Slides
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Upstart Q2 2026 Earnings August 4 , 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 Q3 2026 and the full fiscal year 2026 and beyond under the heading “Results and 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 slide 32 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 3
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4 $365M +42% YoY Originations Total Revenue Net Income Adjusted EBITDA $4.2B +50% YoY $17M $77M 21% margin 5% margin Q2’26 execution: profitable growth Note: All figures are approximate.
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5 Step-up in Originations driven by Core personal loans and secured products - $4.2B Q2’26 Originations: +50% YoY Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 YoY Growth: +154% +80% +52% +61% +50% # loans: 372,599 428,056 455,788 425,356 558,014 Originations, Dollars ($M)
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- 6 Total revenue: strong growth driven by originations $365M Q2’26 Revenue: +42% YoY Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 YoY Growth: +102% +71% +35% +44% +42% Note: Totals may not sum due to rounding. Fees: platform & referral, servicing, loan sales Net interest income & fair value adjustments Total Revenue ($M)
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7 All-time high Contribution Profit - Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 YoY Growth: +85% +44% +15% +34% +37% Contribution Margin: 58% 57% 53% 50% 55% Contribution Profit ($M) $193M Q2’26 Contribution Profit: +37% YoY
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8 Return to GAAP profitability - $17M Q2’26 Net Income: Net Income ($M) Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Net Income Margin: 2% 11% 6% -2% 5%
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9 Adjusted EBITDA rebounded, with margins at full-year target - $77M Q2’26 Adjusted EBITDA: Adjusted EBITDA ($M) Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Adj. EBITDA Margin: 21% 26% 22% 13% 21%
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Outlook 10
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11 Note: Guidance figures are approximate. FY 2026 Total Revenue $1.4 billion Revenue from fees $1.3 billion Adjusted EBITDA (Margin % of Total Revenue) $294 million (21%) 3-Year Target 2025 - 2028 Total Revenue Compound Annual Growth Rate 35% 2028 Adjusted EBITDA Margin (% of Total Revenue) 25% Outlook reaffirmed Note: All guidance figures are approximate.
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12 Upstart Macro Index (UMI) August 3, 2026 UMI: 1.50 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 August 3, 2026. Beginning July 8, 2026, UMI values are named based on their publication date rather than the month of payments they describe. Historical data has been relabeled to fit the new convention. Macro-driven default risk has ticked up since the start of Q2 Most recent UMI was 1.50, up 9% relative to the April 3, 2026 UMI # Jan 1, 2018 Jan 1, 2020 Jan 1, 2022 Jan 1, 2024 Jan 1, 2026
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Product results 13
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- 14 Unsecured Originations: sequential growth driven by Core re-acceleration Breakout by borrower segment Core (FICO <720) Super prime (720+) Small dollar + Cash Line Note: TransUnion data used for credit scoring. Totals may not sum due to rounding. $3.6B Q2’26 Unsecured Originations: +38% YoY and +20% QoQ Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 YoY Growth: +143% +73% +41% +50% +38% # Unsecured loans: 366,423 420,089 443,784 410,854 535,191 Unsecured Originations ($M)
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- 15 Secured Originations: Auto and Home continued to scale Auto Home Auto YoY Growth ~4X Home YoY Growth ~2X $589M Q2’26 Secured Originations: +218% YoY and +45% QoQ Note: Auto Refinance originations were sunset during Q2'26. Totals may not sum due to rounding. Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 # Auto loans: 5,058 6,705 9,918 12,202 20,023 # Home loans: 1,118 1,262 2,086 2,300 2,800 Secured Originations ($M)
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- 16 Focus on margin powered profitability Unsecured Contribution Margin Secured Contribution Margin 62% Q2’26 Unsecured Contribution Margin: While Secured products progressed rapidly towards profitability. # Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Contribution Margin (%)
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Technology and product highlights 17
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- Q2’26 predictive accuracy captured: Upstart 12.62% Traditional model 4.60% 18 Traditional credit model inaccuracy gap = 95.40% Q2’18: 92.30% Q2’26: 87.38% Personal loan underwriting: 87.38% of the accuracy opportunity remaining Our AI underwriting model is 2.74X as good as a traditional credit model Eight years of steady gains—a compounding edge with significant runway ahead Note: A model's "inaccuracy gap" represents its distance from perfect prediction. 0% = perfect; 100% = no predictive power; lower is better.
