCs were excluded from rate inquiries used to calculate Conversion Rate. Starting in Q3’25, they are included. Earlier periods have not been adjusted due to the immaterial impact (<0.5pp reduction quarterly).
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Total Revenue ($M) Platform & referral fees Servicing & other fees Net interest income & fair value adj. 7Note: Amounts presented in charts may not sum to totals due to rounding. Q3’25 Revenue: $277M +71% YoY YoY Growth: +20% +56% +67% +102% +71%
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Contribution Profit ($M) 8 Q3’25 Contribution: $147M 57% Contribution Margin Contribution Margin: 61% 61% 55% 58% 57%
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GAAP Net Income (Loss) ($M) 9 Q3’25 Net Income: $32M 11% Net Income Margin Net Margin: -4% -1% -1% 2% 11%
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Adjusted EBITDA ($M) 10 Q3’25 Adjusted EBITDA: $71M 26% Adj. EBITDA Margin Adj. EBITDA Margin: 1% 18% 20% 21% 26%
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11 Note: Guidance figures are approximate. Q4’25 FY 2025 Total Revenue $288 million $1.035 billion Revenue from fees $262 million $946 million Net interest income $26 million $89 million Contribution Margin 53% - GAAP Net Income $17 million $50 million Non-GAAP Adjusted Net Income $52 million - Adjusted EBITDA $63 million - Adjusted EBITDA Margin (% of Total Revenue) - 22% Basic weighted average share count 98 million - Diluted weighted average share count 111 million - Outlook
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Technology and product highlights 12
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Q3’25 product highlight: automated home loan approvals Percentage of HELOCs automatically approved Upstart HELOC innovation 2024: borrowers can automatically verify identity and income 1H 2025: expanded our system to include 12+ additional verification factors required for automatic HELOC approval June 2025: Upstart enables full automation of HELOC approval process Q3’25: ● Increased automated lien and property verification rates via expanded data inputs ● Added instant verification for co-applicant identity and income 13Note: "Automatic approval" means our system automatically verified all data about the borrower and property from application to a fully underwritten and approved loan, without human intervention by Upstart.
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14 Upstart AI supports scale and leads to radically better consumer experiences Q3’25: 91% of loans were fully automated, with no human intervention by Upstart Q3’25: 91% Q4’19: 69%
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More automation can drive higher loan volumes Breaking down the math - how we arrived at the percentage of loans fully automated in Q3’25 15Note: Amounts presented in figures may not sum to totals due to rounding. Step 1 Step 2 Step 3 568K rate offers accepted and evaluated by our verification model in Q3’25 419K applications (74%) approved automatically 149K applications (26%) manually reviewed 91% of 428K funded loans fully automated in Q3’25, with no human intervention by Upstart Automated approvals converted at >3x the rate of those reviewed manually ~39K ~3 of 10 applications converted to loans ~389K ~9 of 10 applications converted to loans
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Personal loan originations ($M) 16 Note: As of Q3’25, Auto Secured Personal Loans (ASPLs) are classified under “Auto” instead of “Personal Loans.” Prior periods have been recast accordingly. Q3’25 originations: $2.7B Personal loan originations grew 73% YoY. Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 # of loans 143,050 186,577 243,137 237,201 366,423 420,089
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Q3’25 originations $2.7B Super prime made up 25% of personal loan originations. “Best rates for all” is unlocking value across the credit spectrum. Personal loan originations by borrower segment ($M) Small dollar Core Super prime (720+) 17 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 # of loans 143,050 186,577 243,137 237,201 366,423 420,089 Note: Chart amounts may not add to totals due to rounding.As of Q3’25, Auto Secured Personal Loans (ASPLs) are classified under “Auto” instead of “Personal Loans.” Prior periods have been recast accordingly.
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Auto originations ($M) Q3’25 originations $128M Auto originations grew ~5X versus Q3’24 and 9% sequentially. 18 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 # of loans 724 1,289 2,073 2,839 5,058 6,705 Note: As of Q3’25, Auto Secured Personal Loans (ASPLs) are classified under “Auto” instead of “Personal Loans.” Prior periods have been recast accordingly.
