Upstart stock dropped 23% in July, according to data from S&P Global Market Intelligence, pressured by macroeconomic headwinds for lenders and growing concerns that agentic artificial intelligence could replace software-as-a-service products. The AI-based credit evaluation platform reported a 42% year-over-year revenue increase in the 2026 second quarter, with net income nearly tripling to $16.5 million, though it has fluctuated in and out of GAAP profitability. Management is targeting a 40% revenue increase for the full year and a 35% compound annual growth rate through 2028, while secured auto and home loan originations surged 218% year over year. The company has also reduced its home equity product cost by 15% and says its underwriting model has been 2.74 times as effective as traditional models over the past eight years.
