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美國
證券交易委員會
華盛頓特區20549
_________________________
形式 10-Q
(Mark一）
☒根據1934年《證券交易法》第13或15（d）條的季度報告
截至季度 2024年9月30日
或
☐根據1934年《證券交易所法》第13或15（d）條提交的過渡報告
從_________到 ________
委員會文件號： 001-39797
2019-Upstart-Logo-Medium copy.jpg
Upstart Holdings，Inc
（章程中規定的註冊人的確切名稱）
_________________________

德拉瓦
（州或其他司法管轄區
成立或組織）
46-4332431
（國稅局僱主
識別號）
Upstart Holdings，Inc
2950 S。德拉瓦街, 410套房
聖馬特奧, 加州 94403
（主要行政辦公室地址，包括郵政編碼）
(833) 212-2461
（註冊人的電話號碼，包括地區代碼）
_________________________

根據該法第12（b）條登記的證券：
每個班級的標題：交易符號註冊的每個交易所的名稱：
普通股，每股面值0.0001美金UPST納斯達克全球精選市場
通過勾選標記標明註冊人是否（1）在過去12個月內（或在註冊人被要求提交此類報告的較短期限內）提交了1934年證券交易法第13或15（d）條要求提交的所有報告，以及（2）在過去90天內是否已遵守此類提交要求。 是的 ☒ 沒有預設
通過勾選標記檢查註冊人是否已在過去12個月內（或在註冊人被要求提交此類文件的較短期限內）以電子方式提交了根據S-t法規第405條（本章第232.405條）要求提交的所有交互數據文件。 是的 ☒ 沒有預設
通過複選標記來確定註冊人是大型加速申報人、加速申報人、非加速申報人、小型報告公司還是新興成長型公司。請參閱《交易法》第120條第2條中「大型加速申報人」、「加速申報人」、「小型報告公司」和「新興成長型公司」的定義。
大型加速文件夾☒加速檔案管理器☐
非加速歸檔☐小型上市公司 ☐
新興成長型公司☐
1

如果是新興成長型公司，請通過勾選標記表明註冊人是否選擇不利用延長的過渡期來遵守根據《交易法》第13（a）條規定的任何新的或修訂的財務會計準則。 ☐
通過勾選標記檢查註冊人是否是空殼公司（定義見該法案第120條第2款）。 是的 ☐ 沒有預設
截至 2024年10月31日有幾個91,228,026 註冊人的流通普通股股份。
2

Upstart Holdings，Inc
10-Q表
目錄
頁面
項目2.
項目3.
項目4.
項目1.
第1A項。
項目2.
項目3.
項目4.
項目5.
項目6.

3
目錄
關於前瞻性陳述的特別注釋

本季度10-Q表格報告包含聯邦證券法含義內有關我們和我們的行業的前瞻性陳述，這些陳述涉及重大風險和不確定性。前瞻性陳述通常與未來事件或我們未來的財務或運營運績有關。在某些情況下，您可以識別前瞻性陳述，因為它們包含「可能」、「將」、「應該」、「預期」、「計劃」、「預期」、「尋求」、「可能」、「意圖」、「目標」、「目標」、「項目」、「考慮」、「相信」、「估計」、「預測」、「潛在」或「繼續」等詞語「或這些詞語或其他與我們的期望、戰略、計劃或意圖有關的類似術語或表達的負面影響。本10-Q表格季度報告中包含的前瞻性陳述包括但不限於有關以下方面的陳述：
•我們未來的財務表現，包括我們對收入、運營費用、確定儲備金的能力以及實現和維持盈利能力的能力的預期;
•我們提高人工智慧模型有效性和預測性的能力，以及我們對人工智慧模型的改進可以帶來更高的批准率和更低的利率的期望;
•我們有能力增加通過人工智慧貸款市場促進的貸款量;
•我們有能力成功維持多元化和彈性的貸款融資策略，包括貸款合作夥伴關係、整體貸款銷售、承諾資本和其他聯合投資 安排和證券化交易;
•我們的資本配置計劃，包括通過我們的資產負債表為貸款提供資金的預期、現金分配以及任何股票回購和其他投資的時間;
•我們有能力維持平台上向借款人提供的有競爭力的利率，同時使我們的貸款合作夥伴和機構投資者能夠在融資成本上獲得足夠的回報;
•我們成功建立品牌並保護我們的聲譽免受負面宣傳的能力;
•我們提高營銷策略（包括我們的直接消費者營銷計劃）有效性的能力;
•我們對宏觀經濟事件的預期，包括通貨膨脹以及利率和貨幣政策的相關變化;
•我們對Upstart驅動貸款信用表現的預期;
•2023年銀行倒閉的影響，包括銀行業的混亂，以及對我們業務和行業的任何相關影響;
•我們對未來增長的預期和管理，包括擴大潛在借款人的數量;
•我們有能力成功調整我們的專有人工智慧模型、產品和服務，並及時向我們的貸款合作夥伴提供最新信息，以應對不斷變化的宏觀經濟狀況和信貸市場的波動;
•我們遵守適用的地方、州和聯邦法律;
•我們有能力遵守並成功適應複雜且不斷變化的監管環境，包括人工智慧和機器學習技術的監管;
•我們對監管機構對我們基於人工智慧的貸款方法支持的期望;
•我們對戰略投資和收購成功的期望，包括收購的運營、產品、技術、內部控制和人員的整合;
4
目錄表
•我們對新市場和不斷髮展的市場的期望以及我們進入新市場並推出新產品和服務的能力;
•我們對與第三方關係的期望；
•我們有能力防範日益複雜的欺詐性借款和在線盜竊;
•我們償還貸款並追回拖欠和違約貸款的能力;
•我們與目前或未來可能進入我們運營市場的公司成功競爭的能力;
•我們有能力有效保護和維護整個系統接收、訪問、存儲、提供和使用的信息的機密性;
•我們成功獲得和維持企業資金和流動性以支持持續增長和一般企業目的的能力;
•我們與發行2029年到期的2.00%可轉換優先票據（「2029年票據」）和2026年到期的0.25%可轉換優先票據（「2026年票據」，以及與2029年票據一起稱爲「票據」）相關的上限認購交易相關的債務和風險;
•我們吸引、整合和留住合格員工的能力;
•我們有能力維持有效的披露控制和財務報告和運營內部控制系統;
•我們有效管理和擴展運營團隊、外包關係和其他業務運營能力的能力;
•我們維護、保護和增強知識產權的能力;
•我們對未決訴訟和監管調查的期望;以及
•我們管理與上市公司相關的增加費用的能力。

