Slides
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Q4 and Full Year 2025 Earnings February 10, 2026
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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, and adjusted EBITDA margin. 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 Full Year 2025 results: a breakout year of profitable growth at scale Focused execution against our 2025 priorities Originations: $11.0B +86% YoY Net Income: $54M 5% margin Adj. EBITDA: $230M 22% margin Note: Originations refers to Transaction Volume, Dollars. Total Revenue: $1.0B +64% YoY
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Transaction Volume, Dollars ($M) Q4’25 originations: $3.2B +52% YoY 5 YoY Growth: +68% +89% +154% +80% +52%
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Loan conversion funnel 6 Q4’25 loans: 456K 19.4% Conversion Rate Transaction volume, # of loans Rate inquiries not filled Note: Beginning in the fourth quarter of 2025, we revised the definition and underlying calculation methodology of Conversion Rate. Prior period figures have been recast to conform to the new definition and methodology. For additional information regarding this change, see “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025. Conversion Rate: 18.0% 17.5% 21.0% 19.4% 19.4%
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Total Revenue ($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. Q4’25 Revenue: $296M +35% YoY YoY Growth: +56% +67% +102% +71% +35%
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Contribution Profit ($M) 8 Q4’25 Contribution: $141M 53% Contribution Margin Contribution Margin: 61% 55% 58% 57% 53%
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Net Income (Loss) ($M) 9 Q4’25 Net Income: $19M 6% Net Income Margin Net Margin: -1% -1% 2% 11% 6%
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Adjusted EBITDA ($M) 10 Q4’25 Adjusted EBITDA: $64M 22% Adj. EBITDA Margin Adj. EBITDA Margin: 18% 20% 21% 26% 22%
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11Note: Guidance figures are approximate. Note: Beginning Q4 2025, we discontinued reporting Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share as it is no longer used by management to evaluate business performance. FY 2026 Total Revenue $1.4 billion Revenue from fees $1.3 billion Adjusted EBITDA Margin (% of Total Revenue) 21% 3-Year Target (2025-2028) Total Revenue Compound Annual Growth Rate (%) 35% Terminal Adjusted EBITDA Margin (%) 25% Outlook
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Technology and product highlights 12
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13 Q4’25 product highlight: model expansion to non-funded applicant data Incorporating broader applicant outcomes to strengthen underwriting and pricing decisions In Q4, we expanded our underwriting models beyond Upstart-funded loans, incorporating non-funded applicant outcomes to improve accuracy and reduce bias in approval and pricing decisions.
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14 Upstart AI supports scale and leads to radically better consumer experiences Q4’25: 91% of loans were fully automated, with no human intervention by Upstart Q4’25: 91% Q4’19: 69% Note: Beginning in Q4’25, the Company revised the definition of Percentage of Loans Fully Automated. Prior periods have not been adjusted, as the impact was immaterial. For additional information regarding this change, see “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025.
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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 Q4’25 15Note: Amounts presented in figures may not sum to totals due to rounding. Step 1 Step 2 Step 3 580K 442K 138K applications (24%) manually reviewed 91% of 456K funded loans fully automated in Q4’25, with no human intervention by Upstart Automated approvals converted at >3x the rate of those reviewed manually ~43K ~3 of 10 applications converted to loans ~413K ~9 of 10 applications converted to loans rate offers accepted and evaluated by our verification model in Q4’25 applications (76%) approved automatically
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Personal loan originations ($M) 16 Q4’25 originations: $2.9B Personal loan originations grew 41% YoY. Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 # of loans 186,577 243,137 237,201 366,423 420,089 443,784
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Q4’25 originations $2.9B Super prime made up 27% of personal loan originations. “Best rates for all” is unlocking value across the credit spectrum. Personal loan originations by borrower segment ($M) Small dollar Core Super prime (720+) 17Note: Chart amounts may not add to totals due to rounding. Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 # of loans 186,577 243,137 237,201 366,423 420,089 443,784
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Auto originations ($M) Q4’25 originations $200M Auto originations grew ~4X versus Q4’24 and 56% sequentially. 18 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 # of loans 1,289 2,073 2,839 5,058 6,705 9,918
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Home originations ($M) Q4’25 originations $123M Home originations grew ~5X versus Q4’24 and 70% sequentially. Note: Home originations are defined as: total committed amount the borrower can draw against. 19 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 # of loans 283 453 666 1,118 1,262 2,086
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Marketplace update 20
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21Note: 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 01/29/26. Macroeconomic risk to consumer health has improved since Q3 volatility Upstart Macro Index (UMI) Dec: 1.39
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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 12/31/25. "Upside," "expected" and "downside" are Upstart's internal estimates of the returns observed for each vintage since Q4 2023. Q4 2025 is excluded due to limited seasoning. 22 The net annualized return from investing equally in all personal loan cohorts since Q4’23 would represent a 7.6% premium over the 2-Year Treasury 2-Year Treasury Yield Expected cash flows Upside/downside range Equal investment in all personal loan cohorts since Q4’23 would yield an 11.3% net annualized return Note: “Personal loan cohorts” refers to personal loans, excluding small dollar loans.