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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 Q2’26 19 Note: Amounts presented in figures may not sum to totals due to rounding. Step 1 Step 2 Step 3 686K 530K 156K applications (23%) manually reviewed 91% of 543K funded loans fully automated in Q2’26, with no human intervention by Upstart Automated approvals converted at ~3x the rate of those reviewed manually ~50K ~3 of 10 applications converted to loans ~493K ~9 of 10 applications converted to loans rate offers accepted and evaluated by our verification model in Q2’26 applications (77%) approved automatically
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- 20 Conversion Rate increased sequentially Originations, # of loans Rate inquiries not filled # Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 19.7% Q2’26 Conversion Rate: Metric will be phased out beginning Q1’27 Total rate inquiries
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Marketplace update 21
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- Pre-IPO (2014 - 2020 average) 22 Products per Unique Borrower Borrowers are coming back for another loan faster than ever. The 2024 and 2025 cohorts are borrowing again at roughly three times the pace of any earlier vintage. Repeat borrowing has been accelerating Cumulative funded products per unique borrower 2025: 1.39 2024: 1.53 2023: 1.46 2022: 1.40 Pre-IPO: 1.56 Funded products per borrower Quarters since first funded product 2021: 1.75 Entry quarter 2021 2022 2023 2024 2025
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- 23 2-Year Treasury Yield Expected cash flows The net annualized return from investing equally in all personal loan cohorts since Q2’23 would represent a ~660 basis point premium over the 2-Year Treasury. Upstart loans have consistently delivered attractive returns to capital partners Each personal loan cohort is exceeding Treasuries by at least 425 basis points Upside/downside range Note: Personal loan cohorts include personal loans only, excluding Small Dollar Loans and Cash Line. Net annualized return includes assumed future cash flows, net of servicing fees. Data are as of June 30, 2026. "Upside," "Expected," and "Downside" reflect Upstart's internal return expectations for vintages since Q2'23. Q2'26 is excluded due to limited seasoning.
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- Note: “Capital co-invested” is based on Upstart’s GAAP disclosure of maximum exposure to losses adjusted for settlements and certain amounts that management does not view as at risk. 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. 24 min/max: $0 - 1,079M min/max: $0 - 1,212M min/max: $0 - 1,639M min/max: $0 - 1,827M min/max: $0 - 2,170M min/max: $0 - 2,765M Capital co-invested ($M) Current assessed value ($M) Q2’26 Q1’26 Q4’25 Q3’25 Q2’25 Q1’25 Value of Upstart’s co-investments in committed capital partnerships
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- 25 Loans held, at fair value ($M) Total loans outstanding ($M) The vast majority of Upstart loans have been funded by third parties Balance sheet loans fell to 5.9% of total loans outstanding Loans held, at fair value as a % of total loans outstanding # Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Unsecured loans: $422 $529 $414 $485 $461 Auto loans: $389 $468 $367 $312 $338 Home loans: $133 $169 $150 $172 $229 Securitized loans: $76 $64 $54 $45 $36 Total loans held: $1,020 $1,230 $985 $1,014 $1,064 Note: "Securitized loans" refers to Upstart's consolidated Q3'23 asset-backed securitization (UPST 2023-2). The right-hand y-axis begins at 5.0% for illustrative purposes.
