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美国
证券交易委员会
华盛顿特区20549
_________________________
形式 10-Q
(Mark一）
☒根据1934年《证券交易法》第13或15（d）条的季度报告
截至季度 2024年9月30日
或
☐根据1934年《证券交易所法》第13或15（d）条提交的过渡报告
从_________到 ________
委员会文件号： 001-39797
2019-Upstart-Logo-Medium copy.jpg
Upstart Holdings，Inc
（章程中规定的注册人的确切名称）
_________________________

德拉瓦
（州或其他司法管辖区
成立或组织）
46-4332431
（国税局雇主
识别号）
Upstart Holdings，Inc
2950 S。德拉瓦街, 410套房
圣马特奥, 加州 94403
（主要行政办公室地址，包括邮政编码）
(833) 212-2461
（注册人的电话号码，包括地区代码）
_________________________

根据该法第12（b）条登记的证券：
每个班级的标题：交易符号注册的每个交易所的名称：
普通股，每股面值0.0001美金UPST纳斯达克全球精选市场
通过勾选标记标明注册人是否（1）在过去12个月内（或在注册人被要求提交此类报告的较短期限内）提交了1934年证券交易法第13或15（d）条要求提交的所有报告，以及（2）在过去90天内是否已遵守此类提交要求。 是的 ☒ 没有预设
通过勾选标记检查注册人是否已在过去12个月内（或在注册人被要求提交此类文件的较短期限内）以电子方式提交了根据S-t法规第405条（本章第232.405条）要求提交的所有交互数据文件。 是的 ☒ 没有预设
通过复选标记来确定注册人是大型加速申报人、加速申报人、非加速申报人、小型报告公司还是新兴成长型公司。请参阅《交易法》第120条第2条中「大型加速申报人」、「加速申报人」、「小型报告公司」和「新兴成长型公司」的定义。
大型加速文件夹☒加速档案管理器☐
非加速归档☐小型上市公司 ☐
新兴成长型公司☐
1

如果是新兴成长型公司，请通过勾选标记表明注册人是否选择不利用延长的过渡期来遵守根据《交易法》第13（a）条规定的任何新的或修订的财务会计准则。 ☐
通过勾选标记检查注册人是否是空壳公司（定义见该法案第120条第2款）。 是的 ☐ 没有预设
截至 2024年10月31日有几个91,228,026 注册人的流通普通股股份。
2

Upstart Holdings，Inc
10-Q表
目录
页面
项目2.
项目3.
项目4.
项目1.
第1A项。
项目2.
项目3.
项目4.
项目5.
项目6.

3
目录
关于前瞻性陈述的特别注释

本季度10-Q表格报告包含联邦证券法含义内有关我们和我们的行业的前瞻性陈述，这些陈述涉及重大风险和不确定性。前瞻性陈述通常与未来事件或我们未来的财务或运营运绩有关。在某些情况下，您可以识别前瞻性陈述，因为它们包含「可能」、「将」、「应该」、「预期」、「计划」、「预期」、「寻求」、「可能」、「意图」、「目标」、「目标」、「项目」、「考虑」、「相信」、「估计」、「预测」、「潜在」或「继续」等词语「或这些词语或其他与我们的期望、战略、计划或意图有关的类似术语或表达的负面影响。本10-Q表格季度报告中包含的前瞻性陈述包括但不限于有关以下方面的陈述：
•我们未来的财务表现，包括我们对收入、运营费用、确定储备金的能力以及实现和维持盈利能力的能力的预期;
•我们提高人工智慧模型有效性和预测性的能力，以及我们对人工智慧模型的改进可以带来更高的批准率和更低的利率的期望;
•我们有能力增加通过人工智慧贷款市场促进的贷款量;
•我们有能力成功维持多元化和弹性的贷款融资策略，包括贷款合作伙伴关系、整体贷款销售、承诺资本和其他联合投资 安排和证券化交易;
•我们的资本配置计划，包括通过我们的资产负债表为贷款提供资金的预期、现金分配以及任何股票回购和其他投资的时间;
•我们有能力维持平台上向借款人提供的有竞争力的利率，同时使我们的贷款合作伙伴和机构投资者能够在融资成本上获得足够的回报;
•我们成功建立品牌并保护我们的声誉免受负面宣传的能力;
•我们提高营销策略（包括我们的直接消费者营销计划）有效性的能力;
•我们对宏观经济事件的预期，包括通货膨胀以及利率和货币政策的相关变化;
•我们对Upstart驱动贷款信用表现的预期;
•2023年银行倒闭的影响，包括银行业的混乱，以及对我们业务和行业的任何相关影响;
•我们对未来增长的预期和管理，包括扩大潜在借款人的数量;
•我们有能力成功调整我们的专有人工智慧模型、产品和服务，并及时向我们的贷款合作伙伴提供最新信息，以应对不断变化的宏观经济状况和信贷市场的波动;
•我们遵守适用的地方、州和联邦法律;
•我们有能力遵守并成功适应复杂且不断变化的监管环境，包括人工智慧和机器学习技术的监管;
•我们对监管机构对我们基于人工智慧的贷款方法支持的期望;
•我们对战略投资和收购成功的期望，包括收购的运营、产品、技术、内部控制和人员的整合;
4
目录表
•我们对新市场和不断发展的市场的期望以及我们进入新市场并推出新产品和服务的能力;
•我们对与第三方关系的期望；
•我们有能力防范日益复杂的欺诈性借款和在线盗窃;
•我们偿还贷款并追回拖欠和违约贷款的能力;
•我们与目前或未来可能进入我们运营市场的公司成功竞争的能力;
•我们有能力有效保护和维护整个系统接收、访问、存储、提供和使用的信息的机密性;
•我们成功获得和维持企业资金和流动性以支持持续增长和一般企业目的的能力;
•我们与发行2029年到期的2.00%可转换优先票据（“2029年票据”）和2026年到期的0.25%可转换优先票据（“2026年票据”，以及与2029年票据一起称为“票据”）相关的上限认购交易相关的债务和风险;
•我们吸引、整合和留住合格员工的能力;
•我们有能力维持有效的披露控制和财务报告和运营内部控制系统;
•我们有效管理和扩展运营团队、外包关系和其他业务运营能力的能力;
•我们维护、保护和增强知识产权的能力;
•我们对未决诉讼和监管调查的期望;以及
•我们管理与上市公司相关的增加费用的能力。

我们警告您，上述列表可能不包含本报告中的所有前瞻性陈述。

不应依赖前瞻性陈述作为对未来事件的预测。本报告中包含的前瞻性陈述主要基于我们目前对未来事件和趋势的预期和预测，我们认为这些事件和趋势可能会影响我们的业务、财务状况、运营结果和前景。这些前瞻性陈述中描述的事件的结果受风险、不确定性和其他因素的影响，包括标题为“风险因素“在这份报告的其他地方。我们呼吁读者仔细阅读和考虑本报告以及我们不时提交给美国证券交易委员会(“美国证券交易委员会”)的其他文件中所披露的各种信息，这些信息披露了可能影响我们业务的风险和不确定性。此外，我们的运营环境竞争激烈，变化迅速。新的风险和不确定因素时有出现，我们无法预测可能对本报告所载前瞻性陈述产生影响的所有风险和不确定因素。我们不能向您保证前瞻性陈述中反映的结果、事件和情况将会实现或发生，实际结果、事件或情况可能与前瞻性陈述中所描述的大不相同。

我们或任何其他人均不对任何这些前瞻性陈述的准确性和完整性承担责任。此外，本报告中的前瞻性陈述仅与截至陈述之日的事件有关。我们没有义务更新本报告中的任何前瞻性陈述以反映本报告日期之后的事件或情况，或者反映新信息或非预期事件的发生，法律要求的除外。不应该过度依赖我们的前锋--
5
目录表
前瞻性陈述，因为我们可能无法真正实现前瞻性陈述中披露的计划、意图或期望。我们的前瞻性陈述并不反映我们可能进行的任何未来收购、合并、处置、合资企业或投资的潜在影响。

此外，“我们相信”的声明和类似声明反映了我们对相关主题的信念和观点。这些声明基于截至本报告日期我们可用的信息，虽然我们相信此类信息构成了此类声明的合理基础，但此类信息可能是有限的或不完整的，并且我们的声明不应被解读为表明我们已经对所有潜在可用的相关信息进行了详尽的调查或审查。这些陈述本质上是不确定的，建议投资者不要过度依赖这些陈述。

本文使用的“公司”、“我们”、“我们的”、“我们”和类似术语统称为Upstart Holdings，Inc.，特拉华州公司及其合并子公司，除非另有说明。
6
目录

第一部分.财务资料
项目1.财务报表

Upstart Holdings，Inc
精简合并资产负债表
(In数千，共享数据除外）
（未经审计）
12月31日，9月30日，
20232024
资产
现金$368,405 $445,274 
受限制现金99,382 210,493 
贷款（按公允价值）(1)
1,156,413 656,120 
财产、设备和软体，净42,655 38,328 
经营租赁使用权资产54,694 46,318 
受益资产（按公允价值）41,012 131,483 
非有价股权证券41,250 41,250 
商誉67,062 67,062 
其他资产（包括美金48,897 和$70,676 分别按2023年12月31日和2024年9月30日的公允价值计算）
146,227 172,652 
总资产(2)
$2,017,100 $1,808,980 
负债和股东权益
负债：
支付给投资者$53,580 $60,778 
借贷1,040,424 887,367 
应付证券化票据持有人（按公允价值）141,416 100,335 
应计费用和其他负债（包括美金10,510 和$18,671 分别按2023年12月31日和2024年9月30日的公允价值计算）
84,051 111,616 
经营租赁负债62,324 53,348 
总负债(2)
1,381,795 1,213,444 
股东权益：
普通股，美金0.0001 面值; 700,000,000 授权股份; 86,330,303 和 90,998,255 分别截至2023年12月31日和2024年9月30日已发行和发行股票
9 9 
借记资本公积917,872 1,003,929 
累计赤字(282,576)(408,402)
股东权益总额635,305 595,536 
负债和股东权益总额$2,017,100 $1,808,980 
____________

(1)包括$179.1 亿和$118.5 截至2023年12月31日和2024年9月30日，以公允价值计算的百万笔贷款分别作为合并证券化的抵押品。参考「说明6. 公平值计量」了解详情。

(2)下表列出了Upstart Holdings，Inc.合并的与可变利益实体（「VIE」）相关的资产和负债的信息。于2023年12月31日和2024年9月30日。下表中的资产仅可用于偿还合并VIE的义务，并且超出了这些义务。下表中的负债包括债权人无法追索Upstart Holdings，Inc.一般信贷的负债。下表中的资产和负债包括合并VIE的第三方资产和负债，不包括合并中冲销的公司间余额。

7
目录
Upstart Holdings，Inc
简明合并资产负债表（续）
(In数千，共享数据除外）
（未经审计）
12月31日，9月30日，
20232024
资产
现金$1,603 $2,041 
受限制现金23,450 50,231 
贷款（按公允价值）1,147,423 624,318 
其他资产（包括美金5,958 和$2,139 分别按2023年12月31日和2024年9月30日的公允价值计算）
22,917 13,024 
总资产$1,195,393 $689,614 
负债
支付给投资者$121 $154 
借贷387,440 170,085 
应付证券化票据持有人（按公允价值）141,416 100,335 
应计费用和其他负债1,975 4,774 
总负债530,952 275,348 
净资产总额$664,441 $414,266 


附注是这些未经审计的简明综合财务报表的组成部分.
8
目录
Upstart Holdings，Inc
简明合并经营报表和综合损失
(In数千，份额和每股数据除外）
（未经审计）

截至9月30日的三个月，截至9月30日的九个月，
2023202420232024
收入：
费用收入，净$146,755 $167,590 $407,585 $436,190 
利息收入、利息费用和公允价值调整，净额：
利息收入(1)
37,692 40,845 116,923 144,899 
利息开支(1)
(9,414)(10,818)(20,828)(33,002)
公允价值和其他调整(1)
(40,476)(35,477)(130,430)(130,523)
利息收入、利息费用和公允价值调整总额，净额
(12,198)(5,450)(34,335)(18,626)
总收入134,557 162,140 373,250 417,564 
运营费用：
销售和营销33,042 43,229 88,371 111,337 
客户运营36,914 39,302 114,301 117,394 
工程和产品开发54,941 64,887 222,986 186,431 
常规、管理和其他53,505 59,874 156,616 170,508 
总运营支出178,402 207,292 582,274 585,670 
经营亏损(43,845)(45,152)(209,024)(168,106)
其他净收入
3,540 5,078 11,334 8,993 
债务消除的收益— 33,361 — 33,361 
所得税前净亏损(40,305)(6,713)(197,690)(125,752)
所得税拨备
10 45 44 74 
净亏损$(40,315)$(6,758)$(197,734)$(125,826)
每股净亏损，基本$(0.48)$(0.07)$(2.38)$(1.42)
每股净亏损，稀释$(0.48)$(0.07)$(2.38)$(1.42)
用于计算每股净亏损的加权平均发行股数，基本84,404,966 90,119,481 83,158,146 88,534,495 
用于计算每股净亏损的加权平均已发行股票数，稀释84,404,966 90,119,481 83,158,146 88,534,495 
____________
(1)截至2023年和2024年9月30日的三个月和九个月的余额包括与合并证券化相关的金额。参考「说明2. 收入」了解详情。


随附的附注是该等未经审核简明综合财务报表的组成部分。
9
目录
Upstart Holdings，Inc
简明合并股东权益报表
(In数千，份额和每股数据除外）
（未经审计）
截至2023年9月30日的三个月
普通股借记资本公积
积累
赤字
股东权益总额
股份量
截至2023年6月30日余额83,811,484 $8 $838,000 $(199,863)$638,145 
行使股票期权后发行普通股288,111 1 2,802 — 2,803 
限制性股票单位结算后发行普通股777,969 — — — — 
基于股票的补偿费用— — 37,428 — 37,428 
员工购股计划下发行普通股147,325 — 2,703 — 2,703 
净亏损— — — (40,315)(40,315)
截至2023年9月30日余额85,024,889 $9 $880,933 $(240,178)$640,764 

截至2023年9月30日的九个月
普通股借记资本公积
积累
赤字
股东权益总额
股份量
截至2022年12月31日余额81,259,676 $8 $714,871 $(42,444)$672,435 
行使股票期权后发行普通股1,058,804 1 9,474 — 9,475 
限制性股票单位结算后发行普通股2,247,325 — — — — 
与限制性股票单位净股份结算有关的扣留股份(375)— (6)— (6)
基于股票的补偿费用— — 148,163 — 148,163 
员工购股计划下发行普通股459,459 — 8,431 — 8,431 
净亏损— — — (197,734)(197,734)
截至2023年9月30日余额
85,024,889 $9 $880,933 $(240,178)$640,764 

截至2024年9月30日的三个月
普通股借记资本公积
累计赤字
股东权益总额
股份量
截至2024年6月30日余额89,084,180 $9 $996,345 $(401,644)594,710 
行使股票期权后发行普通股867,016 — 10,062 — 10,062 
限制性股票单位结算后发行普通股912,103 — — — — 
与限制性股票单位净股份结算有关的扣留股份(475)— (17)— (17)
基于股票的补偿费用— — 34,722 — 34,722 
员工购股计划下发行普通股135,431 — 3,120 — 3,120 
购买上限看涨期权— — (40,883)— (40,883)
结算上限认购
— — 580 — 580 
净亏损— — — (6,758)(6,758)
截至2024年9月30日余额
90,998,255 $9 $1,003,929 $(408,402)$595,536 

10
目录
Upstart Holdings，Inc
简明合并股东权益报表
(In数千，份额和每股数据除外）
（未经审计）
截至2024年9月30日的九个月
普通股借记资本公积累计赤字股东权益总额
股份量
截至2023年12月31日余额86,330,303 $9 $917,872 $(282,576)$635,305 
行使股票期权后发行普通股1,488,118 — 12,281 — 12,281 
限制性股票单位结算后发行普通股2,846,811 — — — — 
与限制性股票单位净股份结算有关的扣留股份(541)— (19)— (19)
基于股票的补偿费用— — 106,413 — 106,413 
员工购股计划下发行普通股333,564 — 7,685 — 7,685 
购买上限看涨期权— — (40,883)— (40,883)
结算上限认购— — 580 — 580 
净亏损— — — (125,826)(125,826)
截至2024年9月30日余额90,998,255 $9 $1,003,929 $(408,402)$595,536 


随附的附注是该等未经审核简明综合财务报表的组成部分。
11
目录
Upstart Holdings，Inc
简明综合现金流量表
(In数千）
（未经审计）

截至9月30日的九个月，
20232024
经营活动产生的现金流量
净亏损$(197,734)$(125,826)
将净亏损与经营活动提供的净现金进行调节的调整：
贷款公允价值变化131,222 167,545 
服务资产公允价值变化16,888 12,838 
偿还负债公允价值变化(1,655)(877)
受益权益资产公允价值变化9,128 (35,825)
受益利息负债公允价值变化(848)12,633 
其他金融工具公允价值变化(3,418)8,263 
股票补偿142,273 103,604 
贷款服务权收益，净(10,432)(11,448)
债务消除的收益— (33,361)
折旧及摊销15,800 15,850 
非现金利息费用2,296 2,156 
其他(2,260)(10,874)
经营资产和负债净变化：
购买持作出售贷款(2,076,734)(2,626,246)
出售持作出售贷款的收益1,875,358 2,613,039 
已收到的持作出售贷款本金付款139,582 157,010 
合并证券化持有的贷款收到的本金付款12,302 36,532 
受益利息负债的付款— (3,692)
其他资产27 (2,110)
经营租赁负债和使用权资产1,563 (600)
应付投资者的受益利息资产(1)
5,749 — 
应计费用和其他负债(25,220)18,646 
经营活动提供的净现金33,887 297,257 
投资活动产生的现金流量
购买和发放持作投资的贷款(121,294)(196,580)
出售持作投资性贷款的收益774 — 
持有投资性贷款已收到本金付款78,327 99,768 
收到的应收票据本金付款和剩余凭证的偿还3,556 4,004 
购买财产和设备(1,285)(837)
资本化软体成本(9,135)(5,734)
收购受益权益资产(39,505)(63,246)
受益资产收益— 2,808 
投资活动所用现金净额(88,562)(159,817)
融资活动现金流量
12
目录
Upstart Holdings，Inc
简明综合现金流量表
(In数千）
（未经审计）
截至9月30日的九个月，
20232024
仓库借款收益529,494 297,587 
可转换票据发行收益，扣除支付给贷方的债务发行成本— 423,002 
向第三方支付债务发行费用— (1,455)
偿还仓库借款(514,792)(293,179)
可转换票据回购付款— (325,344)
购买上限看涨期权— (40,883)
结算上限认购— 580 
证券化票据的本金支付(10,016)(42,705)
支付给投资者(1)
(50,668)12,990 
发行证券化票据的收益165,318 — 
员工股票购买计划下发行普通股的收益8,431 7,685 
行使股票期权的收益9,475 12,281 
与股权奖励净股份结算相关的已支付税款(6)(19)
融资活动提供的净现金137,236 50,540 
现金和限制现金的变化82,561 187,980 
现金和限制现金
期末现金和限制现金532,467 467,787 
期末现金和限制现金$615,028 $655,767 
现金流量信息的补充披露
支付利息的现金$22,481 $34,795 
支付所得税的现金（收到），净额(982)250 
非现金投资和融资活动的补充披露
与贷款出售有关的借款的结算$— $221,749 
与贷款出售相关获得的受益利益
— 45,971 
资本化的股票补偿费用5,890 2,809 
新可转换票据的发行成本
— (714)
应收信用额度的发放— (30,907)
合并证券化交易下保留的证券44,763 — 
计入应付投资者的受益资产
5,749 — 
____________
(1) 截至2024年9月30日止九个月，公司选择更改简明综合现金流量表中应付投资者余额变化的列报方式，参阅「注1. 业务和重要会计政策的描述」以了解更多详细资讯。

13
目录
Upstart Holdings，Inc
简明合并现金流量表（续）
(In数千）
（未经审计）
以下按类别列出未经审计简明综合资产负债表中的现金和限制性现金：
12月31日，9月30日，
20232024
现金$368,405 $445,274 
受限制现金99,382 210,493 
现金和限制现金总额$467,787 $655,767 

随附注释是其中不可或缺的一部分 未经审核简明 合并财务报表。
14
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)





 1.    业务说明和重要会计政策
业务说明

Upstart Holdings，Inc及其子公司（统称为“Upstart”、“公司”、“我们”或“我们的”）将人工智能模型和云应用程序应用于消费信贷承保流程。该公司通过为贷款合作伙伴提供专有的、基于云的人工智能贷款市场的访问权限来帮助发放信贷。随着公司技术的不断改进以及更多贷款合作伙伴采用Upstart平台，消费者将受益于更好地获得负担得起且无摩擦的信贷。该公司目前在美国开展业务，总部位于加利福尼亚州圣马特奥和俄亥俄州哥伦布。该公司的财年于12月31日结束。
列报和合并的基础

随附的未经审计简明综合财务报表是按照与我们10-k表格年度报告中包含的年度综合财务报表相同的基础编制的。管理层认为，随附的简明综合财务报表反映了所有调整，其中仅包括公平说明公司财务状况、经营业绩、全面亏损和现金流量所需的正常经常性调整，但不一定表明任何未来年度或中期预期的经营业绩。

根据美国证券交易委员会的规则和法规，通常包含在根据GAAP编制的财务报表中的某些信息和披露已被省略。因此，本10-Q表格季度报告中包含的信息应与截至2023年12月31日年度10-k表格年度报告中包含的合并财务报表和随附注释一起阅读。
重新分类

于2024年第二季度，本公司选择改变其在简明综合现金流量表上对应付投资者余额变动的列报方式。应付给投资者的余额包括a)与受托现金相关的负债，这些负债由公司代表我们的机构投资者暂时持有，并在压缩的综合资产负债表上以有限现金的形式呈现；以及b)为收购或结算实益权益而应付给投资者的现金。在新列报下，应付投资者余额中与受托现金有关的部分从简明综合现金流量表内的经营活动重新归类为融资活动。与收购和结算实益权益有关的应付投资者余额的列报没有变化。比较金额已重新分类，以符合本期列报。 下表列出了简明合并现金流量表内列报变化的影响：

15
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




截至2023年9月30日的9个月
正如之前报道的那样调整，调整调整后的
经营活动的现金流
支付给投资者$(44,919)$44,919 $— 
应付投资者的受益利息资产— 5,749 5,749 
**提供(用于)经营活动的现金净额
(16,781)50,668 33,887 
融资活动产生的现金流
支付给投资者(1)
— (50,668)(50,668)
融资活动提供（用于）的净现金
$187,904 $(50,668)$137,236 
____________
(1)与公司代表我们的机构投资者暂时持有的信托现金相关的负债有关。

重新分类对简明综合资产负债表、简明综合经营报表和全面亏损或简明综合股东权益表没有影响。
预算的使用

按照公认会计原则编制未经审计的简明综合财务报表要求管理层做出影响简明综合财务报表日期资产和负债的报告金额以及或有资产和负债的披露以及报告期内收入和费用的报告金额的估计和假设。

管理层认为，随附的简明综合财务报表中做出的重要估计和假设对于理解和评估公司报告的财务业绩至关重要，包括：（i）公允价值确定;（ii）基于股票的薪酬;（iii）VIE的合并;和（iv）对声誉的评估。该公司的估计基于其认为在当时情况下合理的各种因素。实际结果可能与这些估计不同，此类差异可能会影响未来期间报告的运营结果。
公允价值计量

截至2024年9月30日的九个月内，公司选择了向第三方发放的应收信贷额度的公允价值期权，并被分类为公允价值等级内的第三级投资。 参考“说明6. 公允价值衡量” 以获取更多信息。
最近采用的会计公告
        
截至2024年9月30日止九个月内，公司未采用任何新会计准则。
16
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




近期发布的会计公告
2023年11月，FASB发布了ASU 2023-07，分部报告(主题280)：改进可报告分部披露。本次更新中的修订改进了可报告分部的披露要求，主要是通过加强对重大分部费用的披露。具体而言，新指引要求在年度和中期基础上披露定期提供给首席运营决策者的重大分部费用，并按可报告分部披露其他分部项目的金额，并说明其构成。此外，修订加强了中期披露要求，澄清了一个实体可以披露多个分部损益的情况，并为只有一个可报告分部的实体提供了新的分部披露要求。此ASU在2023年12月15日之后的财年和2024年12月15日之后的财年内的过渡期内有效，并允许提前采用。该公司目前正在评估对其简明综合财务报表和相关披露的修订的影响，并计划从2024年年报开始以Form 10-k的形式纳入与其部门相关的额外必要披露。
2023年12月，FASb发布了ASO 2023-08， Intangious-善意和Inbox-加密资产（子主题350-60）：加密资产的会计和披露。 此次更新中的修订要求持有某些加密货币资产的实体随后以公允价值计量它们，公允价值的变化记录在净利润中。此外，实体必须提供有关某些加密资产持有情况的额外披露。该ASO在2024年12月15日之后开始的财年有效，包括这些财年内的过渡期，允许提前采用。公司预计采用本指南不会对其简明综合财务报表或相关披露产生重大影响。
2023年12月，FASb发布了ASO 2023-09， 所得税（主题740）：所得税披露的改进。 此次更新中的修订要求实体在有效税率对帐中披露特定类别，并为对帐项目提供额外信息，其中这些对帐项目的影响等于或大于税前收入/损失乘以适用法定所得税率计算出的金额的5%。此外，实体必须披露按司法管辖区分类的年初迄今已缴纳的所得税金额（扣除收到的退款）。该ASO从2024年12月15日之后开始的年度有效期，允许提前采用。该公司目前正在评估对其简明综合财务报表和相关披露的这些修订的影响，并计划在10-k表格的2025年年度报告中纳入与所得税相关的额外要求披露。
2024年11月，FASb发布了ASO 2024-03， 收入报表-报告综合
收入表分解披露（子主题220-40）：利润表费用的分解。 此次更新中的修订要求在财务报表附注中对员工薪酬、折旧和无形资产摊销等某些费用进行分类披露，这些费用通常以总数形式呈列。该ASO在2026年12月15日之后开始的年度期间和2027年12月15日之后开始的中期期间有效，并允许提前采用。公司目前正在评估这些修订对其简明综合财务报表和相关披露的影响。

 2.    收入
费用收入，净

公司按服务类型将所列期间的费用收入细分如下：
17
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
费用收入，净：
平台和推荐费，净$112,437 $134,199 $295,859 $336,653 
服务费和其他费用，净额34,318 33,391 111,726 99,537 
费用总收入，净$146,755 $167,590 $407,585 $436,190 
平台和推荐费，净

贷款合作伙伴。 该公司与贷款合作伙伴签订合同，提供公司开发的基于云的人工智能贷款市场（“Upstart平台”）的访问权限，使贷款合作伙伴能够发放无担保的个人和有担保的汽车贷款。Upstart平台包括基于云的应用程序（通过Upstart.com或贷款合作伙伴品牌计划），用于提交贷款申请、验证提交的申请中提供的信息、风险承保（通过一系列专有技术解决方案）、交付电子贷款报价，如果报价被借款人接受，则由借款人签署的电子贷款文件。贷款合作伙伴可以指定他们愿意发放的贷款的某些参数。根据这些合同，贷款合作伙伴可以选择使用Upstart的转介服务，这使他们能够通过Upstart的营销渠道接触新借款人。

发行后，upstart支持的贷款由贷款合作伙伴保留，由本公司根据贷款销售协议购买并立即转售给机构投资者，或由本公司购买并持有。对于贷款伙伴没有保留的贷款，本公司在最低合同持有期结束时向贷款伙伴支付一次性贷款溢价费用，并根据基础贷款借款人支付本金和利息的金额和时间向贷款伙伴支付每月贷款拖欠费。贷款保费及贷款拖欠费均为应付予客户的对价，客户为本行的贷款合作伙伴，并于简明综合经营报表及全面亏损的简明综合报表中记录为平台及转介费的减收，净额为费用收入净额的一部分。该公司确认了$2.21000万美元和300万美元5.6截至2023年9月30日的三个月和九个月内，作为平台内的对销收入和转介费的贷款保费和贷款拖尾费分别为净额和3.1 亿和$7.5在截至2024年9月30日的三个月和九个月内分别为100万美元。

该公司确认了$4.3 截至2023年12月31日和2024年9月30日，贷款后续费用负债为百万美元，按公允价值记录，并计入公司简明综合资产负债表的应计费用和其他负债。参考“说明6. 公平值计量“有关与后续费用负债相关的公允价值变化的更多信息。

公司的平台和转介服务安排通常包括在需要的情况下向客户提供其中一项或两项服务的义务（备用义务），并在提供此类服务时确认收入。此外，这些服务具有相同的转移模式和期限，并且当单独或一起提供时，均被会计为代表一系列不同服务的单一合并履行义务。

平台和转介服务通常以固定或可变的单位价格提供，该价格基于每个时期与某些贷款合作伙伴发放的贷款价值的百分比，但须缴纳最低费用;然而，这些服务的定价也可能基于使用费，计算为每笔贷款的百分比。该公司承诺的本质是随时准备并通过该平台提供持续访问和处理交易。平台和推荐费代表可变对价，因为贷款发放量在合同开始时尚不清楚。这些费用在每次发放贷款时确定。平台和转介服务的费用通常按月计费和支付。因此，该公司与客户的合同不包括重大的融资部分。
18
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)





汽车经销商。 该公司与汽车经销商达成订阅协议，以访问Upstart Auto Retail软件，这是一种基于云的解决方案，可促进经销商的运营，并使他们能够为消费者提供获得Upstart支持的汽车贷款的机会。订阅协议的合同期限通常为 一 到 六个月 常青每月续订。该公司每月向客户收取账单。订阅费在合同期内在履行履行义务时确认，并计入平台费和推荐费中，扣除简明综合经营报表和全面亏损中的净额。该公司承认 非物质的 量 和 $2.6 万 截至2023年9月30日的三个月和九个月的订阅费收入分别为，以及 非物质的 金额和美元4.1 截至2024年9月30日的三个月和九个月的订阅费收入分别为百万美元。

该公司有$19.5 亿和$21.8 截至2023年12月31日和2024年9月30日，计入与客户合同相关的简明综合资产负债表其他资产的应收账款百万美元。应收账款的标准付款期限为30天。公司的坏账准备和坏账费用在所列期间并不重大。

该公司将获得与客户签订合同的增量成本资本化，这些成本是与收购贷款合作伙伴相关的向员工支付的某些销售佣金。资本化成本在预期受益期内摊销，我们根据分析确定该期限为 三年.如果摊销期为一年或更短，公司将采用实际权宜方法来支付与客户签订合同的费用。截至2023年12月31日和2024年9月30日，公司拥有美元2.7 亿和$2.9 百万合同成本分别在简明合并资产负债表的其他资产中资本化。公司在简明综合经营报表和所列期间的全面亏损中摊销了销售和营销的资本化合同成本的微不足道金额。

占总收入10%以上的客户如下：

截至三个月
9月30日，		九个月结束
9月30日，
2023202420232024
客户A33%31%30%27%
客户B32%29%31%34%
客户C12%*11%10%

占应收账款10%以上的客户如下：
十二月三十一日，9月30日，
20232024
客户D*17%
客户C15%11%
客户A11%*
*低于10%

服务费和其他费用，净

该公司还与贷款合作伙伴和机构投资者签订合同，为Upstart驱动的贷款提供期限内的贷款服务。这些服务在贷款合作伙伴发放这些贷款时开始，包括收取、处理和对账收到的付款、机构投资者报告和借款人客户支持以及向贷款持有人分发资金。公司向贷款持有人收取每月服务费，该服务费根据未偿本金的预定百分比计算
19
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




平衡服务费还包括根据每次交易收取的处理逾期付款和因资金不足而拒绝付款的某些辅助费用。服务费在提供服务期间确认。贷款服务费不在ASC 606的范围内， 与客户签订合同的收入，并根据ASC 860核算， 转接和服务.

该公司向贷款合作伙伴和机构投资者收取与其未偿贷款组合相关的代收代理费用。该公司要么内部进行借款人催收活动，要么外包给第三方催收机构，特别是逾期超过30天或已注销的贷款。公司有权自行决定聘请收款机构并确定其工作范围。作为该安排的委托人，公司在提供服务期间确认代收代理费的毛收入。Upstart还收取某些辅助借款人费用，包括逾期付款费和ACH失败费。代收机构收取的费用总额在发生期间确认并报告为客户运营费用的一部分。

服务费和其他费用（净额）还包括根据贷款服务安排就贷款合作伙伴保留的贷款或出售给机构投资者的贷款确认的资产和负债的损益。此类损益根据服务的收益预计是否大于还是小于对公司履行的服务义务的足够补偿来确认。服务费还包括贷款服务资产和负债公允价值的变化。参考“说明6. 公平值计量“有关与服务资产和负债相关的公允价值变化的更多信息。

下表列出了公司简明综合经营报表和全面亏损中服务费和其他费用的净组成部分，作为费用收入的一部分：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
维修费$26,113 $21,782 $82,611 $66,975 
借款人费用7,182 6,582 21,823 20,097 
代收代理费4,017 3,964 11,685 12,677 
其他费用69 88 407 301 
服务权净收益（损失）和公允价值调整(3,063)975 (4,800)(513)
服务费和其他费用总额，净$34,318 $33,391 $111,726 $99,537 
利息收入、利息分配和公允价值调整，净额

利息收入、利息费用和公允价值调整净额由利息收入、利息费用和公司正常业务过程中按公允价值持有的金融工具公允价值净变化组成，包括贷款、衍生品、受益权益、应收票据和剩余凭证、跟踪费用负债、应付证券化票据持有人和应收信贷额度。

20
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




下表列出了公司简明综合经营报表和全面亏损中呈列的利息收入、利息费用和公允价值调整净额的组成部分：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
利息收入(1)
$37,692 $40,845 $116,923 $144,899 
利息开支(1)
(9,414)(10,818)(20,828)(33,002)
公允价值和其他调整，净额：
贷款未实现损失、贷款冲销和其他公允价值调整，净额(1)
(30,349)(31,579)(99,048)(92,800)
已实现贷款出售损失，净(2,955)(2,950)(22,255)(14,565)
公允价值调整和已实现受益权益损失，净
(7,172)(948)(9,127)(23,158)
公允价值和其他调整总额，净额
(40,476)(35,477)(130,430)(130,523)
利息收入、利息费用和公允价值调整总额，净额$(12,198)$(5,450)$(34,335)$(18,626)
__________
(1)包括与合并证券化相关的利息收入、利息费用和贷款未实现损失、贷款冲销和其他公允价值调整，净额如下：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
与合并证券化相关的利息收入、利息费用和公允价值调整净额：
利息收入$10,048 $6,748 $10,048 $23,086 
利息开支(3,754)(2,272)(3,754)(7,546)
贷款未实现损失、贷款冲销和其他公允价值调整，净额367 (5,726)367 (25,643)
利息收入、利息费用和公允价值调整总额，净额$6,661 $(1,250)$6,661 $(10,103)
利息收入

利息收入根据与借款人就公司简明综合资产负债表上持有的贷款和应收信用额度与借款人签订的基础协议的条款确认，并在贷款或应收信用额度的有效期内赚取。

利息收入还包括未偿贷款和应收但未收回的信用额度所赚取的应计利息。已达到拖欠的房屋股权信贷额度（“HELOCs”） 180 天数以及所有其他已逾期的应收贷款和信用额度 120 天数被归类为非应计状态，与这些贷款相关记录的任何应计利息将在相应期间内转回。公司不记录应计应收利息的信用损失拨备。截至2023年12月31日和2024年9月30日，公司已录得美元14.2 亿和$6.7 简明综合资产负债表上贷款的应计利息收入分别为百万美元。截至2024年9月30日，应收信贷额度的应计利息收入并不重大。
21
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




利息支出

利息费用主要与公司仓库信贷设施借款记录的利息以及与合并证券化相关的利息费用有关。利息费用包括已发生但未支付的应计利息。截至2023年12月31日和2024年9月30日，应计利息费用并不重大。利息费用还包括利率上限公允价值的变化。参考“说明4. 衍生金融工具” 以获取更多信息。
公允价值和其他调整，净额

公允价值和其他调整净额包括金融工具公允价值的变化，贷款服务资产和负债以及利率上限除外。这些调整记录在公司的简明综合经营报表和全面亏损中，包括相关资产和负债价值的已实现和未实现变化。参考“说明6. 公平值计量“以获取更多信息。

公允价值和其他调整净额还包括从借款人收到的公司简明综合资产负债表上持有的先前已注销贷款的金额。这些金额在收到金额的期间确认。从借款人收到的先前已注销贷款金额为美元2.6 亿和$4.6 截至2023年9月30日的三个月和九个月分别为百万美元和美元3.7 亿和$10.8 截至2024年9月30日的三个月和九个月分别为百万美元。

 3.    可变利息实体
合并后的VIE

公司合并了公司拥有可变权益并被确定为主要受益人的VIE。这一确定取决于公司是否拥有可变权益（或可变权益的组合），该可变权益为公司提供（a）指导对VIE经济表现影响最大的活动的权力和（b）吸收损失的义务或获得对VIE可能重要的利益的权利。在公司参与VIE的整个期间，公司不断重新评估其是否是VIE的主要受益人。

公司还确定决策者或服务提供商费用是否属于可变利益。当该安排不会使公司面临潜在VIE旨在转嫁给其可变利益持有人的损失风险时，决策者或服务提供商费用不被视为可变利益，费用相称，该安排是在市场上，且公司不存在任何其他利益（包括通过关联方持有的直接利益和某些间接利益）吸收了VIE潜在变异性的极小部分。这一确定可能会对公司的合并分析产生重大影响，因为它可能会影响法律实体是否是VIE以及公司是否是VIE的主要受益人。当公司的决策者或服务提供商费用不是可变权益时，公司被视为潜在VIE的受托人。

22
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




下表列出了公司参与合并VIE的金融资产和负债摘要：

2023年12月31日
资产负债净资产
合并证券化$187,258 $141,420 $45,838 
合并仓库实体645,455 388,681 256,774 
其他合并VIE362,680 851 361,829 
合并VIE总数$1,195,393 $530,952 $664,441 

2024年9月30日
资产负债净资产
合并证券化$125,255 $100,337 $24,918 
合并仓库实体353,922 174,067 179,855 
其他合并VIE210,437 944 209,493 
合并VIE总数$689,614 $275,348 $414,266 
合并证券化
2023年7月6日，公司完成了私募证券化证券发行(UPST 2023-2)。作为交易的保留发起人，根据第17章美国联邦法规法典美国证券交易委员会颁布的第246部分(信用风险保留)要求公司在UPST 2023-2中至少保留5%的经济风险。本公司选择以证券化票据和剩余证书相结合的形式持有符合资格的垂直留存权益，以满足风险保留要求。该公司还保留了作为交易一部分发放的剩余证书的剩余部分。公司是抵押品的唯一出资人，抵押品包括#美元。204.7本公司持有的upstart助力贷款的未偿还本金余额为100万美元。已发行证券化票据的加权平均票面利率约为9.2%，他们的销售收入约为$165.3现金收益总额为百万美元。这些证券化票据上的收益和付款在简明综合现金流量表中被归类为融资活动。

在证券化交易开始时，公司持有的UPSt 2023-2保留权益被视为潜在吸收了超出微不足道金额的预期损失或预期回报。作为服务商，该公司还有权指导对与UPSt 2023-2证券化相关实体的经济影响最大的活动，因此，该公司确定自己是主要受益人，并合并了与UPSt 2023-2相关的实体。

合并证券化信托中持有的贷款被分类为持作出售并按公允价值计入贷款，而出售给第三方投资者的票据则在简明合并资产负债表中按公允价值记录为应付证券化票据持有人。参考“说明6. 公平值计量“有关确定这些资产和负债公允价值的更多信息。作为证券化一部分发行并由公司保留的剩余证书的价值作为合并的一部分被消除。
仓库实体

该公司建立了多个被视为VIE的实体，以建立仓库信贷机制，以购买Upstart支持的贷款。参考“说明9. 借贷”以获取更多信息。这些实体是特拉华州法定信托，其结构为破产远程，由第三方银行作为受托人运营。
23
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




其他合并VIE

该公司已组建了多个VIE，旨在持有Upstart驱动的贷款，这些贷款未抵押或没有资格抵押给公司的仓库信贷设施。此外，该公司还组建了合并VIE，旨在持有受限制现金或贷款作为与承诺资本和其他共同投资安排相关的抵押品。
未整合的VIE

该公司与未合并VIE的交易包括无担保个人完整贷款的证券化和向VIE出售完整贷款，包括根据其承诺资本和其他共同投资安排进行的贷款销售。参考“说明5. 实益权益“有关与承诺资本和其他联合投资安排相关的未合并VIE的更多信息。

证券化

虽然公司继续以证券化交易的发起人和服务商的身份参与未合并VIE，但公司并未在这些实体中持有重大经济利益，并已确定其不是这些实体的主要受益人。该公司的未合并VIE包括为各种证券化交易设立的发行人和授予信托的实体。

如果VIE未合并并且贷款从公司转移至证券化信托符合销售会计标准，公司确认贷款销售的损益。出售的净收益代表作为交易一部分获得的任何资产或产生的负债的公允价值。资产被转移到信托中，使资产在法律上与公司债权人隔离，并且无法用于履行公司的义务。这些资产只能用于结算基础证券化信托的义务。

截至2023年9月30日的九个月内，公司进行了与以下事项相关的清理呼吁 两 历史未合并证券化并随后清算相关实体。作为清理呼吁的一部分，该公司作为服务商回购了剩余抵押品并收到了相关实体持有的现金储备金额。此外，在截至2024年9月30日的九个月内，公司进行了与以下事项相关的清理呼吁 两 未合并证券化并随后清算相关实体。清理呼吁对公司呈列期间的简明综合财务报表没有重大影响。

下表总结了与证券化相关的未合并VIE的资产和负债总值，该公司持有可变权益但不是主要受益人：

2023年12月31日
资产(1)
负债净资产最大损失敞口
证券化$445,929 $319,357 $126,572 $20,885 
_________
(1)代表未合并VIE持有的现金和未偿还贷款本金余额。

24
目录
Upstart Holdings，Inc
公司简明综合财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
（未经审计）




2024年9月30日
资产(1)
负债净资产最大损失敞口
证券化$293,412 $210,965 $82,447 $13,972 
_________
(1)代表未合并VIE持有的现金和未偿还贷款本金余额。

公司因参与未合并VIE而面临的最大损失风险代表在严重的假设情况下将产生的估计损失，而公司认为这种可能性很小。与未合并VIE中可变权益相关的资产的公允价值包括美元14.81000万美元和300万美元10.3 百万份证券化票据和剩余凭证，按公允价值列账，并分别计入截至2023年12月31日和2024年9月30日的简明综合资产负债表上的其他资产。该公司还有美元6.01000万美元和300万美元3.7 作为相关证券化准备金账户持有的百万现金存款，分别计入截至2023年12月31日和2024年9月30日的简明合并资产负债表上的其他资产。

对于公司不是风险保留发起人，且服务是持续参与的唯一形式的证券化交易，公司只有在因违反陈述和保证而被要求回购此类贷款并且无法收取所有还款时才会遭受损失，参见“说明12. 承诺和意外情况了解更多信息。

投资者和证券化信托对公司资产没有直接追索权，证券化信托发行的证券的持有人只能查看发行证券以供付款的证券化信托的资产。该公司及其附属公司持有的权益主要受到基础无担保个人全额贷款产生的信贷和预付款风险。


 4.    衍生金融工具

2023年2月和2023年6月，Upstart Auto Warehouse Trust和Upstart Loan Trust签订利率上限协议，执行利率为 3.0%和3.25分别为%。该等协议是针对浮动利率的仓库信贷设施而签订的，参见 “注9。 借款” 获取更多信息.利率上限为信贷工具提供保护，使其免受现金流变化的风险，前提是该工具的基础利率超过执行利率。Upstart Auto Warehouse Trust利率上限将于2029年4月到期，Upstart Loan Trust利率上限将于2025年6月到期。利率上限协议符合衍生品的定义，并按公允价值报告。参考“说明6. 公平值计量“以获取更多信息。

下表列出了利率上限的名义金额以及公允价值，该利率上限在简明综合资产负债表中作为其他资产的一部分报告。

2023年12月31日2024年9月30日
名义金额
公允价值
名义金额公允价值
利率上限$299,578 $5,958 $254,500 $2,139 

公司在收益中确认这些工具的公允价值变化，并将其报告为简明综合经营报表和全面亏损利息费用的一部分。该公司承认 非物质的 截至2023年9月30日和2024年9月30日的三个月内公允价值损益（扣除利率上限）金额，并已确认美元2.5 万及 非物质的 截至2023年9月30日和2024年9月30日止九个月内扣除利率上限后的公允价值收益金额。
25
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)







 5.    实益权益

该公司的受益权益与与许多第三方机构投资者和贷款合作伙伴的承诺资本和其他共同投资安排有关，其中该公司将一定数量的资产置于风险之中。该风险受到美元上限的限制，这代表了公司在每项特定安排中面临的最大损失风险。在某些安排中，如果根据该安排出售或发放的贷款的信用表现偏离了贷款出售或发放时设定的初始预期，公司有义务向这些第三方付款，或者有权从他们那里收取付款。根据其他安排，公司从出售的基础贷款组合收到的还款中获得一部分现金流，这些现金流的金额和时间取决于所证明的信用表现和安排的合同条款。

承诺资本和其他共同投资安排的合同条款还确定了公司面临的最大损失风险，并规定了公司面临风险的资产类型。 下表按资产类型列出了该公司在这些安排下面临的最大损失风险：

十二月三十一日，9月30日，
20232024
无限制现金$23,789 $68,562 
受限现金12,064 70,825 
实益利益62,684 168,707 
其他— 49,767 
总$98,537 $357,861 

本公司在与其承诺资本及共同投资安排有关的若干实体中拥有可变权益，包括未合并的VIE的买方信托。虽然本公司透过承诺资本及共同投资安排持有该等未合并VIE的可变权益，并作为出售贷款的服务机构，但本公司无权指挥对VIE的经济表现最具重大影响的活动，并已确定其并非主要受益人。注3.可变利息实体“以获取更多信息。截至2024年9月30日，简明综合资产负债表中与承诺资本及其他共同投资安排相关的作为抵押品的贷款的公允价值为#美元。18.9百万美元。虽然作为抵押品持有，但这些贷款没有资格出售，并在公司精简的综合资产负债表上被归类为持有以供投资。

公司的受益权益要么符合衍生品的定义，要么符合债务证券的标准。受益权益指作为这些安排一部分的未来现金流量的价值，根据预期业绩贴现至现值。截至报告日，受益利息资产代表公司预计收到未来净现金流入的安排，而受益利息负债代表公司预计支付净现金的安排。 下表列出了基础贷款组合的未偿还本金余额总额以及受益利息资产的公允价值（在简明综合资产负债表中作为单独的资产项目呈列）以及受益利息负债（在简明综合资产负债表中的其他负债中呈列）。

26
目录
Upstart Holdings，Inc
公司简明综合财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
（未经审计）




2023年12月31日2024年9月30日
未偿还本金余额
公平值
未偿还本金余额
公平值
受益资产
$958,870 $41,012 $3,014,907 $131,483 
受益利息负债$769,102 $4,221 $1,150,855 $13,162 

公司按公允价值确认受益权益，并将变动报告为公允价值的一部分，并对简明综合经营报表和全面亏损进行其他调整. 下表列出了以下期间确认的受益权益损失：

止三个月
9月30日，		九个月结束
9月30日，
2023202420232024
公允价值调整和已实现受益权益损失，净
$(7,171)$(948)$(9,127)$(23,158)

参考「说明6. 公平值计量」以获取更多信息。

6.     公平值计量

下表呈列按公允价值计量并根据公允价值等级分类的资产和负债：
十二月三十一日，9月30日，
水平20232024
资产
贷款3$1,156,413 $656,120 
受益资产
341,012 131,483 
应收信用额度3— 31,514 
贷款服务资产328,092 26,705 
应收票据和剩余凭证314,847 10,318 
利率上限(1)
25,958 2,139 
总资产$1,246,322 $858,279 
负债
应付证券化票据持有人3$141,416 $100,335 
受益利息负债34,221 13,162 
追踪费负债34,251 4,345 
贷款偿还负债32,038 1,164 
总负债$151,926 $119,006 
__________
(1)利率上限的公允价值是根据使用截至估值日的可观察市场输入数据（包括隐含利率）在合同期内估计未来现金流量的现值确定的。

