Upstart Holdings, Inc. - UPST STOCK NEWS

MIT Federal Credit Union (MIT FCU), a Massachusetts-based credit union serving over 35,000 members, has partnered with Upstart (NASDAQ: UPST) to provide personal loans to new and existing members. MIT FCU joined the Upstart Referral Network in March 2024, allowing qualified personal loan applicants on Upstart.com who meet MIT FCU's credit policies to receive tailored offers and transition into an MIT FCU-branded experience to complete the online member application and closing process.

Rui Domingos, President & CEO of MIT FCU, stated that the partnership with Upstart aims to expand their personal loan offering to meet more members' needs. Michael Lock, Senior VP of Lending Partnerships at Upstart, highlighted that the partnership enables MIT FCU to reach and gain new members across its field of membership while expanding access to affordable credit.

Upstart Holdings, Inc. (NASDAQ: UPST) has announced the pricing of $375 million aggregate principal amount of 2.00% Convertible Senior Notes due 2029. The offering was upsized from the previously announced $300 million. The notes will be convertible at an initial rate of 21.9029 shares of Upstart's common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $45.66 per share. Upstart estimates net proceeds of about $365.9 million, which will be used to pay for capped call transactions, repurchase a portion of its outstanding 2026 Notes, and for general corporate purposes. The company also entered into capped call transactions to offset potential dilution.

Upstart Holdings (NASDAQ: UPST) has announced its intention to offer $300 million in Convertible Senior Notes due 2029 to qualified institutional buyers. The company may also grant an option for an additional $45 million. The notes will be convertible into cash, Upstart common stock, or a combination thereof. Upstart plans to use the proceeds to:

• Fund capped call transactions to offset potential dilution
• Repurchase a portion of its outstanding 0.25% Convertible Senior Notes due 2026
• General corporate purposes

The offering may impact Upstart's stock price due to hedging activities by option counterparties and holders of the 2026 Notes. The notes will only be offered to qualified institutional buyers under Rule 144A.

Fibre Federal Credit Union, a Washington-based credit union with over 118,000 members and $1.6 billion in assets, has partnered with Upstart (NASDAQ: UPST) to provide personal loans to new and existing members. The partnership, which began in December 2022, utilizes the Upstart Referral Network to offer qualified applicants tailored loans through a Fibre Federal-branded experience.

This collaboration aims to improve financial wellness for Fibre Federal's community members by providing a fast, online lending experience. The partnership allows Fibre Federal to expand its reach across Southwest Washington and Northwest Oregon, serving more individuals through Upstart's AI-driven lending marketplace.

AMOCO Federal Credit Union, a Texas-based cooperative with over 106,000 members and $1.4 billion in assets, has partnered with Upstart (NASDAQ: UPST) to offer personal loans to new and existing members. The partnership, which began in March 2023, utilizes the Upstart Referral Network to provide a fast, all-digital lending experience. Qualified applicants on Upstart.com who meet AMOCO's credit policies will receive tailored offers and transition to an AMOCO-branded experience to complete the process.

This collaboration aims to enhance AMOCO's ability to serve its members and provide more access to affordable credit in underserved communities, particularly in the Houston and Galveston markets. The partnership aligns with AMOCO's goal of meeting members' financial needs and expectations for convenient digital services.

Upstart Holdings, Inc. (NASDAQ: UPST) reported its financial results for Q2 2024, ending June 30, 2024. Total revenue was $128 million, down 6% year-over-year and flat sequentially. Total fee revenue saw a 9% year-over-year decline to $131 million. The company originated 143,900 loans totaling $1.1 billion, a 6% annual decrease. Operating loss was ($55.5) million, widening from ($33.3) million a year ago. Net loss stood at ($54.5) million, compared to ($28.2) million in Q2 2023. Adjusted net loss was ($15.3) million versus $5.4 million last year, with GAAP EPS at ($0.62) and adjusted EPS at ($0.17). Contribution profit fell 21% to $76.1 million. Adjusted EBITDA was ($9.3) million, down from $11.0 million. For Q3 2024, the company projects revenue around $150 million and a net loss of approximately ($49) million. Notably, Upstart anticipates positive EBITDA in Q4 2024.

The Bank of Elk River, a leading community bank in Sherburne County, Minnesota, announced a partnership with Upstart (NASDAQ: UPST), an AI-driven lending marketplace. This collaboration aims to offer digital personal loans to customers beyond their traditional reach. Effective June 2023, The Bank of Elk River joined the Upstart Referral Network, enabling qualified applicants to complete loans through an online, bank-branded experience. Pete Onstad, Director of Consumer Banking at The Bank of Elk River, emphasized the goal to exceed customer expectations with superior service and expanded product offerings. Michael Lock, SVP of Lending Partnerships at Upstart, noted the bank’s enhanced ability to provide fast, modern lending experiences.

Texans Credit Union, with 123,000 members and $2.2 billion in assets, has partnered with Upstart (NASDAQ: UPST), an AI-driven lending marketplace, to offer personal loans. This collaboration leverages Upstart's AI technology to enhance Texans Credit Union's lending capabilities, providing a fast, digital experience. The partnership began in August 2023 through the Upstart Referral Network, where qualifying personal loan applicants on Upstart.com can seamlessly transition into a Texans Credit Union-branded experience. This strategic move aims to help more Texans achieve their financial goals by expanding lending opportunities.

Upstart Holdings, the leading AI lending marketplace, will release its second quarter fiscal year 2024 financial results on Aug. 6, 2024, after the market closes. A conference call and live webcast are scheduled for 1:30 p.m. PT / 4:30 p.m. ET on the same day. The earnings press release and investor presentation will be available on Upstart's investor relations website prior to the call. Investors can join the live webcast or dial into the conference call using the provided numbers and code.