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Financial appendix 26
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Condensed Consolidated Balance Sheet (in thousands) 27 Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Assets Cash and cash equivalents $ 599,778 $ 395,940 $ 489,784 $ 652,388 $ 472,934 $ 455,957 Restricted cash 239,750 305,520 347,121 404,624 458,400 526,320 Loans (at fair value) (1) 814,677 1,019,504 1,229,976 984,552 1,014,089 1,064,239 Property, equipment, and software, net 42,407 43,942 44,259 44,174 48,002 49,421 Operating lease right of use assets 40,557 37,620 34,646 16,410 13,605 18,783 Beneficial interest assets (at fair value) 216,578 266,761 316,199 396,216 474,796 545,938 Line of credit receivable (at fair value) 81,780 107,456 114,846 112,742 111,916 111,772 Notes receivable and residual certificates (at fair value) 19,471 54,708 76,761 97,416 105,066 120,375 Non-marketable equity securities 41,250 41,250 41,250 41,250 41,250 41,000 Goodwill 67,062 67,062 67,062 67,062 67,062 67,062 Other assets 132,967 138,105 142,944 157,971 154,561 170,406 Total assets $ 2,296,277 $ 2,477,868 $ 2,904,848 $ 2,974,805 $ 2,961,681 $ 3,171,273 (1) Includes $88.9 million, $75.9 million, $64.1 million, $53.8 million, $44.9 million, and $36.3 million of loans, at fair value, contributed as collateral for the consolidated securitization as of March 31, 2025, June 30, 2025, September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026, respectively. Liabilities and Stockholders’ Equity Liabilities: Payable to investors $ 83,114 $ 91,669 $ 93,400 $ 107,659 $ 125,523 $ 145,208 Borrowings 1,334,863 1,428,479 1,855,754 1,829,145 1,921,665 2,003,129 Payable to securitization note holders (at fair value) 75,904 65,152 55,175 46,542 39,188 32,122 Accrued expenses and other liabilities 78,680 126,725 116,250 171,495 124,591 170,974 Operating lease liabilities 47,074 43,833 40,551 21,149 17,548 22,352 Total liabilities 1,619,635 1,755,858 2,161,130 2,175,990 2,228,515 2,373,785 Stockholders’ equity: Common stock 10 10 10 10 10 10 Additional paid-in capital 1,090,236 1,129,997 1,119,900 1,156,361 1,097,358 1,145,141 Accumulated deficit (413,604) (407,997) (376,192) (357,556) (364,202) (347,663) Total stockholders’ equity 676,642 722,010 743,718 798,815 733,166 797,488 Total liabilities and stockholders’ equity $ 2,296,277 $ 2,477,868 $ 2,904,848 $ 2,974,805 $ 2,961,681 $ 3,171,273
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28 Condensed Consolidated Statement of Operations (in thousands, except share and per share data) Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Revenue: Revenue from fees, net $ 185,475 $ 240,777 $ 258,539 $ 265,220 $ 277,063 $ 348,019 Interest income, interest expense, and fair value adjustments, net: Interest income (1) 40,568 45,623 57,203 60,836 56,061 57,051 Interest expense (1) (7,020) (7,772) (8,794) (8,078) (10,370) (12,531) Fair value and other adjustments (5,652) (21,337) (29,843) (21,888) (14,540) (27,831) Total interest income, interest expense, and fair value adjustments, net 27,896 16,514 18,566 30,870 31,151 16,689 Total revenue 213,371 257,291 277,105 296,090 308,214 364,708 Operating expenses: Sales and marketing 58,970 73,105 78,844 90,588 104,455 114,512 Customer operations 40,501 46,246 49,790 51,840 55,095 61,319 Engineering and product development 57,838 68,825 64,026 66,913 80,112 93,860 General, administrative, and other 60,558 64,573 60,779 67,830 76,070 80,378 Total operating expenses 217,867 252,749 253,439 277,171 315,732 350,069 Income (loss) from operations (4,496) 4,542 23,666 18,919 (7,518) 14,639 Other income, net 7,037 6,027 5,961 5,299 956 2,514 Expense on convertible notes (4,959) (4,913) (4,944) (5,056) - - Gain on debt extinguishment - - 7,246 - - - Net income (loss) before income taxes (2,418) 5,656 31,929 19,162 (6,562) 17,153 Provision for income taxes 29 49 124 526 84 614 Net income (loss) $ (2,447) $ 5,607 $ 31,805 $ 18,636 $ (6,646) $ 16,539 Net income (loss) per share, basic $ (0.03) $ 0.06 $ 0.33 $ 0.19 $ (0.07) $ 0.17 Net income (loss) per share, diluted $ (0.03) $ 0.05 $ 0.23 $ 0.17 $ (0.07) $ 0.16 Weighted-average number of shares outstanding used in computing net income (loss) per share, basic 94,274,538 95,526,364 96,682,774 97,594,902 96,901,974 96,573,751 Weighted-average number of shares outstanding used in computing net income (loss) per share, diluted 94,274,538 102,852,284 109,724,669 112,223,816 96,901,974 109,720,846 (1) For fiscal year 2026, interest income and interest expense include dividend income earned on certain cash accounts and expense on convertible senior notes, respectively, which were previously included in other income, net. See “Note 1. Description of Business and Significant Accounting Policies” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 for details.