27
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




金融工具根据整体公允价值计量中不可观察输入和假设的重要性归入公允价值等级。公允价值等级内分类为第3级的金融工具 不要在价格易于观察的活跃市场中进行交易。公司使用重大不可观察输入数据来衡量这些资产和负债的公允价值。 于呈列期间，公允价值层级的第1级、第2级或第3级之间没有转移。
贷款

根据公司在到期前出售贷款的意图和能力，公司简明综合资产负债表中包含的贷款被分类为持作出售或持作投资。公司不时根据公司意图和能力的变化在分类类别之间转移贷款。合并证券化中持有的贷款包括作为合并证券化抵押品投入并持有的贷款（UPSt 2023-2），并被分类为持作出售。

下表列出了截至2023年12月31日和2024年9月30日公司简明合并资产负债表中所列贷款类别的公允价值：
十二月三十一日，9月30日，
20232024
持有待售贷款$830,574 $311,299 
为投资而持有的贷款146,768 226,301 
合并证券化中持有的贷款179,071 118,520 
总
$1,156,413 $656,120 
估值方法论
持作出售和持作投资的贷款采用贴现现金流量模型按估计公允价值计量。公允估值方法考虑预计预付款项和历史违约、损失和收回，以预测未来损失和贷款净现金流量。净现金流量使用市场回报率估计进行贴现。该等贷款的公允价值还包括应计利息。

公司在主题810下选择了测量替代方案， 整固，并最大限度地使用可观察输入数据来估计UPSt 2023-2金融资产和负债的公允价值。根据衡量替代方案，公司确定用于确定UPSt 2023-2负债价值的输入数据（包括作为此次证券化一部分发行的证券化票据和剩余证书）比用于衡量UPSt 2023-2金融资产公允价值的输入数据更可观察，UPSt 2023-2金融资产的公允价值包括作为抵押品的持有待售贷款。因此，贷款根据UPSt 2023-2证券化票据和剩余凭证的公允价值之和进行计量，公允价值变化计入简明综合经营报表和全面损失。
28
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




重大输入和假设

下表列出了有关公司持作投资和持作出售贷款的第三级公允价值计量所使用的重大不可观察输入数据的量化信息：
2023年12月31日2024年9月30日
最低要求极大值
加权平均(1)
最低要求最大
加权平均 (1)
贴现率9.63 %23.22 %12.06 %9.32 %23.22 %11.74 %
信用风险率
0.01 %93.10 %17.66 %0.01 %93.12 %16.89 %
预付率
0.13 %95.80 %36.52 %0.32 %89.07 %35.43 %
_________
(1)不可观察输入按相对公允价值加权。

下表列出了有关公司合并证券化中持有的贷款的第三级公允价值计量隐含的重大不可观察输入数据的量化信息，该公允价值计量由相关证券化票据和剩余证书的公允价值之和确定：
2023年12月31日2024年9月30日
最低要求最大
加权平均(1)
最低要求最大
加权平均 (1)
贴现率6.85 %16.00 %9.99 %6.39 %15.25 %9.29 %
信用风险率
0.61 %37.70 %15.51 %0.67 %37.70 %15.55 %
预付率
6.66 %89.84 %42.73 %6.73 %89.84 %41.86 %
_________
(1)不可观察输入按相对公允价值加权。

贴现率- 贴现率是用于贴现未来预期现金流以得出现值（代表公允价值）的回报率。用于预计净现金流量的贴现率是公司对市场参与者在投资这些现金流量取决于相关贷款信用质量的金融工具时所需的回报率的估计。风险溢价部分隐含地包含在贴现率中，以反映市场参与者由于信用和流动性等风险导致的工具现金流固有的不确定性而要求的补偿金额。

信用风险率- 信用风险率是对金融工具整个生命周期内不会偿还的净累积本金付款的估计。信用风险率以工具原始本金额的百分比表示。估计净累计损失代表工具寿命内每个月估计发生的净损失减去预计将收到的平均赔偿额的总和。

预付率- 提前还款率是对贷款整个期限内发生的累积本金提前还款额的估计，即贷款原始本金额的百分比。有关累积预付款的假设会影响贷款的预计余额和预期期限。

29
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




显著的经常性3级公允价值投入敏感性

下表列出了截至2023年12月31日和2024年9月30日持作出售和持作投资贷款的公允价值对估值模型中使用的关键假设不利变化的敏感性：
十二月三十一日，9月30日，
20232024
持作出售和持作投资的贷款的公允价值$977,342 $537,600 
贴现率
加息100个基点(11,680)(6,195)
加息200个基点(23,127)(12,252)
基础贷款的预期信用损失率
10%不利变化(12,453)(5,402)
20%不利变化(24,979)(10,828)
预期预付利率
10%不利变化(1,884)(1,477)
20%不利变化(3,756)(2,948)

下表列出了截至2023年12月31日和2024年9月30日合并证券化贷款公允价值对估值模型中使用的关键假设不利变化的敏感性：
十二月三十一日，9月30日，
20232024
合并证券化中持有的贷款的公允价值
$179,071 $118,520 
贴现率
加息100个基点(2,413)(1,385)
加息200个基点(4,785)(2,745)
基础贷款的预期信用损失率
10%不利变化(2,669)(2,318)
20%不利变化(5,227)(4,761)
预期预付利率
10%不利变化(1,625)(990)
20%不利变化(3,234)(1,939)

3级公允价值的结转

下表包括分类为公允价值层级第3级的贷款的结转：
30
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




贷款
销售		投资性贷款合并证券化中持有的贷款总
2023年6月30日的公允价值$689,851 $147,714 $— $837,565 
贷款转移至合并证券化(1)
(209,968)— 209,968 — 
购买贷款(2)(3)
483,921 32,714 — 516,635 
出售贷款(2)
(269,627)— — (269,627)
购买贷款立即转售(2)
342,467 — — 342,467 
立即转售贷款(2)
(342,467)— — (342,467)
已收到还款(2)
(40,894)(24,757)(12,302)(77,953)
计入收益的冲销和公允价值变化(20,203)(13,235)(1,139)(34,577)
其他变化(764)1,057 — 293 
2023年9月30日的公允价值$632,316 $143,493 $196,527 $972,336 
_________
（1） 代表公允价值。
（2） 代表本金余额。
（3） 购买活动包括截至2023年9月30日的三个月内与证券化清理呼吁相关的微不足道的未付本金余额。
贷款
销售		投资性贷款合并证券化中持有的贷款总
2022年12月31日的公允价值$882,810 $127,611 $— $1,010,421 
贷款转移至合并证券化(1)
(209,968)— 209,968 — 
购买贷款(2)(3)
1,053,309 121,293 — 1,174,602 
出售贷款(2)
(888,019)— — (888,019)
购买贷款立即转售(2)
1,023,426 — — 1,023,426 
立即转售贷款(2)
(1,023,426)— — (1,023,426)
已收到还款(2)
(149,697)(68,212)(12,302)(230,211)
计入收益的冲销和公允价值变化(54,767)(40,003)(1,139)(95,909)
其他变化(1,352)2,804 — 1,452 
2023年9月30日的公允价值$632,316 $143,493 $196,527 $972,336 
_________
（1） 代表公允价值。
（2） 代表本金余额。
（3） 购买活动包括截至2023年9月30日的九个月内与证券化清理呼吁相关的微不足道的未付本金余额。
31
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




贷款
销售		投资性贷款合并证券化中持有的贷款总
2024年6月30日的公允价值
$497,922 $187,586 $135,120 $820,628 
购买和贷款发放(1)
475,176 85,639 — 560,815 
出售贷款(1)
(590,403)— — (590,403)
购买贷款立即转售(1)
581,057 — — 581,057 
立即转售贷款(1)
(581,057)— — (581,057)
已收到还款(1)
(43,633)(37,603)(11,818)(93,054)
计入收益的冲销和公允价值变化(25,270)(14,207)(4,782)(44,259)
其他变化(2,493)4,886 — 2,393 
2024年9月30日的公允价值
$311,299 $226,301 $118,520 $656,120 
_________
（1） 代表本金余额。

贷款
销售		投资性贷款合并证券化中持有的贷款总
2023年12月31日的公允价值
$830,574 $146,768 $179,071 $1,156,413 
贷款重新分类(2)
(3,189)3,189 — — 
购买和贷款发放(1)(2)
1,558,844 196,580 — 1,755,424 
出售贷款(2)
(1,826,066)— — (1,826,066)
购买贷款立即转售(2)
1,067,402 — — 1,067,402 
立即转售贷款(2)
(1,067,402)— — (1,067,402)
已收到还款(2)
(163,606)(93,172)(36,532)(293,310)
计入收益的冲销和公允价值变化(77,943)(37,810)(24,019)(139,772)
其他变化(7,315)10,746 — 3,431 
2024年9月30日的公允价值
$311,299 $226,301 $118,520 $656,120 
_________
(1)购买活动包括截至2024年9月30日的九个月内与证券化清理呼吁相关的微不足道的未付本金余额。
(2)代表本金余额。

下表呈列简明综合资产负债表中所有贷款和逾期90天或以上贷款的公允价值总额和未偿还本金总额：

贷款贷款逾期超过90天
十二月三十一日，9月30日，十二月三十一日，9月30日，
2023202420232024
未偿还本金余额$1,182,577 $705,779 $15,310 $13,783 
公允价值净值和应计利息调整(26,164)(49,659)(12,260)(11,539)
公允价值(1)
$1,156,413 $656,120 $3,050 $2,244 
_________
（1） 包括$343.11000万美元和300万美元282.8 截至2023年12月31日和2024年9月30日，按公允价值计算的汽车贷款分别为百万美元，其中美元2.81000万美元和300万美元2.0 截至2023年12月31日和2024年9月30日，百万分别逾期90天或以上。也
32
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




包括 非物质的 截至2023年12月31日按公允价值计算的HELCC金额和美元30.2 截至2024年9月30日，百万，其中 非物质的 在任何一个时期，贷款都逾期90天或以上。

该公司对拖欠金额已达到的HElocc进行收费 180 逾期天数和所有其他贷款 120 逾期天数。与该等贷款相关记录的任何应计利息将在相关期间转回。

应收信贷额度

就其一项承诺资本和其他共同投资安排而言，该公司向第三方发放了应收循环信贷额度，该额度被归类为持作投资并在公司简明综合资产负债表上的其他资产中呈列。截至2024年9月30日，应收信用额度公允价值为美元31.5 万举行之本公司 不是 截至2023年12月31日的应收信用额度。
估值方法论
应收信贷额度使用贴现现金流量模型按估计公允价值计量。公允估值方法考虑交易对手的当前信誉来预测未来损失以及当前利率与规定利率之间的差异。现金流使用市场回报率估计进行贴现。应收信贷额度的公允价值还包括应计利息。
重大输入和假设

下表列出了有关公司与应收信贷额度相关的第三级公允价值计量所使用的重大不可观察输入数据的量化信息：

2023年12月31日2024年9月30日
最低要求最大
加权平均
最低要求最大
加权平均
贴现率***7.00 %7.00 %7.00 %
_________
* 不适用

贴现率- 贴现率是用于贴现未来预期现金流以得出现值（代表公允价值）的回报率。用于预计净现金流量的贴现率是公司对市场参与者在投资该金融工具时所需的回报率的估计，现金流量取决于相关贷款的信用质量。风险溢价部分隐含地包含在贴现率中，以反映市场参与者由于信用和流动性等风险导致的工具现金流固有的不确定性而要求的补偿金额。

显著的经常性3级公允价值投入敏感性

应收信贷额度对关键假设不利变化的公允价值敏感性不会对公司的财务状况或经营业绩造成重大影响。

33
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




3级公允价值的结转

下表列出了公司分类为公允价值层级第3级的应收信贷额度的结转：
应收信贷额度
2024年6月30日的公允价值
$8,305 
发行22,646 
在收益中记录的公允价值变动403 
应计利息变化160 
2024年9月30日的公允价值
$31,514 
应收信贷额度
2023年12月31日的公允价值$— 
发行30,907 
在收益中记录的公允价值变动447 
应计利息变化160 
2024年9月30日的公允价值$31,514 

与证券化交易相关的资产和负债

截至2023年12月31日和2024年9月30日，公司持有公允价值总额为美元的应收票据和剩余凭证14.8 亿和$10.3 公司简明合并资产负债表上的其他资产中分别为百万美元。余额包括证券化票据和从未合并证券化交易中保留的剩余证书。

截至2023年12月31日和2024年9月30日，公司确认应付证券化票据持有人款项为美元141.4 亿和$100.3 按公允价值计算分别为百万美元。余额代表第三方投资者发行和拥有的与UPSt 2023-2相关的证券化票据的价值。公司保留的UPSt 2023-2证券化票据和剩余凭证的价值在合并过程中消除。
估值方法论

公司在估计应收票据以及剩余凭证和应付证券化票据持有人的公允价值时优先使用可观察输入数据。当这些金融工具的市场活动不可观察时，公允价值使用贴现现金流量法确定。该方法使用针对这些证券特征进行调整的基础抵押贷款池的预计现金流量假设，这反映了公司对市场参与者用于计算公允价值的假设的最佳估计。

重大输入和假设

下表列出了有关公司与应收票据、剩余凭证和应付证券化票据持有人相关的第3级公允价值计量所使用的重大不可观察输入数据的量化信息：
34
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




2023年12月31日2024年9月30日
最低要求最大
加权平均 (1)
最低要求最大
加权平均(1)
应收票据和剩余凭证
贴现率9.99 %23.22 %12.74 %10.52 %23.22 %13.13 %
信用风险率
0.48 %50.69 %16.32 %0.49 %50.28 %16.37 %
预付率
6.36 %89.46 %43.14 %6.37 %87.53 %42.66 %
应付证券化票据持有人
贴现率6.85 %12.30 %8.48 %6.39 %10.62 %8.21 %
信用风险率
0.61 %37.70 %15.51 %0.67 %37.70 %15.55 %
预付率
6.66 %89.84 %42.73 %6.73 %89.84 %41.86 %
_________
(1)不可观察输入按相对公允价值加权。


显著的经常性3级公允价值投入敏感性

应收票据和剩余证书

截至2023年12月31日和2024年9月30日，贴现率、信用风险率或预付费率的不利变化不会对应收票据和剩余凭证的公允价值产生重大影响。

应付证券化票据持有人

应付证券化票据持有人的公允价值对贴现率的不利变化敏感，贴现率代表机构投资者在投资具有类似风险和回报特征的金融工具时所需的回报率估计。平均而言，假设贴现率上升100和200个基点，会导致应付证券化票据持有人的公允价值下降美元1.9 亿和$3.7 截至2023年12月31日，分别为百万美元和 不 导致截至2024年9月30日应付证券化票据持有人的公允价值产生重大影响。截至2023年12月31日和2024年9月30日，信用风险率和预期提前还款率的不利变化不会对应付证券化票据持有人的公允价值造成重大影响。
3级公允价值的结转

下表包括与公司分类为公允价值层级第3级的证券化交易相关的向证券化票据持有人发放的应收票据以及剩余凭证和应付款项的结转：

应收票据和剩余证书
应付证券化票据持有人
2023年6月30日的公允价值$3,907 $— 
添加— 165,318 
还款和结算(560)(10,016)
在收益中记录的公允价值变动(561)(1,520)
2023年9月30日的公允价值$2,786 $153,782 

35
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




应收票据和剩余证书
应付证券化票据持有人
2022年12月31日的公允价值$6,181 $— 
添加— 165,318 
还款和结算(3,556)(10,016)
在收益中记录的公允价值变动161 (1,520)
2023年9月30日的公允价值$2,786 $153,782 

应收票据和剩余证书
应付证券化票据持有人
2024年6月30日的公允价值
$11,642 $113,652 
还款和结算(1,323)(14,259)
在收益中记录的公允价值变动(1)942 
2024年9月30日的公允价值
$10,318 $100,335 

应收票据和剩余证书
应付证券化票据持有人
2023年12月31日的公允价值$14,847 $141,416 
还款和结算(4,004)(42,705)
在收益中记录的公允价值变动(525)1,624 
2024年9月30日的公允价值$10,318 $100,335 


贷款服务资产和负债
截至2023年12月31日和2024年9月30日，公司贷款服务资产的公允价值为美元28.11000万美元和300万美元26.7 分别记录在简明综合资产负债表的其他资产中。截至2023年12月31日和2024年9月30日，公司贷款偿还负债的公允价值为美元2.01000万美元和300万美元1.2 分别记录在简明综合资产负债表的应计费用和其他负债中。
估价方法

贷款服务资产和负债使用贴现现金流量模型按估计公允价值计量。估值模型中的现金流代表向机构投资者收取的合同服务费与估计的市场服务费之间的差额。由于合同服务费通常基于基础贷款的每月未偿还本金余额，因此模型中的预期现金流包括净损失和预付款项的估计。
36
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




重大输入和假设

下表列出了有关公司贷款服务资产和负债的第三级公允价值计量所使用的重大不可观察输入数据的量化信息：
2023年12月31日2024年9月30日
最低要求最大
加权平均(1)
最低要求最大
加权平均(1)
贴现率13.00 %20.00 %16.89 %13.00 %20.00 %17.06 %
信用风险率
0.05 %88.42 %14.93 %0.08 %65.36 %15.66 %
市场服务费率 (2)(3)
0.62 %3.72 %0.62 %0.62 %3.70 %0.62 %
预付率
1.05 %96.90 %41.05 %2.17 %96.90 %37.79 %
_________
(1)不可观察输入按相对公允价值加权。
(2)不包括将转嫁给第三方服务商的辅助费用。
(3)以占汽车贷款未偿本金余额的百分比表示 3.72%和3.70分别截至2023年12月31日和2024年9月30日的%和 0.62截至2023年12月31日和2024年9月30日的个人贷款均为%。

贴现率- 贴现率是公司对服务权市场参与者在投资类似服务权时所需回报率的估计。现有贷款服务权的贴现率进行调整，以反映货币的时间价值和风险溢价，该风险溢价旨在反映市场参与者因与这些工具现金流相关的不确定性而需要的补偿金额。

信用风险率s-信用风险率是公司对在贷款整个期限内不会偿还的净累积本金付款的估计，以贷款原始本金额的百分比表示。有关净累积损失的假设影响贷款的预计余额和预期期限，这些贷款用于预测未来的服务收入。

市场服务费率- 市场服务费率是对市场参与者进行充分补偿的估计指标（如果需要的话）。该利率以每年未偿还本金余额的固定百分比表示。该估计考虑了市场上为满足公司服务协议的未偿贷款组合而需要的利润。

预付率- 提前还款率是公司对整个贷款期限内发生的累积本金提前还款额的估计，占贷款原始本金额的百分比。有关累积预付款的假设影响贷款的预计余额和预期期限，这些贷款用于预测未来的服务收入。
37
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




显著的经常性3级公允价值投入敏感性

下表列出了贷款服务资产和负债对关键假设不利变化的公允价值敏感性。贷款服务资产和负债的公允价值对贴现率的不利变化并不敏感，因为此类变化不会分别对截至2023年12月31日和2024年9月30日的公允价值产生重大影响。截至2023年12月31日和2024年9月30日，预付款利率的不利变化不会对贷款偿还负债的公允价值造成重大影响。
十二月三十一日，9月30日，
20232024
贷款服务资产的公允价值$28,092 $26,705 
预期市场服务费率
市场服务费率上涨10%(7,475)(8,621)
市场服务费率上涨20%(14,916)(15,784)
预期预付利率
预付款利率提高10%
(632)(2,096)
预付款利率提高20%
(1,257)(2,750)
十二月三十一日，9月30日，
20232024
贷款偿还负债的公允价值$2,038 $1,164 
预期市场服务费率
市场服务费率上涨10%1,100 881 
市场服务费率上涨20%2,235 1,451 

3级公允价值的结转

下表列出了公司分类为公允价值层级第3级的贷款服务资产和负债的结转：
贷款服务资产贷款服务负债
2023年6月30日的公允价值
$33,339 $2,577 
出售贷款3,475 3 
还款和其他公允价值变化计入收益(6,723)(187)
2023年9月30日的公允价值$30,091 $2,393 
贷款服务资产贷款服务负债
2022年12月31日的公允价值$36,467 $3,968 
出售贷款10,512 80 
还款和其他公允价值变化计入收益(16,888)(1,655)
2023年9月30日的公允价值$30,091 $2,393 
38
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




贷款服务资产贷款服务负债
2024年6月30日的公允价值
$25,790 $1,223 
出售贷款5,552 1 
还款和其他公允价值变化计入收益(4,637)(60)
2024年9月30日的公允价值
$26,705 $1,164 
贷款服务资产贷款服务负债
2023年12月31日的公允价值$28,092 $2,038 
出售贷款11,451 3 
还款和其他公允价值变化计入收益(12,838)(877)
2024年9月30日的公允价值$26,705 $1,164 
实益权益

就某些承诺资本和其他共同投资安排而言，如果基础贷款的信用表现偏离贷款销售或发放时设定的初始预期，公司有义务向第三方付款，或有权从第三方收取付款，但须遵守美元上限。截至2023年12月31日和2024年9月30日，与该等安排相关的受益权益资产的公允价值为美元41.0 亿和$131.5 分别为百万。截至同一日期，受益利息负债的公允价值为美元4.2 亿和$13.2分别为2.5亿美元和2.5亿美元。
估价方法

受益权益使用贴现现金流量模型按估计公允价值计量。该模型首先考虑预计的违约、损失、预付还款和收回，以计算基础贷款组合的名义净现金流量。然后，该模型根据安排的合同条款计算公司的现金流入或流出。这些净现金流使用反映与这些现金流相关的风险溢价的市场回报率估计进行贴现。该模型使用下文讨论的输入数据，这些输入数据本质上具有判断性，并反映了公司对市场参与者用于确定公允价值的假设的最佳估计。
重大输入和假设

下表列出了有关截至2023年12月31日和2024年9月30日公司受益权益公允价值计量所使用的重大不可观察输入数据的量化信息：
2023年12月31日2024年9月30日
最低要求最大
加权平均(1)
最低要求最大
加权平均(1)
受益资产
贴现率7.00 %14.00 %13.63 %7.00 %14.00 %13.69 %
信用风险利差(2)
(0.85)%(0.85)%(0.85)%(3.00)%7.90 %1.64 %
受益利息负债
贴现率14.00 %14.00 %14.00 %14.00 %14.00 %14.00 %
信用风险利差(2)
0.09 %9.81 %8.79 %12.90 %16.43 %13.40 %
39
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




_________
(1)不可观察输入按相对公允价值加权。
(2)以截至估值日的累计损失预期与截至贷款发行日期或贷款销售日期的损失预期的百分比表示。正的信用风险利差表明与初始预期相比，截至计量日估计的额外风险。负信用风险利差表明风险低于最初估计。

贴现率-贴现率是用于贴现未来预期现金流的回报率，现值代表公允价值。预计净现金流使用的贴现率是本公司对市场参与者在投资这些金融工具时所需回报率的估计，这些金融工具的现金流取决于相关贷款组合的信贷表现。风险溢价部分隐含在贴现率中，以反映市场参与者因信贷和流动性等风险导致的工具现金流固有的不确定性而要求的补偿金额。该公司对与迄今已证明的信用表现相关的预期现金流和与未来信用表现相关的预期现金流使用两种不同的贴现率。这些利率的差异反映了不确定性的程度，从而反映了市场参与者在投资这些工具时所要求的风险溢价。

信用风险利率利差- 受益权益的信用风险率的确定方式与基础贷款组合相同。信用风险率是对基础投资组合累计损失（扣除平均收回）的估计，代表在受益权益的整个生命周期内不会偿还的本金金额。信用风险利率利差是发起日或销售日（具体取决于安排）的预期信用风险率与截至估值日的估计信用风险率之间的相对差异（以百分比表示）。正的信用风险利差表明与初始预期相比，截至计量日估计的额外风险。负信用风险利差表明风险低于最初估计。

下表列出了截至2023年12月31日和2024年9月30日，受益资产和负债对估值模型中使用的关键假设不利变化的敏感性。截至2023年12月31日和2024年9月30日，贴现率的不利变化不会对受益利息负债的公允价值造成重大影响。
显著的经常性3级公允价值投入敏感性
十二月三十一日，9月30日，
20232024
受益权益资产的公允价值$41,012 $131,483 
贴现率
加息100个基点(1,240)(2,621)
加息200个基点(2,431)(5,152)
基础贷款的预期信用利差
10%不利变化(9,059)(28,780)
20%不利变化(16,743)(57,821)
受益利息负债的公允价值$4,221 $13,162 
基础贷款的预期信用利差
10%不利变化5,606 5,721 
20%不利变化11,217 11,988 
40
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




3级公允价值的结转

下表列出了受益资产和负债的结转。

受益资产
受益利息负债
2023年6月30日的公允价值$28,664 $85 
获得受益权益
14,719 — 
在收益中记录的公允价值变动(6,409)763 
2023年9月30日的公允价值$36,974 $848 

受益资产
受益利息负债
2022年12月31日的公允价值$— $— 
获得受益权益
45,254 — 
在收益中记录的公允价值变动(8,280)848 
2023年9月30日的公允价值$36,974 $848 

受益资产
受益利息负债
2024年6月30日的公允价值$97,804 $11,198 
获得受益权益
32,416 — 
受益利益的结算(1,079)(1,325)
在收益中记录的公允价值变动2,342 3,289 
2024年9月30日的公允价值$131,483 $13,162 

受益资产
受益利息负债
2023年12月31日的公允价值$41,012 $4,221 
获得受益权益(1)
103,817 — 
受益利益的结算(2,808)(3,692)
在收益中记录的公允价值变动(10,538)12,633 
2024年9月30日的公允价值$131,483 $13,162 
_________
(1)自2024年6月30日起，公司将受益权益资产付款的列报与受益权益的收购合并。
追踪费负债

该公司根据基础贷款借款人支付本金和利息的金额和时间向某些银行合作伙伴支付每月跟踪费。该公司持有的跟踪费用负债为美元4.3 截至2023年12月31日和2024年9月30日，百万。

41
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




估值方法论

贴现现金流方法用于估计跟踪费用负债的公允价值，使用与基础贷款相同的预测净现金流。公允估值方法考虑预计预付款项和历史违约、损失和收回，以预测未来损失和基础贷款的净现金流量。净现金流量使用市场回报率估计进行贴现。
重大输入和假设

下表列出了有关公司跟踪费用负债的第三级公允价值计量所使用的重大不可观察输入数据的量化信息：

2023年12月31日2024年9月30日
最低要求最大
加权平均(1)
最低要求最大
加权平均 (1)
贴现率9.63 %23.22 %12.88 %9.32 %23.22 %13.20 %
信用风险率
0.01 %88.42 %17.61 %0.02 %69.01 %18.30 %
预付率
1.05 %94.68 %39.94 %1.99 %95.80 %37.01 %
_________
(1)不可观察输入按相对公允价值加权。

显著的经常性3级公允价值投入敏感性

跟踪费用负债对关键假设不利变化的公允价值敏感性不会对公司的财务状况或经营业绩造成重大影响。
3级公允价值的结转

下表包括公司分类为公允价值层级第3级的跟踪费用负债的结转：

追踪费负债
2023年6月30日的公允价值$4,265 
发行580 
还款和结算(670)
在收益中记录的公允价值变动(2)
2023年9月30日的公允价值$4,173 

追踪费负债
2022年12月31日的公允价值$4,852 
发行1,414 
还款和结算(2,096)
在收益中记录的公允价值变动3 
9月30日的公允价值。2023$4,173 

42
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




追踪费负债
2024年6月30日的公允价值
$4,242 
发行912 
还款和结算(834)
在收益中记录的公允价值变动25 
2024年9月30日的公允价值
$4,345 

追踪费负债
2023年12月31日的公允价值$4,251 
发行2,101 
还款和结算(2,145)
公允价值变化计入收益 138 
2024年9月30日的公允价值$4,345 


 7.    商誉与无形资产
商誉

截至2024年9月30日止九个月内，美元的净资产无变化67.1 公司精简合并资产负债表上的金额为100万美元。
无形资产

收购的须摊销的无形资产包括发达的技术和客户关系，扣除摊销后记录，并计入简明综合资产负债表的其他资产。 总资产和净资产以及累计摊销如下：

2023年12月31日2024年9月30日
总账面价值
累计摊销
账面净值
账面值总额
累计摊销
账面净值
发达的技术$9,400 $(8,617)$783 $9,400 $(9,400)$— 
客户关系13,700 (3,139)10,561 13,700 (3,996)9,704 
无形资产总额
$23,100 $(11,756)$11,344 $23,100 $(13,396)$9,704 

摊销费用为非物质的 和$3.2 截至2023年9月30日的三个月和九个月分别为百万美元，以及 非物质的 截至2024年9月30日的三个月和九个月。

43
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




无形资产的预期未来摊销费用如下：

2024年9月30日
剩余的2024年$285 
20251,142 
20261,142 
20271,142 
20281,142 
此后4,851 
*总计$9,704 

 8.    资产负债表组成部分
其他资产

其他资产包括以下内容：
2023年12月31日2024年9月30日
应收账款$40,490 $46,076 
应收信贷额度（按公允价值）(3)
— 31,514 
贷款服务资产（按公允价值）28,092 26,705 
其他资产18,589 21,685 
预付费用17,976 19,549 
应收票据和剩余凭证（按公允价值）14,847 10,318 
无形资产，净额(2)
11,356 9,716 
存款8,919 4,950 
利率上限（按公允价值）(1)
5,958 2,139 
其他资产总额$146,227 $172,652 
_________
(1)请参阅“说明4. 衍生金融工具” 以获取更多信息。
(2)请参阅“说明7. 商誉及无形资产了解更多信息。
(3)请参阅“说明6. 公允价值衡量” 以获取更多信息。

应收账款指确认为收入但尚未就与机构投资者和贷款合作伙伴的服务协议和其他协议收取的金额。
44
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




财产、设备和软件，净

财产、设备和软件净包括以下内容：
2023年12月31日2024年9月30日
内部开发的软件$55,008 $63,551 
租赁权改进14,281 15,069 
计算机和网络设备6,054 6,069 
家具和固定装置4,761 4,795 
财产、设备和软件总计80,104 89,484 
累计折旧和摊销(37,449)(51,156)
财产、设备和软件总计，净$42,655 $38,328 

财产、设备和软件的折旧和摊销费用为美元3.9 亿和$12.6 截至2023年9月30日的三个月和九个月分别为百万美元和美元5.1 亿和$14.2 截至2024年9月30日的三个月和九个月分别为百万美元。

扣除累计摊销后，资本化的内部开发软件余额为美元31.31000万美元和300万美元29.4 截至2023年12月31日和2024年9月30日，分别为百万。本公司确认 不是 截至2023年9月30日的三个月内内部开发软件的减损费用并已确认美元2.6 由于2023年1月计划，截至2023年9月30日的九个月内发生了数百万美元的减损费用。参考“说明15. 重组费用”以获取更多信息。截至2024年9月30日的三个月和九个月内，公司认识到 非物质的 内部开发软件的减损费用。
应计费用和其他负债

应计费用和其他负债包括：
2023年12月31日2024年9月30日
应计费用$28,099 $35,364 
应计工资总额30,161 31,336 
应付帐款12,613 22,617 
受益负债（按公允价值）4,221 13,162 
追踪费负债（按公允价值）4,251 4,345 
其他负债2,668 3,628 
贷款偿还负债（按公允价值）2,038 1,164 
应计费用和其他负债总额$84,051 $111,616 

45
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)





 9.    借款

下表呈列简明综合资产负债表中所有债务的未偿还本金总额：
借款
2023年12月31日2024年9月30日
仓储信贷安排$387,425 $170,084 
可转换优先票据661,250 730,379 
应领的款项总额1,048,675 900,463 
未摊销债务贴现(8,251)(13,096)
借款总额$1,040,424 $887,367 
下表总结了所有借款的到期总额：
2024年9月30日
剩余的2024年$— 
202547,477 
2026378,301 
2027— 
202843,435 
2029431,250 
此后— 
总$900,463 
46
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




仓储信贷安排
下表列出了公司循环仓库信贷便利的详细信息：
2023年12月31日2024年9月30日
规定利率(1)
终止和成熟(2)
总借款能力
(3)
抵押品(4)
未偿还借款
抵押品(4)
未偿还借贷
新兴汽车仓库信托基金
基准利率+ 3.0%
2024年6月至2025年12月$— $278,022 $139,483 $190,861 $47,477 
初创汽车仓库信托2
基准利率+ 0% - 4.0%
2025年6月至2026年6月50,000 — — 10,472 5,437 
初创贷款信托
基准利率+ 2.8% - 3.8%
2025年6月至2026年6月325,000 361,195 247,942 94,963 73,735 
新兴小额贷款信托
基准利率+ 5.5%
2027年6月至2028年6月100,000 — — 77,179 43,435 
总$475,000 $639,217 $387,425 $373,475 $170,084 
_________
(1)我们仓库信贷设施的利率是浮动的，并设计为参考利率加利差。参考利率包括复合担保隔夜融资利率和贷方发行的商业票据的加权平均成本。规定的利率不包括未使用的承诺费，范围从 0.5%到 1.0%. Upstart小额贷款信托的未提取费用是如果日均未偿本金余额总额等于 75当时适用借款基础的%。
(2)第一个日期代表公司可以借入仓库最大容量的最终日期。第二个日期是到期日，此时未偿本金额以及应计和未付利息将全额到期并支付。
(3)总容量截至2024年9月30日。所有金额均已承诺，但Upstart小额贷款信托基金为美元100.0 百万美元和Upstart Loan Trust，其中美元150.0美元中的1000万美元325.0 百万总容量尚未承诺。截至 2024年9月30日，Upstart Auto Warehouse Trust工具已处于摊销期，无法再提取。
(4)代表抵押作为抵押品的受限制现金和未付贷款本金余额总额。

2024年4月24日，Upstart Loan Trust对经修订和重述的循环信贷和证券协议进行了修订，将购买无担保个人贷款的总借款能力中的未承诺部分从美元增加75.02000万美元至2000万美元150.0 万该协议的所有其他关键条款保持不变。截至2024年9月30日，该公司违反了该设施中抵押的精选贷款池的某些陈述。2024年9月30日之后，公司支付了美元26.8 该融资的未偿预付款中的百万美元，并且符合2024年11月4日生效的所有适用契约。

截至2024年3月31日的三个月内，Upstart Auto Warehouse Trust因违反Upstart Auto Warehouse Trust融资项下的某些契约而获得豁免，该融资于2024年6月14日到期。2024年6月7日，在到期前，Upstart Auto Warehouse Trust修改了其信贷协议，将到期日延长至2025年12月14日。摊销期于2024年6月14日开始，因此，Upstart Auto Warehouse Trust可能不再提取该设施，所有代表偿还该设施下作为抵押品的贷款的收款均用于减少未偿余额。截至2024年9月30日，该设施符合所有适用契约。
47
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)





2024年6月28日，Upstart Auto Warehouse Trust 2为汽车贷款订立了仓库信贷安排，Upstart Small Dollar Loan Trust为小额美元贷款订立了仓库信贷安排。这些仓库信贷设施由汽车或小额美元贷款（如适用）的抵押权和担保权益担保，其购买由借款提供资金。Upstart Auto Warehouse Trust 2和Upstart Small Dollar Loan Trust均可在设施终止日之前借入最多容量，并且必须在到期日之前根据其各自的仓库信贷设施支付所有未偿金额。

可转换优先票据
2021年8月，该公司发行了美元661.3本金总额为3,000,000元0.25% 2026年到期的可转换优先票据（“2026年票据”），并于2024年9月发行了美元431.3本金总额为3,000,000元2.00% 2029年到期的可转换优先票据（“2029年票据”，连同2026年票据，统称为“票据”）。在发行2029年票据的同时，公司使用了约美元302.4 万 的 回购收益约为美元334.2 单独谈判交易中未偿2026年票据的本金总额为百万美元。该公司额外回购了约美元27.9 2024年第三季度通过公开市场购买发行了100万美元的2026年未偿票据。 下表列出了截至2024年9月30日止九个月内票据的活动：
截至2023年12月31日未偿票据本金余额
$661,250 
发行2029年票据
431,250 
2026年票据回购
(362,121)
截至2024年9月30日未偿票据本金余额
$730,379 
2026年票据的回购被视为债务消灭。回购2026年票据支付的代价与2026年票据的公允价值之间的差额导致债务消除收益为美元33.4 万 单独报告 截至2024年9月30日止三个月和九个月的简明综合经营报表和全面亏损。部分消失并未导致2026年票据的条款发生任何变化。
每一系列票据由其各自的契约(每个为“契约”)管理，并代表本公司的优先无担保债务。这个2026年笔记2026年8月15日到期，2029年到期的债券2029年10月1日，除非该等债券已按其条款于较早前兑换、赎回或购回。公司不得在2024年8月20日之前赎回2026年债券或在2029年8月20日之前赎回2029年债券2027年10月6日。公司可选择在2024年8月20日或之后赎回全部或任何部分债券，如属2026年债券，则可在当日或之后赎回2027年10月6日，在2029年票据，如果公司普通股的最后报告销售价格至少130适用系列债券当时有效的兑换价格的百分比20 任何交易日（无论是否连续） 30连续交易日(包括该期间的最后一个交易日)，直至紧接本公司就该系列债券发出赎回通知之日的前一个交易日为止，赎回价格相等于100将赎回的该系列债券本金的%，另加赎回日(但不包括赎回日)的任何应计及未偿还利息。

下表列出了注释的详细信息：

48
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




利率
每1，000美元本金的初始转换率
初始折算价格
换算日期
2026年笔记
0.25%;每半年支付一次，日期为2月15日和8月15日
3.5056$285.262026年5月15日
2029年笔记
2.00%;每半年支付一次，分别于4月1日和10月1日
21.9029$45.662029年7月1日

票据持有人仅在以下情况下可在各自兑换日期前的营业日营业结束前随时选择兑换其票据：

(1)对于2026年票据，在2021年12月31日之后开始的任何日历季度和对于2029年票据，在2024年12月31日之后开始的任何日历季度（且仅在该日历季度），如果公司普通股的最后报告的售价至少 20 期间的交易日（无论是否连续） 30 截至（含）上一个日历季度最后一个交易日的连续交易日大于或等于 130各票据在每个适用交易日适用换股价的%;

(2)期间 五 任何之后的工作日期间 五 连续交易日期间，其中适用系列票据每个交易日每1，000美元本金额的交易价格 五 连续交易日周期少于 98公司普通股最后报告的销售价格与每个交易日相应票据的转换率的积的%;

(3)如果公司在赎回日期前第二个预定交易日营业结束前的任何时间赎回适用系列的任何或所有票据;或

(4)发生指定企业活动时。

在各自的兑换日期或之后，适用系列票据的持有人可以在适用到期日前第二个预定交易日营业结束前的任何时间交出其所有或任何部分该系列票据进行兑换，无论上述条件如何。转换后，公司将根据其选择支付或交付现金、普通股股份或现金和普通股股份的组合。

如果发生某些事件，各系列票据的转换价格将进行调整。此外，在适用到期日之前或公司发出一系列票据赎回通知后可能发生的某些公司事件后，公司可能需要提高该系列票据持有人的兑换率，该持有人选择在与此类公司事件相关或在某些情况下在相关赎回期内兑换此类票据。此外，在发生构成适用契约“根本性变化”的公司事件后，适用系列票据的持有人可以要求公司以相当于待赎回的该系列票据本金额100%的购买价格回购全部或部分该票据以换取现金，另加应计和未付利息（但不包括）基本改变回购日期。

该公司将各系列票据的发行按面值作为单一负债进行会计处理，因为各系列票据的转换特征不需要根据ASC 815作为衍生品进行分拆，并且该票据并非以大幅溢价发行。与2026年票据和2029年票据相关的债务发行成本总计美元15.71000万美元和300万美元10.4 分别百万，在合同期限内按照实际利率法摊销为利息费用。 这个2026年票据和2029年票据的实际利率为 0.7%和2.5%，分别。本公司录得 非物质的 与票据相关的息票利息费用和 非物质的 其他收入中债务发行成本摊销，扣除简明综合经营报表和所列所有期间的全面亏损。
49
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)





下表列出了截至2023年12月31日和2024年9月30日的票据组成部分：

2023年12月31日2024年9月30日
本金金额
未摊销
债务
折扣
网络
携带
量
公平
价值
本金金额
未摊销
债务
折扣
网络
携带
量
公平
价值
2026年笔记
$661,250 $(8,251)$652,999 $488,700 $299,129 $(2,687)$296,442 $265,851 
2029年笔记
— — — — 431,250 (10,409)420,841 471,162 
总
$661,250 $(8,251)$652,999 $488,700 $730,379 $(13,096)$717,283 $737,013 

估计公允价值代表公允价值层级中的第2级估值，并根据场外市场上票据的估计或实际出价和报价确定。


有上限的呼叫交易

就2026年票据和2029年票据的发行而言，该公司与某些金融机构签订了单独的私下谈判上限看涨工具（关于2026年票据的“2026年上限看涨期权”和关于2029年票据的“2029年上限看涨期权”，以及2026年上限通话以及2029年上限通话，统称为“上限通话”）。

上限认购通常预计将抵消任何票据转换后公司普通股的潜在稀释和/或减少公司需要支付的超过已转换票据本金金额的任何现金付款（视情况而定），如果公司普通股每股市场价格（根据上限认购条款衡量），高于上限认购的执行价格，该抵消和/或减少受到上限的限制。然而，如果根据上限认购条款衡量的普通股每股市场价格超过上限认购的上限价格，则在每种情况下，将存在稀释和/或不会减少此类潜在现金付款，直至公司普通股每股市场价格超过上限认购的上限价格。

下表列出了截至2024年9月30日与各系列票据相关的上限看涨期权的其他关键术语：

每股初始行使价，须进行某些调整
每股初始上限价格，须进行某些调整
所涵盖的普通股股份，须进行反稀释调整
(单位：百万)
最终收件箱日期
2026年上限通话
$285.26$400.361.02026年8月15日
2029年上限通话
$45.66$70.249.42029年9月27日

上限看涨期权被确定为符合权益分类标准的独立金融工具;因此，上限看涨期权被记录为股东权益中额外实缴资本的减少。

2024年第三季度，就上述2026年票据的部分回购而言，公司达成协议，终止与回购的2026年票据本金额对应的2026年上限看涨期权部分。由于2026年上限通话部分终止，
50
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




公司收到的信息无关紧要 CAsh付款，记录为股东权益内额外缴入资本的增加。


 10.    股东权益
预留供未来发行的普通股

2020年12月，公司修订并重述的公司注册证书生效，授权发行 700,000,000 面值为美元的普通股0.0001 每股 保留供发行的普通股股份（按转换后的基础）如下：
十二月三十一日，9月30日，
20232024
已发行和未偿还的期权12,617,254 12,350,352 
已发行的限制性股票单位5,534,394 4,511,475 
2020年计划下可供未来发行的股票6,420,703 7,692,542 
根据雇员购股计划可供发行的股份2,896,226 3,425,952 
总27,468,577 27,980,321 
股份回购计划

2022年2月，董事会授权公司购买最多美元400.0 百万美元的公司普通股。公司可以不时通过公开市场购买、私下谈判交易或其他方式回购股份，包括通过使用符合规则10 b5 -1规定资格的交易计划。回购计划不要求公司收购任何特定数量的普通股，公司可以随时酌情暂停或终止该计划，无需事先通知。

公司在结算日记录股票回购。回购的股份随后退役并恢复到授权但未发行的状态。该公司的股份报废政策是将面值与回购价格之间的超出部分（包括成本和费用）分配给额外的实缴资本。截至2024年9月30日的九个月内，公司 不是 回购普通股。截至2024年9月30日，美元222.1 根据股票回购计划，仍有100万美元可用于未来购买我们的普通股。
股权激励计划

2020年股权激励计划授权向符合条件的参与者授予激励股票期权、非法定股票期权、股票增值权、限制性股票、限制性股票单位和绩效奖励。

51
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




股票期权

下表总结了截至2024年9月30日止九个月的股票期权活动：
选项数量加权平均每股行权价加权平均剩余合同寿命（年）集料
固有的
价值
2023年12月31日余额12,617,254 $14.57 6.1$375,897 
授予的期权1,324,632 26.48 
行使的期权(1,488,118)8.25 
期权被取消和没收(103,416)22.87 
2024年9月30日余额12,350,352 16.54 5.8334,377 
可行使期权-2024年9月30日8,718,678 13.32 4.7265,970 
期权已归属和预计将归属-2024年9月30日12,328,033 $16.51 5.8$334,105 

总内在价值计算为基础奖励的行使价与截至2024年9月30日公司股票公允价值之间的差额。截至2023年9月30日和2024年9月30日止九个月行使的期权的总内在价值为美元18.5 亿和$34.0 分别百万。截至2023年9月30日和2024年9月30日止九个月期间授予的期权的加权平均授予日期公允价值为美元8.06、和$14.42 分别为每股。截至2023年和2024年9月30日止九个月归属期权的总公允价值为 $26.4 万、和$23.2 分别为百万。

截至2024年9月30日，与未归属股票期权相关的未确认股票薪酬费用总额为美元40.4 百万，预计将在剩余加权平均期内确认 2.5 年
限售股单位

公司向员工和非员工授予限制性股票单位（“RSU”）。RSU在满足基于服务的条件时归属，该条件通常满足 一 到 四年. 下表总结了截至2024年9月30日的九个月RSU活动：
股份数量加权平均授予日期每股公允价值
未归属于2023年12月31日5,534,394$34.90 
已批准的RSU2,505,38328.55 
归属的RSU(2,846,811)32.36 
RSU被取消和没收(681,491)33.79 
2024年9月30日未归属4,511,475$33.14 

截至2024年9月30日，与未偿还的未归属RSU相关的未确认股票补偿费用总额为美元114.7 百万，预计将在剩余加权平均期内确认 1.7 年
52
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




限制性股票

与收购Prodigy Software，Inc.有关（“神童”）于2021年4月， 82,201 公允价值为美元的公司限制性股票10.1 向某些Prodigy员工发放了100万美元。在授予时，限制性股票受到转让限制和回购选择权的约束，并且取决于员工是否继续在公司工作。该限制性股票受到限制，每季度失效一次 两年 从收购Prodigy时起。

有几个不是 截至2024年9月30日的九个月内尚未发放的限制性股票奖励。
基于业绩的限制性股票单位

2023年2月24日，公司董事会薪酬委员会批准取消可能结算的基于业绩的限制性股票单位奖励（“PRSU”） 687,500 2022年2月授予一名高管的公司普通股股份。

在授予PRSU时，PRSU旨在作为高管至2029年历年的主要薪酬，因此，与授予PRSU相关，高管的现金薪酬仅限于允许高管参与本公司普遍适用的广泛员工福利所需的金额。在作出取消PRSU的决定时，薪酬委员会广泛考虑了PRSU的目的，并确定赠款不再为行政人员提供预定的留用和激励价值。在考虑了各种替代方案和这些方案的利弊，并咨询了外部顾问后，薪酬委员会认为，取消PRSU以换取高管现金薪酬的恢复，符合公司及其股东的最佳利益，其中包括高管的年度基本工资和参与公司2023年高管奖金计划的资格，年度目标奖金机会等于75高管年度基本工资的%。

与PRSU相关的补偿费用使用直线归因法确认每个 九 在各自衍生服务期内的归属份额。使用蒙特卡洛模拟的加权平均授予日期公允价值为美元68.76 每股公司对受市场归属条件约束的奖励确认股票补偿费用，无论这些条件是否会实现，并且如果不满足市场条件，任何此类奖励的股票补偿费用不会被逆转。该公司将取消授予视为无对价和剩余未确认补偿费用美元的和解39.0 与该补助相关的100万美元已加速并由公司记录为截至2023年9月30日止九个月的简明综合经营报表和全面亏损中的工程和产品开发费用的一部分。

有几个不是 截至2024年9月30日的九个月内未偿还的PRSU.
2020年员工购股计划

我们的员工股票购买计划（“ESPP”）提供连续的 六个月 提供期限。发行期定于每年2月15日和8月15日或之后的第一个交易日开始。ESPP允许参与者购买金额为 85发行期第一个交易日或行使日我们普通股股票公平市值中较低者的%。截至2024年9月30日的九个月内, 333,564 C股常见股票是根据ESPP购买的。

截至2024年9月30日，与ESPP相关的未确认股票薪酬费用总额为 非物质的.