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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 Q3’24, $25M Q4’24, $28M Q1’25, $28M Q2’25, $27M Q3’25, $29M Q4’25. 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 - 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) min/max: $0 - 1,827M
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24 ● 70% of funding for Auto and Home loans originated in Q4 came from banks, credit unions, and private capital partners ● Reduced loans held on the balance sheet by 20% QoQ ● 11 different capital partners funded Auto and Home loans originated in Q4, with an additional 13 signed for the coming year 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 $7M as of 12/31/25. R&D Personal loans Securitized loans Loans held by Upstart R&D Personal loans Securitized loans
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Financial appendix 25
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Condensed Consolidated Balance Sheet ($ in thousands) 26 Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Assets Cash and cash equivalents $ 445,274 $ 788,422 $ 599,778 $ 395,940 $ 489,784 $ 652,388 Restricted cash 210,493 187,841 239,750 305,520 347,121 404,624 Loans (at fair value) (1) 656,120 806,304 814,677 1,019,504 1,229,976 984,552 Property, equipment, and software, net 38,328 39,013 42,407 43,942 44,259 44,174 Operating lease right of use assets 46,318 43,455 40,557 37,620 34,646 16,410 Beneficial interest assets (at fair value) 131,483 176,848 216,578 266,761 316,199 396,216 Line of credit receivable (at fair value) 31,514 56,269 81,780 107,456 114,846 112,742 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 141,138 160,494 152,438 192,813 219,705 255,387 Total assets $ 1,808,980 $ 2,366,958 $ 2,296,277 $ 2,477,868 $ 2,904,848 $ 2,974,805 (1) Includes $118.5 million, $102.9 million, $88.9 million, $75.9 million, $64.1 million, and $53.8 million of loans, at fair value, contributed as collateral for the consolidated securitization as of September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025, respectively.