我們警告您，上述列表可能不包含本報告中的所有前瞻性陳述。

不應依賴前瞻性陳述作爲對未來事件的預測。本報告中包含的前瞻性陳述主要基於我們目前對未來事件和趨勢的預期和預測，我們認爲這些事件和趨勢可能會影響我們的業務、財務狀況、運營結果和前景。這些前瞻性陳述中描述的事件的結果受風險、不確定性和其他因素的影響，包括標題爲“風險因素“在這份報告的其他地方。我們呼籲讀者仔細閱讀和考慮本報告以及我們不時提交給美國證券交易委員會(「美國證券交易委員會」)的其他文件中所披露的各種信息，這些信息披露了可能影響我們業務的風險和不確定性。此外，我們的運營環境競爭激烈，變化迅速。新的風險和不確定因素時有出現，我們無法預測可能對本報告所載前瞻性陳述產生影響的所有風險和不確定因素。我們不能向您保證前瞻性陳述中反映的結果、事件和情況將會實現或發生，實際結果、事件或情況可能與前瞻性陳述中所描述的大不相同。

我們或任何其他人均不對任何這些前瞻性陳述的準確性和完整性承擔責任。此外，本報告中的前瞻性陳述僅與截至陳述之日的事件有關。我們沒有義務更新本報告中的任何前瞻性陳述以反映本報告日期之後的事件或情況，或者反映新信息或非預期事件的發生，法律要求的除外。不應該過度依賴我們的前鋒--
5
目錄表
前瞻性陳述，因爲我們可能無法真正實現前瞻性陳述中披露的計劃、意圖或期望。我們的前瞻性陳述並不反映我們可能進行的任何未來收購、合併、處置、合資企業或投資的潛在影響。

此外，「我們相信」的聲明和類似聲明反映了我們對相關主題的信念和觀點。這些聲明基於截至本報告日期我們可用的信息，雖然我們相信此類信息構成了此類聲明的合理基礎，但此類信息可能是有限的或不完整的，並且我們的聲明不應被解讀爲表明我們已經對所有潛在可用的相關信息進行了詳盡的調查或審查。這些陳述本質上是不確定的，建議投資者不要過度依賴這些陳述。

本文使用的「公司」、「我們」、「我們的」、「我們」和類似術語統稱爲Upstart Holdings，Inc.，特拉華州公司及其合併子公司，除非另有說明。
6
目錄

第一部分.財務資料
項目1.財務報表

Upstart Holdings，Inc
精簡合併資產負債表
(In數千，共享數據除外）
（未經審計）
12月31日，9月30日，
20232024
資產
現金$368,405 $445,274 
受限制現金99,382 210,493 
貸款（按公允價值）(1)
1,156,413 656,120 
財產、設備和軟體，淨42,655 38,328 
經營租賃使用權資產54,694 46,318 
受益資產（按公允價值）41,012 131,483 
非有價股權證券41,250 41,250 
商譽67,062 67,062 
其他資產（包括美金48,897 和$70,676 分別按2023年12月31日和2024年9月30日的公允價值計算）
146,227 172,652 
總資產(2)
$2,017,100 $1,808,980 
負債和股東權益
負債：
支付給投資者$53,580 $60,778 
借貸1,040,424 887,367 
應付證券化票據持有人（按公允價值）141,416 100,335 
應計費用和其他負債（包括美金10,510 和$18,671 分別按2023年12月31日和2024年9月30日的公允價值計算）
84,051 111,616 
經營租賃負債62,324 53,348 
總負債(2)
1,381,795 1,213,444 
股東權益：
普通股，美金0.0001 面值; 700,000,000 授權股份; 86,330,303 和 90,998,255 分別截至2023年12月31日和2024年9月30日已發行和發行股票
9 9 
借記資本公積917,872 1,003,929 
累計赤字(282,576)(408,402)
股東權益總額635,305 595,536 
負債和股東權益總額$2,017,100 $1,808,980 
____________

(1)包括$179.1 億和$118.5 截至2023年12月31日和2024年9月30日，以公允價值計算的百萬筆貸款分別作為合併證券化的抵押品。參考「說明6. 公平值計量」了解詳情。

(2)下表列出了Upstart Holdings，Inc.合併的與可變利益實體（「VIE」）相關的資產和負債的信息。於2023年12月31日和2024年9月30日。下表中的資產僅可用於償還合併VIE的義務，並且超出了這些義務。下表中的負債包括債權人無法追索Upstart Holdings，Inc.一般信貸的負債。下表中的資產和負債包括合併VIE的第三方資產和負債，不包括合併中沖銷的公司間餘額。

7
目錄
Upstart Holdings，Inc
簡明合併資產負債表（續）
(In數千，共享數據除外）
（未經審計）
12月31日，9月30日，
20232024
資產
現金$1,603 $2,041 
受限制現金23,450 50,231 
貸款（按公允價值）1,147,423 624,318 
其他資產（包括美金5,958 和$2,139 分別按2023年12月31日和2024年9月30日的公允價值計算）
22,917 13,024 
總資產$1,195,393 $689,614 
負債
支付給投資者$121 $154 
借貸387,440 170,085 
應付證券化票據持有人（按公允價值）141,416 100,335 
應計費用和其他負債1,975 4,774 
總負債530,952 275,348 
淨資產總額$664,441 $414,266 


附註是這些未經審計的簡明綜合財務報表的組成部分.
8
目錄
Upstart Holdings，Inc
簡明合併經營報表和綜合損失
(In數千，份額和每股數據除外）
（未經審計）