53
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




所授予奖项的公允价值

在确定基于股票的奖励的公允价值时，该公司对其授予的期权和ESPP购买权使用布莱克-斯科尔斯期权定价模型。用于估计期内授予的期权和ESPP购买权的公允价值的输入数据包括：

普通股公允价值- 公司普通股的公允价值由其在纳斯达克全球精选市场交易的普通股在授予日期的收盘价确定。

预期期限- 预期期限代表公司股票期权和ESPP购买权预计尚未行使的时期。我们根据简化方法估计预期期限，即归属时间和合同到期日的加权平均时间。

波动率- 由于公司在足够长的时间内尚未拥有活跃的普通股交易市场，因此预期波动率是根据可比上市公司在相当于股票期权授予预期期限的时期内的平均波动率估计的。

无风险利率- 无风险利率假设基于授予时有效的美国财政部零息发行，期限与期权的预期期限相对应。

分红- 公司从未支付普通股股息，并且预计在可预见的未来也不会支付普通股股息。因此，公司使用的预期股息收益率为 零.

以下假设用于估计所授予期权的公平值：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
预期期限(以年为单位)
5.3
5.1 - 6.7
5.2 – 7.0
5.1 – 7.0
预期波幅
53.33% – 53.38%
50.96% - 53.49%
50.96% – 53.38%
50.32% – 53.49%
无风险利率
4.23% – 4.60%
3.76%
3.45% – 4.60%
3.76% – 4.27%
股息率—%—%—%—%

.
以下假设用于估计ESPP购买权的公允价值：
截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
预期期限(以年为单位)0.50.50.50.5
预期波幅131.05%88.37%
97.74% – 131.05%
88.37% – 96.69%
无风险利率5.55%5.04%
4.97% – 5.55%
5.04% – 5.30%
股息率—%—%—%—%
基于股票的薪酬

该公司在其简明综合经营报表以及员工和非员工全面亏损中将股票补偿计入以下费用类别：
54
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




截至9月30日的三个月，九个月结束
9月30日，
2023202420232024
销售和营销$3,231 $3,040 $5,097 $9,096 
客户运营2,768 1,596 8,744 5,679 
工程和产品开发17,357 18,013 92,725 55,140 
常规、管理和其他12,212 10,969 35,707 33,689 
总$35,568 $33,618 $142,273 $103,604 

 11.    租契

该公司的经营租赁到期日期： 2027年和2029年 主要用于位于加利福尼亚州圣马特奥和俄亥俄州哥伦布市的公司总部，以及位于俄亥俄州哥伦布市和德克萨斯州奥斯汀的额外办公空间。某些租赁有租金减免、租金支付升级规定、租约续签选择和租户津贴。租金费用在不可取消租赁期内以直线法确认，除非合理确定将行使续订选择权。

就公司的租赁协议而言，代表公司为房东签发了总额为美元的信用证2.6 万信用证以存款证明为抵押，存款证明计入简明综合资产负债表的受限制现金中。

未来最低租赁付款如下：
2024年9月30日
剩余的2024年$3,750 
202515,402 
202615,850 
202715,474 
20286,143 
此后2,990 
未贴现的租赁付款总额59,609 
减去：现值调整(6,261)
经营租赁负债$53,348 

55
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




截至2023年9月30日的三个月和九个月内，融资租赁费用并不重大。截至2024年9月30日止三个月和九个月，公司没有融资租赁费用。公司的经营租赁费用包括租金和可变租赁付款。公共区域维护和停车费等可变租赁付款已计入运营费用。在所列期间，公司短期租赁的租金费用并不重大。本公司 不是 截至2023年9月30日的三个月和九个月内的分包收入。转租收入为 非物质的 截至2024年9月30日的三个月和九个月内。 经营租赁费用如下：

截至9月30日的三个月，九个月结束
9月30日，
2023202420232024
房租费用$4,016 $3,542 $12,062 $10,625 
可变租赁费$1,016 $937 $2,936 $2,862 

与公司经营租赁相关的补充现金流和非现金信息如下：
截至9月30日的三个月，九个月结束
9月30日，
2023202420232024
为计入租赁负债的金额支付的现金$3,803 $3,591 $11,263 $10,850 

与公司经营租赁相关的补充资产负债表信息如下：
2023年12月31日2024年9月30日
加权平均剩余租赁年限(年)4.563.84
加权平均贴现率5.11%5.18%

 12.    承付款和或有事项
承付款

根据公司与某些贷款合作伙伴的贷款协议，该公司负有贷款购买义务。这些贷款合作伙伴保留通过Upstart平台提供的贷款的所有权， 三天 或根据各自协议的要求，发起后更长时间（“持有期”）。该公司已承诺在所需持有期结束时购买贷款。截至2023年12月31日和2024年9月30日，贷款购买承诺总额包括未偿还本金余额美元36.61000万美元和300万美元66.8分别为2.5亿美元和2.5亿美元。

该公司已就其承诺资本之一和其他共同投资安排延长了信贷额度。截至2024年9月30日，公司有与美元信用额度相关的无资金承诺8.0 万举行之本公司 不是 截至2023年12月31日的应收信用额度。

该公司承诺为HELCC的未来预付款提供资金。截至2023年12月31日和2024年9月30日，这些承诺为 非物质的 和$2.8 然而，由于这些承诺可能会在未动用的情况下到期，因此承诺总额不一定代表未来的现金需求。
56
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




或有事件
或有事项的会计处理要求公司使用与损失的可能性以及损失金额或范围的估计相关的判断。当可能产生负债且损失金额能够合理估计时，公司记录或有损失。当公司认为损失不太可能但合理可能发生时，公司会披露重大或有可能发生的情况，并可以自愿提供有关额外或有情况的信息。

公司不时受到且目前正在参与因正常业务活动过程中产生的各种诉讼和法律程序，而公司无法合理确定其结果。除了下文所述的集体诉讼和衍生诉讼外，公司认为其目前不属于任何诉讼的一方，其结果将单独或合并对我们的业务、经营业绩、现金流或财务状况产生重大不利影响。截至2023年12月31日，没有记录与法律诉讼有关的损失或有记录。截至2024年9月30日，已记录与法律诉讼有关的非重大损失或有情况。

弥偿

在正常业务过程中，公司可能会就某些事项向供应商、董事、高级职员和其他各方提供不同范围和条款的赔偿。此外，公司已与董事以及某些高级职员和员工签订了赔偿协议，其中要求公司（除其他外）就因其作为董事、高级职员或员工的身份或服务而可能产生的某些责任向他们进行赔偿。没有要求公司根据该等协议提供赔偿，因此，公司所知，不存在可能对公司的简明综合财务报表产生重大不利影响的索赔。
回购

根据公司与机构投资者之间的贷款购买和贷款服务协议的条款，以及与投资者的证券化和直通凭证交易协议的条款，在某些情况下，公司可能有义务从此类机构投资者手中回购贷款。一般来说，这些情况包括可验证的身份盗窃的发生、出售的贷款未能满足某些贷款级陈述和担保（截至发起或销售时）的条款、未能遵守与机构投资者的其他合同条款，或违反适用的联邦、州或地方贷款法。

该义务下相关的未来付款的最大潜在金额是出售给机构投资者的贷款的未偿余额，2023年12月31日和2024年9月30日为美元12,208.1 亿和$11,042.1 分别为百万。与公司回购和赔偿义务相关的实际付款为 非物质的 和$4.9 截至2024年9月30日的三个月和九个月分别为百万美元。

截至2023年12月31日和2024年9月30日，公司不存在与未来贷款回购义务相关的重大或有负债。这些金额包括在公司简明综合资产负债表上的应计费用和其他负债中。
法律

2022年7月26日，俄亥俄州南区美国地方法院提起诉讼，标题为Crain诉Upstart Holdings，Inc.等人，案例2：22-cv-02935-ALm-EPD（SD俄亥俄州）起诉该公司、该公司首席执行官和首席财务官，指控被告违反第一条对公司的业务、运营和前景做出虚假和/或误导性陈述或遗漏
57
目录
Upstart Holdings，Inc
公司简明综合财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
（未经审计）




经修订的1934年《证券交易法》第10(B)条，或《交易法》及其颁布的第100亿.5条，以及《交易法》第20(A)节。克雷恩的诉讼要求未指明的损害赔偿和法律费用。2022年8月16日，法院任命了克雷恩诉讼的首席原告，并批准了首席律师。2022年12月5日，首席原告提交了一份合并的修订后的起诉书，其中列出了与前一份起诉书相同的被告，以及两名公司高管，以及Third Point LLC及其首席执行官和Third Point Ventures LLC及其管理合伙人(也是前upstart董事会成员)。合并后的修改后的申诉提出了与前一申诉相同的索赔，但根据《交易法》第20A条增加了一项索赔。2023年2月24日，upstart被告人提起驳回合并修改诉状的动议。2023年9月29日，法院作出裁定，部分准予和部分驳回upstart被告人的动议。2023年11月7日，upstart被告人提起复议动议，法院于2024年8月5日予以驳回。2024年2月2日，首席原告环球投资-Gesellschaft MBH以及原告凯西·布鲁克斯和凯文·克雷恩提出动议，要求下令将此事认证为集体诉讼，并指定自己为集体代表，并批准他们选择Motley Rice LLC和Robbins Geller Rudman&Dowd LLP作为共同诉讼律师。该公司认为诉讼中的其余索赔是没有根据的，并打算积极为自己辩护。

2022年7月28日，俄亥俄州南区美国地方法院提起衍生诉讼，标题为奥康纳诉胡伯等人案，案例2：22-cv-02961-EAS-KAJ（SD俄亥俄州）。奥康纳的诉讼包括与克莱恩投诉中类似的指控，并将公司现任董事会成员和首席财务官列为被告。该公司被列为名义被告。奥康纳的诉讼包括违反《交易法》第10（b）条及其颁布的100亿.5条规则、违反受托义务、协助和教唆违反受托义务、不当致富和浪费公司资产的指控。奥康纳的诉讼寻求被告个人的未具体说明的金钱损失和账目。奥康纳的诉讼还寻求未具体说明的公司治理和内部程序修改、惩罚性赔偿和法律费用。

2022年10月7日，第二起衍生诉讼在俄亥俄州南区美国地方法院提起，标题为Chung诉Huber等人，第2号：22-cv-03620-MHW-MV（SD俄亥俄州）。Chung的诉讼包括与奥康纳投诉中类似的指控，并将公司现任董事会成员、一名前董事会成员及其首席财务官列为被告。该公司被列为名义被告。Chung的诉讼包括违反《交易法》第10（b）、14（a）和21 D条、违反受托责任、不当致富、滥用控制、严重管理不善和浪费企业资产的指控。Chung的诉讼向被告个人寻求未具体说明的金钱损害赔偿、赔偿以及律师费和费用。它还寻求公司治理和内部程序修改。

2022年12月12日，根据双方的联合动议，法院合并了奥康纳和郑案，任命了联合首席律师，并搁置了合并案件，直至相关证券集体诉讼得到解决。2024年4月24日，合并诉讼中的原告提出了修改后的投诉。修改后的投诉包括与奥康纳诉讼中最初投诉中的指控类似的指控，并列出了与最初投诉相同的被告，以及一名额外的公司高管和另一名前董事会成员。修改后的投诉提出了与奥康纳诉讼中的最初投诉相同的索赔，但增加了根据《交易法》第14（a）条和据此颁布的第14 a-9条提出的索赔、根据《交易法》第10（b）条和第21 D条提出的缴款以及滥用控制和严重管理不善的索赔。修改后的投诉寻求与奥康纳诉讼中最初投诉中寻求的救济类似的救济。

2023年2月3日，第三起衍生诉讼在美国特拉华州地区法院提起，标题为Hsu诉Girouard等人案，1：23-cv-00132-UNA（D.德尔。）。Hsu的诉讼包括与俄亥俄州悬而未决的合并衍生品事项类似的指控，并将公司现任董事会成员、一名前董事会成员及其首席财务官列为被告。该公司被列为名义被告。Hsu的诉讼包括违反《交易法》第14（a）条以及违反受托义务的索赔，并向个别被告寻求未具体说明的金钱损害赔偿、赔偿以及律师费和费用。它还寻求公司治理和内部程序修改。对
58
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




2023年2月16日，根据双方提交的联合规定和拟议命令，法院暂缓对Hsu的诉讼，直至相关证券集体诉讼得到解决。

2023年3月8日，美国特拉华州地区法院提起了第四起衍生品诉讼，标题为Sornchai等人。V.Girouard等人，1：23-cv-00253-MN(D.Del)。Sornchai的诉讼包括类似于在俄亥俄州悬而未决的合并衍生品案件中的指控，并将公司现任董事会成员、一名前董事会成员、首席财务官和一名公司高管列为被告。该公司被列为名义上的被告。Sornchai的诉讼包括对违反交易法第10(B)、14(A)和21D条、违反受托责任、通过挪用重大非公开信息违反受托责任以及不当得利的索赔，并要求个别被告支付未指明的金钱损害赔偿、恢复原状以及律师费和费用。它还寻求修改公司治理和内部程序。2023年3月24日，针对当事人提交的一项联合规定和拟议命令，法院搁置了索恩猜诉讼，直到相关证券集体诉讼得到解决。

2023年4月5日，特拉华州衡平法院提起了第五起衍生品诉讼，标题为Okhai诉Girouard等人，C.A.编号2023-0401-SG(Del.Ch.)。Okhai的诉讼包括与俄亥俄州未决的合并衍生品案件中的指控类似的指控，并将该公司的现任董事会成员、两名前董事会成员、首席财务官、两名现任或前任公司高管以及Third Point LLC和Third Point Ventures LLC列为被告。Okhai的诉讼包括对违反信托、协助和教唆此类被指控的违规行为和不当得利的索赔，并向个别被告寻求公平和/或禁令救济、恢复原状以及律师费和费用。2023年8月3日，针对奥凯诉讼被告提出的暂缓起诉动议，法院暂缓审理奥凯诉讼，直至驳回相关证券集体诉讼的动议得到解决。继2023年9月29日关于撤销相关证券集体诉讼动议的命令发布后，2023年11月16日，针对当事人提交的联合规定和建议命令，法院搁置了Okhai诉讼，直到2023年9月29日关于相关证券集体诉讼撤销动议的复议动议得到决议。在相关证券集体诉讼中的复议动议被驳回后，Okhai诉讼的各方完成了简报，并就被告继续暂缓审理的动议进行了辩论。2024年10月24日，法院将暂缓执行延续至2025年2月1日。

2023年10月13日，第六起衍生诉讼在特拉华州大法官法院提起，标题为Romanyshyn诉Girouard等人，C.A. No. 2023-1029-SG（Del. Ch.）。Romanyshyn的诉讼包括与俄亥俄州悬而未决的合并衍生品事项类似的指控，被告包括现任和前任董事和公司高管，以及Third Point LLC及其首席执行官和Third Point Ventures LLC。Romanyshyn诉讼包括对违反信托的索赔，并向个别被告寻求未具体说明的金钱损害赔偿、赔偿以及律师费和费用。它还寻求公司治理和内部程序修改。2023年11月3日，根据双方提交的联合规定和拟议命令，法院暂停了Romanyshyn诉讼，等待搁置相关Okhai衍生诉讼的动议的结果（该搁置现已持续至2025年2月1日）。

2023年10月24日，特拉华州大法官法院提起第七起衍生诉讼，标题为Agarwal诉Girouard等人案，C.A. No. 2023-1075-SG（Del. Ch.）。Agarwal的诉讼包括与俄亥俄州悬而未决的合并衍生品事项类似的指控，被告包括现任和前任董事和公司高管，以及Third Point LLC及其首席执行官和Third Point Ventures LLC。Agarwal诉讼包括对违反信托的索赔，并向个别被告寻求未具体说明的金钱损害赔偿、赔偿以及律师费和费用。它还寻求公司治理和内部程序修改。2023年11月3日，根据双方提交的联合规定和拟议命令，法院暂缓执行Agarwal诉讼，等待暂缓执行相关Okhai衍生诉讼的动议的结果（该暂缓执行现已持续至2025年2月1日）。

59
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




鉴于上述诉讼的不确定性、案件的初步阶段以及类别认证和胜诉等必须满足的法律标准，公司无法估计这些行为可能导致的合理可能损失或损失范围。

2023年11月17日，我们收到了美国证券交易委员会的传票，要求提供有关我们披露的各种文件和信息，包括对我们人工智能模型和贷款的使用等。我们正在与SEC合作，无法预测此事的结果。

 13.    所得税

公司截至2023年和2024年9月30日的三个月和九个月的实际税率如下：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
所得税拨备$10 $45 $44 $74 
实际税率(0.03)%(0.67)%(0.02)%(0.06)%

公司中期期间的税收拨备和由此产生的实际税率是根据其估计的年度实际税率确定的，并根据期间产生的离散项目的影响进行调整。该公司截至2024年9月30日的三个月和九个月的有效税率与2023年同期相比保持相对一致，因为该公司继续维持全额估值拨备和剩余当年州税。实际税率与美国法定税率不同，主要是由于公司递延所得税资产的估值备抵，因为部分或全部递延所得税资产很可能无法实现。

 14.    每股净亏损

每股普通股基本净亏损基于相关期间发行在外的加权平均普通股。每股稀释净亏损基于相关期间发行在外的加权平均普通股，并根据股份奖励和可转换债务的稀释影响进行调整。

在公司报告净亏损的期间，每股基本和稀释净亏损相同，因为如果潜在稀释普通股的影响具有反稀释性，则不假设已发行。
60
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
分子：
净亏损$(40,315)$(6,758)$(197,734)$(125,826)
分母：
加权平均流通普通股用于计算每股净亏损，基本84,404,966 90,119,481 83,158,146 88,534,495 
用于计算每股净亏损的加权平均流通普通股，稀释后84,404,966 90,119,481 83,158,146 88,534,495 
每股净亏损，基本$(0.48)$(0.07)$(2.38)$(1.42)
稀释后每股净亏损$(0.48)$(0.07)$(2.38)$(1.42)

以下证券因其反稀释效应而被排除在所列期间每股稀释净亏损的计算之外。这些金额代表每个期末未偿还工具的数量：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
购买普通股的期权13,014,493 12,350,352 13,014,493 12,350,352 
未归属的RSU6,391,568 4,511,475 6,391,568 4,511,475 
根据ESPP承诺的购买权191,677 162,977 191,677 162,977 
可转债2,318,078 10,494,253 2,318,078 10,494,253 
总21,915,816 27,519,057 21,915,816 27,519,057 



15.    重组费用

2023年1月31日，公司实施重组计划（“2023年1月计划”）。2023年1月计划旨在降低运营成本、简化运营并使公司恢复盈利。作为2023年1月计划的一部分，公司裁员约 20%，或365 员工，并暂停了小企业贷款产品的开发。

截至2023年9月30日的九个月内，公司发生了美元15.5 与2023年1月计划相关的数百万美元重组费用，主要包括与员工现金补偿、福利和相关税收相关的遣散费。公司还确认了美元的减损费用2.6 之前资本化的内部开发软件成本，百万美元。除了这些费用外，公司还确认了美元2.9 与截至2023年9月30日止九个月内与没收股票奖励相关的先前支出的股票补偿的逆转有关的一次性非现金节省数百万美元。该等重组成本在简明综合经营报表和全面亏损的相关经营费用标题中报告。

61
目录表
Upstart Holdings，Inc
简明合并财务报表附注
（表格金额以千计，份额和每股数据和比率除外，或如所述）
(未经审计)




为了进一步降低运营成本、简化运营并使Upstart在未来恢复盈利，公司实施了一系列额外举措，使公司的员工人数减少了约 10截至2024年9月30日的九个月内为%。就这些举措而言，公司发生了美元3.8 截至2024年9月30日的九个月内，与遣散费、员工福利和相关税收相关的费用为百万美元。该等重组成本在简明综合经营报表和全面亏损的相关经营费用标题中报告。截至2024年9月30日，公司已向受影响员工支付所有现金。截至2023年9月30日和2024年9月30日的三个月内，公司发生了 不是 重组费用。

16.    后续事件

的Company评估了截至本季度报告10-Q表格提交日期发生的事件。根据其评估，除简明综合财务报表及相关附注中记录或披露的任何项目外，公司确定无需确认或披露后续事件。






62
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）

项目2.管理层对财务状况和经营成果的讨论和分析
以下对我们财务状况和经营业绩的讨论和分析应与本季度报告10-Q表格其他地方包含的简明合并财务报表及其相关注释一起阅读。本讨论包含涉及风险和不确定性的前瞻性陈述。可能导致或促成此类差异的因素包括以下确定的因素以及标题为“风险因素”的部分和本季度报告10-Q表格的其他部分中讨论的因素。我们的历史结果并不一定表明未来任何时期可能预期的结果。
概述

Upstart将人工智能（“AI”）模型和云应用程序应用于消费信贷承保流程。我们的人工智能市场将消费者与我们的贷款合作伙伴联系起来。消费者可以通过Upstart.com、我们贷款合作伙伴自己网站上的贷方品牌产品以及使用我们Upstart Auto Retail软件的汽车经销商获得Upstart支持的贷款。我们使我们的贷款合作伙伴能够为消费者提供卓越的数字优先体验，并推出有价值的信贷产品。随着我们的技术不断改进以及更多贷款合作伙伴采用我们的平台，消费者将受益于更好地获得负担得起且无摩擦的信贷。

我们相信，银行和其他传统贷款机构将继续处于美国消费贷款的前沿。我们相信，随着该行业继续经历广泛的数字化转型，人工智能贷款将变得越来越重要。我们的战略是与银行和信用合作社合作，为他们提供进入人工智能贷款市场的机会，他们可以根据自己的业务和监管要求，在以自己的品牌发放消费贷款时进行配置。

通过我们的市场发放的贷款由我们的贷款合作伙伴保留，由我们的机构投资者网络购买，或由Upstart的资产负债表提供资金。投资者还可以通过我们的传递和证券化计划投资Upstart驱动的贷款。

截至2024年9月30日的九个月内，在我们市场上交易的贷款本金总额中，67%由机构投资者购买，25%由我们的贷款合作伙伴保留，8%由我们的资产负债表上持有。我们在资产负债表上保留贷款，以填补投资者需求的缺口、帮助发现价格以及用于研发目的（“研发贷款”），包括测试和评估我们针对这些贷款的人工智能模型。研发贷款主要是我们的汽车再融资和汽车零售贷款产品、向新类别借款人发放的个人贷款产品以及其他新贷款产品，包括小额美元贷款和HELCC。研发贷款尚未成为我们与机构投资者建立的全面资本市场计划的一部分，我们将继续努力开发此类计划。我们资产负债表上的其余贷款代表核心个人贷款，Upstart将其出售给机构投资者。

为了提高我们市场在整个商业和宏观经济周期中的贷款融资能力，我们从2023年开始与机构投资者和其他第三方达成了多项承诺资本和其他联合投资安排，这些安排已向Upstart市场提供了大量贷款融资。我们继续努力扩大市场的贷款融资能力。
63
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
我们的经济模式

Upstart的收入主要是为了换取使用我们的平台以及通过我们的贷款市场向我们的贷款合作伙伴提供的借款人转介服务。这些服务的费用可以是固定的，也可以基于每单位的可变价格，具体取决于合同安排。平台服务导致我们的贷款合作伙伴使用我们的平台发放贷款，而转介服务导致借款人从我们的贷款合作伙伴获得贷款。出于会计目的，这些费用被合并在一起，因为它们代表单一的绩效义务。我们不会向我们平台上的借款人收取任何转介费、平台费或其他类似费用由我们的贷款合作伙伴发放。

我们还根据贷款期限内未偿还本金向贷款持有人（贷款合作伙伴或机构投资者）收取服务费，以持续偿还贷款。此外，作为贷款服务的一部分，我们还收到某些辅助借款人费用，包括逾期付款费和ACH失败费。此外，我们的一部分收入来自资产负债表上持有的贷款的利息收入。
目前我们平台上的贷款主要来自Upstart.com。对于这些贷款，我们承担借款人获取成本以及借款人验证和服务成本等可变成本。借款人获取、验证和服务成本与交易量（定义如下）高度相关，交易量逐季度波动。我们继续专注于通过日益复杂的风险模型和不断变化的渠道组合来提高自动化水平和转换率（定义见下文），这有助于随着时间的推移改善我们的贷款单位经济性。
信用表现

我们认为Upstart驱动贷款的信用表现是衡量人工智能模型有效性的最重要指标之一。然而，信贷表现受到多种因素的影响，包括我们的模型无法预测的因素，例如宏观经济状况。

我们通过将发放时的预期目标回报与贷款合作伙伴和机构投资者收到的回报进行比较来评估核心个人贷款的信用表现。目标回报是我们贷款定价的关键组成部分，是使用估计现金流计算的，该估计现金流是根据多种因素（包括信用损失和预付费利率）制定的。虽然我们的贷款合作伙伴和机构投资者的目标回报因其计划的目标和风险承受能力而异，但总体绩效是根据最初预期回报与投资于Upstart驱动贷款的实际资本回报之间的差异计算的。

贷款是一个周期性行业，我们认为从长远角度看待信贷表现很重要。对2018年第一季度至2024年第一季度发起的所有由Upstart驱动的核心个人贷款进行同等投资，目前预计将实现与9.5%的混合目标一致的回报率。

从更细的层面来看，2018年至2020年第四季度发起的所有季度核心个人贷款预计将达到或超过贷款发放时设定的目标回报。

然而，目前预计2021年第一季度至2023年第四季度的核心个人贷款季度表现将低于其目标回报。尽管我们的承保模型随着时间的推移利用了更多有关借款人的变量和数据点，从而改善了模型性能，但它们的设计并不是为了预测近期宏观经济状况变化、信贷市场波动和利率波动的严重影响而设计的，所有这些都是（现在仍然）超出了我们的控制范围。这些年份的预期表现不佳反映了该时期发生的一系列因素的影响，包括政府刺激措施的取消以及通货膨胀上升和由此导致的利率大幅上升导致宏观经济环境恶化。
64
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
那段时期不断变化的宏观经济状况导致没有偿还个人贷款的借款人比承保时的预期还要多。例如，借款人可能优先偿还以必需品为担保的贷款，例如抵押贷款或汽车贷款，而不是无担保的个人贷款。更高的利率也可能导致更高的付款义务，从而降低借款人保持当前债务的能力。这些因素导致借款人违约、违约和破产增加，导致更多的冲销和更少的收回，所有这些都对该时期我们市场上提供的贷款的信用表现产生了不利影响。

为了更快地应对宏观经济变化，我们于2023年推出了Upstart宏观指数（“UMI”），该指数估计观察到的宏观经济变化可能对Upstart驱动的无担保个人贷款的信用表现产生的影响。

目前预计，2024年第一季度或更晚发放的核心个人贷款将提供与目标收益率一致的回报。相对于2021年第一季度至2023年第四季度核心个人贷款的季度年份，业绩的这种回归是由多种因素共同推动的，包括承保方面增加的保守性和宏观经济状况的相对稳定，这反映在UMI中，这帮助信贷表现与我们模型的预测一致，因为影响贷款表现的宏观经济因素的意外波动较少。我们最新的人工智能模型也受益于更多关于宏观经济重大变化期借款人还款模式的数据。这导致观察到的和预期的借款人还款发生了实质性的积极变化，即使是调味料有限的年份也是如此。这使得我们最近的模型比2021年初使用的模型更准确。请参阅小节“影响我们业绩的因素--宏观经济环境的影响有关更多详细信息，请参阅“T”。

对于我们资产负债表上持有的核心个人贷款，目标回报的设定与我们的机构投资者的目标回报相似。我们购买核心个人贷款以应对市场供需波动，并定期在这些贷款到期前将其出售给机构投资者。所证明的信用表现显着影响这些交易中的销售价格并影响我们的整体财务业绩。

我们衡量研发贷款的信用表现，这是我们资产负债表上持有的贷款组合的重要组成部分(请参阅第“)，使用类似于我们资产负债表上持有的核心个人贷款的方法。这些贷款的目标回报和实际回报之间的差异预计会更大，因为与核心个人贷款相比，基本风险模型处于开发周期的早期阶段。这些产品的初始目标回报率也普遍低于可比较的市场基准。这些因素的结合降低了我们资产负债表上研发贷款的价值，这对我们的整体财务业绩产生了负面影响。然而，这是我们产品开发周期中必需的一部分，应该与数据科学和工程等其他产品开发成本一起考虑。这些成本作为产品开发总投资的一部分进行管理。随着我们研发模型的改进，我们预计目标回报和交付回报之间的差异将会缩小，并向市场回报趋同。这将使我们能够为我们的贷款伙伴和机构投资者推出这些产品，届时它们将成为我们核心产品的一部分。
影响我们业绩的因素
持续改进我们的人工智能模型

我们的大部分历史增长都是由人工智能模型的改进推动的。随着时间的推移，这些模型受益于机器学习系统特征的惯性效应：还款数据的积累会提高风险和欺诈预测的准确性，这通常会导致更高的批准率和更低的利率，从而导致数量增加，从而增加还款数据的积累。这种良性循环描述了一种重要的机制，我们的业务只需通过模型学习和重新校准即可增长。我们预计将继续大力投资人工智能模型和平台功能的开发。
65
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）

除了持续积累用于训练我们模型的还款数据之外，我们还经常通过升级算法和纳入新变量来对模型准确性进行离散改进，这两种方法在历史上都导致了更高的批准率、更有竞争力的贷款报价、更高的自动化和更快的增长。作为二级效应，这些改进对我们转化渠道的影响还使我们能够随着时间的推移解锁以前不盈利的新营销渠道。

我们相信，以这种方式不断改进我们的技术将使我们能够进一步扩大获得机会并降低信誉良好的借款人的利率，这将继续推动我们的增长。如果这些改进的步伐放缓或停止，或者我们发现以牺牲数量为代价来提高准确性的模型升级形式，我们的增长率可能会受到不利影响。

宏观经济环境的影响

在经济低迷的情况下，我们认为消费者贷款总体上会收缩。贷款合作伙伴和机构投资者通常会要求更高的回报率，这反过来又会提高向借款人提供的利率，导致借款人需求下降。由于我们的贷款合作伙伴和机构投资者风险偏好的变化，宏观经济因素也可能导致我们的贷款市场可用资本波动。我们预计这些动态通常会在经济上升时逆转。

机构投资者提供的贷款资金从2022年开始受到限制， 仍然受到限制， 主要是出于对宏观经济环境的担忧。为了应对通胀压力，美联储提高了利率，导致借款人类别的贷款价格更加昂贵。与此同时，宏观经济的不确定性普遍使机构投资者更加谨慎，并导致他们减少可用于资助初创贷款的资本数量。

为了应对这一充满挑战的宏观经济环境，许多贷方和信贷投资者大幅减少或暂停了对Upstart驱动贷款的投资，我们于2023年1月宣布裁员（“2023年1月计划”），导致我们约20%的员工被解雇。为了进一步降低运营成本、简化运营并使Upstart在未来恢复盈利，du铃声响起截至2024年9月30日的九个月里，公司实施了一系列额外举措，使公司的员工人数减少了约10%。参考“说明15. 重组费用”以获取更多信息。金融市场的进一步混乱可能会损害我们的贷款合作伙伴，并导致资金进一步受到限制，这将对我们的业务、财务状况和经营业绩产生不利影响。

为了为我们的业务创造更大的稳定性，从2023年开始，我们与机构投资者和其他提供更长期限贷款融资的第三方达成了多项承诺资本和共同投资安排。我们继续努力扩大贷款融资能力，在过渡期间，我们已经并可能继续利用我们的资产负债表来支持贷款融资。虽然我们的目标仍然是作为一个轻资本的信贷市场运营，但在评估实施承诺资本和共同投资结构的机会时，我们将继续在短期内利用我们的资产负债表。

我们的信贷决策过程考虑了我们从第三方来源收到的宏观经济状况数据，例如失业率和个人储蓄率。为了应对宏观经济变化并向我们的贷款合作伙伴提供相关的最新信息，我们于2023年推出了新指标UMI。UMI旨在量化相对于良性信贷环境的潜在宏观经济风险水平，具体针对我们的借款人基础。UMI为1.0反映了该基线利率下的贷款损失。我们随后推出了UMI更新，删除了季节性模式，以更好地描述潜在的宏观经济影响。截至2024年9月30日，UMI约为1.52，这意味着与基线相比，当前宏观经济状况对Upstart驱动的无担保个人贷款的还款绩效造成了约52%的增量风险。

66
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
UMI会影响我们市场上提供的贷款的利率，因此会影响合格潜在借款人的数量和消费者对贷款的需求。UMI水平的提高导致我们市场上提供的贷款利率更高，反过来又减少了合格潜在借款人的规模和此类贷款的借款人接受率。通过对UMI的投资，我们专注于在不断变化的宏观经济条件下在信贷决策过程中更好地区分借款人之间风险的能力。

我们持续监控当前宏观经济状况（包括利率变化）对我们的业务、财务状况和经营业绩的直接和间接影响。
贷款合作伙伴和市场采用

贷款合作伙伴在Upstart的生态系统中发挥着两个关键作用：为贷款提供资金和获取新客户。银行等传统贷款机构因其庞大的存款基础而往往享有高效的资金来源。随着他们采用我们的技术并为我们市场交易中越来越大的比例提供资金，向借款人提供的报价通常会改善，通常会导致我们平台的转化率更高和增长更快。

新的贷款合作伙伴还代表着额外的收购渠道，我们可以通过这些渠道接触和寻找潜在的新借款人，因为这些贷款合作伙伴开发和实施自己的数字和分行内活动，以将流量从其现有客户群转移到我们的平台。我们认为这一新兴的增长渠道是我们目前在Upstart运行的营销获取计划的补充。

为了提供贷款合作伙伴以外的资金支持，我们建立了并继续扩大了广泛的机构投资者网络，这些投资者可以通过二级贷款购买、发行直通凭证和资产支持证券化为Upstart驱动的贷款提供资金。这种多元化的资本网络有助于最大限度地减少我们对任何一个资金来源的依赖。然而，贷款合作伙伴参与度下降的任何趋势通常都会削弱我们平台上报价的整体竞争力，而更广泛的机构投资市场在Upstart驱动的贷款资金可用性方面的参与度下降的趋势都将对我们的业务产生不利影响。

我们认为，银行业的混乱可能会限制我们吸引新贷款合作伙伴的能力，并可能导致现有贷款合作伙伴减少我们平台上的贷款发放。为了解决我们个人贷款最近的资金限制问题，Upstart利用其资产负债表来支持贷款的短期资金需求，否则这些贷款将被机构投资者购买和持有或证券化。我们已与机构投资者和其他第三方达成了多项承诺资本和共同投资安排，这些安排已经并预计将向Upstart市场提供大量贷款资金。

我们相信，随着时间的推移，继续专注于改进我们的人工智能模型并展示由Upstart驱动的贷款的强劲表现，将使我们能够进一步多元化贷款市场的资金来源，并减轻贷款资金供应的波动性。

产品扩展和创新

我们相信，将不断发展的人工智能技术应用于其他信贷领域存在重大增长机会，并且我们将继续投资于产品的研发。我们于2022年为对小额贷款感兴趣的借款人推出了新的个人贷款产品，于2023年第三季度推出了HESYS产品，并于2024年第二季度推出了汽车担保个人贷款。我们可能会产生费用来支持新产品的推出并资助早期贷款发放。新产品的货币化前景不确定，与整合、开发和营销新产品相关的成本可能无法收回，这可能会给我们的收入增长和盈利能力带来压力。
67
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
关键运营和非GAAP财务指标

我们专注于几项关键的运营和非GAAP财务指标，以衡量我们的业务绩效并帮助确定战略方向。以下列出了我们的关键运营和财务指标：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
交易量，美元$1,219,262$1,582,317$3,392,446$3,822,847
交易量、贷款数量(1)
114,464188,149307,995451,429
转换率9.5%16.3%9.1%15.3%
完全自动化的贷款百分比88%91%87%91%
贡献利润(2)
$94,154$102,376$257,699$259,635
贡献保证金(2)
64%61%63%60%
调整后的EBITDA(2)
$2,252$1,413$(17,836)$(28,182)
调整后EBITDA利润率(2)
2%1%(5)%(7)%
调整后净亏损(2)
$(3,869)$(5,325)$(37,207)$(47,770)
调整后每股净亏损：
基本信息(2)
$(0.05)$(0.06)$(0.45)$(0.54)
稀释(2)
$(0.05)$(0.06)$(0.45)$(0.54)
_______
(1)交易量、贷款数量以1显示所示期间的单位显示。
(2)代表非GAAP财务指标。请参阅标题为“的部分管理层对财务状况和经营结果的讨论和分析-非GAAP财务指标的对账了解更多信息。
交易额

我们将交易量，美元定义为在本报告所述期间在我们的市场上促成的贷款本金总额(或HELOC的承诺金额)。我们将交易量，贷款数量定义为在本报告所述期间在我们的市场上促成的贷款发起(或为HELOC发放的承诺)的数量。交易量的增加取决于我们的贷款融资计划是否有足够的资金来源。由于资本市场波动和宏观经济状况等因素，可获得的资金减少，通常会导致交易量下降。交易量是由我们人工智能模型和技术的改进推动的，包括我们简化和自动化贷款申请和发起流程的能力。交易量也可能受到其他几个因素的推动，包括借款人的接受率及其对我们平台提供的利率的敏感性。我们相信，这些指标很好地反映了我们作为一个市场的整体规模和覆盖范围。交易量，美元在截至2024年9月30日的三个月中与2023年同期相比增长了30%，在截至2024年9月30日的9个月与2023年同期相比。交易量、贷款数量在截至2024年9月30日的三个月和九个月中分别增长了和47%分别为2023年同期。这些增长主要是由于模式改进和产品倡议，导致符合条件的借款人数量增加。交易量、贷款数量的增加高于交易量、美元的增加，主要是由于平均贷款规模的减少，主要是因为小额美元贷款的增加。
68
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
转化率

我们将转换率定义为交易量，即一段时间内的贷款数量除以我们估计为合法的利率查询数量，当借款人在我们的平台上请求贷款时，我们会记录这一数字。我们跟踪这一指标，以了解借款人漏斗效率的提高对我们整体增长的影响。从历史上看，我们的转换率得益于我们技术的改进，这使得我们对风险的评估更加准确，我们的验证过程更加自动化，或者得益于贷款合作伙伴的加入，这使得我们的报价更具竞争力。然而，我们的转化率可能会受到各种内部因素的影响，例如我们收取的发起费金额的变化，或者我们为贷款合作伙伴和机构投资者设定的回报率的变化。外部因素，如宏观经济状况的变化，包括利率变化，也影响我们的转换率。我们能否继续提高转换率，在一定程度上取决于我们是否有能力继续改进我们的人工智能模型、全自动贷款的百分比以及在任何给定期限内的营销渠道组合OD。在截至2024年9月30日的三个月和九个月中，我们的转换率分别增加到16.3%和15.3%分别为frOM分别为9.5%和9.1%这主要是由于承保模式的改进和新产品的推出，再加上我们收购渠道的持续优化。
完全自动化的贷款百分比

我们贡献利润率和运营效率的一个驱动因素是全自动贷款的百分比，它的定义是在给定的时期内(从个人贷款和小额贷款的初始利率请求到最终融资，以及从初始利率请求到汽车贷款贷款协议的签署)，公司在没有人工参与的情况下获得的贷款总数除以同期的交易量和贷款数量。在过去的几年里，我们成功地提高了该平台的贷款自动化水平，同时将欺诈率保持在非常低的水平。我们相信，过去几年我们的增长在一定程度上得益于我们快速简化和自动化贷款申请的能力，以及在我们的平台上进行索具加工。我们预计全自动贷款比例的增长将在短期内回落。然而，随着我们扩大贷款供应，这一百分比可能会根据贷款供应组合和其他外部因素而在不同时期波动。我们的贷款完全自动化的百分比增额截至2024年9月30日的三个月和九个月分别为91%和91%，而2023年同期为88%和87%。
69
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
贡献利润和贡献率

为了获得贡献利润，我们从收入中减去费用、净借款人收购成本以及借款人验证和服务成本。为了计算贡献利润率，我们将贡献利润除以费用净收入。

下表提供了贡献利润和贡献利润的计算：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
费用收入，净146,755 167,590 $407,585 $436,190 
借款人收购成本(1)
(23,598)(32,749)(62,359)(80,785)
借款人验证和服务费用(2)
(29,003)(32,465)(87,527)(95,770)
直接费用总额(52,601)(65,214)(149,886)(176,555)
贡献利润$94,154 $102,376 $257,699 $259,635 
贡献保证金64 %61 %63 %60 %
_______
(1)借款人收购成本包括我们的销售和营销费用，经过调整，以排除不直接归因于吸引新借款人的成本，例如我们的业务发展和营销团队以及其他运营、品牌知名度和营销活动的工资相关费用。这些成本不包括重组费用。
(2)借款人核实和服务成本包括从事贷款入职、核实和服务的人员的工资和其他人员相关费用，以及服务系统成本。它不包括我们客户运营团队中某些成员的工资和人员相关费用以及基于股票的薪酬，这些成员的工作不直接归因于入职和服务贷款。这些成本不包括重组费用。

见标题为“”的部分管理层对财务状况和经营结果的讨论和分析-非GAAP财务指标的对账“用于将运营收入与利润贡献进行对账。

调整后的EBITDA和调整后的EBITDA利润率

我们将调整后EBITDA计算为净利润（损失），经调整以排除股票补偿费用和某些工资税费用、折旧和摊销、可转换票据费用、所得税拨备、债务消除收益和重组费用。我们计算调整后EBITDA利润率为调整后EBITDA除以总收入。调整后EBITDA和调整后EBITDA利润率包括在赚取相应利息收入过程中产生的公司债务和仓库信贷设施的利息费用。请参阅标题为“的部分管理层对财务状况和经营结果的讨论和分析-非GAAP财务指标的对账“用于净利润（亏损）与调整后EBITDA和调整后EBITDA利润率的对账。
调整后每股净利润（亏损）和调整后每股净利润（亏损）

我们将调整后净利润（损失）定义为净利润（损失），不包括股票补偿费用和某些工资税费用以及与核心业务和持续运营无关的某些项目，例如债务消除收益和重组费用。调整后每股净利润（亏损）的计算方法是将调整后每股净利润（亏损）除以加权平均已发行普通股。请参阅标题为“的部分管理层对财务状况和经营结果的讨论和分析-非GAAP财务指标的对账“用于净利润（亏损）与调整后净利润（亏损）和调整后每股净利润（亏损）的对账。
70
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
经营成果的构成部分
费用收入，净
平台和推荐费，净

我们向贷款合作伙伴收取平台费用，以换取使用我们的人工智能贷款市场，其中包括收集贷款申请数据、承保信用风险、验证和欺诈检测以及交付电子贷款报价和相关文档。我们还向贷款合作伙伴收取推荐费，以换取Upstart.com推荐借款人。贷款发放后，按每位借款人向贷款合作伙伴收取推荐费。这些费用扣除了贷款合作伙伴向Upstart收取的任何费用。Upstart在最低持有期完成后向这些贷款合作伙伴支付一次性贷款溢价费。Upstart还根据基础贷款借款人支付本金和利息的金额和时间向某些贷款合作伙伴支付每月贷款跟踪费。

该公司还认可与汽车经销商签订的使用Upstart Auto Retail软件的合同相关的费用，Upstart Auto Retail软件是一种基于云的解决方案，可以促进经销商的运营，并使他们能够为消费者提供获得Upstart支持的汽车贷款的机会。参考“说明2. 收入“请参阅本季度报告第一部分第1项中的简明合并财务报表（表格10-Q）了解更多信息。
服务费和其他费用，净
服务费按未偿还本金的百分比计算，并按月向持有通过我们的市场提供便利的贷款的任何实体收取，以补偿我们在整个贷款期限内开展的活动，包括收取、处理和核对收到的付款、机构投资者报告和借款人客户支持。维修费用在扣除在相关服务权利及义务中确认的任何收益、亏损或公允价值变动后入账，该等权益及义务在我们的简明综合资产负债表中作为资产及负债列账。Upstart目前担任通过upstart市场提供的几乎所有未偿还贷款的贷款服务商。借款人催收逾期超过30天或已注销的贷款，通常会外包给第三方催收机构。Upstart向贷款伙伴和机构投资者收取与其未偿还贷款组合相关的催收代理费。Upstart还按每笔交易收取一定的辅助费用，包括滞纳金和ACH失败费。
利息收入、利息分配和公允价值调整，净额

利息收入、利息费用和公允价值调整净额由利息收入、利息费用和作为我们持续经营活动一部分在我们的简明综合资产负债表上持有的金融工具公允价值净变化组成，不包括贷款服务资产和负债。利息收入、利息费用和公允价值调整净额还包括出售贷款的已实现损益。利息收入、利息费用和公允价值调整净额可能会根据我们简明综合资产负债表上持有的金融工具的公允价值而波动。历史上，这一金额只占我们总收入的一小部分，而且我们在管理业务时并不专注于增长这一收入部分。
销售和市场营销

销售和营销费用主要包括各种广告渠道产生的成本，包括与提供借款人推荐、直邮和数字广告活动的第三方合作的费用，以及与建立整体品牌知名度相关的其他费用和体验式营销成本。销售和营销费用还包括工资和其他人员相关成本，包括基于股票的薪酬费用。这些成本在发生期间确认。我们预计，我们的销售和营销费用通常会在不同时期内波动，并且随着我们雇用额外的销售和营销人员、增加营销活动和建立更大的品牌知名度而增加。
71
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
客户运营

客户运营费用包括从事借款人入职、贷款服务、客户支持和其他运营团队的人员的工资和其他人员相关费用，包括基于股票的补偿费用。这些成本还包括我们用作贷款服务、信息验证、欺诈检测和支付处理活动一部分的系统、第三方服务和工具。这些成本在发生期间确认。我们预计，我们的客户运营费用通常会在不同时期内波动，并且随着我们扩大投资组合，绝对金额可能会增加。
工程和产品开发

工程和产品开发费用主要包括工程和产品开发团队的工资和其他与人员相关的费用，包括基于股票的报酬费用，以及这些团队使用的系统和工具的成本。这些成本在发生期间确认。我们预计，我们的工程和产品开发费用通常会在不同时期内波动，并且随着我们扩大工程和产品开发团队以继续改进我们的人工智能模型并开发新产品和产品增强功能，绝对金额可能会增加。
一般、行政和其他

一般、行政和其他费用主要包括工资和其他与人员相关的费用，包括法律和合规、财务和会计、人力资源和设施团队的股票补偿费用，以及财产、设备、软件和无形资产的折旧和摊销、专业服务费、设施和差旅费。这些成本在发生期间确认。我们预计将扩大一般和行政职能的规模，以支持业务的进一步增长。因此，我们预计我们的一般、行政和其他费用将以绝对美元计算增加，但占我们总收入的百分比可能会在不同时期波动。
其他收入，净额

其他净收入主要包括公司通过其不受限制现金余额赚取的股息收入，以及票息费用和票据债务折扣的摊销。
消除债务的收益

债务消除收益包括回购一部分营业额确认的收益观察 2026年笔记。参考“注9。借款” 请参阅本季度报告（表格10-Q）的第一部分第1项，了解我们的更多详细信息 备注.
72
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
经营成果

下表总结了我们的历史简明综合运营报表数据：

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
收入：  
费用收入，净$146,755 $167,590 $407,585 $436,190 
利息收入、利息费用和公允价值调整，净额：
利息收入37,692 40,845 116,923 144,899 
利息开支(9,414)(10,818)(20,828)(33,002)
公允价值和其他调整，净额
(40,476)(35,477)(130,430)(130,523)
利息收入、利息费用和公允价值调整总额，净额
(12,198)(5,450)(34,335)(18,626)
总收入134,557 162,140 373,250 417,564 
运营费用(1):
销售和营销33,042 43,229 88,371 111,337 
客户运营36,914 39,302 114,301 117,394 
工程和产品开发54,941 64,887 222,986 186,431 
常规、管理和其他53,505 59,874 156,616 170,508 
总运营支出178,402 207,292 582,274 585,670 
运营亏损(43,845)(45,152)(209,024)(168,106)
其他收入，净额
3,540 5,078 11,334 8,993 
债务清偿收益— 33,361 — 33,361 
所得税前净亏损(40,305)(6,713)(197,690)(125,752)
所得税拨备
10 45 44 74 
净亏损$(40,315)$(6,758)$(197,734)$(125,826)
________
(1)包括基于股票的薪酬费用如下：
截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
销售和营销$3,231 $3,040 $5,097 $9,096 
客户运营2,7681,5968,7445,679
工程和产品开发17,35718,01392,72555,140
常规、管理和其他12,21210,96935,70733,689
基于股票的薪酬总额$35,568 $33,618 $142,273 $103,604 
73
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
收入
费用收入，净

