Is Upstart Holdings, Inc. (UPST) A Good Stock To Buy Now?
Upstart Holdings, Inc.'s stock is trading near its 52-week low at $25, despite the company reporting $1 billion in FY2025 revenue and its first full-year GAAP net profit. Valuation analysis suggests the stock is undervalued by approximately 55-92% relative to its current market price.
Upstart Holdings, Inc. operates a cloud-based artificial intelligence lending platform in the United States. The company's FY2025 revenue reached $1 billion, a 64% increase from 2024, with adjusted EBITDA of $230 million and its first full-year GAAP net profit of $53.6 million. Management guided for $1.4 billion in revenue in 2026 with a 21% EBITDA margin. Valuation analysis implies a baseline fair value of $44-$48 per share, suggesting the stock is undervalued. UPST's EV/FY2025A revenue multiple of 2.4× remains below peer averages and its historical 7× level. Key risks include ongoing legal investigations and high stock-based compensation. The stock offers a high-beta, high-growth opportunity with meaningful upside potential, driven by upcoming catalysts like the Q1 2026 earnings report.
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