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Condensed Consolidated Balance Sheet (cont.) ($ in thousands) 27 Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Liabilities and Stockholders’ Equity Liabilities: Payable to investors $ 60,778 $ 60,173 $ 83,114 $ 91,669 $ 93,400 $ 107,659 Borrowings 887,367 1,402,168 1,334,863 1,428,479 1,855,754 1,829,145 Payable to securitization note holders (at fair value) 100,335 87,321 75,904 65,152 55,175 46,542 Accrued expenses and other liabilities 111,616 133,800 78,680 126,725 116,250 171,495 Operating lease liabilities 53,348 50,278 47,074 43,833 40,551 21,149 Total liabilities 1,213,444 1,733,740 1,619,635 1,755,858 2,161,130 2,175,990 Stockholders’ equity: Common stock 9 9 10 10 10 10 Additional paid-in capital 1,003,929 1,044,366 1,090,236 1,129,997 1,119,900 1,156,361 Accumulated deficit (408,402) (411,157) (413,604) (407,997) (376,192) (357,556) Total stockholders’ equity 595,536 633,218 676,642 722,010 743,718 798,815 Total liabilities and stockholders’ equity $ 1,808,980 $ 2,366,958 $ 2,296,277 $ 2,477,868 $ 2,904,848 $ 2,974,805
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28 Condensed Consolidated Statement of Operations (in thousands, except share and per share data) Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue: Revenue from fees, net (1) $ 167,590 $ 199,276 $ 185,475 $ 240,777 $ 258,539 $ 265,220 Interest income, interest expense, and fair value adjustments, net: Interest income (2) 40,845 41,461 40,568 45,623 57,203 60,836 Interest expense (2) (10,818) (7,431) (7,020) (7,772) (8,794) (8,078) Fair value and other adjustments (2)(3) (35,477) (14,342) (5,652) (21,337) (29,843) (21,888) Total interest income, interest expense, and fair value adjustments, net (5,450) 19,688 27,896 16,514 18,566 30,870 Total revenue 162,140 218,964 213,371 257,291 277,105 296,090 Operating expenses: Sales and marketing 43,229 55,463 58,970 73,105 78,844 90,588 Customer operations 39,302 40,602 40,501 46,246 49,790 51,840 Engineering and product development 64,887 67,222 57,838 68,825 64,026 66,913 General, administrative, and other 59,874 60,427 60,558 64,573 60,779 67,830 Total operating expenses 207,292 223,714 217,867 252,749 253,439 277,171 Income (loss) from operations (45,152) (4,750) (4,496) 4,542 23,666 18,919 Other income, net 6,381 6,136 7,037 6,027 5,961 5,299 Expense on convertible notes (1,303) (4,030) (4,959) (4,913) (4,944) (5,056) Gain on debt extinguishment 33,361 - - - 7,246 - Net income (loss) before income taxes (6,713) (2,644) (2,418) 5,656 31,929 19,162 Provision for income taxes 45 111 29 49 124 526 Net income (loss) $ (6,758) $ (2,755) $ (2,447) $ 5,607 $ 31,805 $ 18,636 Net income (loss) per share, basic $ (0.07) $ (0.03) $ (0.03) $ 0.06 $ 0.33 $ 0.19 Net income (loss) per share, diluted $ (0.07) $ (0.03) $ (0.03) $ 0.05 $ 0.23 $ 0.17 Weighted-average number of shares outstanding used in computing net income (loss) per share, basic 90,119,481 92,174,306 94,274,538 95,526,364 96,682,774 97,594,902 Weighted-average number of shares outstanding used in computing net income (loss) per share, diluted 90,119,481 92,174,306 94,274,538 102,852,284 109,724,669 112,223,816 (1)(2) - Refer to slide 30 for further information. (3) - Refer to slide 31 for further information.
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Revenue Breakout (in thousands) 29 Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue from fees, net: Platform and referral fees, net $ 134,199 $ 165,758 $ 150,975 $ 202,845 $ 216,882 $ 222,277 Servicing and other fees, net 33,391 33,518 34,500 37,932 41,657 42,943 Total revenue from fees, net $ 167,590 $ 199,276 $ 185,475 $ 240,777 $ 258,539 $ 265,220 (2) This footnote is related to the table on slide 28. 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 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Interest income, interest expense, and fair value adjustments, net related to consolidated securitization: Interest income $ 6,748 $ 5,882 $ 5,112 $ 4,465 $ 3,876 $ 3,140 Interest expense (2,272) (2,052) (1,849) (1,668) (1,489) (1,307) Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net (5,726) (3,753) (3,780) (3,238) (1,970) (2,126) Total interest income, interest expense, and fair value adjustments, net $ (1,250) $ 77 $ (517) $ (441) $ 417 $ (293) (1) This footnote is related to the table on slide 28. 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 28. The following table presents components of fair value adjustments, net as follows: Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Fair value and other adjustments, net: Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net $ (31,579) $ (18,374) $ (21,326) $ (18,878) $ (15,545) $ (27,339) Realized gain (loss) on sale of loans, net (2,950) (1,418) (1,991) 3,829 (313) (13,762) Fair value adjustments and realized gains (losses) on beneficial interests, net (948) 5,450 17,665 (6,288) (13,985) 19,213 Total fair value and other adjustments, net $ (35,477) $ (14,342) $ (5,652) $ (21,337) $ (29,843) $ (21,888)
