Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-2.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt-291.8 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Valuation
F
Price-to-Book4.23x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow-$140M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$6M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Upstart Holdings, Inc.
Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. The company operates through three segments: Personal Lending, Auto Lending, and Other. Its platform includes unsecured personal loans, small dollar loans, auto refinance, auto retail loans, and auto secured personal loan, and home equity lines of credit. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.
Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. The company operates through three segments: Personal Lending, Auto Lending, and Other. Its platform includes unsecured personal loans, small dollar loans, auto refinance, auto retail loans, and auto secured personal loan, and home equity lines of credit. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-6,646
18,636
Reconciled Depreciation
5,858
6,461
Net Interest Income
45,691
32,886
Interest Expense
10,370
27,950
Interest Income
56,061
60,836
Normalized Income
-6,646
18,636
Net Income From Continuing And Discontinued Operation
-6,646
18,636
Diluted Average Shares
96,902
112,224
Basic Average Shares
96,902
97,595
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-6,646
13,755
Net Income Common Stockholders
-6,646
18,636
Net Income
-6,646
18,636
Net Income Including Noncontrolling Interests
-6,646
18,636
Net Income Continuous Operations
-6,646
18,636
Tax Provision
84
526
Pretax Income
-6,562
19,162
Other Non Operating Income Expenses
956
20,115
Special Income Charges
0
-604
Restructuring And Mergern Acquisition
0
604
Gain On Sale Of Security
-14,540
-21,888
Selling General And Administration
235,620
210,258
Selling And Marketing Expense
104,455
90,588
General And Administrative Expense
131,165
119,670
Other Gand A
76,070
67,830
Salaries And Wages
55,095
51,840
Total Revenue
308,214
276,218
Operating Revenue
308,214
276,218
Other Non Interest Expense
80,112
66,913
Balance Sheet
2026
2025
2024
Ordinary Shares Number
95,709
98,033
Share Issued
95,709
98,033
Net Debt
1,447,111
1,171,700
Total Debt
1,939,213
1,850,294
Tangible Book Value
658,100
723,464
Invested Capital
2,654,831
2,627,960
Net Tangible Assets
658,100
723,464
Capital Lease Obligations
17,548
21,149
Common Stock Equity
733,166
798,815
Total Capitalization
2,471,524
2,530,627
Total Equity Gross Minority Interest
733,166
798,815
Stockholders Equity
733,166
798,815
Retained Earnings
-364,202
-357,556
Additional Paid In Capital
1,097,358
1,156,361
Capital Stock
10
10
Common Stock
10
10
Total Liabilities Net Minority Interest
2,228,515
2,175,990
Long Term Debt And Capital Lease Obligation
1,755,906
1,752,961
Long Term Capital Lease Obligation
17,548
21,149
Long Term Debt
1,738,358
1,731,812
Current Debt And Capital Lease Obligation
183,307
97,333
Current Debt
183,307
97,333
Line Of Credit
183,307
97,333
Payables And Accrued Expenses
262,512
303,689
Current Accrued Expenses
75,082
117,507
Payables
187,430
186,182
Other Payable
164,711
154,201
Accounts Payable
22,719
31,981
Total Assets
2,961,681
2,974,805
Investments And Advances
41,250
41,250
Available For Sale Securities
41,250
41,250
Goodwill And Other Intangible Assets
75,066
75,351
Other Intangible Assets
8,004
8,289
Goodwill
67,062
67,062
Net PPE
61,607
60,584
Accumulated Depreciation
-83,806
-78,421
Gross PPE
145,413
139,005
Leases
18,134
15,519
Other Properties
13,605
16,410
Machinery Furniture Equipment
113,674
107,076
Prepaid Assets
40,588
39,658
Receivables
263,050
256,805
Other Receivables
157,984
159,389
Notes Receivable
105,066
97,416
Accounts Receivable
48,233
Cash And Cash Equivalents
474,554
657,445
Cash Financial
472,934
652,388
Cash Cash Equivalents And Federal Funds Sold
932,954
1,062,069
Cash Flow
2026
2025
2024
Free Cash Flow
-140,289
104,633
Repurchase Of Capital Stock