下表列出了所示期间我们的费用净收入：

截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
平台和推荐费，净$112,437 $134,199 $21,762 19 %$295,859 $336,653 $40,794 14 %
服务费和其他费用，净额34,318 33,391 (927)(3)%111,726 99,537 (12,189)(11)%
费用总收入，净$146,755 $167,590 $20,835 14 %$407,585 $436,190 $28,605 7 %


截至2024年9月30日的三个月，与2023年同期相比，费用收入净增加2080万美元，增幅14%，其中平台和推荐费净收入增加2180万美元，服务费净减少90万美元。平台和转介费净额的增加主要是由于交易量从截至2023年9月30日三个月的12.193亿美元增加30%至2024年同期的15.823亿美元，部分被同期我们服务价格的下降所抵消。服务费减少主要是由于服务贷款的未偿还本金减少。

截至2024年9月30日的九个月，费用收入与2023年同期相比净增加2860万美元，增幅7%，其中平台和推荐费收入净增加4080万美元，服务费净减少1220万美元。平台和转介费净增长主要是由于贷款交易量增加13%，从截至2023年9月30日的9个月的33.924亿美元增加到2024年同期的38.228亿美元，部分被我们服务价格的下降所抵消。服务费减少主要是由于服务贷款的未偿还本金减少，但被贷款销售和公允价值调整后与贷款服务权相关的净亏损减少部分抵消。
74
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
利息收入、利息分配和公允价值调整，净额

截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
经营实体(1):
利息收入$27,644 $34,097 $6,453 23 %$106,875 $121,813 $14,938 14 %
利息开支(5,660)(8,546)(2,886)(51)%(17,074)(25,456)(8,382)(49)%
公允价值调整，净额(40,843)(29,751)11,092 27 %(130,797)(104,880)25,917 20 %
合并证券化实体：
利息收入10,048 6,748 (3,300)(33)%10,048 23,086 13,038 130 %
利息开支(3,754)(2,272)1,482 39 %(3,754)(7,546)(3,792)(101)%
公允价值调整，净额367 (5,726)(6,093)(1,660)%367 (25,643)(26,010)(7087)%
公司总数：
利息收入37,692 40,845 3,153 8 %116,923 144,899 27,976 24 %
利息开支(9,414)(10,818)(1,404)(15)%(20,828)(33,002)(12,174)(58)%
公允价值调整，净额(40,476)(35,477)4,999 12 %(130,430)(130,523)(93)0 %
利息收入、利息费用和公允价值调整总额，净额 $(12,198)$(5,450)$6,748 55 %$(34,335)$(18,626)$15,709 46 %
_________
(1)由参与公司持续经营活动的实体确认的余额组成，不包括与UPSt 2023-2合并证券化相关的实体。

利息收入、利息支出和公允价值调整，与2023年同期相比，在截至2024年9月30日的三个月中净增加670美元万，或55%。这一增长是由于不利的公允价值调整减少了500美元万和利息收入增加了320美元，但利息支出增加了140美元万，部分抵消了这一增长。不利公允价值调整的减少主要是由于与2023年同期相比，在截至2024年9月30日的三个月中，受益权益的公允价值亏损减少了620美元，但未实现亏损和贷款冲销的万增加了120美元，部分抵消了这一减少。利息收入的增加是由于经营实体确认的利息收入增加了650美元万，但被合并证券化实体确认的利息收入减少330美元万部分抵消，这与期内经营实体在简明综合资产负债表上持有的贷款的平均未偿还本金增加以及综合证券化中持有的贷款的未偿还本金减少相一致。利息收入的增加和不利公允价值调整的减少被利率上限公允价值减少导致的利息支出增加以及综合证券化实体由于同期支付给证券化票据持有人的金额减少而确认的利息支出减少150万美元而被部分抵消。

75
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
利息收入、利息支出和公允价值调整，与2023年同期相比，在截至2024年9月30日的9个月中净增加1,570美元万，或46%。这一增长主要是由于期内压缩综合资产负债表上贷款的平均未偿还本金余额增加，导致利息收入增加2,800美元，其中包括综合证券化实体确认的1,300美元万利息收入。与2023年同期相比，这一期间的平均借款增加，包括合并证券化实体确认的380美元万增加，部分抵消了利息支出的增加。合并证券化实体确认的利息收入和利息支出的增加是由于交易的时机，导致2024年确认的全年收入和支出与2023年的一个季度相比。在截至2024年9月30日的9个月中，净额与2023年同期持平，这对公允价值调整不利。
运营费用
销售和市场营销
截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
销售和营销$33,042$43,229$10,18731 %$88,371$111,337$22,96626 %
占收入的百分比25 %27 %24 %27 %

截至2024年9月30日的三个月，销售和营销费用与2023年同期相比增加了1020万美元，即31%。这一增长主要是由于广告和其他流量获取成本增加了920万美元，工资和其他人员相关费用增加了80万美元。销售和营销费用占总收入的比例从25%增加到27%。

截至2024年9月30日的九个月内，销售和营销费用与2023年同期相比增加了2300万美元，即26%。这一增长主要是由于广告和其他流量获取成本增加了1840万美元，以及工资和其他人员相关费用增加了440万美元。销售和营销费用占总收入的比例从24%增加到27%。

客户运营
截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
客户运营$36,914$39,302$2,3886%$114,301$117,394$3,0933%
占收入的百分比27 %24 %31 %28 %

截至2024年9月30日的三个月，客户运营费用与2023年同期相比增加了240万美元，增幅为6%。增加主要是由于服务费用增加330万美元、信息验证费用增加80万美元以及系统费用增加60万美元。由于人数减少，工资和其他人员相关费用减少了220万美元，部分抵消了这一增加。客户运营费用占总收入的比例从27%下降至24%。

截至2024年9月30日的九个月内，客户运营费用与2023年同期相比增加了310万美元，增幅为3%。增加的主要原因是服务费用增加了1140万美元、信息验证费用增加了190万美元以及上一期业务应急准备金减少了120万美元。工资和其他人员相关费用减少1，110万美元以及备用服务费减少2，000万美元部分抵消了这一增长。客户运营费用占总收入的比例从31%下降至28%。
76
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
工程和产品开发 
截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
工程和产品开发$54,941$64,887$9,94618%$222,986$186,431$(36,555)(16)%
占收入的百分比41 %40 %60 %45 %

截至2024年9月30日的三个月，工程和产品开发费用与2023年同期相比增加了990万美元，即18%。增加主要是由于工资和其他人员相关费用增加了870万美元，以及其他工程运营费用增加了120万美元。工程和产品开发费用占总收入的比例从41%下降至40%。

截至2024年9月30日的九个月，工程和产品开发费用与2023年同期相比减少了3660万美元，即16%。减少主要是由于截至2023年9月30日的九个月内与取消PRSU相关的费用导致工资和其他人员相关费用减少了3，510万美元，请参阅 “注10。 股东权益”，其他工程运营费用减少150万美元。工程和产品开发费用占总收入的比例从60%下降至45%。
一般、行政和其他 
截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
常规、管理和其他$53,505$59,874$6,36912 %$156,616$170,508$13,892 9 %
占收入的百分比40 %37 %42 %41 %

截至2024年9月30日的三个月，一般、行政和其他费用与2023年同期相比增加了640万美元，即12%。增加主要是由于工资和其他人员相关费用增加了450万美元，法律和合规费用增加了220万美元，部分被办公室租金和其他设施费用减少70万美元所抵消。一般、行政和其他费用占总收入的比例从40%下降到37%。

与2023年同期相比，截至2024年9月30日的九个月内，一般、行政和其他费用增加了1390万美元，即9%。增加主要是由于法律和合规费用增加了820万美元，工资和人员相关费用增加了720万美元。办公室租金和其他设施费用减少190万美元，部分抵消了这一增加。一般、行政和其他费用占总收入的比例从42%下降到41%。
77
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
其他收入，净额
截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
其他收入，净额
$3,540 $5,078 $1,538 43 %$11,334 $8,993 $(2,341)(21)%

截至2024年9月30日的三个月，其他收入与2023年同期相比净增加了150万美元，增幅为43%，原因是其他杂项收入净增加了270万美元，部分被股息收入减少100万美元所抵消。

截至2024年9月30日的九个月内，其他收入净比2023年同期减少230万美元，即21%，原因是股息收入减少270万美元，但部分被其他杂项收入净减少50万美元所抵消。
消除债务的收益
截至9月30日的三个月，变化截至9月30日的9个月，变化
20232024$%20232024$%
债务清偿收益
$— $33,361 $33,361 100 %$— $33,361 $33,361 100 %

截至2024年9月30日的三个月和九个月，债务消除收益与2023年同期相比增加了3340万美元。2024年第三季度，公司回购了2026年票据的部分未偿还本金。与部分回购2026年票据有关，公司在截至2024年9月30日的三个月和九个月内确认了3340万美元的债务消除收益。

非GAAP财务指标的对账

为了补充我们根据GAAP编制和列报的简明合并财务报表，我们使用非GAAP财务指标：贡献利润、贡献利润率、调整后EBITDA利润率、调整后EBITDA利润率、和调整后净利润（损失）和调整后净利润（损失）每股为投资者提供有关我们财务业绩的更多信息，并增强对我们过去业绩的整体了解，未来的前景。我们提出这些非GAAP财务指标是因为我们相信它们为投资者提供了一个额外的工具，用于比较我们多年的核心财务业绩与其他公司的业绩。

然而，非GAAP财务指标对投资者的有用性存在局限性，因为它们没有GAAP规定的标准化含义，并且没有根据任何全面的会计规则或原则制定。此外，非GAAP财务指标的计算方式可能与其他公司使用的类似标题的指标不同，因此可能无法直接比较。因此，非GAAP财务措施应被视为我们根据GAAP编制和列报的简明合并财务报表的补充，而不是替代或替代。

为了解决这些限制，我们提供了贡献利润、贡献利润率、调整后EBITDA、调整后EBITDA利润率以及调整后净利润（损失）和调整后每股净利润（损失）分别与运营收入（损失）和净利润（损失）的对账。我们鼓励投资者和其他人
78
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
审查我们的全部财务信息，不依赖任何单一财务指标，并结合各自相关的GAAP财务指标查看贡献利润、利润率贡献、调整后EBITDA利润率、调整后净利润（亏损）和调整后每股净利润（亏损）。
贡献利润和贡献率

我们将贡献利润和贡献利润作为整体绩效评估的一部分，包括编制年度运营预算和季度预测，以评估我们业务战略的有效性，并就我们的财务业绩与董事会沟通。我们相信，贡献利润和贡献利润率对于投资者对我们的业务进行逐年比较以及评估和了解我们的经营业绩和规模能力很有用。贡献利润和贡献利润率对投资者也很有用，因为我们的管理层使用贡献利润和贡献利润率，以及根据GAAP编制的财务指标来评估我们的经营业绩和财务业绩以及我们战略的有效性。

贡献利润和贡献利润作为分析工具存在局限性，不应孤立地考虑或作为对我们根据GAAP报告的业绩分析的替代品。贡献利润和贡献利润率不是GAAP财务指标，也不意味着盈利能力。即使我们的收入随着时间的推移超过可变费用，我们也可能无法实现或维持盈利能力，而且收入与可变费用的关系不一定能指示未来的业绩。贡献利润和贡献利润并不反映我们所有的可变费用，并涉及对哪些成本直接随贷款量变化的一些判断和自由裁量权。其他提供贡献利润和贡献利润率的公司可能会以不同的方式计算，因此，其他公司提供的类似标题的指标可能无法与我们直接比较。

下表列出了运营损失与贡献利润和贡献利润的对账。我们将运营利润率定义为运营损失除以费用净收入。
截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
费用收入，净$146,755 $167,590 $407,585 $436,190 
运营亏损
(43,845)(45,152)(209,024)(168,106)
营业利润率(30)%(27)%(51)%(39)%
销售和营销，扣除借款人收购成本(1)
$9,444 $10,480 $26,012 $30,552 
客户运营，扣除借款人验证和服务成本(2)
7,911 6,837 26,774 21,624 
工程和产品开发54,941 64,887 222,986 186,431 
常规、管理和其他53,505 59,874 156,616 170,508 
利息收入、利息费用和公允价值调整，净额
12,198 5,450 34,335 18,626 
贡献利润$94,154 $102,376 $257,699 $259,635 
贡献保证金64 %61 %63 %60 %
_________
(1)借款人收购成本为2360万美元， 3270万美元 截至2023年9月30日和2024年9月30日的三个月，分别为6，240万美元，以及 8080万美元 分别截至2023年9月30日和2024年9月30日的九个月。借款人收购成本包括我们的销售和营销费用，经过调整，以排除不直接归因于吸引新借款人的成本，例如我们的业务发展和营销团队以及其他运营、品牌知名度和营销活动的工资相关费用。这些成本不包括重组费用。
(2)截至2023年9月30日和2024年9月30日的三个月，借款人核实和服务成本分别为2900万美元和3250万美元，为8750万美元，和 9580万美元 分别截至2023年9月30日和2024年9月30日的九个月。
79
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
借款人核实和服务成本包括从事贷款入职、核实和服务的人员的工资和其他人员相关费用，以及服务系统成本。它不包括我们客户运营团队中某些成员的工资和人员相关费用以及基于股票的薪酬，这些成员的工作不直接归因于入职和服务贷款。这些成本不包括重组费用。

调整后的EBITDA和调整后的EBITDA利润率

我们相信，调整后EBITDA和调整后EBITDA利润率对于投资者来说很有用，用于比较我们的财务业绩与其他公司的业绩，原因如下：
•投资者和证券分析师广泛使用调整后EBITDA和调整后EBITDA利润率来衡量公司的经营业绩，而不考虑折旧和利息费用等项目，这些项目因公司而异，具体取决于其融资和资本结构以及资产收购方法;和
•调整后EBITDA和调整后EBITDA利润率消除了某些项目的影响，例如基于股票的薪酬费用和某些工资税费用、可转换债券的费用n可能掩盖我们业务基本业绩趋势的OTES、债务消除收益和重组费用;以及
•调整后EBITDA和调整后EBITDA利润率提供了与o的一致性和可比性您过去的财务表现，并促进与其他公司的比较，其中许多公司使用类似的非GAAP财务指标来补充其GAAP业绩。

我们使用调整后EBITDA和调整后EBITDA利润率作为分析工具存在局限性，不应孤立地考虑这些指标或作为对我们根据GAAP报告的财务业绩分析的替代品。其中一些限制如下：
•尽管折旧费用是非现金费用，但被折旧的资产可能必须在未来更换，并且调整后EBITDA和调整后EBITDA利润率并不反映此类更换或新资本支出要求的现金资本支出要求;
•调整后EBITDA和调整后EBITDA利润率不包括股票薪酬费用和员工股票交易的某些雇主工资税。基于股票的薪酬费用一直是并将在可预见的未来继续是我们业务的一项重要经常性费用，也是我们薪酬战略的重要组成部分。员工股票交易中与雇主工资税相关的费用金额取决于我们的股价和其他超出我们控制范围且与业务运营无关的因素;
•调整后EBITDA和调整后EBITDA利润率不反映：（1）我们营运资金需求的变化或现金需求;（2）利息费用，或支付债务利息或本金所需的现金需求，这减少了我们可用的现金;或（3）可能代表我们可用现金减少的税款;和
•我们在计算调整后EBITDA和调整后EBITDA利润率时排除的费用和其他项目可能与其他公司在报告经营业绩时可能从调整后EBITDA和调整后EBITDA利润率中排除的费用和其他项目（如果有的话）不同。

由于这些限制，调整后EBITDA和调整后EBITDA利润率应与根据GAAP提出的其他运营和财务绩效指标一起考虑。下表提供了净亏损和净亏损利润率与调整后EBITDA利润率的对账。我们将净亏损率定义为净亏损除以总收入。
80
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
总收入
$134,557 $162,140 $373,250 $417,564 
净亏损(40,315)(6,758)(197,734)(125,826)
净亏损率(30)%(4)%(53)%(30)%
调整以排除以下内容：
股票补偿和某些工资税费用(1)
$36,446 $34,794 $144,991 $107,639 
折旧及摊销4,934 5,390 15,800 15,850 
重组费用— — 15,536 3,778 
可转换票据的发票1,177 1,303 3,527 3,664 
债务清偿收益— (33,361)— (33,361)
所得税拨备
10 45 44 74 
调整后的EBITDA$2,252 $1,413 $(17,836)$(28,182)
调整后EBITDA利润率2 %1 %(5)%(7)%
_________
(1)工资税费用包括员工股票交易中与雇主工资税相关的费用，因为金额取决于我们的股价和其他超出我们控制范围且与我们业务运营无关的因素。

81
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
调整后每股净利润（亏损）和调整后每股净利润（亏损）

我们将调整后净利润（损失）定义为净利润（损失），不包括股票补偿费用和某些工资税费用， 债务消除的收益，以及 重组费用。调整后每股净利润（亏损）的计算方法是将调整后每股净利润（亏损）除以加权平均已发行普通股。我们相信，调整后净利润（亏损）和调整后每股净利润（亏损）是投资者评估我们创造盈利能力的有用指标，更容易比较过去和未来时期，并提供我们业绩与其他公司业绩的可比性。

截至9月30日的三个月，截至9月30日的9个月，
2023202420232024
净亏损$(40,315)$(6,758)$(197,734)$(125,826)
调整以排除以下内容：
股票补偿和某些工资税费用(1)
36,446 34,794 144,991 107,639 
重组费用— — 15,536 3,778 
债务清偿收益— (33,361)— (33,361)
调整后净亏损$(3,869)$(5,325)$(37,207)$(47,770)
每股净亏损：
基本信息$(0.48)$(0.07)$(2.38)$(1.42)
稀释$(0.48)$(0.07)$(2.38)$(1.42)
调整后每股净亏损：
基本信息$(0.05)$(0.06)$(0.45)$(0.54)
稀释$(0.05)$(0.06)$(0.45)$(0.54)
加权平均已发行普通股：
基本信息84,404,966 90,119,481 83,158,146 88,534,495 
稀释84,404,966 90,119,481 83,158,146 88,534,495 
_________
(1)工资税费用包括员工股票交易中与雇主工资税相关的费用金额，因为该金额取决于我们的股价和其他超出我们控制范围且与我们业务运营无关的因素。

流动性与资本资源

现金的来源和用途

截至2024年9月30日，我们的主要流动性来源是44530万美元的无限制现金。截至2024年9月30日，我们还持有500万美元期限超过三个月的定期存款投资。现金余额的变化通常是由于流动资金波动以及通过我们的市场促进的贷款买卖时间的结果。为了为通过我们的贷款市场促进的某些贷款的购买提供资金，我们依靠特殊目的信托和企业现金的仓库信贷设施。

我们的可转换优先票据本金总额为73040万美元，2026年票据的年利率为0.25%，2029年票据的年利率为2.00%，每种情况下每半年支付一次。2026年票据到期 2026年8月15日和2029年票据均于2029年10月1日到期 除非根据其条款提前转换、赎回或回购。参考“说明9. 借贷“请参阅本季度报告（表格10-Q）的第一部分第1项，了解有关我们注释的更多详细信息。

82
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
我们的仓库信贷设施于2025年12月至2028年6月期间到期，允许我们借入总计高达32500万美元用于购买无担保个人贷款，借入10000万美元用于购买小额贷款，以及高达5000万美元用于购买汽车贷款。截至2024年6月14日，Upstart Auto Warehouse Trust的循环期结束，我们可能不再从该设施提款。Upstart Auto Warehouse Trust工具将于2025年12月到期，届时所有未偿金额必须偿还。截至2024年9月30日，我们已从仓库信贷设施中提取总计17010万美元。参考“说明9. 借贷“请参阅本表格10-Q第一部分第1项，了解有关我们仓库信贷设施的更多详细信息。

我们根据经营租赁协议租赁办公设施，该协议于2027年至2029年到期。我们与这些租赁协议相关的现金需求为5960万美元，其中1530万美元预计将在未来12个月内支付。参考“注11。 租赁“请参阅本季度报告表格10-Q的第一部分第1项，了解有关我们经营租赁义务的更多详细信息。

我们承诺在所需的持有期结束时（通常等于三个工作日）从某些贷款合作伙伴购买贷款。截至2024年9月30日，贷款购买承诺总额为6680万美元。我们还就我们的一项承诺资本和其他共同投资安排向第三方提供了信贷额度。截至2024年9月30日，该公司有与800万美元信用额度相关的无资金承诺。该公司还承诺为HELCC的未来预付款提供资金。截至2024年9月30日，这些承诺为280万美元，但由于这些承诺可能会在未提取的情况下到期，因此承诺总额不一定代表未来的现金需求。见“说明12. 承诺和意外情况“请参阅本季度报告（表格10-Q）第一部分第1项，了解有关我们承诺的更多详细信息。

就我们的承诺资本和其他共同投资安排而言，我们有义务将一定数量的资产置于与基础贷款的信用表现相关的风险中。这些安排中的风险受到美元上限的限制，这代表公司在特定安排中面临的最大损失风险。截至2024年9月30日，该公司的最大损失风险总额为3.579亿美元。参考“说明5. 实益权益“请参阅本季度报告10-Q表格第一部分第1项，了解有关我们承诺资本和共同投资安排的更多详细信息。我们未来12个月与这些现有安排投资相关的现金需求估计高达2.22亿美元。

虽然我们相信我们手头的现金将足以满足至少未来12个月的流动性需求，但我们未来的资本需求将取决于多种因素，包括我们的收入增长、营运资本要求、用于产品开发目的或市场低迷期间的贷款购买量以及我们的资本支出。我们可能决定通过出售股权、股权挂钩证券或债务证券或其他债务融资安排来筹集额外资本。如果我们通过发行股权或与股权挂钩的证券来筹集额外资金，我们的股东可能会受到稀释。未来的债务融资，如果可行，可能涉及限制我们的业务或我们产生额外债务的能力的契约。我们筹集的任何债务或股权融资可能包含对我们或我们的股东不利的条款。此外，如果我们无法筹集额外资本，而我们的现金余额和运营产生的现金不足以满足流动性需求，我们的运营业绩和财务状况将受到实质性和不利的影响。
83
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）

现金流

下表总结了我们在所示期间的现金流量：

九个月结束
9月30日，
20232024
经营活动提供的净现金$33,887 $297,257 
投资活动所用现金净额(88,562)(159,817)
融资活动提供的现金净额137,236 50,540 
现金和限制性现金的变动$82,561 $187,980 

经营活动所得现金净额

我们通过经营活动提供的主要现金来源是根据与贷款合作伙伴和机构投资者的合同赚取的费用收入，以及我们从资产负债表上持有的贷款获得的利息收入。

我们在经营活动中使用现金的主要用途包括向营销合作伙伴付款、供应商付款、工资和其他人员相关费用、设施付款以及其他一般业务支出。

截至2024年9月30日止九个月，经营活动提供的净现金为29730万美元，其中包括非现金项目调整23050万美元、经营资产和负债净变化19260万美元以及净损失12580万美元。非现金调整的增加主要与公司资产负债表上持有的贷款公允价值变化16750万美元和股票补偿10360万美元有关，部分被3580万美元的受益权益资产公允价值变化和3340万美元的债务消灭收益所抵消。经营资产和负债净变动增加主要与持有待售贷款收到本金15700万美元和合并证券化持有贷款收到本金3650万美元有关。

投资活动所得现金净额

截至2024年9月30日的九个月，投资活动中使用的净现金为15980万美元，原因是购买和发放持作投资的贷款19660万美元以及收购受益利息资产6320万美元，部分被持作投资的贷款收到的本金付款9980万美元所抵消。

融资活动所得现金净额

截至2024年9月30日止九个月，融资活动提供的净现金为5050万美元，主要是由于发行2029年票据的收益为4.215亿美元，扣除债务发行成本和仓库借款的收益29760万美元，部分被回购可转换票据的付款32530万美元所抵消，29320万美元的仓库借款偿还，以及4090万美元的与我们的可转换债务发行相关的上限看涨期权购买。

84
目录表
Upstart Holdings，Inc
管理层对财务状况和经营成果的探讨与分析
（表格金额以千计，份额和每股数据和比率除外，或如所述）
资产负债表贷款组合构成

截至2024年9月30日，我们在精简合并资产负债表上持有65610美元的万贷款。其中399.2-10万美元用于研发目的，主要用于支持我们的汽车贷款产品HELOC，以及将我们的无担保个人贷款产品扩展到新的借款人类别。我们还持有13840美元的万核心个人贷款，否则机构投资者将立即购买这些贷款，以及综合证券化持有的118.5亿美元核心个人贷款。我们将继续利用我们的资本支持研发活动，有时还会在市场资金紧张的时期作为核心个人贷款的资金来源。利用我们的资本作为贷款资金来源的程度和时机将在很大程度上取决于我们市场上相对于合格借款人的需求的资本可用性和我们的业务优先事项。我们计划随着时间的推移，以二次出售或证券化的形式，将我们资产负债表上持有的贷款出售给机构投资者。

表外安排

在正常业务过程中，我们从事未反映在我们的简明合并资产负债表中的活动，通常称为表外安排。这些活动涉及与未合并VIE的交易，包括出售全部贷款、承诺资本和其他共同投资安排，以及我们以合同方式提供服务的发起和共同发起证券化交易。我们利用这些交易提供流动性来源，为我们的业务融资并使我们的机构投资者基础多元化。如果我们是证券化交易的保留发起人，法律要求我们保留这些证券化中发行的证券至少5%的信用风险。我们在“中提供有关与未合并VIE交易的额外信息注3.可变利息实体“在本季度报告的第一部分第1项中，表格10-Q。
关键会计政策和估算

编制简明综合财务报表要求我们做出影响资产、负债、收入、成本和费用以及相关披露的报告金额的判断、估计和假设。我们的估计基于历史经验和我们认为在当时情况下合理的各种其他假设。实际结果可能与我们的估计存在显着差异。如果我们的估计与实际结果存在差异，我们未来的财务报表列报、财务状况、经营结果和现金流量将受到影响。

我们的关键会计政策在第二部分第7项中进行了描述，”关键会计政策和估算“在我们截至2023年12月31日的年度10-k表格年度报告中。截至2024年9月30日止九个月，这些政策没有重大变化。

近期会计公告

参考“注1。 业务和重要会计政策的描述” 本季度报告第一部分第1项（表格10-Q）中列出了最近采用的会计公告和最近发布的尚未采用的会计公告（适用时）。

项目3.关于市场风险的定量和定性披露
我们在日常业务过程中面临市场风险，主要与市场贴现率、信用风险和利率的波动有关。我们直接面临市场风险，因为我们的精简合并资产负债表上持有的贷款和证券、进入证券化市场的机会、通过我们的市场促进的机构投资者对贷款的需求以及我们的市场下的资金可用性
85
目录表
Upstart控股有限公司
仓库信贷设施。我们无法或未能管理市场风险可能会损害我们的业务、财务状况或运营结果。
贴现率风险
贴现率敏感性是指市场贴现率变化可能导致未来盈利、价值或未来现金流量损失的风险。
截至2023年12月31日和2024年9月30日，我们在精简综合资产负债表上持有的贷款分别面临97730美元万和53760美元万的市场贴现率风险，不包括以合并证券化方式持有的贷款。这些贷款的公允价值是使用贴现现金流方法估计的，其中贴现率代表市场参与者对所需回报率的估计。我们资产负债表上的贷款贴现率的变化反映了市场上可获得的类似金融工具的预期收益，可能是由市场利率、预期贷款表现和其他因素的变化引起的。贴现率变动带来的任何收益和损失都计入收益。假设贴现率上调100个基点和200个基点，将导致截至2023年12月31日的贷款公允价值分别减少1,170美元万和2,310美元万，截至2024年9月30日的贷款公允价值分别减少6，20美元万和1,230美元万。

截至2023年12月31日和2024年9月30日，我们分别持有合并证券化中持有的贷款17910万美元和11850万美元，这些贷款按公允价值计入简明合并资产负债表上的贷款。这些贷款的公允价值由相关证券化票据和作为合并证券化一部分发行的剩余凭证的公允价值之和确定，并使用与基础抵押贷款池相同的预计净现金流量。由于公司保留了合并证券化发行的所有剩余证书，因此作为合并过程的一部分，其价值将被消除。假设贴现率上升100个基点和200个基点，将导致截至2023年12月31日合并证券化中持有的贷款公允价值分别减少240万美元和480万美元，截至2024年9月30日，分别减少140万美元和270万美元。

截至2023年12月31日和2024年9月30日，我们还面临应付证券化票据持有人的市场贴现率风险，分别为14140万美元和10030万美元。假设贴现率上升100个基点和200个基点将导致截至2023年12月31日的简明合并资产负债表上应付证券化持有人的公允价值分别减少190万美元和370万美元，并且不会对截至9月30日应付证券化票据持有人的公允价值造成重大影响，2024.

截至2023年12月31日和2024年9月30日，我们还面临其他金融工具的市场贴现率风险，分别包括4100万美元和13150万美元的受益利息资产。受益资产使用贴现现金流模型按公允价值估计，该模型考虑预计违约、损失和收回，以预测未来损失和基础贷款的净现金流量。我们对与迄今为止证明的信用表现相关的预期现金流和与未来信用表现相关的预期现金流使用两种不同的贴现率。贴现率变化产生的任何损益均记录在收益中。假设贴现率上升100个基点和200个基点，将导致截至2023年12月31日的受益权益资产公允价值分别减少120万美元和240万美元，截至2024年9月30日，分别减少260万美元和520万美元。
信用风险

信用风险是指个别借款人因无力或不愿履行财务义务而违约而导致我们简明综合资产负债表上贷款损失的风险。我们简明综合资产负债表上某些金融工具（包括贷款、受益权益、证券化票据和剩余凭证以及应付证券化票据持有人的款项）的表现取决于我们促成的贷款的信用表现。为了管理这种风险，我们通过贷款市场监控借款人的付款表现，并利用我们的人工智能功能以我们认为反映其信用风险的方式对贷款定价。
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该等贷款、受益权益、证券化票据和剩余凭证以及应付证券化票据持有人的公允价值是根据贴现现金流模型估计的，该模型涉及使用重大不可观察输入数据和假设。这些工具对信用风险变化敏感。

截至2023年12月31日和2024年9月30日，我们简明合并资产负债表上持有的贷款分别面临97730万美元和53760万美元的信用风险，不包括合并证券化中持有的贷款。贷款按固定利率计算，并按公允价值计入我们的简明综合资产负债表。截至2023年12月31日，假设信用风险增加10%和20%将导致1250万美元和2500万美元减少，而截至2024年9月30日，假设信用风险增加10%和20%将导致贷款公允价值分别减少540万美元和1080万美元。

截至2023年12月31日和2024年9月30日，我们分别持有合并证券化中持有的贷款17910万美元和11850万美元，这些贷款按公允价值计入简明合并资产负债表上的贷款。这些贷款的公允价值由合并实体发行的相关证券化票据和剩余凭证的公允价值之和确定，并使用与基础抵押贷款池相同的预计净现金流量。由于公司保留了合并证券化发行的所有剩余证书，因此作为合并过程的一部分，剩余证书价值将被消除。假设信用风险增加100个和200个基点，将导致截至2023年12月31日合并证券化中持有的贷款公允价值分别减少270万美元和520万美元，截至2024年9月30日，分别减少230万美元和480万美元。

截至2023年12月31日，我们还面临简明综合资产负债表上持有的受益利息资产和受益利息负债的信用风险，分别为4100万美元和420万美元，截至2024年9月30日，分别为13150万美元和1320万美元。假设信用风险利差增加10%和20%将导致我们简明综合资产负债表上持有的受益利息资产的公允价值分别减少910万美元和1670万美元，并将导致我们简明综合资产负债表上的受益利息负债的公允价值分别增加560万美元和1120万美元，截至2023年12月31日。假设信用风险利差增加10%和20%将导致受益利息资产的公允价值分别减少2880万美元和5780万美元，并将导致受益利息负债的公允价值分别增加570万美元和1200万美元，截至2024年9月30日。

交易对手风险

我们面临衍生金融工具、应收信用额度、受益权益、仓库设施和第三方托管人产生的风险。这些活动通常涉及与无关联贷方或其他个人或实体（在此类交易中称为“交易对手方”）交换义务。如果交易对手违约或以其他方式未能履行义务，如果该交易对手无法履行其对我们的义务，我们可能会面临损失。我们通过仅选择我们认为财务实力雄厚的交易对手、在多个此类交易对手之间分散风险，并对对任何单一交易对手的依赖程度进行合同限制来管理这种风险。

截至2023年12月31日和2024年9月30日，我们在美国多家金融机构的商业支票账户和生息存款账户中分别持有46780万美元和65580万美元与现金相关。如果这些金融机构违约，我们的简明综合资产负债表上记录的金额超过联邦存款保险公司（FDIC）的保险金额，我们将面临信用风险。我们通过将现金和受限制现金存放在信誉良好的机构来降低信贷风险。
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利率风险

利率上升通常会导致贷款合作伙伴和机构投资者要求的回报率上升，从而导致借款人需求下降。更高的利率还与借款人更高的付款义务相对应，这可能会降低个人借款人保持当前义务的能力，导致拖欠、违约、借款人破产和冲销增加，以及收回减少，所有这些都可能对我们的业务产生重大不利影响。我们预计这些结果通常会在利率下降的环境中逆转。

利率的上升或下降也可能影响我们仓库信贷设施的利率风险。截至2023年12月31日和2024年9月30日，我们在浮动利率的仓库信贷机制下分别面临38740万美元和17010万美元的利率风险。利率变化可能会影响我们的借贷成本。我们已就名义总额为25450万美元的某些仓库信贷融资签订了利率上限协议。利率上限为某些信贷设施提供保护，以免受1个月SOFR超过执行利率的现金流变化风险。Upstart Auto Warehouse Trust利率上限将于2029年4月到期，Upstart Loan Trust利率上限将于2025年6月到期。参阅 “注4。 衍生金融工具” 了解更多详情。
股权投资风险

我们的非有价股权证券面临各种市场相关风险，这些风险可能会大幅减少或增加我们投资的公允价值。

我们的非上市股权投资是私人持股公司的股权证券，公允价值不容易确定。吾等选择以成本减去减值(如有)的计量替代方法对每项该等投资进行会计处理，并就同一发行人的相同或类似投资的有序交易中可见价格变动所导致的变动作出调整。要确定一笔有序的交易是针对相同还是类似的投资，需要管理层做出重大判断，而且由于缺乏现成的市场数据，这本身就很复杂。我们考虑各种因素，如投资的权利和偏好的差异，以及这些差异对每项投资的公允价值的影响程度。我们还按季度评估我们的非流通股本证券的减值。我们的减值分析包括对定性和定量因素的评估，包括被投资方的财务指标、市场对被投资方产品或技术的接受度、一般市场状况和流动性考虑。调整和减值在简明综合经营报表中计入其他费用，并在确认该等调整或减值后计入全面亏损。截至2023年12月31日和2024年9月30日，我们的非上市股权证券的账面价值总计4,130美元万，这些证券没有容易确定的公允价值。
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项目4.控制和程序
a.信息披露控制和程序的评估

我们的管理层在首席执行官和首席财务官的参与和监督下，评估了《交易法》第13 a-15（e）条和第15 d-15（e）条所定义的披露控制和程序的有效性。根据该评估，我们的首席执行官和首席财务官得出的结论是，截至2024年9月30日，我们的披露控制和程序的设计和运作有效，旨在提供合理保证我们在根据《交易法》提交或提交的报告中要求披露的信息得到记录、处理、总结，并在SEC规则和表格指定的时间段内报告，并且此类信息被积累并传达给我们的管理层，包括我们的首席执行官和首席财务官（视情况而定），以便及时就所需的披露做出决定。
b.信息披露控制和程序有效性的内在限制

我们的管理层不期望我们的披露控制和程序或我们对财务报告的内部控制将防止所有错误和所有欺诈。一个控制系统，无论设计和操作得多么好，都只能提供合理的保证，而不是绝对的保证，以确保控制系统的目标得以实现。此外，披露控制和程序的设计必须反映这样一个事实，即存在资源限制，要求管理层在评估可能的控制和程序相对于其成本的益处时作出判断。由于所有控制系统的固有局限性，任何控制评价都不能绝对保证所有控制问题和舞弊事件都已被发现。这些固有的局限性包括这样的现实，即决策过程中的判断可能是错误的，故障可能会因为一个简单的错误或错误而发生。此外，某些人的个人行为、两个或更多人的串通或通过控制的管理凌驾，都可以规避控制。任何控制系统的设计也部分基于对未来事件可能性的某些假设，不能保证任何设计在所有可能的未来条件下都能成功地实现其所述目标；随着时间的推移，控制可能会因为条件的变化而变得不充分，或者遵守政策或程序的程度可能会恶化。由于具有成本效益的控制系统的固有限制，由于错误或欺诈而导致的错误陈述可能会发生，并且不会被发现。
c.财务报告内部控制的变化

截至2024年9月30日的季度，我们对财务报告的内部控制（定义见《交易法》第13 a-15（d）条和第15 d-15（d）条）没有发生对我们对财务报告的内部控制产生重大影响或合理可能产生重大影响的变化。

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第二部分：其他信息
项目1.法律程序
有关我们未决法律诉讼材料的描述，请参阅“说明12. 承诺和意外情况“在本季度报告第一部分第1项中，表格10-Q和”风险因素“本季度报告第二部分第1A项（表格10-Q）纳入本文作为参考。
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第1A项。风险因素
风险因素

投资我们的普通股涉及很高的风险。应仔细考虑以下描述的风险和不确定性，以及本季度报告10-Q表格中的所有其他信息，包括题为“管理层对财务状况和经营业绩的讨论和分析”的部分以及我们的 在做出投资我们普通股的决定之前，简明合并财务报表和相关附注。我们的业务、财务状况、运营业绩或前景也可能受到我们目前未知或我们目前认为不重大的风险和不确定性的损害。如果任何风险实际发生，我们的业务、财务状况、运营业绩和前景都可能受到不利影响。在这种情况下，我们普通股的市场价格可能会下跌，您可能会损失部分或全部投资。

风险因素摘要

可能影响我们业务、财务状况或经营业绩的重大风险包括但不限于与以下相关的风险：
•我们的业务已经并将继续受到经济状况和我们无法控制的其他因素的不利影响。
•如果我们无法维持机构投资者向市场提供多元化和弹性的贷款融资，或者成功管理与承诺资本和其他共同投资安排相关的风险，我们的增长前景、业务、财务状况和运营业绩可能会受到不利影响。
•如果我们无法继续改进我们的人工智能模型，或者我们的人工智能模型包含错误或无效，我们的增长前景、业务、财务状况和运营业绩将受到不利影响。
•如果我们的人工智能模型不能及时准确反映经济状况对借款人信用风险的影响，那么Upstart驱动的贷款的表现可能会比预期更差，我们的人工智能模型可能会被视为无效。
•如果我们无法批准大量借款人通过我们的市场贷款，我们的增长前景、业务、财务状况和运营业绩将受到不利影响。
•如果我们现有的贷款合作伙伴停止或限制他们对我们市场的参与，或者如果我们无法吸引新的贷款合作伙伴进入我们的市场，我们的业务、财务状况和运营业绩将受到不利影响。
•我们的运营历史相对有限，这可能会导致风险、不确定性、费用和困难增加，并难以评估我们的未来前景。
•如果我们无法管理与Upstart Macro指数（UMI）相关的风险（我们于2023年推出，该指数没有悠久的历史或可靠的业绩记录），我们的信誉、声誉、业务、财务状况和运营业绩可能会受到不利影响。
•我们已经出现了净亏损，未来可能无法实现盈利。
•如果我们无法管理与资产负债表上贷款相关的风险，我们的业务、财务状况和经营业绩可能会受到不利影响。
•我们过去的收入增长率和财务表现可能无法指示未来的表现。
•我们的季度业绩可能会波动，因此可能会对我们普通股的交易价格产生不利影响。
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•我们与机构投资者、证券化和仓库信贷设施的贷款融资安排使我们面临某些风险，如果我们未能成功管理此类风险，可能会导致贷款融资资本供应减少，或要求我们为我们的市场寻求成本更高或效率更低的融资。
•我们的前三大贷款合作伙伴占我们市场贷款发放和收入的很大一部分。
•我们的声誉和品牌对我们的成功至关重要，如果我们无法继续发展我们的声誉和品牌，我们保留现有和吸引新贷款合作伙伴的能力、吸引借款人进入市场的能力、我们维持多元化和弹性贷款融资的能力以及我们维持和改善与行业监管机构关系的能力都可能受到不利影响。
•我们的业务受到一系列法律和法规的约束，其中许多法律和法规正在不断发展，不遵守或被认为不遵守此类法律和法规可能会损害我们的业务、财务状况和运营业绩。
•如果我们无法管理与贷款服务和收款义务相关的风险，我们的业务，
财务状况和运营业绩可能会受到不利影响。
•我们几乎所有的收入都来自单一贷款产品，因此我们特别容易受到无担保个人贷款市场波动的影响。
•新贷款合作伙伴的销售和入职过程可能需要比预期更长的时间，从而导致预期收入和运营业绩的波动或变化。
•我们正在继续推出和开发新的贷款产品和服务产品，如果这些产品不成功或我们无法管理相关风险，我们的增长前景、业务、财务、状况和运营业绩可能会受到不利影响。
•我们依赖与贷款聚合商的战略关系来吸引申请人进入我们的市场，如果我们无法与贷款聚合商保持有效的关系或成功替换他们的服务，我们的业务可能会受到不利影响。

与我们的商业和行业相关的风险
我们的业务已经并将继续受到经济状况和我们无法控制的其他因素的不利影响。

历史上，总体经济状况的不确定性、波动性和负面趋势为我们的行业创造了艰难的经营环境。许多因素，包括我们无法控制的因素，已经并将继续影响我们的业务、财务状况和经营业绩，影响我们的贷款合作伙伴和机构投资者向我们市场的资金供应，影响借款人对upstart贷款的需求，以及借款人偿还贷款的能力和意愿。这些因素包括但不限于利率、通胀、个人储蓄率、美国政治和总统和国会选举、财政和货币政策、失业率、银行业中断、消费者信心下降、消费者可自由支配支出减少、房地产市场状况、移民政策、天然气价格、能源成本、政府关门、贸易战和退税延迟，以及自然灾害、战争行为、地缘政治冲突、恐怖主义、灾难和流行病等事件。如果这些因素中的任何一个对借款人、贷款合作伙伴或机构投资者造成负面影响，或者如果我们无法减轻与他们相关的风险，我们的业务、财务状况和运营结果可能会受到不利影响。

近年来，美国经历了历史高位的通货膨胀。作为回应，政府实施了政策干预。美联储在2022年和2023年加息十一次。虽然目标是抑制通胀，但这些干预措施可能已经并可能继续产生广泛的宏观经济影响，包括导致经济衰退、失业率上升或银行业受到干扰。为了应对通胀水平下降的迹象，美联储于2024年9月降息，预计将继续降息。
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当前的宏观经济环境以及由此产生的不确定性和波动性已经并可能继续对我们的业务和经营业绩产生多方面影响，其中包括：

•贷款发放量减少;
•来自贷款合作伙伴和机构投资者的贷款资金减少;
•资本市场流动性减少;
•申请人对贷款提议的认可度和接受度较低;
•增加我们的资产负债表利用率，为Upstart驱动的贷款提供资金;
•新贷款合作伙伴延迟采用我们的人工智能贷款市场;
•Upstart驱动的贷款的拖欠率和违约率增加;以及
•裁员。
当前的宏观经济环境已经并可能继续对我们的业务产生重大不利影响，因为它影响了机构投资者和贷款合作伙伴向我们的市场提供资金。有关更多信息，请参阅标题为“-”的风险因素如果我们无法维持机构投资者向市场提供多元化和弹性的贷款融资，我们的增长前景、业务、财务状况和运营业绩可能会受到不利影响“和”-如果我们现有的贷款合作伙伴停止或限制他们对我们市场的参与，或者如果我们无法吸引新的贷款合作伙伴进入我们的市场，我们的业务、财务状况和运营业绩将受到不利影响”.

我们在我们的市场上提供消费者贷款，例如个人和汽车贷款，许多来到我们市场的消费者的信用记录很差、有限或没有。这些消费者历来并可能受到不利宏观经济状况的不成比例的影响。通货膨胀、利率上升、福利计划的可用性、失业、破产、政府干预（例如刺激措施）、重大医疗费用、离婚或死亡可能会影响借款人借款或偿还贷款的能力或意愿。最近的宏观经济趋势对借款人的借贷和还款能力和意愿产生了负面影响。有关更多信息，请参阅标题为“-”的风险因素如果我们无法批准大量借款人通过我们的市场贷款，我们的增长前景、业务、财务状况和运营业绩将受到不利影响.”

在经济下行周期中，借款人无法偿还贷款的风险更大。借款人不得优先偿还无担保的个人贷款，而不是以必需品为担保的贷款，例如抵押贷款或汽车贷款。更高的利率往往会导致更高的偿付义务，这可能会降低借款人偿还债务的能力。这些因素导致借款人宣布的拖欠、违约和破产增加，导致更多的冲销和更少的回收，所有这些都已经并可能继续对我们的市场和业务所提供的贷款的信用表现产生实质性的不利影响。例如，预计2021年第一季度至2023年第四季度发放的核心个人贷款的年份相对于贷款发放时设定的目标回报率将表现不佳。当借款人拖欠贷款时，它会增加我们偿还贷款的成本。由于违约率一直高于预期，它已经并可能继续负面影响我们的贷款合作伙伴发起贷款的需求，以及通过我们的市场推动的机构投资者为贷款提供资金的需求。申请人批准或接受贷款提议或贷款发放量的任何持续下降，或借款人违约或违约的任何超出我们预期的增加，都将损害我们的业务、财务状况和经营业绩。

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如果我们无法维持机构投资者向市场提供多元化和弹性的贷款融资，或者成功管理与承诺资本和其他共同投资安排相关的风险，我们的增长前景、业务、财务状况和运营业绩可能会受到不利影响。

我们的业务依赖于从机构投资者向我们的市场寻找和保持多样化和弹性的贷款资金。机构投资者通过购买全部贷款、过关凭证和资产支持证券，为我们的市场提供贷款资金。在截至2024年9月30日的9个月内，在我们的市场上促成的贷款本金总额中，67%由机构投资者购买。从机构投资者获得贷款资金的能力和能力取决于许多我们无法控制的因素，例如经济和市场状况、利率、资本市场的流动性和监管改革。虽然自2022年以来，由于宏观经济环境，我们经历了资金紧张，但我们相信，来自机构投资者的市场情绪已开始改善，自那以来，我们增加了贷款融资能力。我们不能肯定现有的资金来源将继续可用，或任何新的资金来源将以商业合理的条件或根本不存在。来自机构投资者的资金减少在过去对我们的业务产生了负面影响，并可能在未来对我们产生负面影响。投资者对upstart贷款或以该等贷款为抵押的证券的需求因任何原因而持续下降，包括由于不利的经济状况或任何超出我们预期的拖欠、违约或亏损的增加，都可能对我们的财务业绩产生不利影响。

我们来自机构投资者的贷款资金有很大一部分来自承诺资本和其他共同投资安排。这些安排可能包括提供下行风险保护的条款，但须受某些限制和条件的限制。特别是，我们已同意，如果这些安排下的贷款的信贷表现偏离我们的初始预期，以及在某些条件下，如果我们无法向我们承诺的资本提供者大量出售贷款，我们将在一定限度内补偿投资者。因此，如果由于借款人行为、支付能力或其他方面的意外变化，如果我们的借款人在upstart平台上的贷款需求减少，或者如果我们的模型对信用表现的预期因任何原因而不准确，我们的财务业绩可能会受到不利影响。截至2024年9月30日，根据这些承诺资本和其他共同投资安排，我们对亏损的最大敞口约为35790美元万。由于我们达成了更多承诺资本和其他共同投资安排，这一金额从截至2023年9月30日的6610万美元增长。随着我们在这些安排下的最大亏损额增长，并可能在未来继续增长，与承诺资本和其他共同投资安排相关的风险可能会对我们的业务、财务状况和运营结果产生更大的影响。承诺资本和其他共同投资安排通过不利的公允价值调整对我们的财务业绩产生了负面影响，并可能在未来继续这样做。如果现有的承诺资本或其他资本安排不能按商定的条款提供资金，或者我们无法在未来以商业合理的条款或根本不能获得额外的承诺资本或其他资本安排，我们的收入和交易量也可能会下降。此外，如果利率下降，而这些安排的条款在整个经济周期内保持不变，我们最近在高利率环境下达成的资本安排，例如承诺资本和其他共同投资安排，可能会变得更加昂贵。尽管我们作出了努力，但我们可能会继续遇到资金紧张的情况，不能确定我们已经采取的任何措施，如承诺资本或其他共同投资安排，或将采取的任何措施，以解决或减轻资金紧张的影响，是否足够或成功。在资金紧张的情况下，我们可能无法维持目前的贷款发放量，而不会招致大幅增加的融资成本、同意对我们不利的条款或依赖我们的资产负债表来支持融资，每一种情况都可能对我们的业务、财务状况和运营结果产生不利影响。

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违约或违反财务、业绩或其他契约的事件，或者支撑我们资产支持证券化、债务融资或其他结构化和非结构化交易的某些贷款池的业绩低于预期，过去已经受到限制，并可能限制我们从机构投资者那里获得资金。例如，包含在我们资产支持证券化中的2021年至2022年中期产生的贷款相对于其在发起时的预期目标回报表现不佳，导致评级机构对我们的几项基于资产的证券化采取负面行动。我们无法确定投资者对证券化的需求是否以及何时会恢复。

If we are unable to continue to improve our AI models or if our AI models contain errors or are otherwise ineffective, our growth prospects, business, financial condition and results of operations would be adversely affected.