截至9月30日的三個月，截至9月30日的九個月，
2023202420232024
收入：
費用收入，淨$146,755 $167,590 $407,585 $436,190 
利息收入、利息費用和公允價值調整，淨額：
利息收入(1)
37,692 40,845 116,923 144,899 
利息開支(1)
(9,414)(10,818)(20,828)(33,002)
公允價值和其他調整(1)
(40,476)(35,477)(130,430)(130,523)
利息收入、利息費用和公允價值調整總額，淨額
(12,198)(5,450)(34,335)(18,626)
總收入134,557 162,140 373,250 417,564 
運營費用：
銷售和營銷33,042 43,229 88,371 111,337 
客戶運營36,914 39,302 114,301 117,394 
工程和產品開發54,941 64,887 222,986 186,431 
常規、管理和其他53,505 59,874 156,616 170,508 
總運營支出178,402 207,292 582,274 585,670 
經營虧損(43,845)(45,152)(209,024)(168,106)
其他淨收入
3,540 5,078 11,334 8,993 
債務消除的收益— 33,361 — 33,361 
所得稅前淨虧損(40,305)(6,713)(197,690)(125,752)
所得稅撥備
10 45 44 74 
淨虧損$(40,315)$(6,758)$(197,734)$(125,826)
每股淨虧損，基本$(0.48)$(0.07)$(2.38)$(1.42)
每股淨虧損，稀釋$(0.48)$(0.07)$(2.38)$(1.42)
用於計算每股淨虧損的加權平均發行股數，基本84,404,966 90,119,481 83,158,146 88,534,495 
用於計算每股淨虧損的加權平均已發行股票數，稀釋84,404,966 90,119,481 83,158,146 88,534,495 
____________
(1)截至2023年和2024年9月30日的三個月和九個月的餘額包括與合併證券化相關的金額。參考「說明2. 收入」了解詳情。


隨附的附註是該等未經審核簡明綜合財務報表的組成部分。
9
目錄
Upstart Holdings，Inc
簡明合併股東權益報表
(In數千，份額和每股數據除外）
（未經審計）
截至2023年9月30日的三個月
普通股借記資本公積
積累
赤字
股東權益總額
股份量
截至2023年6月30日餘額83,811,484 $8 $838,000 $(199,863)$638,145 
行使股票期權後發行普通股288,111 1 2,802 — 2,803 
限制性股票單位結算後發行普通股777,969 — — — — 
基於股票的補償費用— — 37,428 — 37,428 
員工購股計劃下發行普通股147,325 — 2,703 — 2,703 
淨虧損— — — (40,315)(40,315)
截至2023年9月30日餘額85,024,889 $9 $880,933 $(240,178)$640,764 

截至2023年9月30日的九個月
普通股借記資本公積
積累
赤字
股東權益總額
股份量
截至2022年12月31日餘額81,259,676 $8 $714,871 $(42,444)$672,435 
行使股票期權後發行普通股1,058,804 1 9,474 — 9,475 
限制性股票單位結算後發行普通股2,247,325 — — — — 
與限制性股票單位淨股份結算有關的扣留股份(375)— (6)— (6)
基於股票的補償費用— — 148,163 — 148,163 
員工購股計劃下發行普通股459,459 — 8,431 — 8,431 
淨虧損— — — (197,734)(197,734)
截至2023年9月30日餘額
85,024,889 $9 $880,933 $(240,178)$640,764 

截至2024年9月30日的三個月
普通股借記資本公積
累計赤字
股東權益總額
股份量
截至2024年6月30日餘額89,084,180 $9 $996,345 $(401,644)594,710 
行使股票期權後發行普通股867,016 — 10,062 — 10,062 
限制性股票單位結算後發行普通股912,103 — — — — 
與限制性股票單位淨股份結算有關的扣留股份(475)— (17)— (17)
基於股票的補償費用— — 34,722 — 34,722 
員工購股計劃下發行普通股135,431 — 3,120 — 3,120 
購買上限看漲期權— — (40,883)— (40,883)
結算上限認購
— — 580 — 580 
淨虧損— — — (6,758)(6,758)
截至2024年9月30日餘額
90,998,255 $9 $1,003,929 $(408,402)$595,536 

10
目錄
Upstart Holdings，Inc
簡明合併股東權益報表
(In數千，份額和每股數據除外）
（未經審計）
截至2024年9月30日的九個月
普通股借記資本公積累計赤字股東權益總額
股份量
截至2023年12月31日餘額86,330,303 $9 $917,872 $(282,576)$635,305 
行使股票期權後發行普通股1,488,118 — 12,281 — 12,281 
限制性股票單位結算後發行普通股2,846,811 — — — — 
與限制性股票單位淨股份結算有關的扣留股份(541)— (19)— (19)
基於股票的補償費用— — 106,413 — 106,413 
員工購股計劃下發行普通股333,564 — 7,685 — 7,685 
購買上限看漲期權— — (40,883)— (40,883)
結算上限認購— — 580 — 580 
淨虧損— — — (125,826)(125,826)
截至2024年9月30日餘額90,998,255 $9 $1,003,929 $(408,402)$595,536 