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31 Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Cash flows from operating activities Net income (loss) $ (6,758) $ (2,755) $ (2,447) $ 5,607 $ 31,805 $ 18,636 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Change in fair value of loans 63,767 (42,543) 7,062 (28,126) (62,384) (30,224) Change in fair value of servicing assets 4,637 3,652 4,090 4,550 4,155 5,851 Change in fair value of servicing liabilities (60) (369) (285) (338) (386) 67 Change in fair value of beneficial interest assets (34,758) 40,976 (17,600) (5,884) 7,279 (16,979) Change in fair value of beneficial interest liabilities 3,289 (65) (65) 12,172 6,706 (2,234) Change in fair value of other financial instruments 12,579 (4,133) (33) (2,351) (3,145) (1,392) Stock-based compensation 33,618 29,796 29,831 35,511 34,155 32,453 Gain on loan servicing rights, net (5,551) (4,001) (4,945) (7,506) (7,925) (7,627) Gain on debt extinguishment (33,361) - - - (7,246) - Depreciation and amortization 5,390 4,699 6,400 5,843 6,131 6,461 Loan premium amortization (4,790) (6,147) (8,352) (10,824) (14,384) (15,589) Non-cash interest expense and other 615 1,061 1,325 1,678 2,216 3,388 Condensed Consolidated Statement of Cash Flows (in thousands)
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32 Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Net changes in operating assets and liabilities: Purchases of loans held-for-sale (1,056,233) (1,683,022) (1,345,253) (2,624,546) (2,440,455) (2,662,651) Proceeds from sale of loans held-for-sale 1,121,045 1,488,898 1,316,696 2,407,037 2,270,958 2,684,771 Principal payments received for loans held-for-sale 41,675 35,879 38,252 44,886 55,407 49,115 Principal payments received for loans held by consolidated securitization 11,818 11,465 10,280 9,653 9,839 8,113 Settlements of beneficial interest liabilities, net (1,325) (3,008) (5,992) (5,672) (4,052) (5,882) Proceeds from beneficial interest assets (derivatives) - - 731 75 3,290 506 Settlements of beneficial interest assets (derivatives) - - (485) (538) (636) (2,916) Other assets (7,832) (6,580) 6,437 (2,373) (239) (14,656) Operating lease liability and right-of-use asset (200) (207) (306) (304) (308) (1,166) Accrued expenses and other liabilities 31,775 25,478 (48,827) 41,288 (13,410) 60,507 Net cash provided by (used in) operating activities $ 179,340 $ (110,926) $ (13,486) $ (120,162) $ (122,629) $ 108,552 Condensed Consolidated Statement of Cash Flows (cont.) (in thousands)
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Condensed Consolidated Statement of Cash Flows (cont.) (in thousands) Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Cash flows from investing activities Purchases and originations of loans held-for-investment (85,639) (126,516) (149,916) (228,024) (288,109) (366,978) Proceeds from sale of loans held-for-investment - - 1,647 18,600 30,948 344,536 Principal payments received for loans held-for-investment 39,561 45,498 57,417 72,524 92,055 98,368 Principal payments received for notes receivable and repayments of residual certificates 1,323 1,913 2,685 3,836 6,374 10,156 Acquisition and settlements of beneficial interest assets (hybrid instruments) - (4,507) (617) (959) (32) (1,830) Proceeds from beneficial interest assets (hybrid instruments) 1,079 9,122 16,374 28,555 49,300 48,673 Issuance of line of credit receivable - - - - (7,862) - Repayments of line of credit receivable - - - - 783 2,732 Purchases of property and equipment (116) - - (115) (75) (157) Capitalized software costs (2,378) (3,419) (6,159) (4,251) (3,888) (3,762) Net cash provided by (used in) investing activities $ (46,170) $ (77,909) $ (78,569) $ (109,834) $ (120,506) $ 131,738 33
