Upstart CEO Outlines AI Lending Growth Push, Targets Profitable Home and Auto Expansion

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Upstart CEO Paul Gu said the company is entering a second leg of development focused on converting its AI lending platform into sustained profitable growth while expanding into secured credit products. Speaking at Bank of America's SMID Cap Executive Insights event, Gu said personal-loan originations rose 23% sequentially in the second quarter, representing about $760 million in growth, with most of that funded by third-party capital. He said the company's newer home and auto lending businesses improved their contribution margins by 61 percentage points in the second quarter and are expected to reach contribution profitability by year-end. Gu said macroeconomic pressure tied to higher expected defaults offset operational improvements, leading Upstart to maintain full-year guidance, and that management expects to launch Upstart Bank early next year.

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Upstart Holdings Inc
UPST
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Personal-loan originations rose 23% sequentially, indicating strong demand for Upstart's AI lending platform.

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