隨附的附註是該等未經審核簡明綜合財務報表的組成部分。
11
目錄
Upstart Holdings，Inc
簡明綜合現金流量表
(In數千）
（未經審計）

截至9月30日的九個月，
20232024
經營活動產生的現金流量
淨虧損$(197,734)$(125,826)
將淨虧損與經營活動提供的淨現金進行調節的調整：
貸款公允價值變化131,222 167,545 
服務資產公允價值變化16,888 12,838 
償還負債公允價值變化(1,655)(877)
受益權益資產公允價值變化9,128 (35,825)
受益利息負債公允價值變化(848)12,633 
其他金融工具公允價值變化(3,418)8,263 
股票補償142,273 103,604 
貸款服務權收益，淨(10,432)(11,448)
債務消除的收益— (33,361)
折舊及攤銷15,800 15,850 
非現金利息費用2,296 2,156 
其他(2,260)(10,874)
經營資產和負債淨變化：
購買持作出售貸款(2,076,734)(2,626,246)
出售持作出售貸款的收益1,875,358 2,613,039 
已收到的持作出售貸款本金付款139,582 157,010 
合併證券化持有的貸款收到的本金付款12,302 36,532 
受益利息負債的付款— (3,692)
其他資產27 (2,110)
經營租賃負債和使用權資產1,563 (600)
應付投資者的受益利息資產(1)
5,749 — 
應計費用和其他負債(25,220)18,646 
經營活動提供的淨現金33,887 297,257 
投資活動產生的現金流量
購買和發放持作投資的貸款(121,294)(196,580)
出售持作投資性貸款的收益774 — 
持有投資性貸款已收到本金付款78,327 99,768 
收到的應收票據本金付款和剩餘憑證的償還3,556 4,004 
購買財產和設備(1,285)(837)
資本化軟體成本(9,135)(5,734)
收購受益權益資產(39,505)(63,246)
受益資產收益— 2,808 
投資活動所用現金淨額(88,562)(159,817)
融資活動現金流量
12
目錄
Upstart Holdings，Inc
簡明綜合現金流量表
(In數千）
（未經審計）
截至9月30日的九個月，
20232024
倉庫借款收益529,494 297,587 
可轉換票據發行收益，扣除支付給貸方的債務發行成本— 423,002 
向第三方支付債務發行費用— (1,455)
償還倉庫借款(514,792)(293,179)
可轉換票據回購付款— (325,344)
購買上限看漲期權— (40,883)
結算上限認購— 580 
證券化票據的本金支付(10,016)(42,705)
支付給投資者(1)
(50,668)12,990 
發行證券化票據的收益165,318 — 
員工股票購買計劃下發行普通股的收益8,431 7,685 
行使股票期權的收益9,475 12,281 
與股權獎勵淨股份結算相關的已支付稅款(6)(19)
融資活動提供的淨現金137,236 50,540 
現金和限制現金的變化82,561 187,980 
現金和限制現金
期末現金和限制現金532,467 467,787 
期末現金和限制現金$615,028 $655,767 
現金流量信息的補充披露
支付利息的現金$22,481 $34,795 
支付所得稅的現金（收到），淨額(982)250 
非現金投資和融資活動的補充披露
與貸款出售有關的借款的結算$— $221,749 
與貸款出售相關獲得的受益利益
— 45,971 
資本化的股票補償費用5,890 2,809 
新可轉換票據的發行成本
— (714)
應收信用額度的發放— (30,907)
合併證券化交易下保留的證券44,763 — 
計入應付投資者的受益資產
5,749 — 
____________
(1) 截至2024年9月30日止九個月，公司選擇更改簡明綜合現金流量表中應付投資者餘額變化的列報方式，參閱「注1. 業務和重要會計政策的描述」以瞭解更多詳細資訊。

13
目錄
Upstart Holdings，Inc
簡明合併現金流量表（續）
(In數千）
（未經審計）
以下按類別列出未經審計簡明綜合資產負債表中的現金和限制性現金：
12月31日，9月30日，
20232024
現金$368,405 $445,274 
受限制現金99,382 210,493 
現金和限制現金總額$467,787 $655,767 

隨附註釋是其中不可或缺的一部分 未經審核簡明 合併財務報表。
14
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)





 1.    業務說明和重要會計政策
業務說明

Upstart Holdings，Inc及其子公司（統稱爲「Upstart」、「公司」、「我們」或「我們的」）將人工智能模型和雲應用程序應用於消費信貸承保流程。該公司通過爲貸款合作伙伴提供專有的、基於雲的人工智能貸款市場的訪問權限來幫助發放信貸。隨着公司技術的不斷改進以及更多貸款合作伙伴採用Upstart平台，消費者將受益於更好地獲得負擔得起且無摩擦的信貸。該公司目前在美國開展業務，總部位於加利福尼亞州聖馬特奧和俄亥俄州哥倫布。該公司的財年於12月31日結束。
列報和合並的基礎

隨附的未經審計簡明綜合財務報表是按照與我們10-k表格年度報告中包含的年度綜合財務報表相同的基礎編制的。管理層認爲，隨附的簡明綜合財務報表反映了所有調整，其中僅包括公平說明公司財務狀況、經營業績、全面虧損和現金流量所需的正常經常性調整，但不一定表明任何未來年度或中期預期的經營業績。

根據美國證券交易委員會的規則和法規，通常包含在根據GAAP編制的財務報表中的某些信息和披露已被省略。因此，本10-Q表格季度報告中包含的信息應與截至2023年12月31日年度10-k表格年度報告中包含的合併財務報表和隨附註釋一起閱讀。
重新分類

於2024年第二季度，本公司選擇改變其在簡明綜合現金流量表上對應付投資者餘額變動的列報方式。應付給投資者的餘額包括a)與受託現金相關的負債，這些負債由公司代表我們的機構投資者暫時持有，並在壓縮的綜合資產負債表上以有限現金的形式呈現；以及b)爲收購或結算實益權益而應付給投資者的現金。在新列報下，應付投資者餘額中與受託現金有關的部分從簡明綜合現金流量表內的經營活動重新歸類爲融資活動。與收購和結算實益權益有關的應付投資者餘額的列報沒有變化。比較金額已重新分類，以符合本期列報。 下表列出了簡明合併現金流量表內列報變化的影響：

15
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




截至2023年9月30日的9個月
正如之前報道的那樣調整，調整調整後的
經營活動的現金流
支付給投資者$(44,919)$44,919 $— 
應付投資者的受益利息資產— 5,749 5,749 
**提供(用於)經營活動的現金淨額
(16,781)50,668 33,887 
融資活動產生的現金流
支付給投資者(1)
— (50,668)(50,668)
融資活動提供（用於）的淨現金
$187,904 $(50,668)$137,236 
____________
(1)與公司代表我們的機構投資者暫時持有的信託現金相關的負債有關。

重新分類對簡明綜合資產負債表、簡明綜合經營報表和全面虧損或簡明綜合股東權益表沒有影響。
預算的使用

按照公認會計原則編制未經審計的簡明綜合財務報表要求管理層做出影響簡明綜合財務報表日期資產和負債的報告金額以及或有資產和負債的披露以及報告期內收入和費用的報告金額的估計和假設。