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Revenue Breakout (in thousands) 29 Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Revenue from fees, net: Platform and referral fees, net $ 150,975 $ 202,845 $ 216,882 $ 222,277 $ 224,618 $ 284,066 Servicing and other fees, net 34,500 37,932 41,657 42,397 49,112 54,807 Loan sales fees (1) - - - 546 3,333 9,146 Total revenue from fees, net $ 185,475 $ 240,777 $ 258,539 $ 265,220 $ 277,063 $ 348,019 The following table presents revenue from fees disaggregated by type of service as follows: The following table presents components of fair value and other adjustments, net as follows: Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Fair value and other adjustments, net: Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net $ (21,326) $ (18,878) $ (15,545) $ (27,339) $ (18,187) $ (15,586) Fair value adjustments and realized gains (losses) on beneficial interests, net 17,665 (6,288) (13,985) 19,213 13,134 (8,407) Realized gain (loss) on sale of loans, net $ (1,991) $ 3,829 $ (313) $ (13,762) $ (9,487) $ (3,838) Total fair value and other adjustments, net $ (5,652) $ (21,337) $ (29,843) $ (21,888) $ (14,540) $ (27,831) (1) Represents fees we charge our third-party loan purchasers for facilitating certain forward-flow loan sales and that are recognized as part of the sales proceeds received. Beginning in the second quarter of 2026, loan sales fees, which were previously included within servicing and other fees, net, are presented as a separate component of revenue from fees, net. Prior-period amounts have been reclassified to conform to the current-period presentation.
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30 Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Cash flows from operating activities Net income (loss) $ (2,447) $ 5,607 $ 31,805 $ 18,636 $ (6,646) $ 16,539 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Change in fair value of loans 7,062 (28,126) (62,384) (30,224) (62,225) 136,343 Change in fair value of servicing assets 4,090 4,550 4,155 5,851 5,583 6,952 Change in fair value of servicing liabilities (285) (338) (386) 67 (342) (1,224) Change in fair value of beneficial interest assets (17,600) (5,884) 7,279 (16,979) (10,213) 927 Change in fair value of beneficial interest liabilities (65) 12,172 6,706 (2,234) (2,921) 7,480 Change in fair value of other financial instruments (33) (2,351) (3,145) (1,392) (894) (333) Stock-based compensation 29,831 35,511 34,155 32,453 34,811 44,466 Gain on loan servicing rights, net (4,945) (7,506) (7,925) (7,627) (7,474) (13,370) Gain on debt extinguishment - - (7,246) - - - Depreciation and amortization 6,400 5,843 6,131 6,461 5,858 7,126 Loan premium amortization (8,352) (10,824) (14,384) (15,589) (11,963) (11,163) Non-cash interest expense and other 1,325 1,678 2,216 3,388 3,713 4,504 Condensed Consolidated Statement of Cash Flows (in thousands) Net changes in operating assets and liabilities: Purchases and originations of loans held-for-sale (1,345,253) (2,624,546) (2,440,455) (2,662,651) (2,459,444) (3,590,431) Proceeds from sale of loans held-for-sale 1,316,696 2,407,037 2,270,958 2,684,771 2,371,308 3,160,836 Principal payments received for loans held-for-sale 38,252 44,886 55,407 49,115 41,658 53,969 Principal payments received for loans held by consolidated securitization 10,280 9,653 9,839 8,113 8,031 7,111 Settlements of beneficial interest liabilities, net (5,992) (5,672) (4,052) (5,882) 1,081 (557) Proceeds from beneficial interest assets (derivatives) 731 75 3,290 506 3,154 7,382 Settlements of beneficial interest assets (derivatives) (485) (538) (636) (2,916) (1,500) (1,623) Other assets 6,437 (2,373) (239) (14,656) 4,374 (9,457) Operating lease liability and right-of-use asset (306) (304) (308) (1,166) (796) (374) Accrued expenses and other liabilities (48,827) 41,288 (13,410) 60,507 (48,450) 38,265 Net cash provided by (used in) operating activities $ (13,486) $ (120,162) $ (122,629) $ 108,552 $ (133,297) $ (136,632)
