Upstart Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Upstart Holdings, Inc. has filed its 2023 Form 10-K detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Upstart Holdings, Inc. (UPST) filed a Annual Report (10-K) with the SEC on February 15, 2024. Upstart Holdings, Inc. filed its 2023 Form 10-K on February 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 2950 S. Delaware Street, Suite 300, San Mateo, CA 94403. Upstart's SIC code is 6199 (Finance Services). The filing includes financial data for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking Upstart Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Upstart's financial health, operational performance, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and risk factors disclosed in the 10-K are essential for stakeholders to understand the company's revenue streams, profitability, debt levels, and potential challenges in the evolving fintech landscape.

Risk Assessment

Risk Level: medium — Upstart Holdings, Inc. shows moderate risk based on this filing. The company operates in the finance services sector (SIC 6199), which is subject to significant regulatory oversight and market volatility, as indicated by the 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Upstart's performance and outlook in the current economic climate.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-15 — Filing Date (Filed as of Date)
• 001-39797 — SEC File Number (SEC File Number)

Key Players & Entities

• Upstart Holdings, Inc. (company) — Filer name
• 2950 S. Delaware Street, Suite 300 (address) — Business address
• San Mateo, CA 94403 (address) — Business address
• 6199 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

Upstart operates in the finance services industry, specifically focusing on technology-driven lending platforms.

Regulatory Implications

As a finance services company, Upstart is subject to various financial regulations and compliance requirements.

What Investors Should Do

1. Review Upstart's 2023 financial performance and key metrics in the 10-K.
2. Analyze the risk factors section for potential challenges and mitigation strategies.
3. Compare Upstart's 2023 results with previous years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-15: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.0001 — ch registered: Common Stock, par value $0.0001 per share UPST Nasdaq Global Select Mar
• $1,000 — nal and secured auto loans ranging from $1,000 to $100,000 in size, at APRs typically
• $100,000 — cured auto loans ranging from $1,000 to $100,000 in size, at APRs typically ranging from

Filing Documents

• upst-20231231.htm (10-K) — 3025KB
• exhibit211subsidiariesofth.htm (EX-21.1) — 4KB
• exhibit232023auditorconsent.htm (EX-23) — 2KB
• exhibit311q42023.htm (EX-31.1) — 10KB
• exhibit312q42023.htm (EX-31.2) — 10KB
• exhibit321q42023.htm (EX-32.1) — 9KB
• exhibit971upstrtholdingsin.htm (EX-97.1) — 29KB
• upst-20231231_g1.jpg (GRAPHIC) — 50KB
• upst-20231231_g2.jpg (GRAPHIC) — 140KB
• 0001647639-24-000009.txt (&nbsp;) — 14835KB
• upst-20231231.xsd (EX-101.SCH) — 95KB
• upst-20231231_cal.xml (EX-101.CAL) — 118KB
• upst-20231231_def.xml (EX-101.DEF) — 489KB
• upst-20231231_lab.xml (EX-101.LAB) — 1181KB
• upst-20231231_pre.xml (EX-101.PRE) — 808KB
• upst-20231231_htm.xml (XML) — 2343KB

Business

Business 7 Item 1A .

Risk Factors

Risk Factors 26 Item 1B . Unresolved Staff Comments 85 Item 1C. C ybersecurity 85 Item 2.

Properties

Properties 86 Item 3.

Legal Proceedings

Legal Proceedings 86 Item 4. Mine Safety Disclosures 86 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 87 Item 6. [RESERVED] 88 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 89 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 108 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 112 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 172 Item 9A.

Controls and Procedures

Controls and Procedures 172 Item 9B. Other Information 174 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 174 PART III. Item 10. Directors, Executive Officers and Corporate Governance 174 Item 11.

Executive Compensation

Executive Compensation 174 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 175 Item 13. Certain Relationships and Related Transactions, and Director Independence 175 Item 14. Principal Accountant Fees and Services 175 PART IV. Item 15. Exhibits and Financial Statement Schedules 175 Item 16. Form 10-K Summary 177 3 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws about us and our industry, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "seek," "could," "intend," "target," "aim," "project," "contemplate," "believe," "estimate," "predict," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include statements about: our future financial performance, including our expectations regarding our revenue, our operating expenses, our ability to determine reserves and our ability to achieve and maintain profitability; our ability to improve the effectiveness and predictiveness of our AI models and our expectations that improvements in our AI models can lead to higher approval rates and lower interest rates; our ability to increase the volume of loans facilitated through our AI lending marketplace; our ability to successfully maintain a diversified and resilient loan funding strategy, including lending partnerships, whole loan sales, committed capital arrangements and securitization transactions; our capital allocation plans, including expectations regarding funding

BUSINESS

ITEM 1. BUSINESS Overview Upstart is the leading artificial intelligence ("AI") lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart's AI models and cloud applications to deliver superior credit products. Founded in 2012, Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit ("HELOCs"), and small dollar loans. We're dedicated to improving access to credit for all. Money is a fundamental ingredient of life, and unless you are in the few percent of Americans with significant wealth, the price of borrowing affects you every day. Throughout history, affordable credit has been central to unlocking mobility and opportunity. The FICO score was invented in 1989 and remains the standard for determining who is approved for credit and at what interest rate. While FICO is rarely the only input in a lending decision, most lenders use simple rules-based systems that consider only a limited number of variables. Unfortunately, because these legacy credit systems fail to accurately identify and quantify risk, millions of creditworthy individuals are left out of the system, and millions more pay too much to borrow money. Upstart AI remakes the lending process. We leverage AI to more accurately quantify the true risk of a loan. Our AI models have been continuously upgraded, trained and refined for more than ten years. We apply AI models to income and identity fraud, acquisition targeting, loan stacking, time-delimited default and prepayment prediction, and servicing. Powered by more than 1,600 variables 1 , our models are trained on more than 58 million repayment events, adding an average of 83,000 new repayments each business day. We believe the flywheel effects generated by our constantly improving AI models provide a significant competitive advantage. More training data generally leads to higher approval rates and lower interest rates with better return

View Full Filing

View this 10-K filing on SEC EDGAR