管理層認爲，隨附的簡明綜合財務報表中做出的重要估計和假設對於理解和評估公司報告的財務業績至關重要，包括：（i）公允價值確定;（ii）基於股票的薪酬;（iii）VIE的合併;和（iv）對聲譽的評估。該公司的估計基於其認爲在當時情況下合理的各種因素。實際結果可能與這些估計不同，此類差異可能會影響未來期間報告的運營結果。
公允價值計量

截至2024年9月30日的九個月內，公司選擇了向第三方發放的應收信貸額度的公允價值期權，並被分類爲公允價值等級內的第三級投資。 參考“說明6. 公允價值衡量” 以獲取更多信息。
最近採用的會計公告
        
截至2024年9月30日止九個月內，公司未採用任何新會計準則。
16
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




近期發佈的會計公告
2023年11月，FASB發佈了ASU 2023-07，分部報告(主題280)：改進可報告分部披露。本次更新中的修訂改進了可報告分部的披露要求，主要是通過加強對重大分部費用的披露。具體而言，新指引要求在年度和中期基礎上披露定期提供給首席運營決策者的重大分部費用，並按可報告分部披露其他分部項目的金額，並說明其構成。此外，修訂加強了中期披露要求，澄清了一個實體可以披露多個分部損益的情況，併爲只有一個可報告分部的實體提供了新的分部披露要求。此ASU在2023年12月15日之後的財年和2024年12月15日之後的財年內的過渡期內有效，並允許提前採用。該公司目前正在評估對其簡明綜合財務報表和相關披露的修訂的影響，並計劃從2024年年報開始以Form 10-k的形式納入與其部門相關的額外必要披露。
2023年12月，FASb發布了ASO 2023-08， Intangious-善意和Inbox-加密資產（子主題350-60）：加密資產的會計和披露。 此次更新中的修訂要求持有某些加密貨幣資產的實體隨後以公允價值計量它們，公允價值的變化記錄在淨利潤中。此外，實體必須提供有關某些加密資產持有情況的額外披露。該ASO在2024年12月15日之後開始的財年有效，包括這些財年內的過渡期，允許提前採用。公司預計採用本指南不會對其簡明綜合財務報表或相關披露產生重大影響。
2023年12月，FASb發布了ASO 2023-09， 所得稅（主題740）：所得稅披露的改進。 此次更新中的修訂要求實體在有效稅率對帳中披露特定類別，並為對帳項目提供額外信息，其中這些對帳項目的影響等於或大於稅前收入/損失乘以適用法定所得稅率計算出的金額的5%。此外，實體必須披露按司法管轄區分類的年初迄今已繳納的所得稅金額（扣除收到的退款）。該ASO從2024年12月15日之後開始的年度有效期，允許提前採用。該公司目前正在評估對其簡明綜合財務報表和相關披露的這些修訂的影響，並計劃在10-k表格的2025年年度報告中納入與所得稅相關的額外要求披露。
2024年11月，FASb發布了ASO 2024-03， 收入報表-報告綜合
收入表分解披露（子主題220-40）：利潤表費用的分解。 此次更新中的修訂要求在財務報表附註中對員工薪酬、折舊和無形資產攤銷等某些費用進行分類披露，這些費用通常以總數形式呈列。該ASO在2026年12月15日之後開始的年度期間和2027年12月15日之後開始的中期期間有效，並允許提前採用。公司目前正在評估這些修訂對其簡明綜合財務報表和相關披露的影響。

 2.    收入
費用收入，淨

公司按服務類型將所列期間的費用收入細分如下：
17
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
費用收入，淨：
平台和推薦費，淨$112,437 $134,199 $295,859 $336,653 
服務費和其他費用，淨額34,318 33,391 111,726 99,537 
費用總收入，淨$146,755 $167,590 $407,585 $436,190 
平台和推薦費，淨

貸款合作伙伴。 該公司與貸款合作伙伴簽訂合同，提供公司開發的基於雲的人工智能貸款市場（「Upstart平台」）的訪問權限，使貸款合作伙伴能夠發放無擔保的個人和有擔保的汽車貸款。Upstart平台包括基於雲的應用程序（通過Upstart.com或貸款合作伙伴品牌計劃），用於提交貸款申請、驗證提交的申請中提供的信息、風險承保（通過一系列專有技術解決方案）、交付電子貸款報價，如果報價被借款人接受，則由借款人簽署的電子貸款文件。貸款合作伙伴可以指定他們願意發放的貸款的某些參數。根據這些合同，貸款合作伙伴可以選擇使用Upstart的轉介服務，這使他們能夠通過Upstart的營銷渠道接觸新借款人。

發行後，upstart支持的貸款由貸款合作伙伴保留，由本公司根據貸款銷售協議購買並立即轉售給機構投資者，或由本公司購買並持有。對於貸款夥伴沒有保留的貸款，本公司在最低合同持有期結束時向貸款夥伴支付一次性貸款溢價費用，並根據基礎貸款借款人支付本金和利息的金額和時間向貸款夥伴支付每月貸款拖欠費。貸款保費及貸款拖欠費均爲應付予客戶的對價，客戶爲本行的貸款合作伙伴，並於簡明綜合經營報表及全面虧損的簡明綜合報表中記錄爲平台及轉介費的減收，淨額爲費用收入淨額的一部分。該公司確認了$2.21000萬美元和300萬美元5.6截至2023年9月30日的三個月和九個月內，作爲平台內的對銷收入和轉介費的貸款保費和貸款拖尾費分別爲淨額和3.1 億和$7.5在截至2024年9月30日的三個月和九個月內分別爲100萬美元。

該公司確認了$4.3 截至2023年12月31日和2024年9月30日，貸款後續費用負債爲百萬美元，按公允價值記錄，並計入公司簡明綜合資產負債表的應計費用和其他負債。參考“說明6. 公平值計量“有關與後續費用負債相關的公允價值變化的更多信息。