-100,057
Repayment Of Debt
-39,841
-118,172
Issuance Of Debt
123,524
81,370
Capital Expenditure
-6,992
-3,919
Interest Paid Supplemental Data
3,493
8,969
Income Tax Paid Supplemental Data
79
18
End Cash Position
931,334
1,057,012
Beginning Cash Position
1,057,012
836,905
Changes In Cash
-125,678
220,107
Financing Cash Flow
6,743
-20,183
Cash Flow From Continuing Financing Activities
6,743
-20,183
Net Other Financing Charges
17,864
14,262
Proceeds From Stock Option Exercised
5,253
2,357
Net Common Stock Issuance
-100,057
Common Stock Payments
-100,057
Net Issuance Payments Of Debt
83,683
-36,802
Net Long Term Debt Issuance
83,683
-36,802
Long Term Debt Payments
-39,841
-118,172
Long Term Debt Issuance
123,524
81,370
Investing Cash Flow
876
131,738
Cash Flow From Continuing Investing Activities
876
131,738
Net Other Investing Changes
55,353
56,999
Net PPE Purchase And Sale
-2,750
-157
Purchase Of PPE
-2,750
-157
Capital Expenditure Reported
-4,242
-3,762
Operating Cash Flow
-133,297
108,552
Cash Flow From Continuing Operating Activities
-133,297
108,552
Change In Working Capital
-44,872
44,685
Change In Other Working Capital
-796
-1,166
Change In Other Current Assets
4,374
-14,656
Change In Payables And Accrued Expense
-48,450
60,507
Change In Accrued Expense
-48,450
60,507
Other Non Cash Items
-121,554
7,709
Stock Based Compensation
34,811
32,453
Unrealized Gain Loss On Investment Securities
-894
-1,392
Depreciation Amortization Depletion
5,858
6,461
Depreciation And Amortization
5,858
6,461
Operating Gains Losses
0
0
Net Income From Continuing Operations
-6,646
18,636
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $213M▲ $308M+44.4%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Operating Margin
Prior year: 0.4%▼ 0.3%-0.1pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -1.1%▼ -2.2%-1.0pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
❌ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$308M/qtr (≈$1.2B ann.)
vs > $1.5B annualised revenue
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$140M
vs Positive
Operating Cash Flow
-$133M
Latest quarter · Buffett's cash reality check
ROIC
N/A
Based on latest annual operating income
Market Cap / Net Assets
4.2x
Net Assets: $733M
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
Peers & Industry
No auto-detected peers for Credit Services. You can manually compare UPST against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
13.01%
High — management has strong skin in the game
Return on Equity (ROE)
-0.9%
Weak — poor returns on equity
Return on Assets (ROA)
-0.2%
Poor — assets are not generating adequate returns
Debt Trend YoY
+4.8% YoY
Debt is roughly stable
Leadership Team
David Girouard
Executive Chairman & Special Advisor
Age 59
Pay: $1,073,270
Paul Gu
CEO & Director
Age 34
Pay: $894,920
Sanjay Datta CFA
President of Capital & Enterprise
Pay: $872,483
Andrea Blankmeyer
Chief Financial Officer
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
7.73%
7,403,079
Morgan Stanley
4.15%
3,975,059
Vanguard Capital Management LLC
3.92%
3,752,050
Vanguard Portfolio Management LLC
3.91%
3,743,541
Marshall Wace LLP
3.43%
3,280,110
Geode Capital Management, LLC
2.22%
2,124,078
State Street Corporation
2.15%
2,053,086
Goldman Sachs Group Inc
1.63%
1,559,486
⚠️Very high beta — extreme price volatility
⚠️Short interest exceeds 20% — heavy bearish bets
Risk Analysis
Beta (Market Risk)
2.28
High volatility — moves more than the market
Short Interest
33.1% of float
Heavy short selling — market has significant bearish bets
Debt-to-Equity
2.70x
High leverage — significant financial risk
Current Ratio
11.65x
Strong liquidity — Graham approved
52-Week Price Range
Low: $23.96Current: $32.43High: $87.30
Currently at 13% of 52-week range
Upstart Holdings, Inc. (UPST) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: N/A. Operating margin: 0.3%. Net margin: -2.2%. Market cap: $3.1B. Sector: Financial Services. Industry: Credit Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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