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Home originations ($M) Q3’25 originations $72M Home originations grew ~4X versus Q3’24 and 6% sequentially. Note: Home originations are defined as: total committed amount the borrower can draw against. 19 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 # of loans 126 283 453 666 1,118 1,262
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Marketplace update 20
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21 Note: UMI estimates the impact of the macroeconomy on actual credit losses based on Upstart-powered unsecured personal loan data, see: https://www.upstart.com/umi. UMI data as of 10/30/25. Latest UMI suggests improvement in consumer health vs July and August Upstart Macro Index (UMI) Sept: 1.54
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Note: This presentation shows net annualized return, which includes an assumption of future cash flows based on performance after servicing fees. All data are as of 9/30/25. "Upside," "expected" and "downside" are Upstart's internal estimates of the returns observed for each vintage since Q3 2023. Q3 2025 is excluded due to limited seasoning. 22 The net annualized return from investing equally in all Upstart cohorts since Q3’23 would represent a 7.4% premium over the 2-Year Treasury 2-Year Treasury Yield Expected cash flows Upside/downside range Equal investment in all Upstart cohorts since Q3’23 would yield an 11.3% net annualized return
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Note: “Capital co-invested” is based on Upstart’s GAAP disclosure of maximum exposure to losses excluding certain amounts that management does not view as at risk totaling: $24M Q2’24, $24M Q3’24, $25M Q4’24, $28M Q1’25, $28M Q2’25, $27M Q3’25. See our SEC filings for more information. Upstart shares in the risk of our committed capital partnerships, via various forms of minority co-investment. Cumulative outstanding amount Upstart has invested into these capital agreements. Capital co-invested Current assessed value The undiscounted amount of cash Upstart expects to receive over the duration of these agreements. Min/max possible values The range of cash Upstart could receive from these agreements depending on loan performance. 23 min/max: $0 - 492M min/max: $0 - 560M min/max: $0 - 642M min/max: $0 - 1,079M min/max: $0 - 1,212M min/max: $0 - 1,639M Value of Upstart’s co-investments in committed capital partnerships Capital co-invested ($M) Current assessed value ($M)
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24 ● Actively advancing multiple deals across newer product areas ● On track for tangible deal outcomes by year-end ● Expect reduced R&D balances and new volume flow to capital partners in future quarters R&D product funding Note: “R&D” loans are to test and evaluate our AI models for emerging products such as Auto and Home. Note: “Securitized” loans are from Q3’23 ABS, reflect GAAP treatment; Upstart’s retained value was $9M as of 9/30/25. R&D Personal loans Securitized loans Loans held by Upstart Q3’25: ~70% R&D - Auto, SDL and Home ($M)
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Financial appendix 25
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Condensed Consolidated Balance Sheet ($ in thousands) 26 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Assets Cash and cash equivalents $ 374,791 $ 445,274 $ 788,422 $ 599,778 $ 395,940 $ 489,784 Restricted cash 185,827 210,493 187,841 239,750 305,520 347,121 Loans (at fair value) (1) 820,628 656,120 806,304 814,677 1,019,504 1,229,976 Property, equipment, and software, net 39,728 38,328 39,013 42,407 43,942 44,259 Operating lease right of use assets 49,144 46,318 43,455 40,557 37,620 34,646 Beneficial interest assets (at fair value) 97,804 131,483 176,848 216,578 266,761 316,199 Non-marketable equity securities 41,250 41,250 41,250 41,250 41,250 41,250 Goodwill 67,062 67,062 67,062 67,062 67,062 67,062 Other assets 143,990 172,652 216,763 234,218 300,269 334,551 Total assets $ 1,820,224 $ 1,808,980 $ 2,366,958 $ 2,296,277 $ 2,477,868 $ 2,904,848 (1) Includes $135.1 million, $118.5 million, $102.9 million, $88.9 million, $75.9 million, and $64.1 million of loans, at fair value, contributed as collateral for the consolidated securitization as of June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, and September 30, 2025, respectively.