公司的平台和轉介服務安排通常包括在需要的情況下向客戶提供其中一項或兩項服務的義務（備用義務），並在提供此類服務時確認收入。此外，這些服務具有相同的轉移模式和期限，並且當單獨或一起提供時，均被會計爲代表一系列不同服務的單一合併履行義務。

平台和轉介服務通常以固定或可變的單位價格提供，該價格基於每個時期與某些貸款合作伙伴發放的貸款價值的百分比，但須繳納最低費用;然而，這些服務的定價也可能基於使用費，計算爲每筆貸款的百分比。該公司承諾的本質是隨時準備並通過該平台提供持續訪問和處理交易。平台和推薦費代表可變對價，因爲貸款發放量在合同開始時尚不清楚。這些費用在每次發放貸款時確定。平台和轉介服務的費用通常按月計費和支付。因此，該公司與客戶的合同不包括重大的融資部分。
18
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)





汽車經銷商。 該公司與汽車經銷商達成訂閱協議，以訪問Upstart Auto Retail軟件，這是一種基於雲的解決方案，可促進經銷商的運營，並使他們能夠爲消費者提供獲得Upstart支持的汽車貸款的機會。訂閱協議的合同期限通常爲 一 到 六個月 常青每月續訂。該公司每月向客戶收取賬單。訂閱費在合同期內在履行履行義務時確認，並計入平台費和推薦費中，扣除簡明綜合經營報表和全面虧損中的淨額。該公司承認 非物質的 量 和 $2.6 萬 截至2023年9月30日的三個月和九個月的訂閱費收入分別爲，以及 非物質的 金額和美元4.1 截至2024年9月30日的三個月和九個月的訂閱費收入分別爲百萬美元。

該公司有$19.5 億和$21.8 截至2023年12月31日和2024年9月30日，計入與客戶合同相關的簡明綜合資產負債表其他資產的應收賬款百萬美元。應收賬款的標準付款期限爲30天。公司的壞賬準備和壞賬費用在所列期間並不重大。

該公司將獲得與客戶簽訂合同的增量成本資本化，這些成本是與收購貸款合作伙伴相關的向員工支付的某些銷售佣金。資本化成本在預期受益期內攤銷，我們根據分析確定該期限爲 三年.如果攤銷期爲一年或更短，公司將採用實際權宜方法來支付與客戶簽訂合同的費用。截至2023年12月31日和2024年9月30日，公司擁有美元2.7 億和$2.9 百萬合同成本分別在簡明合併資產負債表的其他資產中資本化。公司在簡明綜合經營報表和所列期間的全面虧損中攤銷了銷售和營銷的資本化合同成本的微不足道金額。

佔總收入10%以上的客戶如下：

截至三個月
9月30日，		九個月結束
9月30日，
2023202420232024
客戶A33%31%30%27%
客戶B32%29%31%34%
客戶C12%*11%10%

佔應收賬款10%以上的客戶如下：
十二月三十一日，9月30日，
20232024
客戶D*17%
客戶C15%11%
客戶A11%*
*低於10%

服務費和其他費用，淨

該公司還與貸款合作伙伴和機構投資者簽訂合同，爲Upstart驅動的貸款提供期限內的貸款服務。這些服務在貸款合作伙伴發放這些貸款時開始，包括收取、處理和對賬收到的付款、機構投資者報告和借款人客戶支持以及向貸款持有人分發資金。公司向貸款持有人收取每月服務費，該服務費根據未償本金的預定百分比計算
19
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




平衡服務費還包括根據每次交易收取的處理逾期付款和因資金不足而拒絕付款的某些輔助費用。服務費在提供服務期間確認。貸款服務費不在ASC 606的範圍內， 與客戶簽訂合同的收入，並根據ASC 860覈算， 轉接和服務.

該公司向貸款合作伙伴和機構投資者收取與其未償貸款組合相關的代收代理費用。該公司要麼內部進行借款人催收活動，要麼外包給第三方催收機構，特別是逾期超過30天或已註銷的貸款。公司有權自行決定聘請收款機構並確定其工作範圍。作爲該安排的委託人，公司在提供服務期間確認代收代理費的毛收入。Upstart還收取某些輔助借款人費用，包括逾期付款費和ACH失敗費。代收機構收取的費用總額在發生期間確認並報告爲客戶運營費用的一部分。

服務費和其他費用（淨額）還包括根據貸款服務安排就貸款合作伙伴保留的貸款或出售給機構投資者的貸款確認的資產和負債的損益。此類損益根據服務的收益預計是否大於還是小於對公司履行的服務義務的足夠補償來確認。服務費還包括貸款服務資產和負債公允價值的變化。參考“說明6. 公平值計量“有關與服務資產和負債相關的公允價值變化的更多信息。

下表列出了公司簡明綜合經營報表和全面虧損中服務費和其他費用的淨組成部分，作爲費用收入的一部分：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
維修費$26,113 $21,782 $82,611 $66,975 
借款人費用7,182 6,582 21,823 20,097 
代收代理費4,017 3,964 11,685 12,677 
其他費用69 88 407 301 
服務權淨收益（損失）和公允價值調整(3,063)975 (4,800)(513)
服務費和其他費用總額，淨$34,318 $33,391 $111,726 $99,537 
利息收入、利息分配和公允價值調整，淨額

利息收入、利息費用和公允價值調整淨額由利息收入、利息費用和公司正常業務過程中按公允價值持有的金融工具公允價值淨變化組成，包括貸款、衍生品、受益權益、應收票據和剩餘憑證、跟蹤費用負債、應付證券化票據持有人和應收信貸額度。

