Upstart Holdings Cuts Revenue Guidance Despite Record Loan Volume

Upstart Holdings reduced its 2026 revenue guidance by $50 million to $1.35 billion, citing a macroeconomic environment where inflation is outpacing wage growth. The adjustment comes despite strong third-quarter 2026 results, which included a 34% increase in total revenue to $365 million and a 15% rise in GAAP net income to $36.6 million.

The company achieved record loan activity during the quarter, with 574,089 approved loans valued at $4.1 billion. Chief Executive Paul Gu attributed the revised guidance to a more cautious underwriting approach adopted to counter economic headwinds.

Upstart reported that its AI-driven credit assessment models reached record accuracy, performing 2.77 times better than traditional methods. While the company continues to scale its technology, its stock has declined 50% this year as investors react to rising interest rates.