Upstart’s committed financing could help if loan buyers pull back again

Upstart uses AI to price consumer loans for banks, selling them to third parties for fees. Buyer pullbacks in 2022–23 left it holding loans and losing money; it has returned to profit over the past year, and committed financing may help in another downturn.

Upstart has cut costs and added auto loans. It remains only slightly profitable and has never demonstrated steady profits for shareholders; its shares are in a 94% drawdown. The analysis says it could do better over a market cycle if its profit recovery continues.