Upstart Holdings stock falls 22% in after-hours trading after its Q4’s outlook signals a decline of adjusted EBITDA and net income, according to a report by SeekingAlpha on Tuesday.

  • The lending software company projects Q4 adjusted EBITDA of $51-$53M vs. $59.1M in Q3 and Q4 adjusted net income of $48M-$50M vs. $57.4M in the prior quarter.
  • The company anticipates higher Q4 revenue of $255M-$265M than the consensus estimate of $227.6M, as the contribution margin is expected to be around 47% and 46% in Q3.
  • Third-quarter revenue of $228M tops the consensus estimate of $214.9M and grew from $194.0M in Q2 and $65.4M in Q3. The annual total fee revenue of $210M rose from $62.9M in the quarter of 2020.
  • The third-quarter adjusted EPS grew to $0.60, surpassing the consensus estimate of $0.33, from $0.16 in Q3 in 2020.

Over the quarter, UPST’s bank partners originated 362,780 loans, amounting to $3.13B across its various platforms compared to 286,864 loans amounting to $2.80B in Q2. UPST down -21.42%, Pre-market trading