我们吸引潜在借款人的能力，从而增加我们市场上的贷款来源，在很大程度上取决于我们能否有效地评估借款人的信誉和违约的可能性，并根据评估提供具有竞争力的贷款。我们的整体运营效率和利润率进一步取决于我们在贷款申请过程中保持高度自动化的能力，并在自动化程度上实现渐进式改进。如果我们的人工智能模型由于我们的模型设计或编程或任何其他错误或不准确而无法充分预测借款人的信誉和违约的可能性，并且我们的人工智能模型没有检测到或解释此类错误或不准确，或者我们信用决策过程的任何其他组件失败，我们可能会经历高于预测的贷款损失。上述任何一项都可能导致次优定价的贷款或不正确的贷款批准或拒绝，其中任何一项都可能导致借款人的需求下降，并减少贷款来源和我们的收入。此外，除了借款人需求下降外，upstart贷款的亏损高于预期，可能会进一步损害我们吸引资本进入市场的能力。如果我们的贷款合作伙伴和机构投资者因贷款表现不佳而遭受高于预期的资金成本损失，他们可能会决定限制他们的资金或减少他们提供资金的数量或贷款类型。与我们的人工智能模型设定的预期相比，upstart贷款的表现不佳可能会对我们的财务业绩产生负面影响，因为虽然受到一定限制，但我们有义务向我们的资本合作伙伴提供下行风险保护，并就与承诺资本和其他共同投资安排相关的出售贷款的预期信用表现的任何偏离向他们进行补偿。它还可能阻碍我们增加债务安排或其他融资安排的规模或达成新的融资安排的能力。

我们的人工智能模型还针对和优化贷款过程的其他方面，如借款人获取、欺诈检测、违约时机、贷款堆叠和提前还款时机。我们对这类模式的持续改进使我们能够以低成本和几乎即时的方式促进贷款，在保持贷款业绩的同时获得消费者的高度满意。然而，由于各种原因，我们的人工智能模型的此类应用可能被证明不如我们预期的或过去的预测，包括构建此类模型时的不准确假设或其他错误，对此类模型结果的错误解释，以及未能及时更新模型假设和参数。我们市场上的即时审批程序也可能使我们成为某些借款人的目标，这些借款人打算尽快积累尽可能多的债务，而不考虑偿还的可行性。此外，这类模型可能无法有效地考虑到一些本质上难以预测和我们无法控制的问题，如宏观经济状况、信贷市场波动和利率波动，这些因素往往涉及一些独立和独立的变量和因素之间的复杂相互作用。此类人工智能模型中的重大错误或不准确可能导致我们做出不准确或次优的运营或战略决策，这可能会对我们的业务、财务状况和运营结果产生不利影响。

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如果我们的人工智能模型不能及时准确反映经济状况对借款人信用风险的影响，那么Upstart驱动的贷款的表现可能会比预期更差，我们的人工智能模型可能会被视为无效。

通过我们的市场提供便利的贷款的表现在很大程度上取决于我们专有的人工智能模型的有效性，这些模型用于评估借款人的信用状况和违约可能性。我们的人工智能模型在经济低迷或衰退期间没有经过广泛的测试。即使信贷决策考虑了宏观经济状况，也不能保证我们的人工智能模型能够准确预测经济状况不利时期的贷款表现，或对不断变化的经济状况做出快速反应。如果我们的人工智能模型无法准确反映这种经济条件下贷款的信用风险，我们、我们的贷款合作伙伴和机构投资者在此类贷款上的损失将超过预期，这将损害我们的声誉，并侵蚀我们与贷款合作伙伴和机构投资者建立的信任。我们已经并可能继续经历最近一段时间使用我们的人工智能模型发放的贷款的高违约率和不良表现。例如，2021年第一季度至2023年第四季度发放的核心个人贷款的季度年份预计将逊于贷款发放时设定的目标回报。我们资产负债表上贷款的公允价值已经下降，并可能继续下降。如果我们的人工智能模型不能准确和及时地评估宏观经济状况对通过我们的市场提供的贷款的业绩和违约率的影响，我们的业务、财务状况和运营结果可能会继续受到不利影响。

如果我们无法批准大量借款人通过我们的市场贷款，我们的增长前景、业务、财务状况和运营业绩将受到不利影响。

我们的绝大部分收入来自平台和推荐费以及通过我们的市场提供的贷款服务费。增加我们的费用收入在很大程度上取决于我们增加市场上消费贷款交易量的能力。为了满足更多消费者对信贷的需求并增加市场上的交易量，我们必须从贷款合作伙伴和机构投资者那里获得充足的资本供应，我们必须推动寻求贷款的潜在借款人的足够需求，借款人必须满足我们的模型和贷款合作伙伴的批准要求。

虽然我们继续提高我们人工智能模型的准确性，我们认为这是我们长期成功的关键，但这种改进可能不会导致更多借款人在我们的平台上获得批准。这些改进使我们在过去和将来可能会重新评估我们的信贷决策过程，包括与某些借款人相关的风险。借款人违约模式的变化和违约借款人数量的增加在过去和未来都会导致在我们平台上获得贷款的借款人减少。此外，我们的贷款合作伙伴的信用要求以及我们的机构投资者和贷款合作伙伴为向我们的市场提供资本而要求的目标回报，已经并可能继续对我们以具有竞争力的条款或根本不向我们市场上的某些借款人提供贷款的能力产生负面影响。如果我们不能履行机构投资者或贷款合作伙伴的融资承诺，我们就有可能危及我们目前或未来对我们市场的资本供应。

在当前借贷成本和消费信贷相关风险上升的宏观经济环境下，合格借款人的数量变得越来越小，在我们的市场上收到或接受贷款报价的申请人比过去更少。在我们的平台上批准更多借款人也可能受到限制，因为由于监管原因，我们历来将Upstart支持的贷款的最高年百分比率保持在35.99%或更低。此外，在当前利率较高的环境下，贷款条款变得不太适合借款人，借款人需求总体下降。这些因素已经并可能继续对我们市场的交易量产生负面影响，从而对我们的收入产生负面影响。如果我们无法维持或增加市场上的交易量，或吸引和留住合格借款人，我们的增长前景、业务、财务状况和运营业绩将受到不利影响。

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If our existing lending partners cease or limit their participation in our marketplace or if we are unable to attract new lending partners to our marketplace, our business, financial condition and results of operations will be adversely affected.

Our success depends in significant part on the participation of our lending partners in our marketplace. In the nine months ended September 30, 2024, 86% of our total revenue was generated from platform, referral and servicing fees that we receive from our lending partners. Our lending partners also provide loan funding to our marketplace by retaining a significant portion of the loans facilitated through our marketplace. Out of the total principal of loan originations facilitated on our marketplace during the nine months ended September 30, 2024, 25% were retained by our lending partners. If we are unable to keep existing lending partners or attract new lending partners to our marketplace, or if we are unable to maintain or increase the portion of loans retained by the lending partners, our financial performance could suffer.

Our lending partners may suspend, limit or cease their participation in our marketplace for a number of reasons. While lending partners’ loan funding to our marketplace has started to improve, we have experienced a reduction of loan originations by lending partners in the past due to disruptions in the banking sector and adverse macroeconomic conditions. If our lending partners continue to suspend, limit or cease their operations or terminate their relationships with us, the number of loans facilitated through our marketplace will decrease and our revenue will be adversely affected. Moreover, new lending partners may find our sales and onboarding process to be long and unpredictable. If we are unable to timely onboard our lending partners, or if our lending partners are not willing to work with us to complete an onboarding process, our results of operations could be adversely affected.

我们与我们的每个贷款伙伴签订了一份单独的协议。我们与贷款伙伴的协议是非排他性的，可能包含最低手续费金额。我们的贷款合作伙伴可以决定停止与我们合作，当他们的协议需要续签或与我们的竞争对手建立排他性或更有利的关系时，要求以成本禁止的方式修改他们的协议条款。此外，他们的监管机构可能会要求他们终止或以其他方式限制他们与我们的业务往来，或者施加监管压力，限制他们与我们做生意的能力。请参阅标题为“-我们的业务受到广泛的法律和法规的约束，其中许多正在演变，不遵守或被认为不遵守这些法律和法规可能会损害我们的业务、财务状况和运营结果“和”-CFPB有时会对其监管消费者金融服务的权力采取扩张性的看法，导致该机构的行动或任何其他机构的行动可能如何影响我们的业务的不确定性了解更多信息。此外，我们未来可能会与我们的任何贷款伙伴发生分歧或争端，这可能会对我们与他们的关系产生负面影响或威胁。在我们与贷款合作伙伴的协议中，我们就我们遵守贷款合作伙伴的特定政策、适用于我们的贷款合作伙伴的法律法规的某些程序和指南以及我们将提供的服务做出某些陈述、保证和契诺。如果这些陈述和保证在作出时不准确，或者如果我们未能履行契约，我们可能要对由此产生的任何损害负责，包括可能与受影响贷款相关的任何损失，我们继续吸引新贷款合作伙伴的声誉和能力将受到不利影响。此外，我们的贷款合作伙伴可能会与彼此、我们的竞争对手或第三方进行合并、收购或合并，其中任何一项都可能扰乱我们与贷款合作伙伴现有的和未来的关系。如果我们不能维持或增加贷款合作伙伴的数量，我们的业务、财务状况和经营结果可能会受到不利影响。
We have a relatively limited operating history, which may result in increased risks, uncertainties, expenses and difficulties, and makes it difficult to evaluate our future prospects.

We were founded in 2012 and have been a publicly traded company for a limited number of years. Our limited operating history may make it difficult to make accurate predictions about our future performance. Assessing our business and future prospects may also be difficult because of the risks and difficulties we face. These risks and difficulties include our ability to:

•successfully mitigate any adverse effects of economic conditions such as high interest rates, inflation, unemployment levels, personal savings rates and other macroeconomic factors on our business;
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•improve the effectiveness and predictiveness of our AI models, including successfully adjusting our proprietary AI models, products and services in a timely manner in response to changing macroeconomic conditions and fluctuations in the credit market;
•maintain and increase the volume of loans facilitated through our AI lending marketplace;
•successfully maintain diverse and resilient loan funding to our marketplace from institutional investors;
•attract new lending partners to our marketplace and maintain existing lending partnerships;
•successfully meet our borrower demand with competitive products and terms;
•offer competitive interest rates to borrowers on our marketplace, while enabling our lending partners and institutional investors to achieve an adequate return over their cost of funds;
•successfully build our brand and protect our reputation from negative publicity;
•increase the effectiveness of our marketing strategies;
•continue to expand the number of potential borrowers;
•comply with and successfully adapt to complex and evolving regulatory environments;
•protect against increasingly sophisticated fraudulent borrowing and online theft;
•successfully compete with companies that are currently in, or may in the future enter, the business of providing online lending services to financial institutions or consumer financial services to borrowers;
•enter into new markets and introduce new products and services;
•effectively secure and maintain the confidentiality of the information received, accessed, stored, provided and used across our systems;
•successfully obtain and maintain corporate funding and liquidity to support growth and for general corporate purposes;
•attract, integrate and retain qualified employees; and
•effectively manage and expand the capabilities of our operations teams, outsourcing relationships and other business operations.

If we are not able to timely and effectively address these risks and difficulties as well as those described elsewhere in this “Risk Factors” section, our business and results of operations may be harmed.

If we are unable to manage the risks associated with the Upstart Macro Index (UMI), which we introduced in 2023 and does not have a long history or proven track record, our credibility, reputation, business, financial condition and results of operations could be adversely affected.

UMI is our effort to quantify the level of macroeconomic risks in terms of the losses or defaults within Upstart-powered unsecured personal loan portfolios, excluding small dollar loans. We introduced UMI in 2023 and it does not have a long history or track record. Since it is a relatively new initiative, UMI remains unproven and, therefore, may not perform as expected. We intend to continue our research and development efforts to improve UMI. In light of such efforts, we have revised our previously published UMI values, including to remove seasonal patterns, and may further change or revise the current or past UMI values in the future. Any significant changes or revisions could harm our reputation and credibility with our lending partners and institutional investors, which in turn could adversely affect our business, financial condition and results of operations.

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Furthermore, the correlation between UMI and the level of macroeconomic risks in terms of losses or defaults within Upstart-powered unsecured personal loan portfolios may not be as significant or meaningful as we expect. If the correlation between UMI and the level of macroeconomic risks is misaligned or skewed in a way that is unacceptable to our lending partners or institutional investors, or UMI fails to accurately or adequately quantify the level of macroeconomic risks, this lack of a meaningful correlation may result in distrust or disregard of UMI. This outcome could adversely affect our reputation and credibility with our lending partners and institutional investors and thus, negatively impact our business, financial condition and results of operations.

UMI基于我们对upstart支持的无担保个人贷款组合中的损失的分析，不包括小额美元贷款，并且特定于我们的借款人基础。由于我们借款人基础的构成随着时间的推移而变化，而且UMI是对所有upstart支持的无担保个人贷款(小额美元贷款除外)进行计算的总和，因此UMI可能不是衡量特定贷款子集或借款人群体宏观经济风险水平的最佳指标。UMI并不打算以非upstart贷款的贷款组合或资产的损失来衡量宏观经济风险，这些贷款包括美国人口的其他部分持有的贷款。它的目的不是衡量整体经济的当前状态，也不是为了衡量或预测未来的宏观经济状况、趋势或风险。它也不是为了衡量或预测upstart未来的贷款业绩、经营业绩或股价。投资者、贷款合作伙伴和分析师可能出于这些或其他非预期目的不当使用或依赖UMI，或以其他方式误解或曲解UMI。如果UMI在这些方面被误解或曲解，可能会损害我们在贷款合作伙伴和机构投资者中的声誉和可信度，并削弱我们留住他们并将他们吸引到我们贷款市场的能力。这可能会进一步减少我们的贷款合作伙伴和机构投资者愿意资助的贷款产品的数量或类型。任何未能管理前述风险的行为都可能对我们维持市场多样化和弹性贷款融资的能力造成不利影响，进而对我们的业务、财务状况和运营结果产生负面影响。

我们已经出现了净亏损，未来可能无法实现盈利。

在截至2024年9月30日的9个月中，我们发生了12580美元的万净亏损。我们已经并打算继续花费大量资金来开发和改进我们的专有人工智能模型，吸引更多的借款人进入我们的市场，增强我们平台上的功能和整体用户体验，扩大贷款产品供应，并以其他方式继续增长我们的业务，我们可能无法增加足够的收入来抵消这些重大支出。由于一些原因，包括本节所述的其他风险，以及不可预见的费用、困难、复杂情况和延误、宏观经济状况和其他未知事件，我们已经并预计将在未来招致重大损失。任何不能充分增加我们的收入以跟上我们的投资和其他费用的速度，都将使我们无法盈利。如果我们不能在遇到这些风险和挑战时成功应对，我们的业务、财务状况和经营业绩可能会受到不利影响。

If we are unable to manage risks associated with the loans on our balance sheet, our business, financial condition and results of operations may be adversely affected.

近年来，我们在资产负债表上持有了更多upstart支持的贷款，未来可能会继续这样做。我们已经使用并可能继续使用我们的资产负债表来支持我们针对新贷款产品和借款人细分市场的研发活动。除了研究和开发活动，我们已经并可能继续利用我们的资产负债表从贷款合作伙伴那里购买贷款，以应对我们市场的供需波动，并在贷款到期前定期将这些贷款出售给机构投资者。在截至2024年9月30日的9个月内，在我们的市场上促成的贷款本金总额中，8%是在我们的资产负债表上持有的。截至2024年9月30日，我们的资产负债表上持有537.6美元的贷款，不包括以合并证券化方式持有的贷款。我们在资产负债表上以公允价值持有贷款，并使用贴现现金流方法估计公允价值。市场利率的上升会增加贴现现金流量法下用于确定公允价值的贴现率，从而减少我们资产负债表上持有的贷款的公允价值。目前，我们处于高利率环境中。高利率对我们资产负债表上持有的贷款的公允价值产生了负面影响，未来可能会继续如此。此外，对于这些贷款和任何未来将在我们的资产负债表上持有的贷款，我们承担
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event of borrower default. Our exposure to rising borrower default rates and their volatility has increased, and may continue to increase, as we hold more Upstart-powered loans on our balance sheet. The R&D loans make up a substantial portion of the loans held on our balance sheet and are generally more risky and more likely to default than the core personal loans.

最近，这些贷款的违约率和冲销率高于某些贷款类别的预期，因此，我们不得不对资产负债表上的贷款进行不利的公允价值调整。这些不利的公允价值调整对我们的收入产生了负面影响，如果我们继续经历高于预期的违约率或贷款未能按预期执行，我们将需要在未来进行额外的不利公允价值调整，这将对我们的收入产生负面影响。如果我们以不利的价格出售资产负债表上持有的贷款，如研发贷款，也有可能确认损失。此外，我们收入的一部分是从资产负债表上持有的贷款获得的利息收入，如果我们增加资产负债表上持有的贷款金额，我们将变得更加依赖利息收入作为收入来源，并变得更容易受到与这些贷款相关的信用风险和借款人违约的影响。从流动性的角度来看，我们资产负债表上不断增长的贷款额增加了我们的流动性风险。我们不能确定我们是否能够以商业上合理的条款出售这些贷款，或者任何未来放在我们资产负债表上的贷款。如果我们无法做到这一点，我们满足业务需要和履行义务的能力可能会受到干扰。此外，使用我们的资产负债表转移了财务资源用于其他用途，如改善我们的产品和服务，这可能会对我们的运营结果产生不利影响。

Our revenue growth rate and financial performance in the past may not be indicative of future performance.

We grew rapidly in the past, and our historical revenue growth rate and financial performance may not be indicative of our future performance. Our revenue for any previous quarterly or annual periods should not be relied upon as any indication of our revenue or revenue growth in future. Our revenue may continue to decline in the future for a number of reasons, which may include: adverse macroeconomic conditions, changing interest rates, slowing demand for or reduced funding through our lending marketplace, sales of loans held on our balance sheet at a loss, increasing competition, credit market volatility, increasing regulatory costs and challenges and our failure to capitalize on growth opportunities.

我们相信，我们的增长在很大程度上是由我们的人工智能模型以及我们对人工智能模型的持续改进推动的。未来对人工智能模型的渐进改进可能不会带来与过去相同水平的增长。此外，我们相信我们过去的增长在一定程度上是由于我们能够快速简化和自动化平台上的贷款申请和发放流程。我们预计完全自动化贷款比例将趋于平稳并长期保持相对稳定。然而，我们的贷款产品扩展到无担保个人贷款（例如汽车贷款和房屋净值信贷额度）之外，可能会导致该百分比在不同时期的波动，具体取决于贷款产品组合。由于这些因素，我们的收入可能会进一步下降，我们的财务表现可能会继续受到不利影响。

我们的季度业绩可能会波动，因此可能会对我们普通股的交易价格产生不利影响。

我们的季度运营业绩，包括收入、净利润（亏损）和其他关键指标，未来可能会出现显着变化，并且对我们的运营业绩进行的期与期比较可能没有意义。因此，任何一个季度的业绩不一定是未来业绩的准确指标。我们的季度财务业绩可能会因多种因素而波动，其中许多因素超出了我们的控制范围。可能导致季度财务业绩波动的因素包括但不限于：
•总体经济状况，包括经济放缓、衰退、利率变化、通货膨胀、信贷市场收紧和银行业中断;
•我们的借贷成本和获得贷款资金来源;
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•我们提高人工智能模型有效性和预测性的能力，包括对交易量产生负面影响的改进，例如降低批准率;
•我们吸引新贷款合作伙伴和机构投资者进入我们的市场的能力;
•我们与现有贷款合作伙伴和机构投资者维持关系的能力;
•我们维持或增加贷款量、改善贷款组合以及贷款、贷款合作伙伴和贷款资金来源渠道的能力;
•我们有能力与潜在借款人访问我们的网站的贷款聚合商保持有效的关系;
•我们识别和预防欺诈活动的能力以及欺诈预防措施的影响;
•资产负债表上资产和负债的公允价值变化;
•新产品和服务的时机和成功;
•我们的直接营销和其他营销渠道的有效性;
•与维持和扩大我们的业务、运营和基础设施相关的运营费用的金额和时间，包括收购新的和维持现有的贷款合作伙伴和机构投资者以及吸引借款人进入我们的市场;
•我们平台上提供的贷款预付的数量和程度;
•我们的网络、产品和服务或基础设施的可用性和完整性，或者我们或我们依赖运营业务的第三方经历的实际或感知的安全漏洞或事件;
•我们参与诉讼或监管执法工作（或其威胁）或对我们行业产生总体影响的工作;
•与收购新贷款合作伙伴相关的入职过程的长度;
•影响我们业务的法律法规的变化；以及
•我们行业竞争动态的变化，包括竞争对手之间的整合或资金充足的大型现有企业开发有竞争力的产品。

此外，我们对Upstart驱动的贷款的需求通常会经历季节性，第一季度的需求通常较低。这种季节性放缓主要是由于第四季度假期前后贷款需求高，以及第一季度借款人可用现金流普遍增加，包括从退税中收到的现金，这暂时减少了借款需求。这种季节性和季度业绩的其他波动也可能对我们普通股的交易价格产生不利影响，并增加其波动性。

我们与机构投资者、证券化和仓库信贷设施的贷款融资安排使我们面临某些风险，如果我们未能成功管理此类风险，可能会导致贷款融资资本供应减少，或要求我们为我们的市场寻求成本更高或效率更低的融资。

我们已经推动了upstart贷款的证券化，并在未来可能会促进更多的证券化，以允许我们的机构投资者、某些贷款合作伙伴和/或我们自己通过资产支持证券市场或其他资本市场产品清算或融资此类贷款。在资产支持证券交易中，我们将贷款池出售并转让给特殊目的实体(SPE)。同样，我们通过将贷款出售给仓储信托特殊目的实体，并利用相关的仓储信贷安排，为资产负债表上的某些贷款提供资金。每个证券化SPE根据契约和信托协议的条款发行票据和/或证书，或者在仓库信贷安排的情况下，仓库信托SPE根据信贷和担保协议向银行借款。特殊目的实体在资产担保证券化交易中发行的证券和仓储特殊目的实体借入的信贷额度均由适用的特殊目的实体拥有的贷款池担保。我们，我们的机构投资者，已经购买了全部贷款或者通行证，
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和/或我们的贷款合作伙伴向SPE提供贷款，并作为交换，接收代表该SPE债务和/或股权的现金和/或证券。

当我们是证券化的唯一保荐人时，根据RR规则，我们必须根据证券化的资产类型，在特定的时间段内保留此类交易中至少5%的信用风险。我们过去有，并可能选择保留在我们发起或协助的资产担保证券化交易中发行的额外证券，如票据或证书。这些证书代表特殊目的实体的剩余权益，从属于票据，因此面临更大的信用风险。2023年，我们担任资产证券化的唯一留存保荐人，其中一次，我们不仅保留了RR法规规定的用于风险保留目的的证券，还保留了额外的剩余股权，使我们面临更大的信用风险。我们保留的证券可能会贬值，包括变得一文不值。未来，我们可能会再次保留作为证券化的一部分发行的证券，而不是风险保留要求。此外，其他事项，例如适用于持有资产支持证券的银行和其他受监管金融机构的资本和杠杆要求，或来自其他资产支持证券发行人的日益激烈的竞争，可能会减少机构投资者对通过我们的证券化交易发行的证券的需求，从而对我们的业务产生负面影响。此外，遵守某些监管要求，包括修订后的《多德-弗兰克法案》、1940年《投资公司法》或《投资公司法》，以及所谓的《沃尔克规则》，可能会影响我们能够完成的证券化类型。

如果我们未来不可能或不经济地将贷款证券化，或者我们作为证券化中的风险保留持有人，以造福购买完整贷款或直通凭证的投资者和/或我们的贷款合作伙伴，我们可能需要寻求替代融资来提供贷款资金为我们的市场并履行我们现有的债务义务。此类资金可能无法以商业上合理的条款提供，或者根本无法提供。如果此类贷款融资机制的成本高于我们证券化的成本，将对我们的运营结果产生负面影响。如果我们无法获得此类融资，我们发放贷款的能力以及我们的运营业绩、财务状况和流动性可能会受到重大不利影响。

The servicing fees generated by our loan servicing activities for the loans sold to institutional investors and contributed to asset-based securitizations and pass-through certificate transactions also represent a material portion of our earnings. There is no assurance that our institutional investors will continue to purchase loans or securities (either through whole loan sales, asset-backed securities, pass-through certificate issuances or other direct or indirect purchase arrangements) or that they will continue to purchase loans in transactions that generate the same spreads and/or fees that we have historically obtained. During the nine months ended September 30, 2024, we sold loans that had been originated in an earlier, lower interest rate environment. We recognized losses on these sales which reduced our revenue. As we hold more loans on our balance sheet, our business, financial condition and results of operations could be adversely affected, including further reductions in revenue. Factors that may affect demand by institutional investors for Upstart-powered loans include:

•competition in the whole loan sales markets where we compete with loan originators who can sell either larger loan portfolios or loans that have characteristics, pricing and terms that may be perceived to be more desirable to certain institutional investors than those offered in Upstart-powered loans that comprise our whole loan sales;
•competition in the securitization markets where we compete with loan originators and other issuers who can securitize or sell pools of loans (which such pools may include Upstart-powered loans, on a commingled basis or otherwise) with characteristics, pricing and terms that may be perceived to be more desirable to certain institutional investors than those offered in Upstart-powered loans contributed to asset-based securitization transactions that we facilitate;
•the extent to which servicing fees and other expenses may reduce overall net return on purchased pools of loans;
•the actual or perceived credit performance of loan products offered on our marketplace;
•economic conditions such as high interest rates, inflation, economic volatility and other macroeconomic factors;
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•risk appetite of our institutional investors;
•the loan grade and term mix of the portfolios of loans offered for sale;
•institutional investors’ sector and company investment diversification requirements and strategies;
•higher yielding investment opportunities at a risk profile deemed similar to our sold loan portfolios;
•borrower prepayment behavior within the underlying pools;
•regulatory or investment practices related to maintaining net asset value, mark-to-market and similar metrics surrounding pools of purchased loans; and
•the ability of our institutional investors to access funding and liquidity channels, including warehouse financing and securitization markets, on terms they find acceptable to deliver an appropriate return net of funding costs, as well as general economic conditions and market trends, such as increasing interest rates, that affect the appetite for loan financing investments.

In connection with our committed capital and other co-investment arrangements, we have agreed to compensate our loan buyers/co-investors, subject to a limit, if credit performance on the loans deviates from expectations. As of September 30, 2024, our maximum exposure to losses under these committed capital and other co-investment arrangements was approximately $357.9 million. See “Note 5. Beneficial Interests” for more information. Committed capital and other co-investment arrangements could negatively impact our financial results. We may also experience declines in revenue and loan volume if existing committed capital or other capital arrangements do not provide funding on the agreed upon terms or we fail to secure additional committed capital or other capital arrangements on commercially reasonable terms, or at all.

We are also subject to risk that arises from our derivative instruments, beneficial interests, warehouse facilities, and third-party custodians. These activities generally involve an exchange of obligations with unaffiliated lenders or other individuals or entities, referred to in such transactions as “counterparties”. If a counterparty were to default or otherwise fail to perform, we could potentially be exposed to loss if such counterparty were unable to meet its obligations to us, which could adversely affect our business, financial condition and results of operations.

Our top three lending partners account for a significant portion of loan originations on our marketplace and our revenue.

Our top three lending partners originate a significant portion of loans on our marketplace. In the nine months ended September 30, 2024, our top three lending partners collectively originated 86% of the Transaction Volume, Number of Loans and accounted for 71% of our total revenue. There are no minimum commitments to originate any loans under the agreements we have with our lending partners. If our top three lending partners were to suspend, limit or cease their operations or otherwise terminate their relationship with us, our business, financial condition and results of operations would be adversely affected. As of September 30, 2024, we had more than 100 lending partners participating on our marketplace, and we continue to expand our lending partnerships to new participants. If we are unable to continue to increase the participation by other lending partners on our marketplace, we will continue to be reliant on a small number of lending partners for a significant portion of loan originations and revenue, which could harm our business.

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Our reputation and brand are important to our success, and if we are unable to continue developing our reputation and brand, our ability to retain existing and attract new lending partners, our ability to attract borrowers to our marketplace, our ability to maintain diverse and resilient loan funding and our ability to maintain and improve our relationship with regulators of our industry could be adversely affected.

We believe maintaining a strong brand and trustworthy reputation is critical to our success and our ability to attract borrowers to our marketplace, attract new lending partners, maintain diverse and resilient loan funding and sustain good relations with regulators. Factors that affect our brand and reputation include: perceptions of AI, our industry and our company, including the quality and reliability of our AI lending marketplace; the accuracy of our AI models; characterizations of our company as a traditional lending company due to the amount of loans held on our balance sheet; perceptions regarding the application of AI to consumer lending specifically and that algorithmic lending is inherently biased; perceptions of rate exportation and the bank partnership model; the reputation of the vehicle dealerships with which we partner; loan funding to our marketplace; changes to the Upstart marketplace; our ability to effectively manage and resolve borrower complaints; collection practices; privacy and security practices; litigation, such as class action and shareholder derivative lawsuits described in “Legal” section under “Note 12. Commitments and Contingencies”; regulatory activity; and the overall user experience of our marketplace. Negative publicity or negative public perception of these factors, even if inaccurate, could adversely affect our brand and reputation.

For example, consumer advocacy groups, state legislatures, politicians and certain government and media reports have advocated governmental action to prohibit or severely restrict consumer loan arrangements where banks contract with a third-party platform such as ours to provide origination assistance services to bank customers. These arrangements have sometimes been criticized as “renting-a-bank charter” or “rent-a-bank”. Such criticism has frequently been levied in the context of payday loan marketers, though other entities operating programs through which loans similar to Upstart-powered loans are originated have also faced criticism. The same groups, as well as state legislative bodies, are now challenging the right of state-chartered banks to export their rates to other states, which sometimes allows out-of-state banks to charge consumers higher rates than in-state lenders. While Iowa decided in the 1980’s to prevent rate exportation, a few states have more recently proposed legislation prohibiting out-of-state, state-chartered banks from lending at rates higher than the state usury limit or at rates set by the states’ licensed-lending laws, and at least one state has passed such legislation. For example, Colorado passed legislation to opt out of the federal law that allows out-of-state, state-chartered banks to export their rates to Colorado. While Colorado’s opt-out is currently enjoined from becoming effective, at least three additional states have followed Colorado and proposed legislation to end the rate exportation in their states allowed under federal law for out-of-state, state-chartered banks. The high-interest loans that have been subject to more frequent criticism and challenge are fundamentally different from Upstart-powered consumer loans in many ways, including that Upstart-powered loans typically have lower interest rates and longer terms, and Upstart-powered loans do not renew. In particular, interest rates of Upstart-powered loans have always been and are currently less than 36% APR, as compared to the triple-digit interest rates of many payday or small dollar loans that have been subject to such criticism. However, states that are addressing their rent-a-bank and rate exportation concerns through legislation may impact our marketplace if the state rate limit is below 36%. Where that happens, our state-chartered lending partners may need to scale back lending on our marketplace to comply with state laws or terminate their participation in our marketplace, leading to a reduction in origination volume. It could also negatively impact demand for Upstart-powered loans, our ability to attract new lending partners, our ability to attract loan funding to our marketplace or reduce the number of potential borrowers to our marketplace. Any of the foregoing could adversely affect our results of operations and financial condition.

Any negative publicity or public perception of Upstart-powered loans or other similar consumer loans or the consumer lending service we provide may also result in us being subject to more restrictive laws and regulations and potential investigations and enforcement actions. For example, some unfair or deceptive practices by vehicle dealerships can be attributed to us as a purchaser of retail installment contracts under the FTC Holder Rule, which allows a vehicle purchaser to bring any claim against the dealership to the holder of a retail installment contract. In addition, regulators may decide they are no longer supportive of our AI lending marketplace if there is enough negative perception surrounding such practices. We may also become subject to lawsuits, including class action lawsuits, or other challenges such as government enforcement or arbitration, against our lending partners or us for loans originated by our lending partners on our marketplace, loans we service or have serviced, loans we hold for
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sale or investment on our balance sheet, or retail installment contracts we have purchased. If there are changes in the laws or in the interpretation or enforcement of existing laws affecting consumer loans similar to those offered on our marketplace, or our marketing and servicing of such loans, or if we become subject to such lawsuits, our business, financial condition and results of operations would be adversely affected.

AI and related technologies are subject to public debate and heightened regulatory scrutiny. The Consumer Financial Protection Bureau (“CFPB”) recently indicated that AI remains a regulatory hot topic for the agency including the use of complex credit scoring models as part of the loan underwriting process. The agency has taken several steps to increase regulatory scrutiny of financial technology companies that rely on AI. In April 2023, the Federal Trade Commission (“FTC”), the Department of Justice (“DOJ”), the CFPB, and the Equal Employment Opportunity Commission (“EEOC”) released a joint statement on AI demonstrating their interest in monitoring the development and use of automated systems and enforcement of their respective laws and regulations, and in October 2023, President Biden signed an Executive Order aimed at protecting consumers against harms caused by AI. The Congressional Research Service released a report on April 3, 2024 on the use of AI and machine learning in financial services, noting that financial industry policymakers face competing pressures of providing beneficial technology and avoiding any consumer harm from such technology. In addition, recently, the SEC cautioned companies against “AI washing” and took enforcement actions against companies for their claims about the use of AI in their products and services. In June 2024, the Treasury Department also issued a request for information seeking public comments on the use of AI in the financial services sector and the opportunities and risks presented by developments and applications of AI within the sector. Any negative publicity or negative public perception of AI could negatively impact demand for our AI lending marketplace, hinder our ability to attract new lending partners or slow the rate at which lending partners adopt our AI lending marketplace. From time to time, certain advocacy groups have made claims that unlawful or unethical discriminatory effects may result from the use of AI technology by various companies, including ours. Such claims, whether or not accurate, and whether or not concerning us or our AI lending marketplace, may harm our ability to attract prospective borrowers to our marketplace, retain existing and attract new lending partners and achieve regulatory acceptance of our business.

In 2020, we entered into an agreement with the NAACP Legal Defense Education Fund (the “LDF”), and the Student Borrower Protection Center (the “SBPC”), to participate in fair lending reviews of our AI underwriting models by an independent third-party firm, Relman Colfax LLC (“Relman”). The fair lending testing was designed to determine if our AI underwriting models have caused or resulted in a disparate impact on any protected class, and if so, whether there are any alternative, less discriminatory practices without sacrificing the models’ predictiveness. In March 2024, following a number of quantitative assessments and prior reports, Relman published a final report that summarized developments during the monitorship as well as industry fair lending recommendations. The Relman final report marked the conclusion of our agreement with the LDF and the SBPC and the fair lending reviews by Relman. If the conclusion of the Relman monitorship or any of the final report’s findings are viewed negatively for any reason, our brand and reputation and the overall market acceptance of, and trust in, our AI lending marketplace could suffer, and we could be subject to increased regulatory and litigation risk. In addition, the publication of information arising from our agreement with the LDF and the SBPC, including the reports published by Relman, could lead to additional regulatory scrutiny for us or our lending partners.

We have been subject to other governmental inquiries on this topic. See the risk factor titled “—We have been in the past and may in the future be subject to federal and state regulatory inquiries regarding our business” for more information. The CFPB issued a final rule in June 2024 that will require us and other non-bank entities to report any public regulatory or court orders related to violations of consumer protection laws in a registry that will be available to the public, which can impact our public perception and reputation. Negative public perception, actions by advocacy groups or legislative and regulatory interest groups could lead to lobbying for and enactment of more restrictive laws and regulations that impact the use of AI technology in general, AI technology as applied to lending operations generally or as used in our applications more specifically. Any of the foregoing could negatively impact our business, financial condition and results of operations.
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Harm to our reputation can also arise from many other sources, including inaccurate or unfavorable statements made by securities analysts or others, failure by us or our lending partners to meet minimum standards of service and quality, loan underperformance, inadequate protection of borrower information and compliance failures and claims, and employee or former employee misconduct, misconduct by outsourced service providers or other counterparties, as further described below. If we are unable to protect our reputation, our business, financial condition and results of operations would be adversely affected.

Our business is subject to a wide range of laws and regulations, many of which are evolving, and failure or perceived failure to comply with such laws and regulations could harm our business, financial condition and results of operations.

The legal and regulatory environment surrounding our AI lending marketplace is relatively new, susceptible to change and may require clarification or interpretive guidance with respect to existing laws and regulations. The body of laws and regulations applicable to our business are complex and subject to varying interpretations, in many cases due to the lack of specificity regarding the application of AI and related technologies to the already highly regulated consumer lending industry. As a result, the application of such laws and regulations in practice may change or develop over time as more products are offered on our marketplace, and through judicial decisions or as new guidance or interpretations are provided by regulatory and governing bodies, such as federal, state and local administrative agencies.

New laws and regulations and changes to existing laws and regulations continue to be adopted, implemented and interpreted in response to our industry and the emergence of AI and related technologies. Recent financial, political and other events, including disruptions in the banking sector, may increase the level of regulatory scrutiny on financial technology companies. One state has gone so far as to pass an AI Act that requires certain companies using “high-risk” AI to disclose such use and how the algorithms work to consumers. As we expand our business into new markets, introduce new loan products and continue to improve and evolve our AI models, regulatory bodies or courts may claim that we are subject to additional requirements. Such regulatory bodies could reject our applications for licenses or deny renewals, delay or impede our ability to operate, charge us fees or levy fines or penalties, commence investigations or inquiries into our business practices, or otherwise disrupt our ability to operate our AI lending marketplace, any of which could adversely affect our business, financial condition and results of operations. For example, in February 2024, the CFPB published a decision and order in a supervisory designation proceeding against a non-bank installment lender that officially established the CFPB’s supervisory authority over such lenders due to the risk the non-bank lender posed to consumers. The CFPB opined that risk does not need to be based on a violation of law. If the CFPB decides to subject us to its supervisory process, it could significantly increase the level of regulatory scrutiny of our business practices.

Related to automotive lending, in January 2023, the CFPB and the New York Attorney General filed a complaint against an auto lender that criticized the profit-driven model in auto lending. The CFPB then entered into consent orders with several auto lenders as the year progressed, related to unfair or deceptive fees and servicing practices. In July 2024, the CFPB entered into a consent order with a large bank for unlawful repossession practices. In addition, in January 2024, the Federal Trade Commission issued the Combatting Auto Retail Scams (CARS) Trade Regulation Rule, the effectiveness of which has been delayed pending judicial review, to add truth and transparency to the car buying and leasing process by making it clear that certain deceptive or unfair practices are illegal. With regulators actively scrutinizing the auto lending space, we may be subject to heightened scrutiny of the retail installment contracts we purchase and service. In addition, the Biden Administration recently announced a government-wide effort to eliminate “junk fees” which could subject our business practices to even further scrutiny. While what constitutes a “junk fee” remains undefined, the category of what may be considered a junk fee is ever growing. The CFPB has called out certain ancillary products and pay-to-pay fees charged by debt collectors, and FTC issued a final rule on junk fees as unfair and deceptive fees. These efforts, in conjunction with the New York Junk Fee Prevention Act passed in February 2024, signal that the “junk fee” initiative is likely to continue to broaden in scope. We may be subject to scrutiny should the “junk fee” initiative expand to include fees directly associated with consumer lending products.

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Moreover, the CFPB has issued several interpretive statements and guidance documents that could impact our business practices including, but not limited to, a September 2023 circular on compliance obligations under the Equal Credit Opportunity Act (“ECOA”) for companies that rely on complex algorithms when making credit decisions and the fall 2023 statements on junk fees and, with the DOJ, on fair lending for non-citizens. More recently, the CFPB published a circular that criticized the use of boilerplate language in consumer agreements where such language would be unlawful if enforced against the particular consumer agreeing to the contract. The CFPB also issued an interpretive rule expanding states’ authority to enforce requirements of federal consumer financial laws, including the ECOA.

State regulators have also increased the level of regulatory scrutiny on financial technology companies and the bank partnership model. Massachusetts recently used its unfair, deceptive or abusive acts or practices (“UDAAP”) law to find that a fintech company that partnered with a federally insured, state-chartered bank to offer loans in the state was the “true lender” of the loans, and required the fintech company to permanently cease all business in Massachusetts. Increased scrutiny of bank partnership arrangements continues, as states codify laws to determine who is the true lender for certain loans with the goal of regulating either the non-bank partner or limiting the rate that can be charged and/or collected. Moreover, the OCC, FDIC, and the Board of Governors of the Federal Reserve System issued joint guidance indicating they intend to use their supervisory authority (i.e. exams) to review bank third-party relationships with financial technology companies including a review of third-party business practices that could pose a risk of potential consumer harm that could impact the safety and soundness of the banks subject to agency supervision. The agencies have also issued statements on the topic. Should the agencies examine or issue consent orders against any of our lending partners, such actions may involve a review of our business practices to determine whether they pose a risk to the safety and soundness of those lending partners.

While we have been proactively working with the federal government and regulatory bodies to ensure that our AI lending marketplace and other services are in compliance with applicable laws and regulations, we can provide no assurance that we will not be subject to any regulatory actions. For example, the CFPB issued Upstart the no-action letters, which provided that the CFPB would not take supervisory or enforcement action against Upstart for a violation of the ECOA. However, in June 2022, at our request, the no-action letter was terminated so that we can keep our models accurate and updated during a period of significant economic change. As a result, we can provide no assurance that the CFPB or any other federal or state regulator will not take supervisory or enforcement action against us in the future.

We have been subject to governmental inquiries as well. See the risk factor titled “—We have been in the past and may in the future be subject to federal and state regulatory inquiries regarding our business” for more information. Any government investigations or inquiries, whether or not accurate or warranted, or whether concerning us or one of our competitors, could negatively affect our brand and reputation and the overall market acceptance of and trust in our AI lending marketplace. Any of the foregoing could harm our business, financial condition and results of operations.

If we are unable to manage the risks related to our loan servicing and collections obligations, our business, financial condition and results of operations could be adversely affected.

Our success depends in part on our loan servicing and collection efforts. In the nine months ended September 30, 2024, 24% of our revenue from fees, net was generated from loan servicing fees. The vast majority of Upstart-powered loans are not secured by any collateral, guaranteed or insured by any third party or backed by any governmental authority. As a result, we are limited in our ability to collect on such loans on behalf of our lending partners and institutional investors if a borrower is unwilling or unable to repay them. Where the loan is secured by an automobile, we could still be limited in our ability to collect on the loan if we cannot secure the automobile. The ability to collect on the loans is largely dependent on the borrower’s continuing financial stability, and consequently, collections can be adversely affected by a number of factors, including, but not limited to, unemployment, divorce, death, illness, bankruptcy or the economic or social factors beyond personal circumstances of a borrower. In addition, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on these loans. It is possible that a higher percentage of consumers will seek protection under bankruptcy or debtor relief laws as a result of the current inflationary environment, the
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possibility of a recession and market volatility. Federal, state, or other restrictions could impair our ability to collect amounts owed and due on the loans facilitated through our marketplace, reduce income received from the loans facilitated through our marketplace, or negatively affect our business, financial condition and results of operations.

We began conducting first-party collection activities for our lending partners in the fourth quarter of 2022 for loans facilitated through our marketplace. We have no prior experience conducting first-party or in-house collection activities, and we cannot be certain that we will be able to effectively manage risks associated with such activities. In addition to first-party collection activities, we partner with third-party collection agencies for loans we service for our lending partners. If such third-party collection agencies do not perform as expected under our agreements with them or if we or these collection agents act unprofessionally and otherwise harm the user experience for borrowers of Upstart-powered loans, our brand and reputation could be harmed and our ability to attract potential borrowers to our marketplace could be negatively impacted. For example, during periods of increased delinquencies caused by economic downturns or otherwise, it is important that we and the collection agents are proactive and consistent in contacting a borrower to bring a delinquent balance current and ultimately avoid the related loan becoming charged off. If we or the collection agents are unable to maintain a high quality of service, or fulfill the servicing obligations at all due to resource constraints, it could result in increased delinquencies and charge-offs on the loans, which could decrease fees payable to us, cause our lending partners to decrease the volume of Upstart-powered loans kept on their balance sheets, erode trust in our lending marketplace or increase the costs of loan funding for our marketplace. If we fail to successfully address any of the foregoing risks associated with our collection activities, our business, financial condition and results of operations could be adversely affected.

We are the loan servicer for most loans facilitated through our marketplace, including the loans that are sold as part of whole loan sales, contributed to asset-backed securitizations and pass-through certificate transactions, and pledged in connection with warehouse credit facilities. Loan servicing is a highly manual process and an intensely regulated activity. Errors in our servicing activities, including payment collection and charge-off processes, or failures to comply with our servicing obligations, have in the past and could in the future affect our internal and external reporting of the loans that we service, adversely affect our business and reputation and expose us to liability to borrowers, lending partners or institutional investors. In addition, we charge our loan holders a fixed percentage servicing fee based on the outstanding balance of loans serviced. If we fail to efficiently service or collect on such loans and the costs incurred exceed the servicing fee charged, our results of operations would be adversely affected. Moreover, the laws and regulations governing these activities, including licensing obligations and requirements, are subject to change. For institutional investors that are statutory trusts, there is now additional risk based on a court decision in the United States Court of Appeals for the Third Circuit, where the CFPB recently obtained a favorable decision that it has enforcement authority over these trusts when the trusts engage in providing financial products or services, such as collecting on delinquent debts. Overall, if we are unable to comply with such laws and regulations governing servicing activities, we could lose one or more of our licenses or authorizations, become subject to greater scrutiny by regulatory agencies or become subject to sanctions or litigation, which may have an adverse effect on our ability to perform our servicing obligations or make our marketplace available to borrowers in particular states. Any of the foregoing could adversely affect our business, financial condition and results of operations.

While auto loans issued through our lending marketplace are secured by collateral, auto loans are inherently risky, as they are often secured by assets that may be difficult to locate and can depreciate rapidly. We generally begin the repossession process for auto loans that become 60 days past due. We have engaged a third-party auto repossession vendor to handle all repossession activity. Following a repossession, if a borrower fails to redeem their vehicle or reinstate their loan agreement, the repossessed vehicle is sold at an auction and the proceeds are applied to the unpaid balance of the loan and related expenses. If the proceeds do not cover the unpaid balance of the loan and any related expenses and we are unable to recover the deficiency balance from the borrower, where permitted, the deficiency would be charged-off. Further, if a vehicle cannot be located, repossession and sale of the vehicle would not be possible and the outstanding loan balance may not be recovered. A significant number of delinquencies and charge-offs could decrease fees collectable by us, cause our lending partners to reduce loan originations, erode trust in our lending marketplace and increase the costs of loan funding for our marketplace.
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Additionally, if such repossession vendors do not perform consistent with agreements entered into with us, or if vendors act unprofessionally or otherwise harm the user experience for borrowers of Upstart-powered loans, our brand and reputation could be harmed and our ability to attract potential borrowers to our marketplace could be negatively impacted. We may also become subject to regulatory scrutiny and potential litigation based on the conduct of our repossession vendors.