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Condensed Consolidated Balance Sheet (cont.) ($ in thousands) 27 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Liabilities and Stockholders’ Equity Liabilities: Payable to investors $ 65,502 $ 60,778 $ 60,173 $ 83,114 $ 91,669 $ 93,400 Borrowings 912,727 887,367 1,402,168 1,334,863 1,428,479 1,855,754 Payable to securitization note holders (at fair value) 113,652 100,335 87,321 75,904 65,152 55,175 Accrued expenses and other liabilities 77,259 111,616 133,800 78,680 126,725 116,250 Operating lease liabilities 56,374 53,348 50,278 47,074 43,833 40,551 Total liabilities 1,225,514 1,213,444 1,733,740 1,619,635 1,755,858 2,161,130 Stockholders’ equity: Common stock 9 9 9 10 10 10 Additional paid-in capital 996,345 1,003,929 1,044,366 1,090,236 1,129,997 1,119,900 Accumulated deficit (401,644) (408,402) (411,157) (413,604) (407,997) (376,192) Total stockholders’ equity 594,710 595,536 633,218 676,642 722,010 743,718 Total liabilities and stockholders’ equity $ 1,820,224 $ 1,808,980 $ 2,366,958 $ 2,296,277 $ 2,477,868 $ 2,904,848
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28 Condensed Consolidated Statement of Operations (in thousands, except share and per share data) Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue: Revenue from fees, net (1) $ 130,532 $ 167,590 $ 199,276 $ 185,475 $ 240,777 $ 258,539 Interest income, interest expense, and fair value adjustments, net: Interest income (2) 52,883 40,845 41,461 40,568 45,623 57,203 Interest expense (2) (11,470) (10,818) (7,431) (7,020) (7,772) (8,794) Fair value and other adjustments (2)(3) (44,315) (35,477) (14,342) (5,652) (21,337) (29,843) Total interest income, interest expense, and fair value adjustments, net (2,902) (5,450) 19,688 27,896 16,514 18,566 Total revenue 127,630 162,140 218,964 213,371 257,291 277,105 Operating expenses: Sales and marketing 32,958 43,229 55,463 58,970 73,105 78,844 Customer operations 38,684 39,302 40,602 40,501 46,246 49,790 Engineering and product development 58,453 64,887 67,222 57,838 68,825 64,026 General, administrative, and other 53,021 59,874 60,427 60,558 64,573 60,779 Total operating expenses 183,116 207,292 223,714 217,867 252,749 253,439 Income (loss) from operations (55,486) (45,152) (4,750) (4,496) 4,542 23,666 Other income, net 2,212 6,381 6,136 7,037 6,027 5,961 Expense on convertible notes (1,181) (1,303) (4,030) (4,959) (4,913) (4,944) Gain on debt extinguishment - 33,361 - - - 7,246 Net income (loss) before income taxes (54,455) (6,713) (2,644) (2,418) 5,656 31,929 Provision for income taxes 15 45 111 29 49 124 Net income (loss) $ (54,470) $ (6,758) $ (2,755) $ (2,447) $ 5,607 $ 31,805 Net income (loss) per share, basic $ (0.62) $ (0.07) $ (0.03) $ (0.03) $ 0.06 $ 0.33 Net income (loss) per share, diluted $ (0.62) $ (0.07) $ (0.03) $ (0.03) $ 0.05 $ 0.23 Weighted-average number of shares outstanding used in computing net income (loss) per share, basic 88,435,893 90,119,481 92,174,306 94,274,538 95,526,364 96,682,774 Weighted-average number of shares outstanding used in computing net income (loss) per share, diluted 88,435,893 90,119,481 92,174,306 94,274,538 102,852,284 109,724,669 (1)(2) - Refer to slide 29 for further information. (3) - Refer to slide 30 for further information.
