Upstart (UPST) investor relations material

Leadership transition and company journey

• CEO reflects on 14 years of building a technology-driven consumer lending business, emphasizing the long-term nature and challenges of innovating in a highly regulated, credibility-dependent industry.

• Early years involved significant skepticism and difficulty raising capital due to unproven models and industry resistance to change.

• The company sees its journey as a multi-stage process, with substantial opportunity remaining for future growth.

Capital and funding strategy

• Recently secured over $4 billion in committed capital, including a 24-month forward flow commitment and an oversubscribed securitization, demonstrating strong partner confidence.

• Focus on longer-duration capital commitments to mitigate risks from short-term market liquidity disruptions.

• Willing to put company profits at risk in deals to secure longer-term funding, viewing this as a worthwhile trade-off for stability.

• Maintains a 100% renewal rate with capital partners since 2022, aiming for a majority of capital to be long-dated but not fully committed to allow flexibility.

Credit performance and macro environment

• Publishes the Upstart Macro Index (UMI) as a near real-time indicator of consumer credit health, showing recent pressure from energy shocks but no signs of a return to severe post-COVID deterioration.

• Business growth is driven by technology improvements that are resilient to moderate macro fluctuations.

• Maintains a disciplined, rapid-response approach to credit model adjustments, prioritizing long-term stability over short-term earnings management.