Substantially all of our revenue is derived from a single loan product, and we are thus particularly susceptible to fluctuations in the unsecured personal loan market.

The vast majority of loan originations currently facilitated through our marketplace are unsecured personal loans. While the market for unsecured personal loans has grown rapidly in recent years, it is unclear to what extent such market will continue to grow, if at all. A wide variety of factors could impact the market for unsecured personal loans, including macroeconomic conditions, competition, regulatory developments and other developments in the credit market. Our success will depend in part on the continued growth of the unsecured personal loan market, and if such market does not further grow or grows more slowly than we expect, our business, financial condition and results of operations could be adversely affected.

In addition, lending partners and institutional investors may find it desirable to partner with competitors that are able to offer them a broader array of credit products than we do. In order to preserve and expand our relationships with our existing lending partners and institutional investors, and enter into new lending partnerships and arrangements with institutional investors, it may become important for us to be able to offer a wider variety of products than we currently provide. We are also susceptible to competitors that may intentionally underprice their loan products, even if such pricing practices lead to losses. Such practices by competitors would negatively affect the overall demand for loans facilitated through our marketplace.

Further, because such personal loans are unsecured, there is a risk that borrowers will not prioritize repayment of such loans, particularly in any economic down-cycle. To the extent borrowers have or incur other indebtedness that is secured, such as a mortgage, a home equity line of credit or an auto loan, borrowers may choose to repay obligations under such secured indebtedness before repaying their Upstart-powered personal loans. In addition, borrowers may not view Upstart-powered loans, which were originated through an online lending marketplace, as having the same significance as other credit obligations arising under more traditional circumstances, such as loans from banks or other commercial financial institutions. Any of the foregoing could lead to higher default rates and decreased demand by our lending partners and institutional investors to fund loans facilitated through our marketplace, which would adversely affect our business, financial condition and results of operations.

We are also more susceptible to the risks of changing and increased regulations and other legal and regulatory actions targeted towards the unsecured personal loan market. It is possible that regulators may view unsecured personal loans as high risk for a variety of reasons, including that borrowers will not prioritize repayment of such loans due to the unsecured nature of such loans or because existing laws and regulations may not sufficiently address the benefits and corresponding risks related to financial technology as applied to consumer lending. If we are unable to manage the risks associated with the unsecured personal loan product, our business, financial condition and results of operations could be adversely affected.

The sales and onboarding process of new lending partners could take longer than expected, leading to fluctuations or variability in expected revenues and results of operations.

Our sales and onboarding process with new lending partners can be long, vary widely and generally takes approximately two to twelve months. As a result, revenues and results of operations may vary significantly from period to period. Prospective lending partners are often cautious in making decisions to implement our platform and related services because of the risk management alignment and regulatory uncertainties related to their use of our AI models, including their oversight, model governance and fair lending compliance obligations associated with using such models. In addition, prospective lending partners undertake an extensive diligence review of our platform,
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compliance and servicing activities before choosing to partner with us. Further, the implementation of our AI lending models often involve shifts by the lending partner to a new software platform or changes in their operational procedures, which may involve significant time and expense to implement. Delays in onboarding new lending partners can also arise while prospective lending partners complete their internal procedures to approve expenditures and test and accept our applications. Consequently, we face difficulty predicting the quarter in which new lending partners will begin using our platform and the volume of fees we will receive, which can lead to fluctuations in our revenues and results of operations.

We are continuing to introduce and develop new loan products and services offerings, and if these products are not successful or we are unable to manage the related risks, our growth prospects, business, financial condition and results of operations could be adversely affected.

We have introduced auto loan, small dollar loan, and home equity lines of credit products and are continuing to invest in developing these products and other new loan products and service offerings. New initiatives are inherently risky, as each involves unproven business strategies, new regulatory requirements and new financial products and services with which we, and in some cases our lending partners, have limited or no prior development or operating experience.

We cannot be sure that we will be able to develop, commercially market and achieve market acceptance of any new products and services. In addition, our investment of resources to develop new products and services may either be insufficient or result in expenses that are excessive in light of revenue actually derived from these new products and services. It is also possible that such investment of resources may need to be delayed or deferred, as was the case with respect to the small business loan product when we decided to suspend its development in January 2023 due to the adverse macroeconomic conditions affecting our business at that time. We may also have difficulty with securing adequate loan funding, either from lending partners or from institutional investors, for new loan products and services, and if we are unable to do so, our ability to develop and grow these new offerings and services will be impaired. If the profile of borrowers using any new products and services is different from that of those currently served by the existing loan products offered on our marketplace, our AI models may not be able to accurately evaluate the credit risk of such borrowers, and we may not be able to obtain loan funding for new products and services on commercially reasonable terms, or at all. Moreover, it is possible that a new product in its development stage has a higher level of delinquencies or defaults than a more established product as our AI models calibrate to a potentially different set of data. Failure to accurately predict demand or growth with respect to our new products and services could have an adverse impact on our reputation and business, and there is always risk that new products and services will be unprofitable, will increase our costs, decrease operating margins or take longer than anticipated to achieve target margins. In addition, any new products or services may raise new and potentially complex regulatory compliance obligations, which would increase our costs and may cause us to change our business in unexpected ways. Further, our development efforts with respect to these initiatives could distract management from current operations and will divert capital and other resources from our existing business. If we are unable to effectively manage the foregoing risks, our growth prospects, business, financial condition and results of operations could be adversely affected.

Misconduct and errors by our employees, former employees, vendors, or service providers could harm our reputation and subject us to significant legal liability.

We operate in an industry in which integrity and the confidence of our borrowers and lending partners is of critical importance. Our business depends on our employees, vendors, and service providers to process a large number of increasingly complex transactions, including transactions that involve significant dollar amounts and loan transactions that involve the use and disclosure of personal and business information. We are thus exposed to the risk of misconduct and errors by our employees, vendors, and other service providers that could adversely affect our business, including employees, vendors, or service providers taking, converting, or misusing funds, documents, or data, or failing to follow applicable laws and regulations or our internal policies or protocol when interacting with consumers and borrowers. It is not always possible to identify and deter misconduct or errors by employees, vendors, or service providers, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses. There have been numerous highly-publicized cases of fraud and
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other misconduct by financial services industry employees. We have experienced employee misconduct and may continue to do so in the future. Depending on the severity, any illegal, improper, or suspicious activity or other misconduct by our employees, vendors or service providers could result in serious harm to our reputation, financial condition, relationships with lending partners and borrowers, and our ability to attract new lending partners or borrowers. We could also be perceived to have facilitated or participated in the illegal misappropriation of funds, documents, or data, or the failure to follow protocol, and therefore be subject to civil or criminal liability. Any of these occurrences could result in our diminished ability to operate our business, inability to attract future borrowers or lending partners, reputational damage, regulatory intervention, and financial harm, which could negatively impact our business, results of operations, financial condition, and future prospects.

If we do not compete effectively in our target markets, our business, results of operations and financial condition could be harmed.

The consumer lending market is highly competitive and increasingly dynamic as emerging technologies continue to enter the marketplace. With the introduction of new technologies and the influx of new entrants, competition may persist and intensify in the future, which could have an adverse effect on our operations or business.

Our inability to compete effectively could result in reduced loan volumes, reduced average size of loans facilitated on our marketplace, reduced fees, increased marketing and borrower acquisition costs or the failure of the Upstart marketplace to achieve or maintain more widespread market acceptance, any of which could have an adverse effect on our business and results of operations.

Consumer lending is a vast and competitive market, and we compete to varying degrees with all other sources of unsecured consumer credit. This can include banks, non-bank lenders including retail-based lenders and other financial technology lending platforms. Because personal loans often serve as a replacement for credit cards, we also compete with the convenience and ubiquity that credit cards represent. Many of our competitors operate with different business models, such as lending-as-a-service, have different funding sources, have different cost structures or regulatory obligations, or participate selectively in different market segments. They may ultimately prove more successful or more adaptable to new regulatory, economic, technological and other developments, including utilizing new data sources or credit models. We may also face competition from banks or companies that have not previously competed in the consumer lending market, including companies with access to vast amounts of consumer-related information that could be used in the development of their own credit risk models. Our current or potential competitors may be better at developing new products due to their large and experienced data science and engineering teams, who are able to respond more quickly to new technologies. Many of our current or potential competitors have significantly more resources, such as financial, technical and marketing resources, than we do and may be able to devote greater resources to the development, promotion, sale and support of their platforms and distribution channels.

We face competition in areas such as compliance capabilities, commercial financing terms and costs of capital, interest rates and fees (and other financing terms) available to consumers from our lending partners, approval rates, model efficiency, speed and simplicity of loan origination, ease-of-use, marketing expertise, service levels, products and services, technological capabilities and integration, borrower experience, brand and reputation, and terms available to our loan funding institutional investor base. Our competitors may also have longer operating histories, lower commercial financing costs or costs of capital, more extensive borrower bases, more diversified products and borrower bases, operational efficiencies, more versatile or extensive technology platforms, greater brand recognition and brand loyalty, broader borrower and partner relationships, more extensive and/or more diversified loan funding institutional investor bases than we have, greater capacity to fund loans through their balance sheets, and more extensive product and service offerings than we have. Furthermore, our existing and potential competitors may decide to modify their pricing and business models to compete more directly with us. Our ability to compete will also be affected by our ability to provide our lending partners with a commensurate or more extensive suite of loan products than those offered by our competitors. In addition, current or potential competitors, including financial technology lending platforms and existing or potential lending partners, may also acquire or form strategic alliances with one another, which could result in our competitors being able to offer more competitive loan
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terms due to their access to lower-cost capital. Such acquisitions or strategic alliances among our competitors or potential competitors could also make our competitors more adaptable to a rapidly evolving regulatory environment. To stay competitive, we may need to increase our regulatory compliance expenditures or our ability to compete may be adversely affected.

Our industry is driven by constant innovation. We utilize AI and machine learning, which is characterized by extensive research efforts and rapid technological progress. If we fail to anticipate or respond adequately to technological developments, our ability to operate profitably could suffer. There can be no assurance that research, data accumulation and development by other companies will not result in AI models that are superior to our AI models or result in products superior to those we develop or that any technologies, products or services we develop will be preferred to any existing or newly-developed technologies, products or services. If we are unable to compete with such companies or fail to meet the need for innovation in our industry, the use of our technology could stagnate or substantially decline, or our AI lending marketplace could fail to maintain or achieve more widespread market acceptance, which could harm our business, results of operations and financial condition.

Our business is heavily concentrated in U.S. consumer credit, and therefore our results are more susceptible to fluctuations in that market than a more diversified company.

Our business is heavily concentrated in U.S. consumer credit. As a result, we are more susceptible to fluctuations and risks particular to U.S. consumer credit than a more diversified company. For example, our business is particularly sensitive to macroeconomic conditions that affect the U.S. economy and consumer spending and consumer credit, such as rising interest rates and changes in monetary policy. We are also more susceptible to the risks of increased regulations and legal and other regulatory actions that are targeted at consumer credit. Our business concentration could have a material adverse effect on our business, results of operations, financial condition, and future prospects.

If we are unable to manage the risks associated with fraudulent activity, our brand and reputation, business, financial condition and results of operations could be adversely affected.

Fraud is prevalent in the financial services industry and is likely to increase as perpetrators become more sophisticated. We are subject to the risk of fraudulent activity associated with borrowers and third parties handling borrower information and, in limited situations, we cover certain fraud losses of our lending partners and institutional investors. For example, in the third quarter of 2021 and the first quarter of 2022, we experienced temporary increases in fraudulent activity. Fraud rates could also increase in a down-cycle economy. We have experienced employee misconduct in the past and continue to be subject to risk of fraudulent activity associated with our own employees. We use several identity and fraud detection tools, including tools provided by third-party vendors and our proprietary AI models, to predict and otherwise validate or authenticate applicant-reported data and data derived from third-party sources. If such efforts are insufficient to accurately detect and prevent fraud, the level of fraud-related losses of Upstart-powered loans could increase, which would decrease confidence in our AI lending marketplace. It is also possible that fraud perpetrators target our marketplace because of the high degree of automation in our credit decision process where borrowers can be approved instantly. In addition, our lending partners, institutional investors or we may not be able to recover amounts disbursed on loans made in connection with inaccurate statements, omissions of fact or fraud, which could erode the trust in our brand and negatively impact our ability to attract new lending partners and institutional investors to our marketplace.

High profile fraudulent activity also could negatively impact our brand and reputation. In addition, significant increases in fraudulent activity could lead to regulatory intervention, which could increase our costs and also negatively impact our brand and reputation. Further, if there is any increase in fraudulent activity that increases the need for human intervention in screening loan application data, the level of automation on our platform could decline and negatively affect our unit economics. If we are unable to manage these risks, our business, financial condition and results of operations could be adversely affected.

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We depend on our key personnel and other highly skilled personnel, and if we fail to attract, retain and motivate our personnel, our business, financial condition and results of operations could be adversely affected.

Our success significantly depends on the continued service of our senior management team and other highly skilled personnel. Our success also depends on our ability to identify, hire, develop, motivate and retain highly qualified personnel for all areas of our organization.

Competition is high for skilled personnel, including engineering and data analytics personnel, particularly in the San Francisco Bay Area where one of our headquarters is located. While we have transitioned to a Digital First work model which allows us to recruit nationwide, we have experienced, and expect to continue to face, some difficulty identifying and hiring qualified personnel, especially as we pursue our growth strategy. We may not be able to hire or retain such personnel at compensation or flexibility levels consistent with our existing compensation and salary structure and policies. We periodically review our compensation levels to ensure they remain competitive and have increased them when we believe market conditions warrant it. However, we may need to further increase our existing compensation levels in response to competition, rising inflation or labor shortages, which would increase our operating costs and reduce our margins. Many of the companies with which we compete for experienced employees have greater resources than we have and may be able to offer more attractive terms of employment. In particular, candidates making employment decisions, specifically in high-technology industries, often consider the value of any equity they may receive in connection with their employment. The recent significant volatility in the price of our stock may have adversely contributed to, and in the future may affect, our ability to attract or retain highly skilled technical, financial and marketing personnel.

In addition, we invest significant time and expense in training our employees, which increases their value to competitors who may seek to recruit them. If we fail to retain our employees, we could incur significant expenses in hiring and training their replacements. While we are in the process of training their replacements, the quality of our services and our ability to serve our lending partners, institutional investors and borrowers whose loans we service may suffer, resulting in an adverse effect on our business.

Furthermore, we have reduced our workforce in the past and may further reduce our workforce in the future to lower our operating costs and streamline operations. These reductions in our workforce may adversely affect employee morale, our culture and our ability to attract and retain personnel who are critical to our business. It may also negatively impact our ability to pursue new initiatives due to insufficient resources and personnel. We may be unsuccessful in distributing duties and obligations of impacted employees among the remaining employees. We also may not realize the anticipated benefits and cost savings and may suffer unintended consequences, such as the loss of institutional knowledge, higher than expected employee turnover and significant disruptions in our day-to-day operations. If we are unable to realize the expected operational efficiencies or cost savings from the reductions in our workforce, or if we experience significant adverse consequences as a result, our business, financial condition and results of operations may be adversely affected.

If we fail to effectively manage the fluctuations in our business, our business, financial condition and results of operations could be adversely affected.

Our growth in the past placed significant demands on our management, processes and operational, technological and financial resources. Economic headwinds in recent years led to us announcing reductions in our workforce which were intended to help us achieve a more cost-efficient organization. These fluctuations in the momentum of our business challenge our ability to manage our growth effectively and to integrate new employees and technologies into our existing business. Our success as a business continues to require us to retain, attract, train, motivate and manage employees and invest strategically to refine our operational, technological and financial infrastructure. See also the risk factor titled “—We depend on our key personnel and other highly skilled personnel, and if we fail to attract, retain and motivate our personnel, our business, financial condition and results of operations could be adversely affected.” As part of that effort and from time to time, we rely on temporary independent contractor programs to scale our operations team. Failure to effectively implement and manage such programs could result in misclassification or other employment related claims or inquiries by governmental
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agencies. Continued fluctuations in the momentum of our business will strain our ability to develop and improve our operational policies and procedures, AI models and technology, disclosure controls and procedures, internal control over financial reporting, management oversight, loan funding and relationships with borrowers, lending partners and institutional investors. For example, there are certain aspects of our information technology and our operations, such as servicing activities, that have required, and still require, manual processes which are prone to errors and that we have not yet fully automated with new technologies. Some of the foregoing factors, like the manual processes, have negatively affected, and could continue to negatively affect, our business, financial condition and results of operations.

Security breaches, improper access to our or borrowers’ data, or other security incidents may harm our reputation, adversely affect our results of operations and expose us to liability.

We are increasingly dependent on information systems, services and infrastructure to operate our business. In the ordinary course of our business, we collect, process, transmit and store large amounts of sensitive information, including personal information, credit information and other sensitive data of borrowers and potential borrowers. It is critical that we do so in a manner designed to maintain the confidentiality, integrity and availability of such sensitive information. We also have arrangements in place with certain of our third-party vendors that require us to share consumer information. We have outsourced elements of our operations (including elements of our information technology infrastructure) to third parties, and as a result, we manage a number of third-party vendors who may have access to our computer networks and sensitive or confidential information. In addition, many of those third parties may in turn subcontract or outsource some of their responsibilities to other third parties. As a result, our information technology systems, including the functions of third parties that are involved or have access to those systems, are large and complex, with many points of entry and access.

While all information technology operations are inherently vulnerable to inadvertent or intentional security breaches, incidents, attacks and exposures, the size, complexity, accessibility and distributed nature of our information technology systems, and the large amounts of sensitive information stored on those systems, make such systems potentially vulnerable to unintentional or malicious, internal and external attacks. Any vulnerabilities can be exploited from inadvertent or intentional actions of our employees, third-party vendors, lending partners, institutional investors, or by malicious threat actors. While we continuously mature our security controls to address the evolving threat landscape, such measures will not provide absolute security, and we cannot assure you that our remediation efforts will be successful. Cybersecurity attacks are increasing in their frequency, levels of persistence, sophistication and intensity, and are being conducted by sophisticated and organized groups and individuals with a wide range of motives (including, but not limited to, industrial espionage) and expertise, including organized criminal groups, “hacktivists,” nation states and others. These risks may be heightened in connection with geopolitical conflicts. In addition to the extraction of sensitive information, cyber attacks could result in compromising the integrity or availability of our information systems, products and services or infrastructure to operate our business and the confidentiality of our and borrowers’ data. Such attacks could include the deployment of harmful malware, ransomware, denial-of-service attacks, social engineering and other means. The prevalent use of mobile devices increases the risk of data security incidents. Further, our Digital First working environment could increase the risks of security breaches and incidents as more of our employees are accessing our services and infrastructure remotely, reducing physical and social security controls on employee monitoring.

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We also face indirect technology, cybersecurity and operational risks relating to the borrowers, lending partners, institutional investors, vendors and other third parties with whom we do business or upon whom we rely on to facilitate or enable our business activities. Security breaches and attacks on our information systems and infrastructure, those of our business partners, including third-party vendors, lending partners and dealerships, or those of other third parties that our business rely on to operate our business may cause interruptions to the services we provide, degrade the user experience of our products and services, cause our customers, borrowers or business partners to lose confidence and trust in us, or harm our transaction volume, revenue or future growth prospects. Significant disruptions to information technology systems or other security incidents within our company, our lending partners and dealerships, or third parties that we or they do business with could adversely affect our business operations and result in the loss, misappropriation, or unauthorized access, use or disclosure of, or the prevention of access to, sensitive information, which could result in financial, legal, regulatory, business and reputational harm to us. When security breaches, incidents or attacks impact information systems of third parties, we may not always have control over security measures or responses to such events. For example, a recent cyber attack on CDK Global, a third-party vendor that provides customer relationship management and deal management services solutions to dealerships, temporarily disrupted dealership operations nationwide. While we promptly implemented workaround solutions to support our dealer partners and thus the business impact to our company was minimal, the dealers were impacted in their ability to make sales and provide auto loans. Our use of AI technology may create additional cybersecurity risks or increase cybersecurity risks, including risks of security breaches and incidents. Further, AI technology may be used in connection with certain types of cybersecurity attacks, resulting in heightened risks of security breaches and incidents.

Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until they are launched against a target, we, our business partners or any third parties that we rely on to operate our business may be unable to anticipate these techniques or to implement adequate preventative measures. In addition, many governments have enacted laws requiring companies to notify individuals of data security breaches involving their personal data. These mandatory disclosures regarding a security breach are costly to implement and often lead to widespread negative publicity following a breach, which may cause borrowers and potential borrowers to lose confidence in the effectiveness of our security measures for our products and enterprise. Any security breach or incident, whether actual or perceived, would harm our reputation and ability to attract new borrowers to our marketplace.

In addition, any security compromise in our industry or industries that we rely on to conduct our business, whether actual or perceived, or information technology system disruptions, whether from attacks on our technology environment or from computer malware, natural disasters, terrorism, war, geopolitical conflicts, or telecommunication or electrical failures, could interrupt our business or operations, harm our reputation, erode borrower confidence, negatively affect our ability to attract new borrowers, or subject us to third-party lawsuits, regulatory fines or other action or liability, which could adversely affect our business and results of operations.

Like other financial and technology services firms, we have been and continue to be the subject of actual or attempted unauthorized access, mishandling or misuse of information, computer viruses or malware, and cyber-attacks that could obtain confidential information, destroy data, disrupt or degrade service, sabotage systems or cause other damage, distributed denial of service attacks, data breaches and other infiltration, exfiltration or other similar events.

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While we regularly monitor activity inside and outside the company, attackers have become very sophisticated in their tactics and techniques, and we may not be aware that we have been attacked. Any event that leads to unauthorized access, use or disclosure of personal information or other sensitive information that we or our vendors maintain, including our own proprietary business information and sensitive information such as personal information regarding borrowers, loan applicants or employees, could disrupt our business, harm our reputation, compel us to comply with applicable federal and/or state breach notification laws and foreign law equivalents, subject us to time consuming, distracting and expensive litigation, regulatory investigation and oversight, mandatory corrective action, require us to verify the correctness of data, or otherwise subject us to liability under laws, regulations and contractual obligations, including those that protect the privacy and security of personal information. This could result in increased costs to us and result in significant legal and financial exposure and/or reputational harm. In addition, any failure or perceived failure by us or our vendors to comply with our privacy, confidentiality or data security-related legal or other obligations to our lending partners or other third parties, actual or perceived security breaches, or any security incidents or other events that result in the unauthorized access, release or transfer of sensitive information, which could include personally identifiable information, may result in governmental investigations, enforcement actions, regulatory fines, litigation, or public statements against us by advocacy groups or others, and could cause our lending partners and other third parties to lose trust in us or we could be subject to claims by our lending partners and other third parties that we have breached our privacy- or confidentiality-related obligations, which could harm our business and prospects.

Moreover, security incidents and other inappropriate access can be difficult to detect, and any delay in identifying them may lead to increased harm of the type described above. There can be no assurance that our security measures intended to protect our services and infrastructure will successfully prevent service interruptions or security incidents. For example, in April 2020, we were made aware of a software error which allowed access to certain consumers’ accounts through the Upstart website without providing such consumers’ passwords. As a result, certain of such consumers’ personal information, such as their name, address and job information (but not full social security information), could have been accessed by a third party. We promptly deployed an update to our software to address such vulnerability and conducted an internal investigation. We are not aware of any information being compromised as a result of this error. We cannot provide any assurance that similar vulnerabilities will not arise in the future as we continue to expand the features and functionalities of our platform and introduce new loan products on our platform, and we expect to continue investing substantially to protect against security vulnerabilities and incidents.

We maintain errors, omissions, and cyber liability insurance policies covering certain security and privacy damages. However, we cannot be certain that our coverage will continue to be available on economically reasonable terms or will be available in sufficient amounts to cover one or more large claims, or that an insurer will not deny coverage as to any future claim, or that any insurer will be adequately covered by reinsurance or other risk mitigants or that any insurer will offer to renew policies at an affordable rate or offer such coverage at all in the future. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have an adverse effect on our business, financial condition and results of operations.
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Our proprietary AI models rely in part on the use of loan applicant and borrower data and other third-party data, and if we lose the ability to use such data, or if such data contain inaccuracies, our business could be adversely affected.

We rely on our proprietary AI models, which are statistical models built using a variety of data-sets. Our AI models rely on a wide variety of data sources, including data collected from applicants and borrowers, credit bureau data, and our credit experience gained through monitoring the payment performance of borrowers over time. The CFPB recently issued a final rule on “open banking” and protection of personal financial data rights that would give consumers certain rights in deciding how companies like us can use and transfer their personal financial data, and also proposed additional restrictions and requirements on companies that use such data. If we are unable to access and use data collected from applicants and borrowers, data received from credit bureaus, repayment data collected as part of our loan servicing activities, or any other data for our AI models, or our access to such data is limited, our ability to accurately evaluate potential borrowers, detect fraud and verify applicant data would be compromised. Any of the foregoing could negatively impact the accuracy of our pricing decisions, the degree of automation in our loan application process and the volume of loans facilitated on our marketplace. In addition, if we were required to share all of the unique data we collect from applicants and borrowers with third parties, that could lessen Upstart’s competitive advantage.

Third-party data sources on which we rely include the consumer reporting agencies regulated by the CFPB and other alternative data sources. Such data is electronically obtained from third parties and used, for example, in our AI models to price applicants and in our fraud models to verify the accuracy of applicant-reported information. Data from national credit bureaus and other consumer reporting agencies, as well as other information that we receive from third parties about an applicant or borrower, may be inaccurate or may not accurately reflect the applicant or borrower’s creditworthiness for a variety of reasons, including inaccurate reporting by creditors to the credit bureaus, errors, staleness or incompleteness. Loan applicants’ credit scores may not reflect such applicants’ actual creditworthiness because the credit scores or data underlying those credit scores may be outdated, incomplete or inaccurate. Although regulatory protections, such as ECOA and the Fair Credit Reporting Act, are in place to afford consumers the right to dispute inaccuracies and despite the fact that we use numerous third-party data sources and multiple credit factors within our proprietary models, which helps mitigate this risk, it does not eliminate the risk of an inaccurate individual report.

Further, although we attempt to verify the income, employment and education information provided by certain selected applicants, we cannot guarantee the accuracy of applicant information. Our fraud models rely in part on data we receive from a number of third-party verification vendors, data collected from applicants, and our experience gained through monitoring the performance of borrowers over time. Information provided by borrowers may be incomplete, inaccurate or intentionally false. Applicants may also misrepresent their intentions for the use of loan proceeds. We do not verify or confirm any statements by applicants as to how loan proceeds are to be used after loan funding. If an applicant supplied false, misleading or inaccurate information and our fraud detection processes do not flag the application, repayments on the corresponding loan may be lower, in some cases significantly lower, than expected, leading to losses for the lending partner or institutional investor.

In addition, if any data used to train and improve our AI models is inaccurate or otherwise unreliable, or access to third-party data is limited or becomes unavailable to us, our ability to continue to improve our AI models would be adversely affected. Any of the foregoing could result in sub-optimally and inefficiently priced loans, incorrect approvals or denials of loans, or higher than expected loan losses, which in turn could adversely affect our ability to attract new borrowers, lending partners and institutional investors to our marketplace or increase the number of Upstart-powered loans and adversely affect our business, financial condition and results of operations.

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In connection with asset-backed securitizations, pass-through certificate transactions, warehouse credit facilities and whole loan sales, we make representations and warranties concerning the loans transferred, and if such representations and warranties are not accurate when made, we could be required to repurchase the applicable loans.

In our asset-backed securitizations, pass-through certificate transactions, warehouse credit facilities, whole loan sale arrangements and other commercial transactions, we make numerous representations and warranties concerning the characteristics of the Upstart-powered loans sold and transferred in connection with such transactions, including representations and warranties that the loans meet the eligibility requirements of those facilities and of institutional investors. If those representations and warranties were not accurate when made and are not timely cured or incurable, we may be required to repurchase the underlying loans. Failure to repurchase such loans could constitute a default, an event of default or termination event under the agreements governing our various arrangements or transactions and could require us to indemnify certain financing parties. Through September 30, 2024, the number of repurchased Upstart-powered loans as a result of inaccurate representations and warranties represents less than 1% of all Upstart-powered loans. While only a small number of Upstart-powered loans have been historically repurchased by us, there can be no assurance that we would have adequate cash or other qualifying assets available to make such repurchases if and when required. Such repurchases could be limited in scope, relating to small pools of loans, or significant in scope, across multiple pools of loans. If we were required to make such repurchases and if we do not have adequate liquidity to fund such repurchases, our business, financial condition and results of operations could be adversely affected. In addition, a high volume of repurchases due to a breach of such representations and warranties could have an adverse impact on our reputation as a loan seller and servicer.

Borrowers may prepay a loan at any time without penalty, which could reduce our servicing fees and deter our lending partners and institutional investors from investing in loans facilitated through our lending marketplace.

A borrower may decide to prepay all or a portion of the remaining principal amount on a loan at any time without penalty. If the entire or a significant portion of the remaining unpaid principal amount of a loan is prepaid, we would not receive a servicing fee, or we would receive a significantly lower servicing fee associated with such prepaid loan. Prepayments may occur for a variety of reasons, including if interest rates decrease after a loan is made. If a significant volume of prepayments occurs, the amount of our servicing fees would decline, which could harm our business and results of operations. Our AI models are designed to predict prepayment rates. However, if a significant volume of prepayments occur that our AI models do not accurately predict, returns targeted by our lending partners and institutional investors would be adversely affected and our ability to attract new lending partners and institutional investors would be negatively affected.

Our marketing efforts and brand promotion activities may not be effective.

Promoting awareness of our AI lending marketplace is important to our ability to grow our business, attract new lending partners, increase the number of potential borrowers on our marketplace and attract institutional investors to our marketplace. We believe that the importance of brand recognition will increase as competition in the consumer lending industry expands. However, because our lending partners are increasingly adopting our lending partner-branded version of our AI lending marketplace through their own websites, potential borrowers may not be aware they are experiencing our AI lending marketplace, which may hinder recognition of our brand. Successful promotion of our brand will depend largely on the effectiveness of marketing efforts and the overall user experience of our lending partners and potential borrowers on the Upstart marketplace, which factors are outside our control. The marketing channels that we employ may also become more crowded and saturated by other lending platforms, which may decrease the effectiveness of our marketing campaigns and increase borrower acquisition costs. Also, the methodologies, policies and regulations applicable to marketing channels may change. For example, internet search engines could revise their methodologies, which could adversely affect borrower volume from organic ranking and paid search. Search engines may also implement policies that restrict the ability of companies such as us to advertise their services and products, which could prevent us from appearing in a favorable location or any location in the organic rankings or paid search results when certain search terms are used by the consumer.

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Our brand promotion activities may not yield increased revenues. If we fail to successfully build trust in our AI lending marketplace and the performance and predictability of Upstart-powered loans, we may lose existing lending partners and institutional investors to our competitors or be unable to attract new lending partners and institutional investors, which in turn would harm our business, results of operations and financial condition. Even if our marketing efforts result in increased revenue, we may be unable to recover our marketing costs through increases in loan volume, which could result in a higher borrower acquisition cost per account. Any incremental increases in loan servicing costs, such as increases due to greater marketing expenditures, could have an adverse effect on our business, financial condition and results of operations.

Unfavorable outcomes in legal proceedings may harm our business and results of operations.

We are, and may in the future become, subject to litigation, claims, examinations, investigations, enforcement actions, legal and administrative cases and proceedings, whether civil or criminal, or lawsuits by governmental agencies or private parties, which may affect our results of operations. These claims, lawsuits, and proceedings could involve, and in some cases have involved, labor and employment, discrimination and harassment, commercial disputes, intellectual property rights (including patent, trademark, copyright, trade secret, and other proprietary rights), class actions, general contract, tort, defamation, data privacy rights, antitrust, common law fraud, government regulation, or compliance, alleged federal and state securities and “blue sky” law violations or other investor claims, and other matters. For example, we are a defendant in a number of securities class action and other related lawsuits. See the “Legal” section under “Note 12. Commitments and Contingencies” and the risk factor titled “—The trading price of our common stock may be volatile, and you could lose all or part of your investment” for more information.

Due to the consumer-oriented nature of our business and the application of certain laws and regulations, participants in our industry are regularly named as defendants in litigation alleging violations of federal and state laws and regulations and consumer law torts, including fraud. Many of these legal proceedings involve alleged violations of consumer protection laws. The CFPB recently issued a final rule that would require non-bank entities like us to report any public orders related to violations of consumer protection laws in a registry that will be made available to the general public, potentially increasing litigation and regulatory scrutiny. In addition, we have been in the past and may in the future be subject to litigation, claims, examinations, investigations, legal and administrative cases and proceedings related to the offer and sale of Upstart-powered loans.

In particular, lending programs that involve originations by a bank in reliance on origination-related services being provided by non-bank lending platforms and/or program managers are subject to potential litigation and government enforcement claims based on “rent-a-bank” or “true lender” theories, particularly where such programs involve the subsequent sale of such loans or interests therein through the lending marketplace. See the risk factor titled “—If loans facilitated through our marketplace for one or more lending partners were subject to successful challenge that the lending partner was not the “true lender,” such loans may be unenforceable, subject to rescission or otherwise impaired, we or other program participants may be subject to penalties, and/or our commercial relationships may suffer, each which would adversely affect our business and results of operations” for more information. In addition, loans originated by lending partners (which are exempt from certain state requirements under federal banking laws), followed by the sale, assignment, or other transfer to non-banks of such loans are subject to potential litigation and government enforcement claims based on the theory that transfers of loans from banks to non-banks do not transfer the ability to enforce contractual terms such as interest rates and fees from which only banks benefit under federal preemption principles. See the risk factors titled “—If loans originated by our lending partners were found to violate the laws of one or more states, whether at origination or after sale by the lending partner, loans facilitated through our marketplace may be unenforceable or otherwise impaired, we or other program participants may be subject to, among other things, fines and penalties, and/or our commercial relationships may suffer, each of which would adversely affect our business and results of operations” and “—We have been in the past and may in the future be subject to federal and state regulatory inquiries regarding our business” for more information. If we were subject to such litigation or enforcement, then any unfavorable results of pending or future legal proceedings may result in contractual damages, usury related claims, fines, penalties, injunctions, the unenforceability, rescission or other impairment of loans originated on our marketplace or other censure that could have an adverse effect on our business, results of operations and financial condition. Even if we
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adequately address the issues raised by an investigation or proceeding or successfully defend a third-party lawsuit or counterclaim, we may have to devote significant financial and management resources to address these issues, which could harm our business, financial condition and results of operations.

The long-term impact of operating with a Digital First workforce on our business, financial condition and results of operations is uncertain.

Since our announcement of a Digital First work model in June 2021, remote work with less time in the office has been the primary experience for most of our employees. Our workforce is currently distributed across the U.S., and we expect this to continue. Although we anticipate that this Digital First model will have a long-term positive impact on our business, financial condition and results of operations, there is no guarantee that we will realize any anticipated benefits to our business from this model, including cost savings, operational efficiencies, or productivity.

Our Digital First model could lead to a negative long-term impact on our operations, the execution of our business plans and sales and marketing efforts, our company culture, or the productivity and retention of key personnel and other employees necessary to conduct our business, or otherwise cause operational failures due to changes in our past business practices. If a natural disaster, power outage, connectivity issue, or other event were to occur that impacted our employees’ ability to work remotely, it may be difficult or, in certain cases, impossible, for us to continue our business for a substantial period of time. The increase in remote working may also result in increased exposure to consumer privacy and data security incidents, or fraudulent activity. Furthermore, our understanding of applicable legal and regulatory requirements related to a remote workforce may be subject to legal or regulatory challenge, particularly as regulatory guidance evolves in response to future developments. If we are unable to successfully address the foregoing risks and challenges as we encounter them, our business, financial condition and results of operations could be adversely affected.

We may evaluate and potentially consummate acquisitions or investments in complementary business and technologies, which could require significant management attention, consume our financial resources, disrupt our business and adversely affect our results of operations, and we may fail to realize the anticipated benefits of these acquisitions or investments.

Our success will depend, in part, on our ability to grow our business. In some circumstances, we may determine to do so through the acquisition of, or investments in, complementary businesses and technologies rather than through internal development. For example, in 2021, we completed the acquisition of Prodigy. The identification of suitable acquisition candidates can be difficult, time-consuming, and costly, and we may not be able to successfully complete identified acquisitions. In the future, we may acquire assets or businesses. The risks we face in connection with acquisitions include:
•diversion of management time and focus from operating our business to addressing acquisition integration challenges;
•utilization of our financial resources for acquisitions or investments that may fail to realize the anticipated benefits;
•inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits;
•coordination of technology, product development and sales and marketing functions and integration of administrative systems;
•transition of the acquired company’s borrowers to our systems;
•retention of employees from the acquired company;
•regulatory risks, including maintaining good standing with existing regulatory bodies or receiving any necessary approvals, as well as being subject to new regulators with oversight over an acquired business;
•attracting financing;
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•cultural challenges associated with integrating employees from the acquired company into our organization;
•the need to implement or improve controls, procedures and policies at a business that prior to the acquisition may have lacked effective controls, procedures and policies;
•potential write-offs of loans or intangibles or other assets acquired in such transactions that may have an adverse effect on our results of operations in a given period;
•liability for activities of the acquired company before the acquisition, including patent and trademark infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities;
•assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property or increase our risk for liability; and
•litigation, claims or other liabilities in connection with the acquired company.

Our failure to address these risks or other problems encountered in connection with any future acquisitions and strategic investments could cause us to fail to realize the anticipated benefits of these acquisitions or investments, cause us to incur unanticipated liabilities and harm our business generally. Future acquisitions could also result in dilutive issuances of our equity securities, the incurrence of debt, contingent liabilities, amortization expenses or the write-off of goodwill, any of which could harm our financial condition.

Strategic investments in which we have a minority ownership stake and that we do not control may from time to time have economic, business, or legal interests or goals that are inconsistent with our goals. As a result, business decisions or other actions or omissions of controlling shareholders, management, or other persons or entities who control companies in which we invest may adversely affect the value of our investment, result in litigation or regulatory action against us, or otherwise damage our reputation and brand.

Our business is subject to the risks of natural disasters and other catastrophic events, many of which are becoming more acute and frequent due to climate change, and to interruption by human-induced problems.

Significant natural disasters or other catastrophic events, such as earthquakes, fires, hurricanes, blizzards, or floods (many of which are becoming more acute and frequent as a result of climate change), or interruptions by strikes, crime, terrorism, epidemics, pandemics, cyber-attacks, computer viruses, internal or external system failures, telecommunications failures, a failure of banking or other financial institutions, power outages or increased risk of cybersecurity breaches due to a swift transition to remote work brought about by a catastrophic event, could have an adverse effect on our business, results of operations and financial condition.

The long-term effects of climate change on the global economy and our industry in particular are unclear; however, we recognize that there are inherent climate-related risks wherever business is conducted. Either of our headquarters may be vulnerable to the adverse effects of climate change. One of our headquarters is located in the San Francisco Bay Area, a region that is prone to seismic activity and has experienced and may continue to experience, climate-related events and at an increasing rate. Examples include but are not limited to drought and water scarcity, warmer temperatures, wildfires and air quality impacts and power shut-offs associated with wildfire prevention. The increasing intensity of drought throughout California and annual periods of wildfire danger increase the probability of planned power outages. Our other headquarters in Columbus, Ohio is a region at higher risk for extreme winter weather, including blizzards. Although we maintain a disaster response plan and insurance, such events could disrupt our business, the business of our lending partners or third-party suppliers, and may cause us to experience losses and additional costs to maintain and resume operations. We may not maintain sufficient business interruption or property insurance to compensate us for potentially significant losses, including potential harm to our business that may result from interruptions in our ability to provide our financial products and services.

In addition, acts of war and other armed conflicts, disruptions in global trade, travel restrictions and quarantines, terrorism and other civil, political and geopolitical conflicts, could cause disruptions in our business and lead to interruptions, delays or loss of critical data. Any of the foregoing risks may be further increased if our
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business continuity plans prove to be inadequate and there can be no assurance that both personnel and non-mission critical applications can be fully operational after a declared disaster within a defined recovery time. If our personnel, systems or data centers are impacted, we may suffer interruptions and delays in our business operations. In addition, to the extent these events impact the ability of borrowers to timely repay their loans, our business could be negatively affected.

If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards or interpretations change, our results of operations could be adversely affected.

The preparation of the condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States requires our management to make estimates and assumptions that affect the amounts reported and disclosed in our condensed consolidated financial statements and accompanying notes. We base our estimates and assumptions on historical experience and on various other data points that we believe to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities, and equity, and the amount of revenue and expenses that are not readily apparent from other sources. Significant estimates and assumptions which we believe are critical in understanding and evaluating our financial results include: (i) fair value determinations; (ii) stock-based compensation; (iii) consolidation of VIEs; and (iv) the evaluation for impairment of goodwill and acquired intangible assets. The judgments and assumptions used in accounting conclusions related to committed capital and other co-investment arrangements are especially complex. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of industry or financial analysts and investors, resulting in a decline in the trading price of our common stock.

Additionally, we regularly monitor our compliance with applicable financial reporting standards and review new pronouncements and drafts thereof that are relevant to us. As a result of new standards, or changes to existing standards, and changes in their interpretation, we might be required to change our accounting policies, alter our operational policies and implement new or enhance existing systems so that they reflect new or amended financial reporting standards, or we may be required to restate our published financial statements. Such changes to existing standards or changes in their interpretation may have an adverse effect on our reputation, business, financial condition, and profit and loss, or cause an adverse deviation from our revenue and operating profit and loss target, which may negatively impact our results of operations.

If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.

As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, and the rules and regulations of the applicable listing standards of the Nasdaq Global Select Market. We expect that the requirements of these rules and regulations will continue to increase our legal, accounting, and financial compliance costs, make some activities more difficult, time-consuming, and costly, and place significant strain on our personnel, systems, and resources.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal controls over financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated to our principal executive and financial officers. We are also continuing to improve our internal controls over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal controls over financial reporting, we have expended, and anticipate that we will continue to expend significant resources, including accounting-related costs, and significant management oversight. Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business.
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Weaknesses in our disclosure controls and internal control over financial reporting have been discovered in the past and may be discovered in the future. We cannot assure you that the measures we have taken to date, or any measures we may take in the future, will be sufficient to identify or prevent future material weaknesses or deficiencies. The nature of our business is such that our financial statements involve a number of complex accounting policies, many of which involve significant elements of judgment, including determinations regarding the consolidation of variable interest entities, determinations regarding the fair value of financial assets and liabilities (including loans, line of credit receivable, notes receivable, payable to securitization note holders and residual certificate holders, servicing assets and liabilities, and trailing fee liabilities) and the appropriate classification of various items within our financial statements. See Note 1 to our condensed consolidated financial statements for more information about our significant accounting policies. The inherent complexity of these accounting matters and the nature and variety of transactions in which we are involved require that we have sufficient qualified accounting personnel with an appropriate level of experience and controls in our financial reporting process commensurate with the complexity of our business. While we believe we have sufficient internal accounting personnel and external resources and appropriate controls to address the demands of our business, we expect that the growth and development of our business will place significant additional demands on our accounting resources. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could harm our results of operations or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial reporting could also adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the trading price of our common stock. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on the Nasdaq Global Select Market. As a public company, we are required to provide an annual management report on the effectiveness of our internal control over financial reporting. There can be no assurance that we will maintain internal control over financial reporting sufficient to enable us to identify or avoid material weaknesses in the future.

Any failure to maintain effective disclosure controls and internal control over financial reporting could materially and adversely affect our business, results of operations, and financial condition and could cause a decline in the trading price of our common stock.

Some of our estimates, including our key metrics in this report, are subject to inherent challenges in measurement, and any real or perceived inaccuracies may harm our reputation and negatively affect our business.

Certain estimates and forecasts included in this report, including those we have generated ourselves, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The estimates and forecasts in this report relating to the size and expected growth of our target market may prove to be inaccurate. It is impossible to offer every loan product, term or feature that every customer wants or that any given lending partner is necessarily capable of supporting, and our competitors may develop and offer loan products, terms or features that we do not offer. Even if the markets in which we compete meet the size estimates and growth forecasted in this report, we may be unable to address these markets successfully and our business could fail to grow for a variety of reasons outside of our control, including competition in our industry. We regularly review and may adjust our processes for calculating our key metrics to improve their accuracy. For example, in the third quarter of 2021, we adjusted our process for calculating Conversion Rate to account for an increase in fraudulent applications. Our key metrics may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. If investors or analysts do not perceive our metrics to be accurate representations of our business, or if we discover material inaccuracies in our metrics, our reputation, business, results of operations, and financial condition would be adversely affected.
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We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions, including bank failures, could adversely affect our liquidity and financial performance.

We regularly maintain domestic cash deposits in Federal Deposit Insurance Corporation (“FDIC”) insured banks that exceed the FDIC insurance limits. Bank failures, events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, or concerns or rumors about such events, may lead to liquidity constraints. For example, on March 10, 2023, Silicon Valley Bank failed and was taken into receivership by the FDIC. Similarly, on March 12, 2023, Signature Bank and Silvergate Capital Corp. were each swept into receivership. The failure of a bank, or other adverse conditions in the financial or credit markets impacting financial institutions at which we maintain balances, could adversely impact our liquidity and financial performance. There can be no assurance that our deposits in excess of the FDIC or other comparable insurance limits will be backstopped by the U.S. treasury, or that any bank or financial institution with which we do business will be able to obtain needed liquidity from other banks, government institutions or by acquisition in the event of a failure or liquidity crisis.

RISKS RELATED TO OUR INTELLECTUAL PROPERTY AND PLATFORM DEVELOPMENT

It may be difficult and costly to protect our intellectual property rights, and we may not be able to ensure their protection.

Our ability to operate our platform depends, in part, upon our proprietary technology. We may be unable to protect our proprietary technology effectively, which would allow competitors to duplicate our AI models or AI lending marketplace and adversely affect our ability to compete with them. We rely on a combination of copyright, trade secret, patent, trademark laws and other rights, as well as confidentiality procedures, contractual provisions and our information security infrastructure to protect our proprietary technology, processes and other intellectual property. While we have, as of September 30, 2024, four patents granted and four patent applications pending in the United States related to our proprietary risk model and data engineering, we have limited patent protection and our patent applications may not be successful. A third party may attempt to reverse engineer or otherwise obtain and use our proprietary technology without our consent. The pursuit of a claim against a third party for infringement of our intellectual property could be costly, and there can be no guarantee that any such efforts would be successful. Our failure to secure, protect and enforce our intellectual property rights could adversely affect our brand and adversely impact our business.

Our proprietary technology, including our AI models, may actually or may be alleged to infringe upon third-party intellectual property, and we may face intellectual property challenges from such other parties. We may not be successful in defending against any such challenges or in obtaining licenses to avoid or resolve any intellectual property disputes. If we are unsuccessful, such claims or litigation could result in a requirement that we pay significant damages or licensing fees, or we could in some circumstances be required to make changes to our business to avoid such infringement, which would negatively impact our financial performance. We may also be obligated to indemnify parties or pay substantial settlement costs, including royalty payments, in connection with any such claim or litigation and to modify applications or refund fees, which could be costly. Even if we were to prevail in such a dispute, any litigation regarding our intellectual property could be costly and time-consuming and divert the attention of our management and key personnel from our business operations.

Moreover, it has become common in recent years for individuals and groups to purchase intellectual property assets for the sole purpose of making claims of infringement and attempting to extract settlements from companies such as ours. Even in instances where we believe that claims and allegations of intellectual property infringement against us are without merit, defending against such claims is time-consuming and expensive and could result in the diversion of time and attention of our management and employees. In addition, although in some cases a third party may have agreed to indemnify us for such costs, such indemnifying party may refuse or be unable to uphold its contractual obligations. In other cases, our insurance may not cover potential claims of this type adequately or at all, and we may be required to pay monetary damages, which may be significant.

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Furthermore, our technology may become obsolete or inadequate, and there is no guarantee that we will be able to successfully develop, obtain or use new technologies to adapt our models and systems to compete with other technologies as they develop. If we cannot protect our proprietary technology from intellectual property challenges, or if our technology becomes obsolete or inadequate, our ability to maintain our model and systems, facilitate loans or perform our servicing obligations on the loans could be adversely affected.

Any significant disruption in our AI lending platform could prevent us from processing loan applicants and servicing loans, reduce the effectiveness of our AI models and result in a loss of lending partners, institutional investors, applicants or borrowers.