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Revenue Breakout (in thousands) 29 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue from fees, net: Platform and referral fees, net $ 98,595 $ 134,199 $ 165,758 $ 150,975 $ 202,845 $ 216,882 Servicing and other fees, net 31,937 33,391 33,518 34,500 37,932 41,657 Total revenue from fees, net $ 130,532 $ 167,590 $ 199,276 $ 185,475 $ 240,777 $ 258,539 (2) This footnote is related to the table on slide 29. The following table presents 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: Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Interest income, interest expense, and fair value adjustments, net related to consolidated securitization: Interest income $ 7,714 $ 6,748 $ 5,882 $ 5,112 $ 4,465 $ 3,876 Interest expense (2,514) (2,272) (2,052) (1,849) (1,668) (1,489) Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net (9,266) (5,726) (3,753) (3,780) (3,238) (1,970) Total interest income, interest expense, and fair value adjustments, net $ (4,066) $ (1,250) $ 77 $ (517) $ (441) $ 417 (1) This footnote is related to the table on slide 29. The following table presents revenue from fees disaggregated by type of service as follows:
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Revenue Breakout (in thousands) 30 (3) This footnote is related to the table on slide 29. The following table presents components of fair value adjustments, net as follows: Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Fair value and other adjustments, net: Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net $ (31,949) $ (31,579) $ (18,374) $ (21,326) $ (18,878) $ (15,545) Realized gain (loss) on sale of loans, net (4,511) (2,950) (1,418) (1,991) 3,829 (313) Fair value adjustments and realized gains (losses) on beneficial interests, net (7,855) (948) 5,450 17,665 (6,288) (13,985) Total fair value and other adjustments, net $ (44,315) $ (35,477) $ (14,342) $ (5,652) $ (21,337) $ (29,843)
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31 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Cash flows from operating activities Net income (loss) $ (54,470) $ (6,758) $ (2,755) $ (2,447) $ 5,607 $ 31,805 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Change in fair value of loans 49,761 63,767 (42,543) 7,062 (28,126) (62,384) Change in fair value of servicing assets 3,915 4,637 3,652 4,090 4,550 4,155 Change in fair value of servicing liabilities (363) (60) (369) (285) (338) (386) Change in fair value of beneficial interest assets 3,414 (34,758) 40,976 (17,600) (5,884) 7,279 Change in fair value of beneficial interest liabilities 4,371 3,289 (65) (65) 12,172 6,706 Change in fair value of other financial instruments (5,867) 12,579 (4,133) (33) (2,351) (3,145) Stock-based compensation 34,209 33,618 29,796 29,831 35,511 34,155 Gain on loan servicing rights, net (2,951) (5,551) (4,001) (4,945) (7,506) (7,925) Gain on debt extinguishment - (33,361) - - - (7,246) Depreciation and amortization 4,828 5,390 4,699 6,400 5,843 6,131 Loan premium amortization (3,545) (4,790) (6,147) (8,352) (10,824) (14,384) Non-cash interest expense and other 773 615 1,061 1,325 1,678 2,216 Condensed Consolidated Statement of Cash Flows (in thousands)
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32 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net changes in operating assets and liabilities: Purchases of loans held-for-sale (773,470) (1,056,233) (1,683,022) (1,345,253) (2,624,546) (2,440,455) Proceeds from sale of loans held-for-sale 719,304 1,121,045 1,488,898 1,316,696 2,407,037 2,270,958 Principal payments received for loans held-for-sale 62,494 41,675 35,879 38,252 44,886 55,407 Principal payments received for loans held by consolidated securitization 12,376 11,818 11,465 10,280 9,653 9,839 Settlements of beneficial interest liabilities (1,657) (1,325) (3,008) (5,992) (5,672) (4,052) Proceeds from beneficial interest assets (derivatives) - - - 731 75 3,290 Settlements of beneficial interest assets (derivatives) - - - (485) (538) (636) Other assets 6,547 (7,832) (6,580) 6,437 (2,373) (239) Operating lease liability and right-of-use asset (198) (200) (207) (306) (304) (308) Payable to investors for beneficial interest assets (1) 1,392 - - - - - Accrued expenses and other liabilities 12,717 31,775 25,478 (48,827) 41,288 (13,410) Net cash provided by (used in) operating activities $ 73,580 $ 179,340 $ (110,926) $ (13,486) $ (120,162) $ (122,629) Condensed Consolidated Statement of Cash Flows (cont.) (in thousands) (1) During 2024, the Company elected to change the presentation of changes in the payable to investors balance on the condensed consolidated statement of cash flows. Under the new presentation, a portion of the payable to investors balance related to fiduciary cash was reclassified from operating to financing activities.