20
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




下表列出了公司簡明綜合經營報表和全面虧損中呈列的利息收入、利息費用和公允價值調整淨額的組成部分：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
利息收入(1)
$37,692 $40,845 $116,923 $144,899 
利息開支(1)
(9,414)(10,818)(20,828)(33,002)
公允價值和其他調整，淨額：
貸款未實現損失、貸款沖銷和其他公允價值調整，淨額(1)
(30,349)(31,579)(99,048)(92,800)
已實現貸款出售損失，淨(2,955)(2,950)(22,255)(14,565)
公允價值調整和已實現受益權益損失，淨
(7,172)(948)(9,127)(23,158)
公允價值和其他調整總額，淨額
(40,476)(35,477)(130,430)(130,523)
利息收入、利息費用和公允價值調整總額，淨額$(12,198)$(5,450)$(34,335)$(18,626)
__________
(1)包括與合併證券化相關的利息收入、利息費用和貸款未實現損失、貸款沖銷和其他公允價值調整，淨額如下：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
與合併證券化相關的利息收入、利息費用和公允價值調整淨額：
利息收入$10,048 $6,748 $10,048 $23,086 
利息開支(3,754)(2,272)(3,754)(7,546)
貸款未實現損失、貸款沖銷和其他公允價值調整，淨額367 (5,726)367 (25,643)
利息收入、利息費用和公允價值調整總額，淨額$6,661 $(1,250)$6,661 $(10,103)
利息收入

利息收入根據與借款人就公司簡明綜合資產負債表上持有的貸款和應收信用額度與借款人簽訂的基礎協議的條款確認，並在貸款或應收信用額度的有效期內賺取。

利息收入還包括未償貸款和應收但未收回的信用額度所賺取的應計利息。已達到拖欠的房屋股權信貸額度（「HELOCs」） 180 天數以及所有其他已逾期的應收貸款和信用額度 120 天數被歸類爲非應計狀態，與這些貸款相關記錄的任何應計利息將在相應期間內轉回。公司不記錄應計應收利息的信用損失撥備。截至2023年12月31日和2024年9月30日，公司已錄得美元14.2 億和$6.7 簡明綜合資產負債表上貸款的應計利息收入分別爲百萬美元。截至2024年9月30日，應收信貸額度的應計利息收入並不重大。
21
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




利息支出

利息費用主要與公司倉庫信貸設施借款記錄的利息以及與合併證券化相關的利息費用有關。利息費用包括已發生但未支付的應計利息。截至2023年12月31日和2024年9月30日，應計利息費用並不重大。利息費用還包括利率上限公允價值的變化。參考“說明4. 衍生金融工具” 以獲取更多信息。
公允價值和其他調整，淨額

公允價值和其他調整淨額包括金融工具公允價值的變化，貸款服務資產和負債以及利率上限除外。這些調整記錄在公司的簡明綜合經營報表和全面虧損中，包括相關資產和負債價值的已實現和未實現變化。參考“說明6. 公平值計量“以獲取更多信息。

公允價值和其他調整淨額還包括從借款人收到的公司簡明綜合資產負債表上持有的先前已註銷貸款的金額。這些金額在收到金額的期間確認。從借款人收到的先前已註銷貸款金額爲美元2.6 億和$4.6 截至2023年9月30日的三個月和九個月分別爲百萬美元和美元3.7 億和$10.8 截至2024年9月30日的三個月和九個月分別爲百萬美元。

 3.    可變利息實體
合併後的VIE

公司合併了公司擁有可變權益並被確定爲主要受益人的VIE。這一確定取決於公司是否擁有可變權益（或可變權益的組合），該可變權益爲公司提供（a）指導對VIE經濟表現影響最大的活動的權力和（b）吸收損失的義務或獲得對VIE可能重要的利益的權利。在公司參與VIE的整個期間，公司不斷重新評估其是否是VIE的主要受益人。

公司還確定決策者或服務提供商費用是否屬於可變利益。當該安排不會使公司面臨潛在VIE旨在轉嫁給其可變利益持有人的損失風險時，決策者或服務提供商費用不被視爲可變利益，費用相稱，該安排是在市場上，且公司不存在任何其他利益（包括通過關聯方持有的直接利益和某些間接利益）吸收了VIE潛在變異性的極小部分。這一確定可能會對公司的合併分析產生重大影響，因爲它可能會影響法律實體是否是VIE以及公司是否是VIE的主要受益人。當公司的決策者或服務提供商費用不是可變權益時，公司被視爲潛在VIE的受託人。

22
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




下表列出了公司參與合併VIE的金融資產和負債摘要：

2023年12月31日
資產負債淨資產
合併證券化$187,258 $141,420 $45,838 
合併倉庫實體645,455 388,681 256,774 
其他合併VIE362,680 851 361,829 
合併VIE總數$1,195,393 $530,952 $664,441 

2024年9月30日
資產負債淨資產
合併證券化$125,255 $100,337 $24,918 
合併倉庫實體353,922 174,067 179,855 
其他合併VIE210,437 944 209,493 
合併VIE總數$689,614 $275,348 $414,266 
合併證券化
2023年7月6日，公司完成了私募證券化證券發行(UPST 2023-2)。作爲交易的保留髮起人，根據第17章美國聯邦法規法典美國證券交易委員會頒佈的第246部分(信用風險保留)要求公司在UPST 2023-2中至少保留5%的經濟風險。本公司選擇以證券化票據和剩餘證書相結合的形式持有符合資格的垂直留存權益，以滿足風險保留要求。該公司還保留了作爲交易一部分發放的剩餘證書的剩餘部分。公司是抵押品的唯一出資人，抵押品包括#美元。204.7本公司持有的upstart助力貸款的未償還本金餘額爲100萬美元。已發行證券化票據的加權平均票面利率約爲9.2%，他們的銷售收入約爲$165.3現金收益總額爲百萬美元。這些證券化票據上的收益和付款在簡明綜合現金流量表中被歸類爲融資活動。

在證券化交易開始時，公司持有的UPSt 2023-2保留權益被視爲潛在吸收了超出微不足道金額的預期損失或預期回報。作爲服務商，該公司還有權指導對與UPSt 2023-2證券化相關實體的經濟影響最大的活動，因此，該公司確定自己是主要受益人，併合並了與UPSt 2023-2相關的實體。

合併證券化信託中持有的貸款被分類爲持作出售並按公允價值計入貸款，而出售給第三方投資者的票據則在簡明合併資產負債表中按公允價值記錄爲應付證券化票據持有人。參考“說明6. 公平值計量“有關確定這些資產和負債公允價值的更多信息。作爲證券化一部分發行並由公司保留的剩餘證書的價值作爲合併的一部分被消除。
倉庫實體

