By Sarina Isaacs

Shares of Upstart shot higher after the AI-lending platform operator posted a narrower quarterly loss, beat analyst views for the quarter, and provided better-than-expected 2025 guidance.

The stock was recently up 26% at $84.83. With that, shares are now up about 140% over the past 12 months.

The San Mateo, Calif., company said it lost $2.76 million, or 3 cents a share in the fourth quarter, narrowed from the prior year's loss of $42.4 million, or 50 cents a share.

Stripping out one-time items, Upstart earned 26 cents per share, reversing from an adjusted loss of 11 cents per share a year earlier. Analysts polled by FactSet were looking for a loss of 4 cents per share on an adjusted basis.

Revenue climbed about 56% from a year earlier to $219 million, beating the average analyst target of $181.9 million. The figure includes $199.3 million in fee revenue, ahead of the $186.5 million Wall Street projection.

Co-founder and Chief Executive Dave Girouard said the company's business grew dramatically across all product categories, and that Upstart's adjusted earnings before interest, taxes, depreciation and amortization--which totaled $38.8 million--was at its highest since the first quarter of 2022.

"We launched into 2025 with unparalleled energy and optimism for the future of Upstart AI lending and the mission we're on together," he said.

For 2025, the company anticipates at least breakeven income on revenue of about $1 billion, of which it expects about $920 million to be from fees. Analysts were expecting the company to lose $6.1 million on revenue of $942.6 million for the full year.

Write to Sarina Isaacs at sarina.isaacs@wsj.com

(END) Dow Jones Newswires

February 12, 2025 11:20 ET (16:20 GMT)

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