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Condensed Consolidated Statement of Cash Flows (cont.) (in thousands) Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Cash flows from investing activities Purchases and originations of loans held-for-investment (64,789) (85,639) (126,516) (149,916) (228,024) (288,109) Proceeds from sale of loans held-for-investment - - - 1,647 18,600 30,948 Principal payments received for loans held-for-investment 32,965 39,561 45,498 57,417 72,524 92,055 Principal payments received for notes receivable and repayments of residual certificates 1,456 1,323 1,913 2,685 3,836 6,374 Acquisition and settlements of beneficial interest assets (hybrid instruments) (45,133) - (4,507) (617) (959) (32) Proceeds from beneficial interest assets (hybrid instruments) 1,729 1,079 9,122 16,374 28,555 49,300 Issuance of line of credit receivable - - - - - (7,862) Repayments of line of credit receivable - - - - - 783 Purchases of property and equipment (37) (116) - - (115) (75) Capitalized software costs (2,291) (2,378) (3,419) (6,159) (4,251) (3,888) Net cash used in investing activities $ (76,100) $ (46,170) $ (77,909) $ (78,569) $ (109,834) $ (120,506) 33
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Condensed Consolidated Statement of Cash Flows (cont.) (in thousands) Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Cash flows from financing activities Proceeds from borrowings 173,250 50,077 89,694 53,655 122,701 36,492 Proceeds from convertible notes issuance, net of debt issuance costs paid to lender - 423,002 490,438 - - 678,270 Payment of debt issuance costs to third party - (1,455) (2,490) (443) - (2,701) Repayments of borrowings (44,824) (138,180) (64,173) (122,285) (30,406) (54,803) Payments for repurchases of convertible notes - (325,344) - - - (224,154) Purchase of capped calls - (40,883) - - - (55,200) Settlement of capped calls - 580 - - - 564 Principal payments made on securitization notes (14,882) (14,259) (12,663) (11,444) (10,577) (10,002) Payable to investors (1) 9,429 (4,724) (605) 22,941 8,555 1,731 Proceeds from issuance of common stock under employee stock purchase plan - 3,120 - 4,692 - 3,757 Proceeds from exercise of stock options 1,015 10,062 9,133 8,209 1,657 4,628 Taxes paid related to net share settlement of equity awards (1) (17) (3) (5) (2) (2) Net cash provided by (used in) financing activities $ 123,987 $ (38,021) $ 509,331 $ (44,680) $ 91,928 $ 378,580 Change in cash, cash equivalents and restricted cash 121,467 95,149 320,496 (136,735) (138,068) 135,445 Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of period 439,151 560,618 655,767 976,263 839,528 701,460 Cash, cash equivalents and restricted cash at end of period $ 560,618 $ 655,767 $ 976,263 $ 839,528 $ 701,460 $ 836,905 (1) During 2024, the Company elected to change the presentation of changes in the payable to investors balance on the condensed consolidated statement of cash flows. Under the new presentation, a portion of the payable to investors balance related to fiduciary cash was reclassified from operating to financing activities. 34
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Reconciliation of non-GAAP financial measures (in thousands, except ratios) 35 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Total revenue $ 127,630 $ 162,140 $ 218,964 $ 213,371 $ 257,291 $ 277,105 Net income (loss) (54,470) (6,758) (2,755) (2,447) 5,607 31,805 Net Income (Loss) Margin (43%) (4%) (1%) (1%) 2% 11% Adjusted to exclude the following: Stock-based compensation and certain payroll tax expenses (1) $ 35,410 $ 34,794 $ 32,087 $ 33,636 $ 36,641 $ 35,404 Depreciation and amortization 4,828 5,390 4,699 6,400 5,843 6,131 Reorganization expenses 3,778 - 603 - - - Expense on convertible notes 1,183 1,303 4,030 4,959 4,913 4,944 Gain on debt extinguishment - (33,361) - - - (7,246) Provision for income taxes 15 45 111 29 49 124 Adjusted EBITDA $ (9,256) $ 1,413 $ 38,775 $ 42,577 $ 53,053 $ 71,162 Adjusted EBITDA Margin (7%) 1% 18% 20% 21% 26% (1) Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.
