Upstart (UPST) investor relations material

Strategic focus and product priorities

• Core personal loans have been prioritized, showing 3.5x growth in Q2 versus the prior three quarters combined, driven by company-wide alignment and focus on this high-margin, differentiated segment.

• Strategic shift included pausing lower-momentum products like auto refi to consolidate resources on high-potential, adjacent offerings with large addressable markets.

• All teams have reoriented goals to optimize every stage of the funnel for core personal loans, resulting in step-function improvements.

Macro environment and business resilience

• The Upstart Macro Index (UMI) indicates consumers are 50% more likely to default on unsecured credit than pre-COVID, reflecting increased borrower stress due to inflation outpacing wage growth.

• Despite macro headwinds and higher UMI, the business has outperformed its 2021 contribution profit levels through compounding technology and operational improvements.

• Focus remains on long-term technology-driven gains rather than short-term macro fluctuations, with confidence in durable business growth over multi-year horizons.

Competitive landscape and capital markets

• Core personal loans remain highly differentiated, allowing less focus on competitors, while newer products require more competitive analysis.

• Capital markets are seen as efficient, with 100% retention and improved terms from capital partners, and no evidence of negative impacts from indiscriminate funding in the sector.