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Condensed Consolidated Statement of Cash Flows (cont.) (in thousands) Fiscal 2024 Fiscal 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Cash flows from financing activities Proceeds from borrowings 50,077 89,694 53,655 122,701 36,492 81,370 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) (6) Repayments of borrowings (138,180) (64,173) (122,285) (30,406) (54,803) (109,603) 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 (14,259) (12,663) (11,444) (10,577) (10,002) (8,569) Payable to investors (1) (4,724) (605) 22,941 8,555 1,731 14,259 Net proceeds related to stock-based award activities 13,165 9,130 12,896 1,655 8,383 2,366 Net cash provided by (used in) financing activities $ (38,021) $ 509,331 $ (44,680) $ 91,928 $ 378,580 $ (20,183) Change in cash, cash equivalents and restricted cash 95,149 320,496 (136,735) (138,068) 135,445 220,107 Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of period 560,618 655,767 976,263 839,528 701,460 836,905 Cash, cash equivalents and restricted cash at end of period $ 655,767 $ 976,263 $ 839,528 $ 701,460 $ 836,905 $ 1,057,012 (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 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total revenue $ 162,140 $ 218,964 $ 213,371 $ 257,291 $ 277,105 $ 296,090 Net income (loss) (6,758) (2,755) (2,447) 5,607 31,805 18,636 Net Income (Loss) Margin (4%) (1%) (1%) 2% 11% 6% Adjusted to exclude the following: Stock-based compensation and certain payroll tax expenses (1) $ 34,794 $ 32,087 $ 33,636 $ 36,641 $ 35,404 $ 33,015 Depreciation and amortization 5,390 4,699 6,400 5,843 6,131 6,461 Reorganization expenses - 603 - - - - Expense on convertible notes 1,303 4,030 4,959 4,913 4,944 5,056 Gain on debt extinguishment (33,361) - - - (7,246) - Provision for income taxes 45 111 29 49 124 526 Adjusted EBITDA $ 1,413 $ 38,775 $ 42,577 $ 53,053 $ 71,162 $ 63,694 Adjusted EBITDA Margin 1% 18% 20% 21% 26% 22% (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 $32.7 million, $44.2 million, $48.6 million, $60.9 million, $67.3 million, and $79.5 million for the three months ended September 30, 2024, December 31,2024, March 31,2025, June 30,2025, September 30, 2025, and December 31, 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 $32.5 million, $33.1 million, $34.5 million, $39.3 million, $43.9 million, and $45.0 million for the three months ended September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 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 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue from fees, net $ 167,590 $ 199,276 $ 185,475 $ 240,777 $ 258,539 $ 265,220 Income (loss) from operations (45,152) (4,750) (4,496) 4,542 23,666 18,919 Operating Margin (27%) (2%) (2%) 2% 9% 7% Sales and marketing, net of borrower acquisition costs (1) $ 10,480 $ 11,231 $ 10,408 $ 12,170 $ 11,582 $ 11,110 Customer operations, net of borrower verification and servicing costs (2) 6,837 7,456 5,960 6,947 5,919 6,871 Engineering and product development 64,887 67,222 57,838 68,825 64,026 66,913 General, administrative, and other 59,874 60,427 60,558 64,573 60,779 67,830 Interest income, interest expense, and fair value adjustments, net 5,450 (19,688) (27,896) (16,514) (18,566) (30,870) Contribution Profit $ 102,376 $ 121,898 $ 102,372 $ 140,543 $ 147,406 $ 140,773 Contribution Margin 61% 61% 55% 58% 57% 53%
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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 total number of rate inquiries received that we estimate to be legitimate, which we record when a borrower actively 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 with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period. Under this definition, “originated end-to-end” means (i) from initial rate request to final funding for personal loans, including small dollar loans, and (ii) from initial rate request to loan approval for auto loans and HELOCs, due to certain jurisdictions’ local requirements and external dependencies that require human action prior to funding. ● 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. For additional information, see “Key Operating and Non-GAAP Financial Metrics” in our Annual Report on Form 10-K for the year ended December 31, 2025. Key Operating Metrics & Non-GAAP Financial Measures 37
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Thank You