In the event of a system outage or other event resulting in data loss or corruption, our ability to process loan applications, service loans or otherwise facilitate loans on our marketplace would be adversely affected. We also rely on facilities, components, and services supplied by third parties, including data center facilities, cloud storage services and national consumer reporting agencies. We host our AI lending platform using Amazon Web Services, or AWS, a provider of cloud infrastructure services. In the event that our AWS service agreements are terminated, or there is a lapse of service, interruption of internet service provider connectivity or damage to AWS data centers, we could experience interruptions in access to our platform as well as delays and additional expense in the event we must secure alternative cloud infrastructure services. For a large portion of borrowers’ data used in our AI lending marketplace, we obtain borrowers’ data from national consumer reporting agencies, such as TransUnion, and rely on their services in order to process loan applications. Any interference or disruption of our technology and underlying infrastructure or our use of third-party services could adversely affect our relationships with our lending partners and institutional investors, and the overall user experience of our marketplace. Depending on the type and severity of any such disruption, we could be exposed to litigation and regulatory risk. For example, a cybersecurity incident could result in the exposure of consumer data triggering remedial measures, notification requirements, as well as litigation and regulatory exposure. Also, as our business grows, we may be required to expand and improve the capacity, capability and reliability of our infrastructure. If we are not able to effectively address capacity constraints, upgrade our systems as needed and continually develop our technology and infrastructure to reliably support our business, our business, financial condition and results of operations could be adversely affected.

Additionally, in the event of damage or interruption, our insurance policies may not adequately compensate us for any losses incurred. Our disaster recovery plan has not been tested under actual disaster conditions, and we may not have sufficient capacity to recover all data and services in the event of an outage or other event resulting in data loss or corruption. These factors could prevent us from processing or posting payments on the loans, damage our brand and reputation, divert our employees’ attention, subject us to liability and cause borrowers to abandon our business, any of which could adversely affect our business, results of operations and financial condition.

Our platform and internal systems rely on software that is highly technical, and if our software contains undetected errors, our business could be adversely affected.

Our platform and internal systems rely on software that is highly technical and complex. In addition, our platform and internal systems depend on the ability of such software to store, retrieve, process and manage high volumes of data. The software on which we rely has contained, and may now or in the future contain, undetected errors or bugs. Some errors may only be discovered after the code has been released for external or internal use. Errors or other design defects within the software on which we rely may result in failure to accurately predict a loan applicant’s creditworthiness, failure to comply with applicable laws and regulations, approval of sub-optimally priced loans, incorrectly displayed interest rates to applicants or borrowers, or incorrectly charged interest to borrowers or fees to lending partners or institutional investors, failure to present or properly display regulatory disclosures to applicants for an extended period of time, failure to detect fraudulent activity on our platform, a negative experience for consumers or lending partners, delayed introductions of new features or enhancements, or failure to protect borrower data or our intellectual property. Any errors, bugs or defects discovered in the software on which we rely could result in harm to our reputation, loss of consumers or lending partners, increased regulatory scrutiny, fines or penalties, loss of revenue or liability for damages, any of which could adversely affect our business, financial condition and results of operations. Furthermore, updates made to our software to remediate any errors discovered may prove to be ineffective, resulting in repeated issues and further harm to our business.
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Some aspects of our business processes include open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business.

We incorporate open source software into processes supporting our business. Such open source software may include software covered by licenses like the GNU General Public License and the Apache License. The terms of various open source licenses have not been interpreted by U.S. courts, and there is a risk that such licenses could be construed in a manner that limits our use of the software, inhibits certain aspects of our systems and negatively affects our business operations.

Some open source licenses contain requirements that we make source code available at no cost for modifications or derivative works we create based upon the type of open source software we use.

We may face claims from third parties demanding the release or license of, such modifications or derivative works (which could include our proprietary source code or AI models) or otherwise seeking to enforce the terms of the applicable open source license. If portions of our proprietary AI models are determined to be subject to an open source license, or if the license terms for the open source software that we incorporate change, we could be required to publicly release the affected portions of our source code, re-engineer all or a portion of our model or change our business activities, any of which could negatively affect our business operations and potentially our intellectual property rights. If we were required to publicly disclose any portion of our proprietary models, it is possible we could lose the benefit of trade secret protection for our models.

In addition to risks related to license requirements, the use of open source software can lead to greater risks than the use of third-party commercial software, as open source licensors generally do not provide warranties or controls on the origin of the software. Use of open source software may also present additional security risks because the public availability of such software may make it easier for hackers and other third parties to determine how to breach our website and systems that rely on open source software. Many of the risks associated with the use of open source software cannot be eliminated and could adversely affect our business.

The use of generative AI technologies by our employees or contractors could expose us to unexpected liability.

Our employees and contractors use generative AI technologies in connection with their performance of services and, as with many developing technologies, generative AI presents risks and challenges that could affect its further development, adoption, and use, and therefore our business. We face the risk of security threats from employee or contractor errors (such as unauthorized use of third party generative AI technologies in job functions, our products, or in the operation of our business) or malfeasance in connection with generative AI technologies. Even authorized use of generative AI technologies by our employees or contractors may generate content, including software code, that appears facially correct but is factually inaccurate or flawed or contains security vulnerabilities. Our customers, employees, or others may rely on or use such factually incorrect or flawed content to their detriment, which may expose us to brand or reputational harm, competitive harm, and/or legal liability. Further, security vulnerabilities introduced by generative AI technologies into our software could expose us to cybersecurity risks. Questions surrounding license rights and liability for infringement in AI technology generally, and generative AI technology specifically, have not been fully addressed by competent legal tribunals or applicable laws or regulations. The use or adoption of third-party AI technology, including generative AI technology, into our products and services and our internal business operations may result in exposure to claims of copyright infringement, other intellectual property-related causes of action, or other potential reputational harms.

While we have policies governing our personnel’s use of third party generative AI technologies, we cannot guarantee that the policies will be adhered to by all of our employees and contractors and we cannot guarantee that the policies will protect us from all potential liability relating to our adoption of generative AI technologies.

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RISKS RELATED TO OUR DEPENDENCE ON THIRD PARTIES

We rely on strategic relationships with loan aggregators to attract applicants to our marketplace, and if we cannot maintain effective relationships with loan aggregators or successfully replace their services, our business could be adversely affected.

A significant number of consumers that apply for a loan on Upstart.com learn about and access Upstart.com through the websites of loan aggregators, typically with hyperlinks from such loan aggregators’ websites to landing pages on our website. While we are continuing to expand our direct acquisition channels, we anticipate that we will continue to depend in significant part on relationships with loan aggregators to maintain and grow our business. For example, a significant amount of our loan originations was derived from traffic from Credit Karma, one of the loan aggregators with whom we partner. The loan aggregators, including Credit Karma, are not required to display offers from our lending partners on their websites nor are they prohibited from working with our competitors or adding our competitors to their platforms. If traffic from Credit Karma or other loan aggregators decreases in the future for any reason or if the loan aggregators implement policies that would adversely impact our business, our loan originations and results of operations would be adversely affected. There is also no assurance that Credit Karma or other loan aggregators will continue to partner with us on commercially reasonable terms or at all. Our competitors may be effective in providing incentives to loan aggregators to favor their products or services or in reducing the volume of loans facilitated through our marketplace. Loan aggregators may not perform as expected under our agreements with them, and we may have disagreements or disputes with them, which could adversely affect our brand and reputation. If we cannot successfully enter into and maintain effective strategic relationships with loan aggregators, our business could be adversely affected.

Such loan aggregators also face litigation and regulatory scrutiny for their part in the consumer lending ecosystem, and as a result, their business models may require fundamental change or may not be sustainable in the future. For example, loan aggregators are increasingly required to be licensed as loan brokers or lead generators in many states, subjecting them to increased regulatory supervision and more stringent business requirements. While we require loan aggregators to make certain disclosures in connection with our lending partners’ offers and restrict how loan aggregators may display such loan offers, loan aggregators may nevertheless alter or even remove these required disclosures without notifying us, which may result in liability to us. Further, we do not have control over any content on loan aggregator websites, and it is possible that our brand and reputation may be adversely affected by being associated with such content. An unsatisfied borrower could also seek to bring claims against us based on the content presented on a loan aggregator’s website. Such claims could be costly and time-consuming to defend and could distract management’s attention from the operation of the business.

We rely on third-party vendors and if such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our business, financial condition and results of operations could be adversely affected.

Our success depends in part on our relationships with third-party vendors. In some cases, third-party vendors are one of a limited number of sources. For example, we rely on national consumer reporting agencies, such as TransUnion, for a large portion of the data used in our AI models. In addition, we rely on third-party verification technologies and services that are critical to our ability to maintain a high level of automation on our platform. In addition, because we are not a bank, we cannot belong to or directly access the ACH payment network. As a result, we rely on one or more banks with access to the ACH payment network to process collections on Upstart-powered loans. Many of our vendor agreements are terminable by either party without penalty and with little notice. If any of our third-party vendors terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, we would need to find an alternate provider, and may not be able to secure similar terms or replace such providers in an acceptable time frame. We also rely on other software and services supplied by vendors, such as communications, analytics and internal software, and our business may be adversely affected to the extent such software and services do not meet our expectations, contain errors or vulnerabilities, are compromised or experience outages. Any of these risks could increase our costs and adversely affect our business, financial condition and results of operations. Further, any negative publicity related to any of our third-party partners, including any publicity
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related to quality standards or safety concerns, could adversely affect our reputation and brand, and could potentially lead to increased regulatory or litigation exposure.

We incorporate technology from third parties into our platform. We cannot be certain that our licensors are not infringing the intellectual property rights of others or that the suppliers and licensors have sufficient rights to the technology in all jurisdictions in which we may operate. Some of our license agreements may be terminated by our licensors for convenience. If we are unable to obtain or maintain rights to any of this technology because of intellectual property infringement claims brought by third parties against our suppliers and licensors or against us, or if we are unable to continue to obtain the technology or enter into new agreements on commercially reasonable terms, our ability to develop our platform containing that technology could be severely limited and our business could be harmed. Additionally, if we are unable to obtain necessary technology from third parties, we may be forced to acquire or develop alternate technology, which may require significant time and effort and may be of lower quality or performance standards. This would limit and delay our ability to provide new or competitive loan products or service offerings and increase our costs. If alternate technology cannot be obtained or developed, we may not be able to offer certain functionality as part of our platform and service offerings, which could adversely affect our business, financial condition and results of operations.

Failure by our third-party vendors or our failure to comply with legal or regulatory requirements or other contractual requirements could have an adverse effect on our business.

We have significant vendors that provide us with a number of services to support our platform. If any third-party vendors fail to comply with applicable laws and regulations or comply with their contractual requirements, including failure to maintain adequate systems addressing privacy and data protection and security, we could be subject to service outages, regulatory enforcement actions and suffer economic and reputational harm that could harm our business. Further, we may incur significant costs to resolve any such disruptions in service or failure to provide contracted services, which could adversely affect our business.

The CFPB and each of the prudential bank regulators that supervise our lending partners have issued guidance stating that institutions under their supervision may be held responsible for the actions of the companies with which they contract. In addition, several state regulators have issued rules that impact how non-banks protect data that is shared by or with third parties, and eight federal regulators recently issued a proposed rule to establish joint standards for collections of information reported to certain agencies, including proposed standards for data transmission to the agencies. As a service provider to supervised entities and when subject to state laws on similar topics, we must ensure we have implemented an adequate vendor management program and would have to comply with any data transmission requirements to which our lending partners are subject. We or our lending partners could be adversely impacted to the extent we fail to implement a vendor management system that is satisfactory to the CFPB and other regulators or our vendors fail to comply with the legal requirements applicable to the particular products or services being offered. Our use of third-party vendors is subject to increasing regulatory attention.

The CFPB and other regulators have also issued regulatory guidance that has focused on the need for financial institutions to perform increased due diligence and ongoing monitoring of third-party vendor relationships, including, for example, the June 2023 interagency guidance on third party risk management and the supplement guidance released for community banks issued in March 2024. Such guidance increases the scope of management involvement in connection with using third-party vendors. Moreover, if regulators conclude that we or our lending partners have not met the heightened standards for oversight of our third-party vendors, we or our lending partners could be subject to enforcement actions, civil monetary penalties, supervisory orders to cease and desist or other remedial actions, which could have an adverse effect on our business, financial condition and results of operations.






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如果我们的贷款合作伙伴发放的贷款被发现违反了一个或多个州的法律，无论是贷款合作伙伴在发放时还是销售后，通过我们的市场提供的贷款可能无法执行或以其他方式受损，我们或我们的贷款合作伙伴或机构投资者可能会受到罚款和处罚等，和/或我们的商业关系可能会受到影响，其中每一项都会对我们的业务和运营业绩产生不利影响.

在建立利率和结构(以及根据联邦和州银行法构成利息的某些费用的金额和结构，如发放费、滞纳金和资金不足费用)时，我们的贷款合作伙伴依赖联邦法律下的某些权力来输出每个贷款合作伙伴所在州的利率要求。此外，我们、我们的证券化工具和我们的机构投资者购买由我们的贷款合作伙伴发起的upstart支持的贷款，依赖于作为贷款的后续持有人继续收取利率和费用结构的能力，并在联邦银行法允许的情况下执行贷款合作伙伴和借款人之间商定的其他合同条款。目前，通过我们的市场提供便利的贷款的最高年利率为35.99%。在一些州，某些upstart支持的贷款的利率超过了非银行贷款人向居住在这些州或与这些州有联系的借款人发放消费贷款的最高利率。几个州还出台了立法，阻止州特许银行将更高的利率输出到选择退出允许这种做法的联邦法律的州。此外，并非所有州都允许非银行购买者使用upstart支持的贷款的利率结构，和/或与upstart支持的贷款相关的某些费用的金额或结构可能不适用于所有州的非银行购买者。此外，其他州也提出或颁布了对利率和费用的额外限制，例如伊利诺伊州、缅因州和新墨西哥州的法律，将某些贷款的利率上限定为36%。

Usury, fee, and disclosure related claims involving Upstart-powered loans may be raised in multiple ways. We or the participants in our marketplace, including lending partners and institutional investors, may face litigation, government enforcement or other challenges, for example, based on claims that our lending partners did not establish loan terms that were permissible in the state they were located or did not correctly identify the home or host state in which they were located for purposes of interest exportation authority under federal law. Alternatively, we or our institutional investors may face litigation, government enforcement or other challenge, for example, based on claims that rates and fees were lawful at origination and through any period during which the lending partner retained the loan and interests therein, but following the sale of loans, we or other purchasers of the loans, including our institutional investors, are not permitted to enforce the loans pursuant to their contracted-for terms, or that while certain disclosures were not required at origination because the loans were originated by banks, they may be required following the sale of such loans.

参见《马登诉米德兰基金》一案，载于《联邦判例汇编》第3集，第786卷，第246页(第二巡回法庭)。2015)，Cert.拒绝，136摄氏度。2505(2016年6月27日)，例如，美国第二巡回上诉法院裁定，违约信用卡债务的非银行购买者不能依靠适用于此类债务发起人的《国家银行法》下的优先购买权标准来抗辩高利贷索赔。Madden案涉及的情况是，消费者信用卡账户下的违约信用延期在违约后被转让给非银行债务购买者，该购买者随后试图收回贷款并继续按合同约定的利率收取利息。债务人提起诉讼，除其他索赔外，声称非银行托收实体收取的利率超过了纽约州高利贷法律允许的此类实体的高利贷利率。第二巡回法院推翻了下级法院的裁决，认为《国家银行法》适用于发行信用卡的银行的优先购买权标准不适用于非银行债务买家，作为对高利贷索赔的抗辩。在第二巡回法院驳回重审请求后，被告寻求美国最高法院的复审。最高法院于2016年6月27日驳回了移审令，因此，第二巡回法院的裁决对第二巡回法院(包括纽约、康涅狄格州和佛蒙特州的所有联邦法院)仍然具有约束力。在发回地方法院考虑其他问题后，双方于2019年解决了这一问题。

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第二巡回法院马登裁决的范围和有效性仍有待质疑和澄清。例如，科罗拉多州统一消费者信用代码(UCCC)科罗拉多州行政长官就两个在线贷款平台的投诉达成和解，这两个在线贷款平台的运营与我们有某些共同点，包括发起贷款的贷款合作伙伴和此类贷款的非银行购买者的角色。这些投诉包括基于第二巡回法院马登裁决的指控，即某些贷款的利率和费用不能由非银行购买者合法地购买银行发起的贷款。根据和解协议，银行和非银行买家承诺将向科罗拉多州消费者提供贷款的年利率(APR)限制在36%，并采取其他行动确保银行实际上是真正的贷款人。非银行买家还同意获得并保留科罗拉多州的贷款许可证。在科罗拉多州，这项和解为构成可接受的银行合伙模式创造了一个有用的模式；然而，科罗拉多州通过了一项立法，选择退出允许州特许银行输出利率的联邦法律，该法律定于2024年7月1日生效，但后来在等待该法律的法律挑战结果之前受到了禁令的限制。无论如何，和解协议也可能会邀请其他州发起自己的行动，并通过执行来设定自己的监管标准。

In addition, in June 2019, private plaintiffs filed class action complaints against multiple traditional credit card securitization programs, including, Petersen, et al. v. Chase Card Funding, LLC, et al., (No. 1:19-cv-00741-LJV-JJM (W.D.N.Y. June 6, 2019)) and Cohen, et al. v. Capital One Funding, LLC et al., (No. 19-03479 (E.D.N.Y. June 12, 2019)). In Petersen, the plaintiffs sought class action status against certain defendants affiliated with a national bank that have acted as special purpose entities in securitization transactions sponsored by the bank. The complaint alleges that the defendants’ acquisition, collection and enforcement of the bank’s credit card receivables violated New York’s civil usury law and that, as in Madden, the defendants, as non-bank entities, are not entitled to the benefit of federal preemption of state usury law. The complaint sought a judgment declaring the receivables unenforceable, monetary damages and other legal and equitable remedies, such as disgorgement of all sums paid in excess of the usury limit. Cohen was a materially similar claim against another national bank. On January 22, 2020, the magistrate judge in Petersen issued a report and recommendation responding to the defendants’ motion to dismiss. The magistrate recommended that the motion to dismiss be granted as to both of the plaintiffs’ claims (usury and unjust enrichment). On September 21, 2020, the District Court accepted the magistrate’s recommendation and dismissed all claims. The District Court found that the usury claims were expressly preempted by the National Bank Act and referenced the OCC’s recent rulemaking (discussed further below) that “[i]nterest on a loan that is permissible under [the National Bank Act] shall not be affected by the sale, assignment, or other transfer of the loan.” Among other things, the Court deferred to the “OCC’s reasoned judgment that enforcing New York’s usury laws against the Chase defendants would significantly interfere with [the bank’s] exercise of its [National Bank Act] powers.” The Cohen case was dismissed on September 29, 2020. The plaintiffs in both Cohen and Petersen filed, but ultimately dropped, their appeals of the decision to the second circuit.

As noted above, federal prudential regulators have also taken actions to address the Madden decision. On May 29, 2020, the OCC issued a final rule clarifying that, when a national bank or savings association sells, assigns, or otherwise transfers a loan, interest permissible before the transfer continues to be permissible after the transfer. That rule took effect on August 3, 2020. Similarly, the FDIC finalized on June 25, 2020 its 2019 proposal declaring that the interest rate for a loan is determined when the loan is made, and will not be affected by subsequent events. On July 29, 2020, California, New York and Illinois filed suit in the U.S. District Court for the Northern District of California to enjoin enforcement of the OCC rule (Case No. 20-CV-5200) and, similarly in the same court, on August 20, 2020 California, Illinois, Massachusetts, Minnesota, New Jersey, New York, North Carolina, and the District of Columbia sought to enjoin enforcement of the FDIC rule (Case No. 20-CV-5860), in each case related to permissible interest rates post-loan transfer on the grounds that the OCC and FDIC exceeded their authority when promulgating those rules. While the court ruled in favor of the OCC and FDIC holding that the agencies did not exceed their statutory authorities when promulgating their “valid when made” rules, there is risk that the OCC and FDIC rules continue to be challenged or are repealed in the future through legislation.

There are factual distinctions between our program and the circumstances addressed in the Second Circuit’s Madden decision, as well as the circumstances in the Colorado UCCC settlement, credit card securitization litigation, and similar cases. As noted above, there are also bases on which the Madden decision’s validity might be subject to challenge or the Madden decision may be addressed by federal regulation or legislation. Nevertheless,
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there can be no guarantee that a Madden-like claim will not be brought successfully against us, our lending partners or our institutional investors.

Effective October 2021, Maine updated its Consumer Credit Code to include a statutory “true lender” test, providing that an entity is a “lender” subject to certain requirements of the Consumer Credit Code if the person, among other things: (i) has the predominant economic interest in a loan; (ii) brokers, arranges, or facilitates a loan and has the right to purchase the loan; or (iii) based on the totality of the circumstances, appears to be the lender, and the transaction is structured to evade certain statutory requirements. Me. Rev. Stat. § 2-702. Connecticut and Minnesota codified a “true lender” test into their laws in 2023, which similarly focus on the totality of the circumstances or who has the “predominant economic interest” in the loans. Most recently, Washington passed a true lender law that became effective June 6, 2024. More states may also institute similar statutory “true lender” tests. The statutory “true lender” tests may increase the risk of true lender litigation in certain jurisdictions and impact how the tests are applied by courts and regulators in determining the true lender. They may also result in increased usury and licensing risk. Other states may take different paths to promulgate similar “true lender” restrictions, and if not through a legislative path, impacted parties may have little to no advance notice of new restrictions and compliance obligations.

If a borrower or any state agency were to successfully bring a claim against us, our lending partners, our securitization vehicles and/or the trustees of such vehicles or our institutional investors for a state usury law or fee restriction violation and the rate or fee at issue on the loan was impermissible under applicable state law, we, our lending partners, securitization vehicles and/or trustees or institutional investors may face various commercial and legal repercussions, including that such parties would not receive the total amount of interest expected, and in some cases, may not receive any interest or principal, may hold loans that are void, voidable, rescindable, or otherwise impaired or may be subject to monetary, injunctive or criminal penalties. Were such repercussions to apply to us, we may suffer direct monetary loss or may be a less attractive candidate for lending partners, securitization trustees or institutional investors to enter into or renew relationships; and were such repercussions to apply to our lending partners or institutional investors, such parties could be discouraged from using our marketplace. We may also be subject to payment of damages in situations where we agreed to provide indemnification, as well as fines and penalties assessed by state and federal regulatory agencies.

If loans facilitated through our marketplace for one or more lending partners were subject to successful challenge that the lending partner was not the “true lender,” such loans may be unenforceable, subject to rescission or otherwise impaired, we or other program participants may be subject to penalties, and/or our commercial relationships may suffer, each which would adversely affect our business and results of operations.

Upstart-powered loans are originated in reliance on the fact that our lending partners are the “true lenders” for such loans. That true lender status determines various Upstart-powered loan program details, and Upstart-powered loans may involve interest rates and structures (and certain fees and fees structures) permissible at origination only because the loan terms and lending practices are permissible only when the lender is a bank or credit union, and/or the disclosures provided to borrowers would be accurate and compliant only if the lender is a bank or credit union. Because the loans facilitated by our marketplace are originated by our lending partners, many state consumer financial regulatory requirements, including usury restrictions (other than the restrictions of the state in which a lending partner originating a particular loan is located) and many licensing requirements and substantive requirements under state consumer credit laws, are treated as inapplicable based on principles of federal preemption or express exemptions provided in relevant state laws for certain types of financial institutions or loans they originate.

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Certain recent litigation and regulatory enforcement has challenged, or is currently challenging, the characterization of bank partners as the “true lender” in connection with programs involving origination and/or servicing relationships between a bank partner and non-bank lending platform or program manager. As noted above, the Colorado Administrator has entered into a settlement agreement with certain banks and non-banks that addresses this true lender issue, such settlement to end in 2025 or under the change to Colorado law to prohibit rate exportation to the state. Specifically, the settlement agreement sets forth a safe harbor indicating that a bank is the true lender if certain specific terms and conditions are met. However, other states could also bring lawsuits based on these types of relationships. For example, in June 2020, the Washington, DC Attorney General filed a lawsuit against online lender Elevate for allegedly deceptively marketing high-cost loans with interest rates above the Washington, DC usury cap. The usury claim is based on an allegation that Elevate, which was not licensed in Washington, DC, and not its partner bank, originated these loans, and was therefore in violation of the state’s usury laws. This case ultimately settled, with Elevate agreeing to charge rates only up to 24% and to refund consumers who were charged rates over what is allowed under Washington, DC law. In June 2021, a putative class action lawsuit was filed against the online lender Marlette Funding LLC in the Court of Common Pleas of Allegheny County, Pennsylvania, alleging that the company, doing business as Best Egg, was the true lender of usurious loans, with a rate of interest far in excess of the 6% rate permitted to be charged in Pennsylvania by unlicensed non-banks, originated through a partnership with Cross River Bank (Case No. 21-CV-985). Furthermore, in April 2022, Opportunity Financial, LLC (“OppFi”) filed a lawsuit against the California Department of Financial Protection and Innovation in Los Angeles Superior Court, to challenge the Department’s application of California usury caps to loans originated on OppFi’s online platform. OppFi argued that the Department was applying a “true lender” test to several loans to California residents that exceeded the applicable California usury limit for small dollar loans, even though such test does not exist in California law. While OppFi received a favorable decision in October 2023 that denied California’s motion for preliminary injunction, in California and other states, there is an ongoing risk that government agencies and private plaintiffs will seek to challenge these types of relationships that are similar to our business model. Finally, in June 2024, the Massachusetts Attorney General entered into a settlement with a fintech company it believed to be the true lender of loans originated using the bank partnership model, relying on the state’s UDAAP authority to reach such a conclusion, rather than a state licensing or true lender law.

We note that the OCC issued on October 27, 2020, a final rule to address the “true lender” issue for lending transactions involving a national bank. For certain purposes related to federal banking law, including the ability of a national bank to “export” interest-related requirements from the state from which they lend, the rule would treat a national bank as the “true lender” if it is named as the lender in the loan agreement or funds the loan. However, the rule was subsequently challenged by the Attorneys General from seven states and ultimately repealed by Congress pursuant to the Congressional Review Act on June 30, 2021. No similar rule applicable to state-chartered banks was issued by the FDIC, and thus there is no longer a clear federal standard.

While we have taken steps to comply with the safe harbor in the Colorado settlement and other laws, regulations and guidance, we, lending partners, institutional investors, securitization vehicles and other similarly situated parties could become subject to challenges like those presented by the Colorado settlement and, if so, we could face penalties and/or Upstart-powered loans may be void, voidable or otherwise impaired in a manner that may have adverse effects on our operations (directly, or as a result of adverse impact on our relationships with our lending partners, institutional investors or other commercial counterparties). There have been no formal proceedings against us or indication of any proceedings against us to date, but there can be no assurance that the Colorado Administrator or any other regulator will not make assertions similar to those made in its present actions with respect to the loans facilitated by our marketplace in the future. There are also eight other states that currently have or have proposed “true lender” tests, and we, lending partners, institutional investors, securitization vehicles and other similarly situated parties are or could become subject to them.

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It is also possible that other state agencies or regulators could make similar assertions. If a court, or a state or federal enforcement agency, were to deem Upstart, rather than our lending partners, the “true lender” for loans originated on our marketplace, and if for this reason (or any other reason) the loans were deemed subject to and in violation of certain state consumer finance laws, we could be subject to fines, damages, injunctive relief (including required modification or discontinuation of our business in certain areas) and other penalties or consequences, and the loans could be rendered void or unenforceable in whole or in part, any of which could have a material adverse effect on our business (directly, or as a result of adverse impact on our relationships with our lending partners, institutional investors or other commercial counterparties).

We are subject to counterparty risk with respect to the capped call transactions.

The counterparties to the capped call transactions entered into in connection with the 2026 Notes and 2029 Notes are financial institutions, and we are subject to the risk that one or more of the counterparties may default or otherwise fail to perform their obligations under the capped call transactions. Our exposure to the credit risk of the counterparties will not be secured by any collateral. Global economic conditions have in the past resulted in the actual or perceived failure or financial difficulties of many financial institutions. If a counterparty to a capped call transaction becomes subject to bankruptcy or other insolvency proceedings, we will become an unsecured creditor in those proceedings with a claim equal to our exposure at the time under the relevant capped call transaction. Our exposure will depend on many factors but, generally, an increase in our exposure will be positively correlated to an increase in our common stock market price and in the volatility of the market price of our common stock. In addition, upon a default or other failure to perform, or a termination of obligations by a counterparty, we may suffer adverse consequences of experience more dilution with respect to our common stock than anticipated. We can provide no assurance as to the financial stability or viability of any of the counterparties.

RISKS RELATED TO OUR REGULATORY ENVIRONMENT

Litigation, regulatory actions and compliance issues could subject us to significant fines, penalties, judgments, remediation costs and/or requirements resulting in increased expenses.

In the ordinary course of business, we have been named as a defendant in various legal actions, including class action lawsuits and other litigation. Generally, this litigation arises from the dissatisfaction of a consumer with the products or services offered on our marketplace; some of this litigation, however, has arisen from other matters, including claims of violation of laws related to credit reporting, collections and do-not-call. All such legal actions are inherently unpredictable and, regardless of the merits of the claims, litigation is often expensive, time-consuming, disruptive to our operations and resources, and distracting to management. In addition, certain actions may include claims for indeterminate amounts of damages. Our involvement in any such matter also could cause significant harm to our or our lending partners’ reputations and divert management attention from the operation of our business, even if the matters are ultimately determined in our favor. If resolved against us, legal actions could result in excessive verdicts and judgments, injunctive relief, equitable relief, and other adverse consequences that may affect our financial condition and how we operate our business.

In addition, a number of participants in the consumer financial services industry have been the subject of putative class action lawsuits, state attorney general actions and other state regulatory actions, federal regulatory enforcement actions, including actions relating to alleged unfair, deceptive or abusive acts or practices, violations of state licensing and lending laws, including state usury and disclosure laws, actions alleging discrimination on the basis of race, ethnicity, gender or other prohibited bases, and allegations of noncompliance with various state and federal laws and regulations relating to originating, servicing, and collecting consumer finance loans and other consumer financial services and products. The current regulatory environment, increased regulatory compliance efforts and enhanced regulatory enforcement have resulted in us undertaking significant time-consuming and expensive operational and compliance efforts to operate in accordance with relevant laws, which may delay or preclude our or our lending partners’ ability to provide certain new products and services. There is no assurance that these regulatory matters or other factors will not, in the future, affect how we conduct our business and, in turn, have a material adverse effect on our business. In particular, legal proceedings brought under state consumer protection statutes or under several of the various federal consumer financial services statutes may result in a separate fine
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assessed for each statutory and regulatory violation or substantial damages from class action lawsuits, potentially in excess of the amounts we earned from the underlying activities.

Some of our agreements used in the course of our business include arbitration clauses. If our arbitration agreements were to become unenforceable for any reason, we could experience an increase to our consumer litigation costs and exposure to potentially damaging class action lawsuits, with a potential material adverse effect on our business and results of operations.

We contest our liability and the amount of damages, as appropriate, in each pending matter. The outcome of pending and future matters could be material to our results of operations, financial condition and cash flows, and could materially adversely affect our business.

In addition, from time to time, through our operational and compliance controls, we identify compliance issues that require us to make operational changes and, depending on the nature of the issue, result in financial remediation to impacted borrowers. These self-identified issues and voluntary remediation payments could be significant, depending on the issue and the number of borrowers impacted, and could generate litigation or regulatory investigations that subject us to additional risk.

We are subject to or facilitate compliance with a variety of federal, state, and local laws, including those related to consumer protection and loan financings.

We must comply with regulatory regimes or facilitate compliance with regulatory regimes on behalf of our lending partners that are independently subject to federal and/or state oversight by bank regulators, including those applicable to our referral and marketing services, consumer credit transactions, loan servicing and collection activities and the purchase and sale of whole loans and other related transactions. The current presidential administration has brought an increased focus on enforcement of federal consumer protection laws, notably those related to AI, and has appointed consumer-oriented regulators at federal agencies such as the CFPB and the OCC. It is possible that regulators in the current or future presidential administration could promulgate rulemakings and bring enforcement actions that materially impact our business and the business of our lending partners. These regulators may augment requirements that apply to loans facilitated by our marketplace, or impose new programs and restrictions, and could otherwise revise or create new regulatory requirements that apply to us (or our lending partners), impacting our business, operations, and profitability.

Certain state laws generally regulate interest rates and other charges and require certain disclosures. In addition, other federal and state laws may apply to the origination, servicing and collection of loans originated on our marketplace, and the purchase and sale of whole loans or asset-backed securitizations. In particular, certain laws, regulations and rules we or our lending partners are subject to include:
•state lending laws and regulations that require certain parties to hold licenses or other government approvals or filings in connection with specified activities, and impose requirements related to loan disclosures and terms, fees and interest rates, credit discrimination, credit reporting, servicemember relief, debt collection, repossession, unfair or deceptive business practices and consumer protection, as well as other state laws relating to privacy, information security, conduct in connection with data breaches and money transmission;
•the Truth-in-Lending Act and Regulation Z promulgated thereunder, and similar state laws, which require certain disclosures to borrowers regarding the terms and conditions of their loans and credit transactions, require creditors to comply with certain lending practice restrictions, limit the ability of a creditor to impose certain loan terms and impose disclosure requirements in connection with credit card origination;
•the Equal Credit Opportunity Act and Regulation B promulgated thereunder, and similar state fair lending laws, which prohibit creditors from discouraging or discriminating against credit applicants on a prohibited basis, including race, color, sex, age, religion, national origin, marital status, the fact that all or part of the applicant’s income derives from any public assistance program or the fact that the applicant has in good faith exercised any right under the federal Consumer Credit Protection Act;
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•the Fair Credit Reporting Act and Regulation V promulgated thereunder, imposes certain obligations on users of consumer reports and those that furnish information to consumer reporting agencies, including obligations relating to obtaining consumer reports, marketing using consumer reports, taking adverse action on the basis of information from consumer reports, addressing risks of identity theft and fraud and protecting the privacy and security of consumer reports and consumer report information, and the CFPB has proposed an overhaul to the Fair Credit Reporting Act that could add additional requirements thereunder;
•Section 5 of the Federal Trade Commission Act, which prohibits unfair and deceptive acts or practices in or affecting commerce, and Section 1031 of the Dodd-Frank Act, which prohibits unfair, deceptive or abusive acts or practices in connection with any consumer financial product or service, and analogous state laws prohibiting unfair, deceptive or abusive acts or practices;
•the Credit Practices Rule which (i) prohibits lenders from using certain contract provisions that the Federal Trade Commission has found to be unfair to consumers; (ii) requires lenders to advise consumers who co-sign obligations about their potential liability if the primary obligor fails to pay; and (iii) prohibits certain late charges;
•the Fair Debt Collection Practices Act, Regulation F, and similar state debt collection laws, which provide guidelines and limitations on the conduct of third-party debt collectors (and some limitation on creditors collecting their own debts) in connection with the collection of consumer debts;
•the Gramm-Leach-Bliley Act, or GLBA, and Regulation P promulgated thereunder, which includes limitations on financial institutions’ disclosure of nonpublic personal information about a consumer to nonaffiliated third parties, in certain circumstances requires financial institutions to limit the use and further disclosure of nonpublic personal information by nonaffiliated third parties to whom they disclose such information and requires financial institutions to disclose certain privacy notices and practices with respect to information sharing with affiliated and unaffiliated entities as well as to safeguard personal borrower information, and other state privacy laws and regulations;
•the Bankruptcy Code, which limits the extent to which creditors may seek to enforce debts against parties who have filed for bankruptcy protection;
•the Servicemembers Civil Relief Act, which allows military members to suspend or postpone certain civil obligations, requires creditors to reduce the interest rate to 6% on loans to military members under certain circumstances, and imposes restrictions on enforcement of loans to servicemembers, so that the military member can devote his or her full attention to military duties;
•the Military Lending Act, which requires those who lend to “covered borrowers”, including members of the military and their dependents, to only offer Military APRs (a specific measure of all-in-cost-of-credit) under 36%, prohibits arbitration clauses in loan agreements, and prohibits certain other loan agreement terms and lending practices in connection with loans to military servicemembers, among other requirements, and for which violations may result in penalties including voiding of the loan agreement;
•the Electronic Fund Transfer Act and Regulation E promulgated thereunder, which provide guidelines and restrictions on the electronic transfer of funds from consumers’ bank accounts, including a prohibition on a creditor requiring a consumer to repay a credit agreement in preauthorized (recurring) electronic fund transfers and disclosure and authorization requirements in connection with such transfers;
•the Telephone Consumer Protection Act and the regulations promulgated thereunder, and similar state laws, which impose various consumer consent requirements and other restrictions in connection with telemarketing activity and other communication with consumers by phone, fax or text message, and which provide guidelines designed to safeguard consumer privacy in connection with such communications;
•the Federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 and the Telemarketing Sales Rule and analogous state laws, which impose various restrictions on marketing conducted use of email, telephone, fax or text message;
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•the Electronic Signatures in Global and National Commerce Act and similar state laws, particularly the Uniform Electronic Transactions Act, which authorize the creation of legally binding and enforceable agreements utilizing electronic records and signatures and which require creditors and loan servicers to obtain a consumer’s consent to electronically receive disclosures required under federal and state laws and regulations;
•the Right to Financial Privacy Act and similar state laws enacted to provide the financial records of financial institution customers a reasonable amount of privacy from government scrutiny;
•the Bank Secrecy Act and the USA PATRIOT Act, which relate to compliance with anti-money laundering, borrower due diligence and record-keeping policies and procedures;
•the regulations promulgated by the Office of Foreign Assets Control under the U.S. Treasury Department related to the administration and enforcement of sanctions against foreign jurisdictions and persons that threaten U.S. foreign policy and national security goals, primarily to prevent targeted jurisdictions and persons from accessing the U.S. financial system;
•federal and state securities laws, including, among others, the Securities Act of 1933, as amended, or the Securities Act, the Exchange Act, the Investment Advisers Act of 1940, as amended, or the IAA, and the Investment Company Act, rules and regulations adopted under those laws, and similar state laws and regulations, which govern how we offer, sell and transact in our loan financing products; and
•other state-specific and local laws and regulations.

We may not always have been, and may not always be, in compliance with these and other applicable laws, regulations and rules. And while compliance with these requirements is a business priority for us, it is also costly, time-consuming and limits our operational flexibility. Additionally, Congress, the states and regulatory agencies, as well as local municipalities, could further regulate the consumer financial services industry in ways that make it more difficult or costly for us to offer our AI lending marketplace and related services or facilitate the origination of loans for our lending partners. These laws also are often subject to changes that could severely limit the operations of our business model. Further, changes in the regulatory application or judicial interpretation of the laws and regulations applicable to financial institutions also could impact the manner in which we conduct our business. The regulatory environment in which financial institutions operate has become increasingly complex, and following the financial crisis that began in 2008, supervisory efforts to apply relevant laws, regulations and policies have become more intense. Additionally, states are increasingly introducing and, in some cases, passing laws that restrict interest rates and APRs on loans similar to the loans made on our marketplace. For example, Illinois, Maine and New Mexico enacted laws that cap interest rates on certain loans at an “all-in” 36% APR. In addition, certain states have proposed or enacted legislation that would end the rate exportation in their states by out-of-state, state-chartered banks. Colorado was the first state to enact such legislation since Iowa, and other states have proposed similar legislation. Further, in late 2020, California created a “mini-CFPB,” which could increase its oversight over bank partnership relationships and strengthen state consumer protection authority of state regulators to police debt collections and unfair, deceptive or abusive acts and practices. Voter referendums also have been introduced and, in some cases, passed, restrictions on interest rates and/or APRs. If such legislation or bills were to be propagated, or state or federal regulators seek to restrict regulated financial institutions such as our lending partners from engaging in business with Upstart in certain ways, our lending partners’ ability to originate loans in certain states could be greatly reduced, and as a result, our business, financial condition and results of operations would be adversely affected.

Where applicable, we seek to comply with state broker, small loan, finance lender, servicing, collection, money transmitter and similar statutes. Nevertheless, if we are found to not comply with applicable laws, we could lose one or more of our licenses or authorizations, become subject to greater scrutiny by other state regulatory agencies, face other sanctions or be required to obtain a license in such jurisdiction, which may have an adverse effect on our ability to continue to facilitate loans, perform our servicing obligations or make our marketplace available to consumers in particular states, which may harm our business. Further, failure to comply with the laws and regulatory requirements applicable to our business and operations may, among other things, limit our ability to collect all or part of the principal of or interest on Upstart-powered loans. In addition, non-compliance could subject
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us to damages, revocation of required licenses, class action lawsuits, administrative enforcement actions, rescission rights held by investors in securities offerings and civil and criminal liability, all of which would harm our business.

Internet-based loan origination processes may give rise to greater risks than paper-based processes and may not always be allowed under state law.

We use the internet to obtain application information and distribute certain legally required notices to applicants and borrowers, and to obtain electronically signed loan documents in lieu of paper documents with actual borrower signatures. These processes may entail greater risks than would paper-based loan origination processes, including risks regarding the sufficiency of notice for compliance with consumer protection laws, risks that borrowers may challenge the authenticity of loan documents, and risks that despite internal controls, unauthorized changes are made to the electronic loan documents. In addition, our software could contain “bugs” that result in incorrect calculations or disclosures or other non-compliance with federal or state laws or regulations. If any of those factors were to cause any loans, or any of the terms of the loans, to be unenforceable against the borrowers, or impair our ability to service loans, the performance of the underlying promissory notes could be adversely affected.

For auto loans issued through our auto lending marketplace, certain state laws may not allow for electronic lien and title transfer, which would require us to use a paper-based title process to secure title to the underlying collateral. While this process may help mitigate some of the risks associated with online processes, because it is highly manual and outside of our usual practices and titling rules can vary by state, we may be prone to errors and encounter greater difficulty complying with the proper procedures. If we fail to effectively follow such procedures we may, among other things, be limited in our ability to secure the collateral associated with loans issued through our auto lending marketplace.

If we are found to be operating without having obtained necessary state or local licenses, our business, financial condition and results of operations could be adversely affected.

Certain states have adopted laws regulating and requiring licensing by parties that engage in certain activities regarding consumer finance transactions, including facilitating and assisting such transactions in certain circumstances. Furthermore, certain states and localities have also adopted laws requiring licensing for consumer debt collection or servicing and/or purchasing or selling consumer loans. While we believe we have obtained or are in the process of obtaining all necessary licenses, the application of some consumer finance licensing laws to our AI lending marketplace and the related activities we perform, as well as to our lending partners, is unclear. In addition, state licensing requirements may evolve over time, including, in particular, recent trends toward increased licensing requirements and regulation of parties engaged in loan solicitation, student loan servicing activities and debt collection. States also maintain licensing requirements pertaining to the transmission of money, and certain states may broadly interpret such licensing requirements to cover loan servicing and the transmission of funds to investors. If we or one of our lending partners were found to be in violation of applicable state licensing requirements by a court or a state, federal, or local enforcement agency, we could be subject to fines, damages, injunctive relief (including required modification or discontinuation of our business in certain areas), criminal penalties and other penalties or consequences, and the loans originated by our lending partners on our marketplace could be rendered void or unenforceable in whole or in part, any of which could have a material adverse effect on our business.

The CFPB has sometimes taken expansive views of its authority to regulate consumer financial services, creating uncertainty as to how the agency’s actions or the actions of any other agency could impact our business.

The CFPB, which commenced operations in July 2011, has broad authority to create and modify regulations under federal consumer financial protection laws and regulations, such as the Truth in Lending Act and Regulation Z, ECOA and Regulation B, the Fair Credit Reporting Act and Regulation V, the Electronic Funds Transfer Act and Regulation E, among other regulations, and to enforce compliance with those laws. The CFPB supervises banks, thrifts and credit unions with assets over $10 billion and examines certain of our lending partners. Further, the CFPB is charged with the examination and supervision of certain participants in the consumer financial services market, including short-term, small dollar lenders, non-bank mortgage originators and servicers, and larger
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participants in other areas of financial services. The CFPB has also recently used a previously dormant provision of the Dodd Frank Act, to supervise other entities it has reason to believe pose risks to consumers even where no violation of law is identified, and is authorized to prevent “unfair, deceptive or abusive acts or practices” through its rulemaking, supervisory and enforcement authority. To assist in its enforcement, the CFPB maintains an online complaint system that allows consumers to log complaints with respect to various consumer finance products, including the loan products offered on our marketplace, and recently finalized a rule establishing a public registry for final orders issued against non-banks subject to CFPB enforcement actions. This system could inform future CFPB decisions with respect to its regulatory, enforcement or examination focus. The CFPB may also request reports concerning our organization, business conduct, markets and activities and conduct on-site examinations of our business on a periodic basis if the CFPB were to determine, through its complaint system, that we were engaging in activities that pose risks to consumers.

In May 2024, the Supreme Court ruled that the CFPB’s funding structure is constitutional, and although more recent actions have been filed that challenge the CFPB’s authority on other grounds, the Supreme Court’s decision ended uncertainty about the future of the CFPB and how its strategies and priorities, including in both its examination and enforcement processes, will impact our business and our results of operations going forward. In the aftermath, the CFPB increased hiring in its Enforcement Division and created a Repeat Offender Unit. In February 2024, the CFPB published a decision and order in a supervisory designation proceeding against a non-bank installment lender that officially established the CFPB’s supervisory authority over such lenders due to the risk the non-bank lender posed to consumers. The CFPB opined that risk does not need to be based on a violation of law. If the CFPB decides to subject us to its supervisory process, it could significantly increase the level of regulatory scrutiny of our business practices. The CFPB is positioned to use its examination and enforcement authority power, including safeguarding against algorithmic bias, in expanded ways. See the risk factor titled “—Our business is subject to a wide range of laws and regulations, many of which are evolving, and failure or perceived failure to comply with such laws and regulations could harm our business, financial condition and results of operations” for more information.

In addition, evolving views regarding the use of alternative variables and machine learning in assessing credit risk could result in the CFPB taking actions that result in requirements to alter or cease offering affected financial products and services, making them less attractive and restricting our ability to offer them. See the risk factor titled “—Our reputation and brand are important to our success, and if we are unable to continue developing our reputation and brand, our ability to retain existing and attract new bank partners, our ability to attract borrowers to our marketplace, our ability to maintain diverse and resilient loan funding and our ability to maintain and improve our relationship with regulators of our industry could be adversely affected” for more information. The CFPB could also implement rules that restrict our effectiveness in servicing our financial products and services.

Although we have committed resources to enhancing our compliance programs, future actions by the CFPB (or other regulators) against us, our lending partners or our competitors could discourage the use of our services or those of our lending partners, which could result in reputational harm, a loss of lending partners, borrowers or institutional investors, or discourage the use of our or their services and adversely affect our business, especially now that actions resulting in orders will be made public. If the CFPB changes regulations that were adopted in the past by other regulators and transferred to the CFPB by the Dodd-Frank Act, or modifies through supervision or enforcement past regulatory guidance or interprets existing regulations in a different or stricter manner than they have been interpreted in the past by us, the industry or other regulators, our compliance costs and litigation exposure could increase materially. This is particularly true with respect to the application of ECOA and Regulation B to credit risk models that rely upon alternative variables and machine learning, an area of law where regulatory guidance is currently uncertain and still evolving, and for which there are not well-established regulatory norms for establishing compliance.

The current presidential administration has appointed and is expected to continue to appoint consumer-oriented regulators at federal agencies such as the CFPB, the FTC, the OCC and the FDIC and the government’s focus on enforcement of federal consumer protection laws is expected to increase. It is possible that these regulators could promulgate rulemakings and bring enforcement actions that materially impact our business and the business of our lending partners. If future regulatory or legislative restrictions or prohibitions are imposed that affect our ability to offer certain of our products or that require us to make significant changes to our business practices, and if we are
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unable to develop compliant alternatives with acceptable returns, these restrictions or prohibitions could have a material adverse effect on our business. If the CFPB, or another regulator, were to issue a consent decree or other similar order against us, this could also directly or indirectly affect our results of operations.

Our compliance and operational costs and litigation exposure could increase if and when the CFPB or another agency amends or finalizes any proposed regulations, including the regulations discussed above or if the CFPB or other regulators enact new regulations, change regulations that were previously adopted, modify, through supervision or enforcement, past regulatory guidance, or interpret existing regulations in a manner different or stricter than have been previously interpreted.