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(1) Borrower acquisition costs were $23.2 million, $32.7 million, $44.2 million, $48.6 million, $60.9 million, and $67.3 million for the three months ended June 30, 2024, September 30, 2024, December 31,2024, March 31,2025, June 30,2025, and September 30,2025, respectively. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses. (2) Borrower verification and servicing costs were $31.2 million, $32.5 million, $33.1 million, $34.5 million, and $39.3 million, and $43.9 million for the three months ended June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, and September 30, 2025, respectively. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses. Reconciliation of non-GAAP financial measures (in thousands, except ratios) 36 Fiscal 2024 Fiscal 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue from fees, net $ 130,532 $ 167,590 $ 199,276 $ 185,475 $ 240,777 $ 258,539 Income (loss) from operations (55,486) (45,152) (4,750) (4,496) 4,542 23,666 Operating Margin (43%) (27%) (2%) (2%) 2% 9% Sales and marketing, net of borrower acquisition costs (1) $ 9,741 $ 10,480 $ 11,231 $ 10,408 $ 12,170 $ 11,582 Customer operations, net of borrower verification and servicing costs (2) 7,486 6,837 7,456 5,960 6,947 5,919 Engineering and product development 58,453 64,887 67,222 57,838 68,825 64,026 General, administrative, and other 53,021 59,874 60,427 60,558 64,573 60,779 Interest income, interest expense, and fair value adjustments, net 2,902 5,450 (19,688) (27,896) (16,514) (18,566) Contribution Profit $ 76,117 $ 102,376 $ 121,898 $ 102,372 $ 140,543 $ 147,406 Contribution Margin 58% 61% 61% 55% 58% 57%
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● We define Transaction Volume, Dollars as the total principal of loan originations (or committed amounts for HELOCs) facilitated on our marketplace during the periods presented. We define Transaction Volume, Number of Loans as the number of loan originations (or commitments issued for HELOCs) facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a platform. ● We define Conversion Rate as the Transaction Volume, Number of Loans in a period divided by the number of rate inquiries received that we estimate to be legitimate, which we record when a borrower requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth. ● We define Percentage of Loans Fully Automated as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period. ● To derive Contribution Profit, we subtract the sum of borrower acquisition costs as well as borrower verification and servicing costs from revenue from fees, net. To calculate Contribution Margin we divide Contribution Profit by revenue from fees, net. ● We calculate Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense and certain payroll tax expenses, depreciation and amortization, expense on convertible notes, provision for income taxes, gain on debt extinguishment, net gain on lease modification and reorganization expenses. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA and Adjusted EBITDA Margin includes interest expense from corporate debt and warehouse credit facilities which is incurred in the course of earning corresponding interest income. ● We define Adjusted Net Income (Loss) as net income (loss) exclusive of stock-based compensation expense and certain payroll tax expenses as well as certain items that are not related to core business and ongoing operations, such as gain on debt extinguishment, net gain on lease modification and reorganization expenses. Adjusted Net Income (Loss) Per Share is calculated by dividing Adjusted Net Income (Loss) Per Share by the weighted-average common shares outstanding. Key Operating Metrics & Non-GAAP Financial Measures 37
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Thank You