Upstart Holdings Inc. (UPST, Financials) shares soared 33.6% to $89.99 as of 3:05 p.m. ET on Wednesday, following the company's strong fourth-quarter results, which showcased AI-driven underwriting improvements and robust loan origination growth.

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Driven by a 68% rise in loan origination volume, revenue grew 56% year over year to $219 million. Notable increases were seen in auto loans, HELOCs, and small-dollar relief loans; HELOC originations topped 1,000 loans with no defaults across 36 states. To further underwriting accuracy, the business has unveiled Model 19, which has an enhanced Payment Transition Model.

From $1 million last quarter, Upstart recorded $39 million in adjusted EBITDA; its GAAP net loss dropped to $2.8 million. Thanks in part to better credit performance, net interest income went positive at $20 million. Supported by convertible debt, the company's financial sheet showed $806 million in loans down 28% year over year and $788 million in unrestricted cash.

Upstart expects $1 billion in overall income for 2025; year-end GAAP profitability is projected. To help with its expansion, the business obtained a $150 million personal loan warehousing facility and $1.3 billion in capital commitments.

Citing excellent finance availability and improved attitude, analysts voiced cautious optimism while highlighting questions about scalability, funding limits, and competition in the super-prime sector. Emphasizing a mixed approach between development and profitability, management showed more confidence than in Q3.