We have been in the past and may in the future be subject to federal and state regulatory inquiries regarding our business.

We have, from time to time in the normal course of our business, received, and may in the future receive or be subject to, inquiries or investigations by state and federal regulatory agencies and bodies such as the CFPB, the FTC, state Attorneys General, the SEC, state financial regulatory agencies and other state or federal agencies or bodies regarding the Upstart marketplace, including the marketing of loans for lenders, underwriting and pricing of consumer loans for our lending partners, our fair lending compliance program and licensing and registration requirements. While we expect to address inquiries or investigations and engage in open dialogue with regulators, we cannot guarantee that a federal or state regulator will not take supervisory or enforcement action against us in the future. Since the no-action letter with the CFPB was terminated in June 2022, we no longer enjoy the protection of the no-action letter which had provided that the CFPB would not take supervisory or enforcement action against us for a violation of ECOA. We intend to continue to pursue a transparent and cooperative relationship with the CFPB, which could involve sharing information about our models and other aspects of our business. It is also possible the CFPB may take supervisory or enforcement action against us in the future.

We have also received inquiries from state regulatory agencies regarding requirements to obtain licenses from or register with those states, including in states where we have determined that we are not required to obtain such a license or be registered with the state, and we expect to continue to receive such inquiries. Any such inquiries or investigations could involve substantial time and expense to analyze and respond to, could divert management’s attention and other resources from running our business, and could lead to public enforcement actions or lawsuits and fines, penalties, injunctive relief, and the need to obtain additional licenses that we do not currently possess. Our involvement in any such matters, whether tangential or otherwise and even if the matters are ultimately determined in our favor, could also cause significant harm to our reputation, lead to additional investigations and enforcement actions from other agencies or litigants, and further divert management attention and resources from the operation of our business. Formal enforcement actions are generally made public, which also carries reputational risk. The market price of our common stock could decline as a result of the initiation of a regulatory investigation of Upstart or even the perception that such an investigation could occur, even in the absence of any finding by a regulator that we have violated any state or federal law. As a result, the outcome of legal and regulatory actions arising out of any state or federal inquiries we receive could be material to our business, results of operations, financial condition and cash flows and could have a material adverse effect on our business, financial condition or results of operations.

For non-bank financial institutions, the FTC is also a primary regulator, and in recent years the FTC has been focused on practices of financial technology companies. Based on publicly available actions, the FTC’s primary focus has been with respect to financial technology company marketing and disclosure practices. For instance, in October 2018 the FTC took action against student loan refinance lender SoFi, claiming that the company made prominent false statements regarding the average savings a consumer would realize over the lifetime of the loan if they refinanced with SoFi. In addition, SoFi allegedly exaggerated claims of anticipated borrower savings by excluding certain customer populations from the analysis. In addition, in July 2021 the FTC settled litigation with LendingClub regarding, among other things, the adequacy of its disclosures of an origination fee associated with the product. Moreover, the FTC recently issued a staff report on digital “dark patterns,” sophisticated design practices that can trick or manipulate consumers into buying products or services or giving up their private information, that, among other things, highlighted marketing and disclosure practices by some financial technology companies that the FTC claimed were deceptive because of their use of dark patterns. Based upon prior enforcement actions, staff
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reports, and statements by FTC officials, we believe this scrutiny of financial technology company marketing and disclosure practices will continue in the near future. While we maintain policies and procedures that require our marketing and loan application and servicing operations comply with UDAP standards, we may not be successful in our efforts to achieve compliance either due to internal or external factors, such as resource allocation limitations or a lack of vendor cooperation.

The collection, processing, storage, use and disclosure of personal data could give rise to liabilities as a result of existing or new governmental regulation, conflicting legal requirements or differing views of personal privacy rights.

We receive, transmit and store large volumes of personal information and other sensitive data, which may potentially include biometric data as defined by state law, from applicants and borrowers. Each lending partner can access information about their respective borrowers and declined applicants via daily loan reports and other reporting tools that are provided via the platform. For loan institutional investors, while we generally limit access to personal information, we do share some personal information about borrowers with certain institutional investors. There are federal, state and foreign laws regarding privacy and the storing, sharing, use, disclosure and protection of personal information and sensitive data including those specific to biometric data. Specifically, cybersecurity and data privacy issues, particularly with respect to personal information, are increasingly subject to legislation and regulations to protect the privacy and security of personal information that is collected, processed and transmitted. For example, the GLBA includes limitations on financial institutions’ disclosure of nonpublic personal information about a consumer to non-affiliated third parties, in certain circumstances requires financial institutions to limit the use and further disclosure of nonpublic personal information by non-affiliated third parties to whom they disclose such information and requires financial institutions to disclose certain privacy notices and practices with respect to information sharing with affiliated and unaffiliated entities as well as to safeguard personal borrower information. Privacy requirements under the GLBA are enforced by the CFPB, as well as the FTC, and under Section 5 of the Federal Trade Commission Act, we and our lending partners are prohibited from engaging in unfair and deceptive acts and practices, or UDAP. For example, both the FTC and CFPB have relied on UDAP/UDAAP principles to increase enforcement of “dark patterns”, the definition of which varies but has been defined as “design features used to deceive, steer, or manipulate users into behavior that is profitable for an online service, but often harmful to users or contrary to their intent.” We are and our lending partners are also prohibited from sharing consumer information without proper notification and consent. For example, lawsuits were recently filed against TD Bank and Capital One for alleged privacy violations under GLBA and similar state privacy laws and unfair and deceptive practices under UDAAP, for the alleged sharing of nonpublic personal information (“NPI”) with Meta without (1) properly disclosing in the bank’s privacy policy or elsewhere that NPI was shared with Meta; and (2) allowing customers to opt out of having their NPI shared with Meta.

At the state level, the California Consumer Privacy Act, or the CCPA, which went into effect on January 1, 2020, requires, among other things, that covered companies provide disclosures to California residents and afford such persons new abilities to opt-out of certain sales or retention of their personal information by us. Aspects of the CCPA and its interpretation remain unclear. In addition, California voters approved Proposition 24 in the November 2020 election to create the California Privacy Rights Act, or CPRA, which amends and purports to strengthen the CCPA and created a state agency, the California Privacy Protection Agency, to enforce privacy laws. The CPRA amendments create obligations relating to consumer data as of January 1, 2023 (with a one-year lookback), and enforcement beginning March 29, 2024. Following the enactment of the CCPA, certain states, including but not limited to Texas, Virginia, Colorado, Maryland, Oregon and Utah, have enacted, and other states are proposing to enact, laws and regulations that impose obligations similar to the CCPA or that otherwise involve significant obligations and restrictions. While many of these laws include exemptions for information covered by the GLBA, and we therefore may be exempt from all or most obligations under many of these state privacy laws, some states may not provide for such exemptions, and such exemptions may not fully exempt us from compliance with state laws.

Many privacy and data security laws, such as the CCPA, apply to biometric data. However, some states have passed or are considering legislation that are biometric specific. For instance, in Illinois, the Biometric Information Privacy Act, or BIPA, specifically governs the collection, possession, and disclosure of biometric
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information or biometric identifiers. There has been a corresponding increase in litigation related specifically to state biometric privacy laws. Whether information we receive from borrowers is subject to state laws expressly governing biometric data depends on how such laws define “biometric data” or other similar terms of art.

Compliance with current and future borrower privacy data protection and information security laws and regulations could result in higher compliance, technical or operating costs. We cannot fully predict the impact of the CCPA, BIPA, or other privacy and data security state laws on our business or operations, but it may require us to further modify our data infrastructure and data processing practices and policies and to incur additional costs and expenses in an effort to continue to comply. Further, any actual or perceived violations of these laws and regulations may require us to change our business practices, data infrastructure or operational structure, address legal claims and regulatory investigations and proceedings and sustain monetary penalties and/or other harms to our business. We could also be adversely affected if new legislation or regulations are adopted or if existing legislation or regulations are modified such that we are required to alter our systems or change our business practices or privacy policies.

As the regulatory framework for AI and machine learning technology evolves, our business, financial condition and results of operations may be adversely affected.

The regulatory framework for AI and machine learning technology is evolving and remains uncertain. For example, in April 2023, the FTC, DOJ, EEOC and CFPB released a joint statement on potential “threats” posed by AI, such as contributing to discriminatory outcomes. Additionally, the CFPB published statements in May 2022 and September 2023 on the applicability of ECOA to AI and machine learning underwriting models when generating adverse action notices. Several federal agencies including the CFPB and Treasury Department have issued requests for information to investigate the impacts of AI on the provision of financial goods and services.

There is also a significant amount of proposed legislation at the state and federal levels on AI governance and oversight. For example, the Colorado Artificial Intelligence Act (the “CAIA”), the first comprehensive state AI regulation, will go into effect in February 2026. Among other things, the CAIA imposes a duty of reasonable care on developers and deployers to avoid “algorithmic discrimination” in high-risk AI systems, and sets forth various disclosure, risk assessment, and governance requirements.

However, the language of the primary fair lending regulation (i.e. ECOA) remains unaltered. Therefore, it is possible that new laws and regulations will be adopted in the United States, or existing laws and regulations may be interpreted in new ways, that would affect the operation of our marketplace and the way in which we use AI and machine learning technology, including with respect to fair lending laws. Further, the cost to comply with such laws or regulations could be significant and would increase our operating expenses, which could adversely affect our business, financial condition and results of operations.

If we are required to register under the Investment Company Act, our ability to conduct business could be materially adversely affected.

The Investment Company Act contains substantive legal requirements that regulate the manner in which “investment companies” are permitted to conduct their business activities. In general, an “investment company” is a company that holds itself out as an investment company or holds more than 40% of the total value of its assets (minus cash and government securities) in “investment securities.” We believe we are not an investment company. Our business involves developing and operating an online lending marketplace that provides our lending partners with access to technology, including proprietary AI models, and related services, so lending partners can assess the credit risk of potential borrowers and offer loans online, and our revenue derives primarily from fees based on the platform and referral services provided to our lending partners and loan servicing. We do not hold ourselves out as an investment company. We understand, however, that the loans held on our balance sheet could be viewed by the SEC or its staff as “securities,” which could in turn cause the SEC or its staff to view Upstart Holdings, Inc., Upstart Network, Inc., or an affiliate as an “investment company” subject to regulation under the Investment Company Act. We believe that we have never been an investment company because, among other reasons, we are primarily engaged in the business of providing an AI-based lending marketplace, and therefore can reasonably rely on exemptions from investment company status.
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If we are not able to rely on exemptions from investment company status, we could be deemed an investment company and may be required to institute burdensome compliance requirements, restricting our activities in a way that could adversely affect our business, financial condition and results of operations. For example, among other things, we could be subject to investment company governance requirements; restricted as to future borrowings and in our transactions with affiliates; and be more limited in available corporate financing alternatives and compensation arrangements. If we were ever deemed to be in non-compliance with the Investment Company Act, we could also be subject to various penalties, including administrative or judicial proceedings that might result in censure, fine, civil penalties, cease-and-desist orders or other adverse consequences, as well as private rights of action, any of which could materially adversely affect our business.

If we are required to register under the Investment Advisers Act, our ability to conduct business could be materially adversely affected.

The IAA contains substantive legal requirements that regulate the manner in which “investment advisers” are permitted to conduct their business activities. We do not believe that we or our affiliates are required to register as an investment adviser with either the SEC or any of the various states, because our business consists of providing a marketplace for consumer lending and loan financing for which investment adviser registration and regulation does not apply under applicable federal or state law. However, one of our affiliates, Upstart Network, Inc., has notice filed as an exempt reporting adviser with the state of California based on its limited activities advising a fund.

While we believe our current practices do not require us or any of our other affiliates or subsidiaries to register or notice file as an investment adviser, or require us to extend regulations related to Upstart Network, Inc.’s status as an exempt reporting adviser to our other operations, if a regulator were to disagree with our analysis with respect to any portion of our business, we or a subsidiary may be required to register or notice file as an investment adviser and to comply with applicable law. Registering as an investment adviser could adversely affect our method of operation and revenues. For example, the IAA requires that an investment adviser act in a fiduciary capacity for its clients. Among other things, this fiduciary obligation requires that an investment adviser manage a client’s portfolio in the best interests of the client, have a reasonable basis for its recommendations, fully disclose to its client any material conflicts of interest that may affect its conduct and seek best execution for transactions undertaken on behalf of its client. The IAA also limits the ways in which a company can market its services and offerings. It could be difficult for us to comply with these obligations without meaningful changes to our business operations, and there is no guarantee that we could do so successfully. If we were ever deemed to be in non-compliance with applicable investment adviser regulations, we could also be subject to various penalties, including administrative or judicial proceedings that might result in censure, fine, civil penalties, cease-and-desist orders or other adverse consequences, as well as private rights of action, any of which could materially adversely affect our business.

If our transactions involving institutional investors who provide loan funding to our marketplace are found to have been conducted in violation of the Securities Act or similar state law, or we have generally violated any applicable law, our ability to obtain financing for loans facilitated through our marketplace could be materially adversely affected, and we could be subject to private or regulatory actions.

Certain transactions involving institutional investors or related to acquisitions may rely or have relied on exemptions from the registration requirements of the Securities Act provided for in Regulation D or Section 4(a)(2) of the Securities Act. If any of these transactions were found to not be in compliance with the requirements necessary to qualify for these exemptions from Securities Act registration, or otherwise found to be in violation of the federal or state securities laws, our business could be materially adversely affected. The SEC or state securities regulators could bring enforcement actions against us, or we could be subject to private litigation risks as a result of any violation of the federal or state securities laws, which could result in civil penalties, injunctions and cease and desist orders from further violations, as well as monetary penalties of disgorgement, pre-judgment interest, rescission of securities sales, or civil penalties, any of which could materially adversely affect our business.

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If we are found to be in violation of state or federal law generally, we also may be limited in our ability to conduct future transactions. For example, we could in the future become ineligible to sell securities under Regulation D if we become subject to “bad actor” disqualification pursuant to Rule 506(d) of Regulation D. Under Rule 506(d), issuers are ineligible “bad actors” if they or certain related persons, including directors and certain affiliates, are subject to disqualifying events, including certain cease-and-desist orders obtained by the SEC. If we were subject to this or other “bad actor” provisions of the securities laws, we may not be able to continue sales of whole loans, fractional interests in loans, or asset-backed securities, or we could be subject to significant additional expense associated with making our offerings, which would adversely affect our business, financial condition and results of operations.

If we are required to register with the SEC or under state securities laws as a broker-dealer, our ability to conduct business could be materially adversely affected.

We are not currently registered with the SEC as a broker-dealer under the Exchange Act or any comparable state law. The SEC heavily regulates the manner in which broker-dealers are permitted to conduct their business activities. We believe we have conducted, and we intend to continue to conduct, our business in a manner that does not result in our being characterized as a broker-dealer, based on guidance published by the SEC and its staff. Among other reasons, this is because we do not believe we take any compensation that would be viewed as being based on any transactions in securities in any of our business lines. To the extent that the SEC or its staff publishes new or different guidance with respect to these matters, we may be required to adjust our business operations accordingly. Any additional guidance from the SEC staff could provide additional flexibility to us, or it could inhibit our ability to conduct our business operations. There can be no assurance that the laws and regulations governing our broker-dealer status or that SEC guidance will not change in a manner that adversely affects our operations. If we are deemed to be a broker-dealer, we may be required to institute burdensome compliance requirements and our activities may be restricted, which would adversely affect our business, financial condition and results of operations. We may also be subject to private litigation and potential rescission of certain investments investors in our loan financing products have made, which would harm our operations as well.

Similarly, we do not believe that our sales of whole loans and asset-backed securities will subject us to broker-dealer registration in any state in which we operate, primarily because we do not accept compensation that we believe could be viewed as transaction-based. However, if we were deemed to be a broker-dealer under a state’s securities laws, we could face civil penalties, or costly registration requirements, that could adversely affect our business.

Anti-money laundering, anti-terrorism financing, anti-corruption and economic sanctions laws could have adverse consequences for us.

We maintain a compliance program designed to enable us to comply with all applicable anti-money laundering and anti-terrorism financing laws and regulations, including the Bank Secrecy Act and the USA PATRIOT Act and U.S. economic sanctions laws administered by the Office of Foreign Assets Control. This program includes policies, procedures, processes and other internal controls designed to identify, monitor, manage and mitigate the risk of money laundering and terrorist financing and engaging in transactions involving sanctioned countries, persons and entities. These controls include procedures and processes to detect and report suspicious transactions, perform borrower due diligence, respond to requests from law enforcement, and meet all recordkeeping and reporting requirements related to particular transactions involving currency or monetary instruments. During 2020, we failed to file timely reports of suspicious transactions as required with appropriate regulatory agencies. We remediated the failure to file and have added additional resources to support our compliance with these reporting requirements. We are also subject to anti-corruption and anti-bribery and similar laws, such as the U.S. Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, and the U.S. Travel Act, which prohibit companies and their employees and agents from promising, authorizing, making, or offering improper payments or other benefits to government officials and others in the private sector in order to influence official action, direct business to any person, gain any improper advantage, or obtain or retain business. We have implemented an anti-corruption policy to ensure compliance with these anti-corruption and anti-bribery laws. No assurance is given that our programs and controls will be effective to ensure
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compliance with all applicable anti-money laundering and anti-terrorism financing and anti-corruption laws and regulations, and our failure to comply with these laws and regulations could subject us to significant sanctions, fines, penalties, contractual liability to our lending partners or institutional investors, and reputational harm, all of which could harm our business.
Our securitizations are subject to regulation under federal law, and failure to comply with those laws could adversely affect our business.

Our loan securitizations and sales of asset-backed securities are subject to regulation under federal law, and banks and other regulated financial institutions acquiring and holding asset-based securities, including asset-backed securities sponsored by us, are subject to capital and leverage requirements. These requirements, which are costly to comply with, could decrease investor demand for securities issued through our securitization transactions. For example, the Credit Risk Retention rule, codified as Regulation RR under the Exchange Act, was jointly adopted by the SEC, the Department of the Treasury, the Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, and the Department of Housing and Urban Development in 2014. Regulation RR generally requires the sponsor of asset-backed securities to retain not less than five percent of the credit risk of the assets collateralizing the securities, and generally prohibits the sponsor or its affiliate from directly or indirectly hedging or otherwise selling or transferring the retained credit risk for a specified period of time, depending on the type of asset that is securitized. Some aspects of these risk retention rules have not been the subject of significant separate guidance. We believe, but cannot be certain, that we have conducted our business, and will continue to conduct our business, in such a way that we are compliant with these risk retention rules. However, if we have failed to comply, or should fall out of compliance with these rules, it could adversely affect our source of funding and our business.

We may also face regulatory risks related to compliance with Section 13 of the Bank Holding Company Act, commonly known as the “Volcker Rule,” which prohibits banking entities from acquiring an ownership interest in entities that are investment companies for purposes of the Investment Company Act, or would be investment companies but for Sections 3(c)(1) or 3(c)(7) of the Investment Company Act, which are generally known as “private funds.” This means that in order for a banking entity regulated under the Volcker Rule to purchase certain asset-backed securities issued by our affiliates, such affiliates may need to rely on another exemption or exception from being deemed “investment companies” if they wish to continue selling to banking entities. Currently, those affiliates generally rely on Rule 3a-7 under the Investment Company Act, which provides an exclusion to the definition of an investment company for issuers that pool income-producing assets and issue securities backed by those assets. However, if a regulator or other third party were to find or assert that our analysis under Rule 3a-7 (or, where applicable, some other exemption or exemption) is incorrect, banks that have purchased asset-backed securities may be able to rescind those sales, which would adversely affect our business. We believe, but cannot guarantee, that we have conducted our business, and will continue to conduct our business, in such a way that enables our applicable banking entity investors to be compliant with the Volcker Rule.

RISKS RELATED TO INDEBTEDNESS

We rely on borrowings under our warehouse credit facilities to fund certain aspects of our operations, and any inability to meet our obligations as they come due or to comply with various covenants or representations contained in our warehouse credit facilities could harm our business.

We, through our warehouse trust special purpose entities, have entered into warehouse credit facilities to partially finance the purchase of certain loans from certain lending partners that originate loans through our marketplace, which credit facilities are secured by the purchased loans.

Under our warehouse credit facilities, we may borrow up to an aggregate of $325.0 million to purchase unsecured personal loans, $100.0 million to purchase small dollar loans, and up to $50.0 million to purchase auto loans. Our warehouse credit facilities mature between December 2025 and June 2028, by which time the outstanding principal, together with any accrued and unpaid interest, are due and payable. As of September 30, 2024, the
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aggregate amount borrowed under our warehouse credit facilities was $170.1 million, and $373.5 million of the aggregate outstanding principal of loans and restricted cash pledged as collateral.

Our warehouse credit facilities impose operating and financial covenants on the applicable warehouse trust special purpose entity, and under certain events of default, the applicable lender could require that all or a portion of our outstanding borrowings become immediately due and payable or terminate their respective agreement with us. We have in the past, and may in the future, fail to comply with certain operating or financial covenants in our warehouse credit facilities, requiring a waiver from our lenders. If we are unable to repay our obligations at maturity or in the event of default, the applicable borrowing warehouse trust special purpose entity may have to liquidate the loans held as collateral at an inopportune time or price or, if the lender liquidated the loans, such warehouse trust would have to pay any amount by which the original purchase price exceeded their sale price. An event of default would negatively impact our ability to purchase loans from our marketplace and require us to rely on alternative funding sources, which might increase our costs or which might not be available when needed. If we were unable to arrange new or alternative methods of financing on favorable terms, we might have to limit our loan funding, which could have an adverse effect on our lending partners’ ability or willingness to originate new loans or our ability to use leverage for the loans we hold, which in turn would have an adverse effect on our business, results of operations and financial condition.

Corporate and asset-backed debt ratings could adversely affect our ability to support loan funding for our marketplace at attractive rates, which could negatively affect our results of operations, financial condition and liquidity.

Our unsecured senior corporate debt currently has no rating. Asset-backed securities sponsored or co-sponsored by us are currently rated by a limited number of credit rating agencies. Structured finance ratings reflect these rating agencies’ opinions of our receivables credit performance and ability of the receivables cash flows to pay interest on a timely basis and repay the principal of such asset-backed securitizations, as well as our ability to service the receivables and comply with other obligations under such programs, such as the obligation to repurchase loans subject to breaches of loan-level representations and warranties. Such ratings also reflect the rating agencies’ opinions of other service providers in such transactions, such as trustees, back-up servicers, charged-off loan purchasers and others.

Our asset-backed securities have been subject to downgrades in the past, and any future downgrade or non-publication of ratings may increase the interest rates that are required to attract investment in such asset-backed securities, adversely impacting our ability to provide liquidity or financing to our lending partners and institutional investors. Our lack of parent debt rating and any further downgrades to the ratings of our asset-backed securities could negatively impact our business, financial condition and results of operations.

We may need to raise additional funds in the future, including through equity, debt or convertible debt financings, to support business growth and those funds may not be available on acceptable terms, or at all.

We may continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new loan products, enhance our AI models, supplement loan funding, improve our operating infrastructure, acquire complementary businesses and technologies, or make strategic investments. Accordingly, we may need to engage in equity, debt or convertible debt financings to secure additional funds. If we raise additional funds by issuing equity securities or securities convertible into equity securities, our stockholders may experience dilution. For example, if we elect to deliver shares of our common stock to settle the conversion (other than paying cash in lieu of delivering any fractional share) of our outstanding Notes, it may have a dilutive effect on our stockholders’ equity holdings. Further, debt financing, if available, may involve covenants restricting our operations or our ability to incur additional debt. Any debt or additional equity financing that we raise may contain terms that are not favorable to us or our stockholders.

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If we are unable to obtain adequate financing or on terms satisfactory to us when we require it, we may pursue alternate transactions or be unable to pursue certain business opportunities and our ability to continue to support our business growth and to respond to business challenges could be impaired and our business may be harmed.

In August 2021, we issued $661.3 million in aggregate principal amount of the 2026 Notes, and in September 2024, we issued $431.3 million in aggregate principal amount of the 2029 Notes. Concurrently with the issuance of the 2029 Notes, we used $302.4 million of the proceeds to repurchase a portion of the outstanding 2026 Notes in individually negotiated transactions, and additionally repurchased a portion of the outstanding 2026 Notes during the third quarter of 2024 through open market purchases.

Holders of the 2026 Notes or 2029 Notes may require us to purchase all or a portion of their Notes upon the occurrence of a fundamental change (as defined in the applicable Indenture) with respect to such series of Notes before the applicable maturity date, at a fundamental change repurchase price equal to 100% of the principal amount of the Notes of such series to be repurchased, plus accrued and unpaid interest, if any. Additionally, upon conversion of the 2026 Notes or 2029 Notes, as applicable, unless we elect to deliver solely shares of our common stock to settle such conversion (other than paying cash in lieu of delivering any fractional share), we will be required to make cash payments in respect of the Notes being converted. Moreover, we will be required to repay the Notes of each series in cash at their respective maturities unless earlier converted, redeemed or repurchased. However, we may not have enough available cash or be able to obtain financing at the respective times we are required to make repurchases of the Notes of each series, pay cash for the Notes being converted, or at their respective maturities. In addition, our ability to repurchase the Notes of each series or to pay cash upon conversion of any such Notes may be limited by law, by regulatory authority or by agreements governing our future indebtedness at the time. Our failure to repurchase the Notes of a series at a time when the repurchase is required by the applicable Indenture, or to pay any cash payable upon future conversions of the Notes of a series as required by the applicable Indenture would constitute a default under such Indenture. A default under the applicable Indenture or the fundamental change itself could also lead to a default under agreements governing our other existing or future indebtedness. If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and repurchase the Notes of each series, pay cash with respect to the Notes being converted, or at the respective maturities of the Notes.

Provisions in the Indentures governing the 2029 Notes and the 2026 Notes may deter or prevent a business combination that may be favorable to you.

If a fundamental change (as defined in the applicable Indenture) occurs prior to the maturity date for a series of Notes, holders of the applicable series of Notes will have the right, at their option, to require us to repurchase all or a portion of such Notes. In addition, if a make-whole fundamental change (as defined in the applicable Indenture) occurs prior to the maturity date of the applicable series of Notes, we will in some cases be required to increase the conversion rate for a holder that elects to convert its Notes of such series in connection with such make-whole fundamental change in the manner specified in the applicable Indenture. Furthermore, the Indentures prohibit us from engaging in certain mergers or acquisitions unless, among other things, the surviving entity assumes our obligations under the Notes. These and other provisions in the Indentures could deter or prevent a third party from acquiring us even when the acquisition may be favorable to you.

RISKS RELATED TO TAXES

Our ability to use our deferred tax assets to offset future taxable income may be subject to certain limitations, which may have a material impact on our result of operations.

As of September 30, 2024, a valuation allowance has been recorded to recognize only deferred tax assets that are more likely than not to be realized in the United States federal, state and local tax jurisdictions. We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Certain of our deferred tax assets may expire unutilized or underutilized, which could prevent us from offsetting future taxable income.
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We may also be limited in the portion of NOLs that we can use in the future to offset taxable income for U.S. federal and state income tax purposes. The Tax Cuts and Jobs Act, or the Tax Act made broad and complex changes to U.S. tax law, including changes to the uses and limitations of NOLs. A lack of future taxable income would adversely affect our ability to utilize NOLs. In addition, under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its NOLs to offset future taxable income. Future changes in our stock ownership, including future offerings, as well as other changes that may be outside of our control, could result in additional ownership changes under Section 382 of the Code. Our NOLs may also be limited under similar provisions of state and local law.

We continue to assess the realizability of our deferred tax assets in the future. Future adjustments in our valuation allowance may be required, which may have a material impact on our quarterly and annual operating results.

Changes in tax laws could have a material adverse effect on our business, financial condition and results of operations.

We are subject to taxes in the United States under federal, state and local jurisdictions in which we operate. The governing tax laws and applicable tax rates vary by jurisdiction and are subject to interpretation and macroeconomic, political or other factors. For example, the results of U.S. presidential and congressional elections may lead to tax law changes. We may be subject to examination in the future by federal, state and local authorities on income, employment, sales and other tax matters. While we regularly assess the likelihood of adverse outcomes from such examinations and the adequacy of our provision for taxes, there can be no assurance that such provision is sufficient and that a determination by a tax authority would not have an adverse effect on our business, financial condition and results of operations. Various tax authorities may disagree with tax positions we take and if any such tax authorities were to successfully challenge one or more of our tax positions, the results could adversely affect our financial condition. Further, the ultimate amount of tax payable in a given financial statement period may be impacted by sudden or unforeseen changes in tax laws, changes in the mix and level of earnings by taxing jurisdictions, or changes to existing accounting rules or regulations. For example, the Inflation Reduction Act of 2022, enacted on August 16, 2022, imposes a one-percent non-deductible excise tax on repurchases of stock that are made by U.S. publicly traded corporations on or after January 1, 2023, which may affect our share repurchase program. In addition, effective as of January 1, 2022, the Tax Cuts and Jobs Act requires research and experimental expenditures attributable to research conducted within the United States to be capitalized and amortized ratably over a five-year period. Any such expenditures attributable to research conducted outside the United States must be capitalized and amortized over a 15-year period. Accordingly, the determination of our overall provision for income and other taxes is inherently uncertain as it requires significant judgment around complex transactions and calculations. As a result, fluctuations in our ultimate tax obligations may differ materially from amounts recorded in our financial statements and could adversely affect our business, financial condition and results of operations in the periods for which such determination is made.

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Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, gross receipts, value added or similar taxes and may successfully impose additional obligations on us, and any such assessments or obligations could adversely affect our business, financial condition and results of operations.

The application of indirect taxes, such as sales and use tax, value-added tax, digital services tax, digital advertising tax, business tax, gross receipts tax, and other similar tax to platform and financial technology businesses is a complex and evolving issue. Many of the fundamental statutes and regulations that impose these taxes were established before the adoption and growth of the Internet and e-commerce. Significant judgment is required on an ongoing basis to evaluate applicable tax obligations and as a result amounts recorded are estimates and are subject to adjustments. In many cases, the ultimate tax determination is uncertain because it is not clear how new and existing statutes might apply to our business. In addition, proposed or newly enacted laws regarding indirect tax could increase our compliance obligation. Any failure by us to prepare for and to comply with the reporting and record-keeping obligations could result in penalties and other sanctions, and could adversely affect our financial condition and results of operations.

We have faced, and may face in the future, various indirect tax audits in various U.S. jurisdictions. Tax authorities may raise questions about or challenge or disagree with our calculation, reporting or collection of taxes and may require us to collect taxes in jurisdictions in which we do not currently do so or to remit additional taxes and interest, and could impose associated penalties and fees. Although we have reserved for potential payments of past tax liabilities on our financial statements, a successful assertion by one or more tax authorities could result in substantial tax liabilities in excess of such reserves as well as penalties and interest, and could harm our business, financial condition and results of operations.

As a result of these and other factors, the ultimate amount of tax obligations owed may differ from the amounts recorded in our financial statements and any such difference may adversely impact our results of operations in future years in which we change our estimates of our tax obligations or in which the ultimate tax outcome is determined.

RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK

The trading price of our common stock may be volatile, and you could lose all or part of your investment.

The trading price of our common stock may be volatile and could be subject to fluctuations in response to various factors, some of which are beyond our control. These fluctuations could cause you to lose all or part of your investment in our common stock. Factors that could cause fluctuations in the trading price of our common stock include:
•price and volume fluctuations in the overall stock market from time to time;
•volatility in the trading prices and trading volumes of financial technology stocks;
•general economic conditions, including economic slowdowns, recessions, changes in interest and inflation rates, tightening of credit markets and disruptions in the banking sector;
•a reduction in the availability of loan funding and liquidity from lending partners and institutional investors;
•quarterly fluctuations in demand for the loans we facilitate through our marketplace;
•changes in operating performance and stock market valuations of other financial technology companies and technology companies that offer services to financial institutions;
•sales of shares of our common stock by us or our stockholders, including sales to cover tax withholding obligations upon vesting of RSUs issued to our employees;
•issuance of shares of our common stock, whether in connection with an acquisition or upon conversion of some or all of the outstanding Notes;
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•failure of securities analysts to maintain coverage of us, changes in financial estimates or other statements made by securities analysts or others, or our failure to meet these estimates or the expectations of investors;
•the financial projections we may provide to the public, any changes in those projections, or our failure to meet those projections;
•announcements by us or our competitors of new products, features, or services;
•the public’s reaction to our press releases, other public announcements, and filings with the SEC;
•rumors and market speculation involving us or other companies in our industry;
•actual or anticipated changes in our results of operations or fluctuations in our results of operations;
•fluctuations in the trading volume of our shares or the size of our public float;
•actual or anticipated developments in our business, our competitors’ businesses or the competitive landscape generally;
•litigation involving us, our industry, or both, or investigations by regulators into our operations or those of our competitors;
•compliance with government policies or regulations;
•the issuance of any cease-and-desist orders from regulatory agencies that we are subject to;
•developments or disputes concerning our intellectual property or other proprietary rights;
•market perception of the accuracy of our AI models;
•actual or perceived data security breaches or other data security incidents;
•announced or completed acquisitions of businesses, products, services, or technologies by us or our competitors;
•new laws or regulations or new interpretations of existing laws or regulations applicable to our business;
•changes in accounting standards, policies, guidelines, interpretations, or principles;
•recruitment or departure of key personnel; and
•other events or factors, including those resulting from war, incidents of terrorism, political unrest, natural disasters, pandemics or responses to these events.

The stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of listed companies. Broad market and industry factors may seriously affect the market price of our common stock, regardless of our actual operating performance. In the past, following periods of volatility in the overall market and the market prices of particular companies’ securities, securities class action litigation has often been instituted against these companies. For example, in May 2022, June 2022 and July 2022, we and certain of our officers were sued in purported class action lawsuits alleging violations of the federal securities laws for allegedly making materially false and misleading statements about our business, operations, and prospects. This litigation could result in substantial costs and a diversion of our management’s attention and resources, which could harm our business. We may be the target of additional litigation of this type in the future as well.

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We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term shareholder value. Share repurchases could also affect the trading price of our stock, increase volatility of our stock and diminish our cash reserves.

Although our Board of Directors has authorized a share repurchase program that does not have an expiration date, the program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares of our common stock. We cannot guarantee that the program will be fully consummated or that it will enhance long-term stockholder value. The timing and number of shares repurchased under the program will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The program could affect the trading price of our stock, increase volatility and diminish our cash reserves. Our Board of Directors will review the program periodically and may authorize adjustments of its terms if appropriate. Any announcement of a suspension or termination of this program may result in a decrease in the trading price of our stock.

The capped call transactions entered into in connection with the issuance of each series of the Notes may affect the market price of our common stock.

In connection with the issuance of each series of the Notes, we entered into privately negotiated capped call transactions with certain financial institutions as counterparties. These capped call transactions are expected generally to offset the potential dilution to our common stock upon any conversion of the applicable series of Notes and/or reduce any cash payments we are required to make in excess of the principal amount of such converted Notes, as the case may be, with such offset and/or reduction subject to a cap.

From time to time, the counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to our common stock and/or purchasing or selling our common stock or other securities of ours in secondary market transactions prior to the maturity of the applicable series of Notes (and are likely to do so following May 15, 2026, in the case of the 2026 Notes, and July 1, 2029, in the case of the 2029 Notes, during the observation period for conversions of the applicable series of Notes following any conversion of the Notes prior to May 15, 2026, in the case of the 2026 Notes, and July 1, 2029, in the case of the 2029 Notes, or in connection with any repurchase or redemption of the Notes of the applicable series, to the extent we unwind a corresponding portion of the capped call transactions, and if we otherwise unwind all or a portion of the capped call transactions). This activity could also cause or prevent an increase or a decrease in the market price of our common stock.

Certain insiders have significant voting power, which could limit your ability to influence the outcome of key transactions, including a change of control.

Our directors, officers, and each of our stockholders who own greater than 5% of our outstanding capital stock and their affiliates, in the aggregate, beneficially own a significant portion of the outstanding shares of our capital stock. As a result, these stockholders, if acting together, are able to influence matters requiring approval by our stockholders, including the election of directors and the approval of mergers, acquisitions, or other extraordinary transactions. They may also have interests that differ from yours and may vote in a way with which you disagree and which may be adverse to your interests. This concentration of ownership may have the effect of delaying, preventing or deterring a change of control, could deprive our stockholders of an opportunity to receive a premium for their common stock as part of a sale, and might ultimately affect the trading price of our common stock.

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The large number of shares of our capital stock eligible or registered for public sale could depress the market price of our common stock.

The market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market, and the perception that these sales could occur may also depress the market price of our common stock. We have filed and in the future may file registration statements on Form S-8 to register shares reserved for future issuance under our equity compensation plans. As a result, subject to the satisfaction of applicable exercise periods or vesting conditions and compliance with our Insider Trading Policy, the shares issued upon exercise of outstanding stock options and settlement of fully vested RSUs will be available for immediate resale in the United States in the open market.

Sales of our shares may make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. These sales also could cause the trading price of our common stock to fall and make it more difficult for you to sell shares of our common stock.

Our common stock does not provide any rights directly related to the loans we hold.

Investors in our common stock own a form of equity that may provide returns based on either an increase in the value of the stock or any distributions made to common stockholders. Investors will not, however, receive any interest in or fees based on the loans or other assets we hold on our balance sheet. In particular, investors in our common stock will not receive any distributions directly based on principal or interest payments made by borrowers on the loans we hold. Those loans are not directly related in any way to the common stock investors’ purchase.

You may be diluted by the future issuance of additional common stock in connection with our equity incentive plans, acquisitions or otherwise.

Our amended and restated certificate of incorporation authorizes us to issue 609,001,745 shares of authorized but unissued common stock and rights relating to common stock for the consideration and on the terms and conditions established by our Board of Directors in its sole discretion, whether in connection with acquisitions or otherwise. We have reserved 7,692,542 shares for issuance under our 2020 Equity Incentive Plan subject to adjustment in certain events. Any common stock that we issue, including under our 2020 Equity Incentive Plan or other equity incentive plans that we may adopt in the future, could dilute the percentage ownership held by the investors in our common stock.

To the extent a large number of shares of our common stock are sold in connection with any “sell to cover” transactions upon vesting of restricted stock units (RSUs) issued to our employees, our stock price may fluctuate.

Under U.S. tax laws, employment tax withholding and remittance obligations for RSUs arise in connection with their vesting. To fund the tax withholding and remittance obligations arising in connection with the vesting of RSUs, we use the “sell-to-cover” method, under which shares with a market value equivalent to the tax withholding obligation are sold by a broker on behalf of the holder of the RSUs upon vesting to cover the tax withholding liability and the cash proceeds from such sales are subsequently remitted by us to the taxing authorities. The tax withholding due in connection with such RSU vesting is based on the then-current value of the underlying shares of our common stock. Such sales do not result in the expenditure of additional cash by us to satisfy the tax withholding obligations for RSUs. To the extent a large number of shares are sold in connection with any vesting event, such sales volume may cause our stock price to fluctuate.

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Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the market price of our common stock.

Our status as a Delaware corporation and the anti-takeover provisions of the Delaware General Corporation Law may discourage, delay, or prevent a change in control by prohibiting us from engaging in a business combination with an interested stockholder for a period of three years after the person becomes an interested stockholder unless certain conditions are met, even if a change of control would be beneficial to our existing stockholders. In addition, our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may make the acquisition of our company more difficult, including the following:
•our Board of Directors is classified into three classes of directors with staggered three-year terms and directors are only able to be removed from office for cause;
•vacancies and newly-created seats on our Board of Directors will be able to be filled only by our Board of Directors and not by stockholders;
•only the Chair of our Board of Directors, our Chief Executive Officer, our president, or a majority of our entire Board of Directors are authorized to call a special meeting of stockholders;
•certain litigation against us or our directors, stockholders, officers or employees can only be brought in Delaware;
•advance notice procedures apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders; and
•any amendment of the above anti-takeover provisions in our amended and restated certificate of incorporation or amended and restated bylaws will require the approval of at least 66 2/3% of the combined voting power of our then-outstanding shares of our capital stock.

These anti-takeover defenses could discourage, delay, or prevent a transaction involving a change in control of our company. These provisions could also discourage proxy contests and make it more difficult for stockholders to elect directors of their choosing and to cause us to take other corporate actions they desire, any of which, under certain circumstances, could limit the opportunity for our stockholders to receive a premium for their shares of our capital stock, and could also affect the price that some investors are willing to pay for our common stock.

Our amended and restated bylaws designate a state or federal court located within the State of Delaware (or any federal district court, for Securities Act claims) as the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers or employees.

Our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, stockholders, officers, or other employees to us or our stockholders, (iii) any action arising pursuant to any provision of the Delaware General Corporation Law, our amended and restated certificate of incorporation, or our amended and restated bylaws, or (iv) any other action asserting a claim that is governed by the internal affairs doctrine shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, another state court in Delaware or the federal district court for the District of Delaware), in all cases subject to the court having jurisdiction over the claims at issue and the indispensable parties; provided that the exclusive forum provision will not apply to suits brought to enforce any liability or duty created by the Exchange Act.

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Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions. Accordingly, both state and federal courts have jurisdiction to entertain such claims. To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our amended and restated bylaws also provide that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America are the sole and exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. We note, however, that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder, and that there is uncertainty as to whether a court would enforce this exclusive forum provision. Further, the enforceability of similar choice of forum provisions in other companies’ governing documents has been challenged in legal proceedings, and it is possible that a court could find these types of provisions to be inapplicable or unenforceable. For example, in December 2018, the Court of Chancery of the State of Delaware determined that a provision stating that U.S. federal district courts are the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act is not enforceable. Although this decision was reversed by the Delaware Supreme Court in March 2020, other courts may still find these provisions to be inapplicable or unenforceable.

Any person or entity purchasing, holding or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to this provision. This exclusive-forum provision may limit a stockholder’s ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers, or other employees, which may discourage lawsuits against us and our directors, officers, and other employees. This exclusive forum provision does not apply to any causes of action arising under the Exchange Act or any other claim for which the federal or other courts have exclusive jurisdiction. If a court were to find either of the exclusive-forum provisions in our amended and restated bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could harm our results of operations.

Our common stock market price and trading volume could decline if equity or industry analysts do not publish research or publish inaccurate or unfavorable research about our business.

The trading market for our common stock will depend in part on the research and reports that equity or industry analysts publish about us or our business. The analysts’ estimates are based upon their own opinions and are often different from our estimates or expectations. If one or more of the analysts who cover us downgrade our common stock or publish inaccurate or unfavorable research about our business, the price of our securities would likely decline. If few securities analysts commence coverage of us, or if one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our securities could decrease, which might cause the price and trading volume of our common stock to decline.

The requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain qualified board members.

As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the Nasdaq Global Select Market and other applicable securities rules and regulations. Our management and other personnel must devote substantial time to these public company requirements that would otherwise be focused on operational and other business matters. Compliance with these rules and regulations has increased our legal and financial compliance costs, made some activities more difficult, time-consuming or costly and increased demand on our systems and resources, and we will need to continue to invest additional resources and incur substantial costs on ongoing compliance burdens, including compliance with new rules and regulations that are adopted from time to time and applicable to us as a public company.

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Being a public company also makes it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage, incur substantially higher costs to obtain coverage or only obtain coverage with a significant deductible. These factors could also make it more difficult for us to attract and retain qualified executive officers and qualified members of our Board of Directors, particularly to serve on our audit committee and compensation committee.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time and attention from revenue-generating activities to compliance activities. If, notwithstanding our efforts, we fail to comply with new laws, regulations and standards or our efforts differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be adversely affected.

We do not intend to pay dividends for the foreseeable future.

We have never declared nor paid cash dividends on our capital stock. We currently intend to retain any future earnings to finance the operation and expansion of our business, as well as to fund our share repurchase program, and we do not expect to declare or pay any dividends in the foreseeable future. In addition, the terms of our existing corporate debt agreements do, and any future debt agreements may, preclude us from paying dividends. As a result, capital appreciation of our common stock, if any, will be the only way for stockholders to realize any future gains on their investment for the foreseeable future.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities

There were no repurchases of the Company’s common stock during the three months ended September 30, 2024.

Convertible Senior Notes

On September 16, 2024, we entered into a purchase agreement, or Purchase Agreement, with Barclays Capital Inc. and Goldman Sachs & Co. LLC, as representatives of the several initial purchasers, or collectively, the Initial Purchasers, to issue and sell $375.0 million in aggregate principal amount of our 2029 Notes. In addition, we granted the Initial Purchasers an option to purchase up to an additional $56.3 million in aggregate principal amount of the 2029 Notes on the same terms and conditions. The Initial Purchasers exercised their option in full on September 17, 2024. The Purchase Agreement includes customary representations, warranties, and covenants by us and customary closing conditions. Under the terms of the Purchase Agreement, we have agreed to indemnify the Initial Purchasers against certain liabilities.

We offered and sold the 2029 Notes to the Initial Purchasers in reliance on the exemption from the registration requirements provided by Section 4(a)(2) of the Securities Act, and for resale by the Initial Purchasers to persons reasonably believed to be qualified institutional buyers pursuant to the exemption from registration requirements provided by Rule 144A under the Securities Act. We relied on these exemptions from registration based in part on representations made by the Initial Purchasers in the Purchase Agreement. The shares of the common stock issuable upon conversion of the 2029 Notes, if any, have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

To the extent that any shares of the common stock are issued upon conversion of the 2029 Notes, they will be issued in transactions anticipated to be exempt from registration under the Securities Act by virtue of Section 3(a)(9) thereof, because no commission or other remuneration is expected to be paid in connection with conversion of the 2029 Notes and any resulting issuance of shares of the common stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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ITEM 5. OTHER INFORMATION

(c) Securities Trading Plans of Executive Officers and Directors

From time to time, some of the Company’s executive officers or directors may determine that it is advisable to diversify their investments for personal financial planning reasons or may seek liquidity for other reasons and may sell shares of common stock of the Company. To effect such sales, from time to time, some of the Company’s executive officers or directors may enter into trading plans that are designed to comply with the Company’s Insider Trading Policy and intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

During the quarter ended September 30, 2024, the following directors and officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company each adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K):

Name and title of director and officer: Dave Girouard, Chief Executive Officer
Date of adoption: August 29, 2024
Duration of the trading arrangement: Through December 31, 2025 or earlier if all transactions under the trading arrangement are completed
Aggregate number of securities to be sold from time to time: up to 1,000,000 shares issuable upon the exercise of outstanding options upon reaching the pricing targets defined in the trading arrangement.

Name of director: Sukhinder Singh Cassidy
Date of adoption: August 22, 2024
Duration of the trading arrangement: Through August 29, 2025 or earlier if all transactions under the trading arrangement are completed
Aggregate number of securities to be sold from time to time: up to 29,992 shares, including shares issuable upon the exercise of outstanding options upon reaching the pricing targets defined in the trading arrangement.

Name of director: Kerry Whorton Cooper
Date of adoption: August 29, 2024
Duration of the trading arrangement: Through November 28, 2025 or earlier if all transactions under the trading arrangement are completed
Aggregate number of securities to be sold from time to time: up to 2,000 shares.

None of the Company’s officers or directors modified or terminated a “Rule 10b5-1 trading arrangement” or adopted, modified or terminated a “non-Rule 10b5-1 trading arrangement” (as such terms are defined under Item 408(a) of Regulation S-K) during the quarter ended September 30, 2024.
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ITEM 6. EXHIBITS

The exhibits listed below are filed as part of this Quarterly Report on Form 10-Q or are incorporated herein by reference, in each case as indicated below.

EXHIBIT INDEX

Incorporated by Reference
Exhibit NumberDescriptionFormFile No. ExhibitFiling Date
4.1
8-K
001-397974.1September 19, 2024
4.2
8-K
001-397974.2September 19, 2024
10.1
8-K
001-3979710.1September 19, 2024
31.1*
31.2*
32.1*#
101.INS*Inline XBRL Instance Document
101.SCH*Inline XBRL Taxonomy Extension Schema Document
101.CAL*Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*Inline XBRL Taxonomy Extension Presentation Linkbase Document
104.0Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
—————
*    Filed herewith.
#    The certifications attached as Exhibit 32.1 that accompany this Quarterly Report on Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Upstart Holdings, Inc.
(Registrant)
Date: November 7, 2024
By:/s/ Dave Girouard
Dave Girouard
Chief Executive Officer and Director
(Principal Executive Officer)
Date: November 7, 2024
By:/s/ Sanjay Datta
Sanjay Datta
Chief Financial Officer
(Principal Financial Officer)
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