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Condensed Consolidated Statement of Cash Flows (cont.) (in thousands) Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Cash flows from investing activities Purchases and originations of loans held-for-investment (149,916) (228,024) (288,109) (366,978) (438,365) (178,850) Proceeds from sale of loans held-for-investment 1,647 18,600 30,948 344,536 313,068 122,658 Principal payments received for loans held-for-investment 57,417 72,524 92,055 98,368 76,443 81,576 Principal payments received for notes receivable and repayments of residual certificates 2,685 3,836 6,374 10,156 11,743 15,311 Acquisition and settlements of beneficial interest assets (hybrid instruments) (617) (959) (32) (1,830) (1,734) (1,463) Proceeds from beneficial interest assets (hybrid instruments) 16,374 28,555 49,300 48,673 45,344 61,821 Issuance of line of credit receivable - - (7,862) - - (721) Repayments of line of credit receivable - - 783 2,732 1,369 - Purchases of property and equipment - (115) (75) (157) (2,750) (2,058) Capitalized software costs (6,159) (4,251) (3,888) (3,762) (4,242) (4,192) Net cash provided by (used in) investing activities $ (78,569) $ (109,834) $ (120,506) $ 131,738 $ 876 $ 94,082 31 Cash flows from financing activities Proceeds from borrowings 53,655 122,701 36,492 81,370 123,524 301,026 Proceeds from convertible notes issuance, net of debt issuance costs paid to lender - - 678,270 - - - Payment of debt issuance costs to third parties (443) - (2,701) (6) - - Repayments of borrowings (122,285) (30,406) (54,803) (109,603) (32,626) (221,207) Payments for repurchases of convertible notes - - (224,154) - - - Purchase of capped calls - - (55,200) - - - Settlement of capped calls - - 564 - - - Principal payments made on securitization notes (11,444) (10,577) (10,002) (8,569) (7,215) (6,934) Payable to investors 22,941 8,555 1,731 14,259 17,864 19,685 Net proceeds related to stock-based award activities 12,896 1,655 8,383 2,366 5,253 923 Repurchases of stock - - - - (100,057) - Net cash provided by (used in) financing activities $ (44,680) $ 91,928 $ 378,580 $ (20,183) $ 6,743 $ 93,493 Change in cash, cash equivalents and restricted cash (136,735) (138,068) 135,445 220,107 (125,678) 50,943 Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of period 976,263 839,528 701,460 836,905 1,057,012 931,334 Cash, cash equivalents and restricted cash at end of period $ 839,528 $ 701,460 $ 836,905 $ 1,057,012 $ 931,334 $ 982,277
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Reconciliation of non-GAAP financial measures (in thousands, except ratios) 32 Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Total revenue $ 213,371 $ 257,291 $ 277,105 $ 296,090 $ 308,214 $ 364,708 Net income (loss) (2,447) 5,607 31,805 18,636 (6,646) 16,539 Net Income (Loss) Margin (1%) 2% 11% 6% (2%) 5% Adjusted to exclude the following: Stock-based compensation and certain payroll tax expenses (1) $ 33,636 $ 36,641 $ 35,404 $ 33,015 $ 36,112 $ 45,881 Depreciation and amortization 6,400 5,843 6,131 6,461 5,858 7,126 Reorganization expenses - - - - - 1,678 Expense on convertible notes 4,959 4,913 4,944 5,056 5,061 5,067 Gain on debt extinguishment - - (7,246) - - - Provision for income taxes 29 49 124 526 84 614 Adjusted EBITDA $ 42,577 $ 53,053 $ 71,162 $ 63,694 $ 40,469 $ 76,905 Adjusted EBITDA Margin 20% 21% 26% 22% 13% 21% (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. (2) Borrower acquisition costs were $48.6 million, $60.9 million, $67.3 million, $79.5 million, $92.3 million, and $102.3 million for the three months ended March 31,2025, June 30,2025, September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026, 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. (3) Borrower verification and servicing costs were $34.5 million, $39.3 million, $43.9 million, $45.0 million, $47.5 million, and $52.6 million for the three months ended March 31, 2025, June 30, 2025, September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026, 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. Revenue from fees, net $ 185,475 $ 240,777 $ 258,539 $ 265,220 $ 277,063 $ 348,019 Income (loss) from operations (4,496) 4,542 23,666 18,919 (7,518) 14,639 Operating Margin (2%) 2% 9% 7% (3%) 4% Sales and marketing, net of borrower acquisition costs (1) $ 10,408 $ 12,170 $ 11,582 $ 11,110 $ 12,198 $ 12,228 Customer operations, net of borrower verification and servicing costs (2) 5,960 6,947 5,919 6,871 7,563 8,715 Engineering and product development 57,838 68,825 64,026 66,913 80,112 93,860 General, administrative, and other 60,558 64,573 60,779 67,830 76,070 80,378 Interest income, interest expense, and fair value adjustments, net (27,896) (16,514) (18,566) (30,870) (31,151) (16,689) Contribution Profit $ 102,372 $ 140,543 $ 147,406 $ 140,773 $ 137,274 $ 193,131 Contribution Margin 55% 58% 57% 53% 50% 55%
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Segment Information (in thousands) 33 Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Unsecured Lending Revenue from fees, net $ 182,127 $ 236,935 $ 253,192 $ 256,964 $ 265,394 $ 326,301 Borrower acquisition costs (1) (45,141) (57,249) (61,771) (71,210) (80,379) (84,712) Borrower verification and servicing costs (2) (29,274) (32,366) (34,445) (34,199) (36,581) (40,821) Contribution Profit for Unsecured Lending $ 107,712 $ 147,320 $ 156,976 $ 151,555 $ 148,434 $ 200,768 (1) 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 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. (3) Includes Auto Lending and Other operating segments, which did not meet the separate reporting or aggregation criteria under GAAP. The following table presents financial information, including Contribution Profit, for our Unsecured Lending segment, which includes unsecured personal loans, small dollar loans, and cash lines: The following table presents a reconciliation of total Contribution Profit to net income (loss) before income taxes: Fiscal 2025 Fiscal 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Contribution Profit - Unsecured Lending $ 107,712 $ 147,320 $ 156,976 $ 151,555 $ 148,434 $ 200,768 Reconciling items: Contribution Profit/(Loss) - Other Segments (3) (5,340) (6,777) (9,570) (10,782) (11,160) (7,637) Sales and marketing, net of borrower acquisition costs (1) (10,408) (12,170) (11,582) (11,110) (12,198) (12,228) Customer operations, net of borrower verification and servicing costs (2) (5,960) (6,947) (5,919) (6,871) (7,563) (8,715) Engineering and product development (57,838) (68,825) (64,026) (66,913) (80,112) (93,860) General, administrative, and other (60,558) (64,573) (60,779) (67,830) (76,070) (80,378) Interest income, interest expense, and fair value adjustment net 27,896 16,514 18,566 30,870 31,151 16,689 Other income, net 2,078 1,114 1,017 243 956 2,514 Gain on debt extinguishment - - 7,246 - - - Net income (loss) before income taxes $ (2,418) $ 5,656 $ 31,929 $ 19,162 $ (6,562) $ 17,153
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● Beginning in the second quarter of 2026, we refer to the metrics “Transaction Volume, Dollars” and “Transaction Volume, Number of Loans” as “Originations, Dollars” and “Originations, Number of Loans,” respectively, to reflect management’s internal terminology. We define Originations, Dollars as the aggregate of: (i) the total principal of loan originations for personal loans, small dollar loans, and auto loans, (ii) committed amounts for HELOCs, and (iii) drawn amounts for unsecured revolving credit lines (Cash Line), in each case facilitated on our marketplace during the periods presented. We define Originations, Number of Loans as the total number of such originations, commitments, and draws, as applicable, facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a marketplace. ● We define Conversion Rate as the Originations, 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. Cash Line is excluded because those borrowers may make multiple draws after the line has been initially approved, and those subsequent draws do not represent additional conversions. As our business and product portfolio have evolved, we have determined that Conversion Rate no longer meaningfully reflects the performance of our business, including our revenue and operating results. Accordingly, we plan to continue reporting Conversion Rate through fiscal 2026 as a transition period, and we do not intend to report this metric beginning with Q1’27. ● 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 Originations, Number of Loans in the same period. Cash Line is excluded because those borrowers may make multiple draws after the line has been initially approved, and those subsequent draws do not represent additional automation. 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. ● Take rate is not one of our key operating metrics. However, the concept refers to revenue from fees, net as a percentage of Originations, Dollars. ● 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, as applicable. 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. ● In Q2'26, we renamed our sole reportable "Personal Lending" segment to "Unsecured Lending." The change was administrative and did not affect the underlying disclosures. "Secured" is not a reportable segment and is derived by subtracting Unsecured Lending from total Company results. Unsecured Lending includes personal loans, small-dollar loans, and Cash Line. Secured includes Auto and Home. Glossary of Terms 34
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Thank You