該公司建立了多個被視爲VIE的實體，以建立倉庫信貸機制，以購買Upstart支持的貸款。參考“說明9. 借貸”以獲取更多信息。這些實體是特拉華州法定信託，其結構爲破產遠程，由第三方銀行作爲受託人運營。
23
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




其他合併VIE

該公司已組建了多個VIE，旨在持有Upstart驅動的貸款，這些貸款未抵押或沒有資格抵押給公司的倉庫信貸設施。此外，該公司還組建了合併VIE，旨在持有受限制現金或貸款作爲與承諾資本和其他共同投資安排相關的抵押品。
未整合的VIE

該公司與未合併VIE的交易包括無擔保個人完整貸款的證券化和向VIE出售完整貸款，包括根據其承諾資本和其他共同投資安排進行的貸款銷售。參考“說明5. 實益權益“有關與承諾資本和其他聯合投資安排相關的未合併VIE的更多信息。

證券化

雖然公司繼續以證券化交易的發起人和服務商的身份參與未合併VIE，但公司並未在這些實體中持有重大經濟利益，並已確定其不是這些實體的主要受益人。該公司的未合併VIE包括為各種證券化交易設立的發行人和授予信託的實體。

如果VIE未合併並且貸款從公司轉移至證券化信託符合銷售會計標準，公司確認貸款銷售的損益。出售的淨收益代表作為交易一部分獲得的任何資產或產生的負債的公允價值。資產被轉移到信託中，使資產在法律上與公司債權人隔離，並且無法用於履行公司的義務。這些資產只能用於結算基礎證券化信託的義務。

截至2023年9月30日的九個月內，公司進行了與以下事項相關的清理呼籲 兩 歷史未合併證券化並隨後清算相關實體。作為清理呼籲的一部分，該公司作為服務商回購了剩餘抵押品並收到了相關實體持有的現金儲備金額。此外，在截至2024年9月30日的九個月內，公司進行了與以下事項相關的清理呼籲 兩 未合併證券化並隨後清算相關實體。清理呼籲對公司呈列期間的簡明綜合財務報表沒有重大影響。

下表總結了與證券化相關的未合併VIE的資產和負債總值，該公司持有可變權益但不是主要受益人：

2023年12月31日
資產(1)
負債淨資產最大損失敞口
證券化$445,929 $319,357 $126,572 $20,885 
_________
(1)代表未合併VIE持有的現金和未償還貸款本金餘額。

24
目錄
Upstart Holdings，Inc
公司簡明綜合財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
（未經審計）




2024年9月30日
資產(1)
負債淨資產最大損失敞口
證券化$293,412 $210,965 $82,447 $13,972 
_________
(1)代表未合併VIE持有的現金和未償還貸款本金餘額。

公司因參與未合併VIE而面臨的最大損失風險代表在嚴重的假設情況下將產生的估計損失，而公司認爲這種可能性很小。與未合併VIE中可變權益相關的資產的公允價值包括美元14.81000萬美元和300萬美元10.3 百萬份證券化票據和剩餘憑證，按公允價值列賬，並分別計入截至2023年12月31日和2024年9月30日的簡明綜合資產負債表上的其他資產。該公司還有美元6.01000萬美元和300萬美元3.7 作爲相關證券化準備金帳戶持有的百萬現金存款，分別計入截至2023年12月31日和2024年9月30日的簡明合併資產負債表上的其他資產。

對於公司不是風險保留髮起人，且服務是持續參與的唯一形式的證券化交易，公司只有在因違反陳述和保證而被要求回購此類貸款並且無法收取所有還款時才會遭受損失，參見“說明12. 承諾和意外情況了解更多信息。

投資者和證券化信託對公司資產沒有直接追索權，證券化信託發行的證券的持有人只能查看發行證券以供付款的證券化信託的資產。該公司及其附屬公司持有的權益主要受到基礎無擔保個人全額貸款產生的信貸和預付款風險。


 4.    衍生金融工具

2023年2月和2023年6月，Upstart Auto Warehouse Trust和Upstart Loan Trust簽訂利率上限協議，執行利率爲 3.0%和3.25分別爲%。該等協議是針對浮動利率的倉庫信貸設施而簽訂的，參見 「注9。 借款」 獲取更多信息.利率上限爲信貸工具提供保護，使其免受現金流變化的風險，前提是該工具的基礎利率超過執行利率。Upstart Auto Warehouse Trust利率上限將於2029年4月到期，Upstart Loan Trust利率上限將於2025年6月到期。利率上限協議符合衍生品的定義，並按公允價值報告。參考“說明6. 公平值計量“以獲取更多信息。

下表列出了利率上限的名義金額以及公允價值，該利率上限在簡明綜合資產負債表中作爲其他資產的一部分報告。

2023年12月31日2024年9月30日
名義金額
公允價值
名義金額公允價值
利率上限$299,578 $5,958 $254,500 $2,139 

公司在收益中確認這些工具的公允價值變化，並將其報告爲簡明綜合經營報表和全面虧損利息費用的一部分。該公司承認 非物質的 截至2023年9月30日和2024年9月30日的三個月內公允價值損益（扣除利率上限）金額，並已確認美元2.5 萬及 非物質的 截至2023年9月30日和2024年9月30日止九個月內扣除利率上限後的公允價值收益金額。
25
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)







 5.    實益權益

該公司的受益權益與與許多第三方機構投資者和貸款合作伙伴的承諾資本和其他共同投資安排有關，其中該公司將一定數量的資產置於風險之中。該風險受到美元上限的限制，這代表了公司在每項特定安排中面臨的最大損失風險。在某些安排中，如果根據該安排出售或發放的貸款的信用表現偏離了貸款出售或發放時設定的初始預期，公司有義務向這些第三方付款，或者有權從他們那裏收取付款。根據其他安排，公司從出售的基礎貸款組合收到的還款中獲得一部分現金流，這些現金流的金額和時間取決於所證明的信用表現和安排的合同條款。

承諾資本和其他共同投資安排的合同條款還確定了公司面臨的最大損失風險，並規定了公司面臨風險的資產類型。 下表按資產類型列出了該公司在這些安排下面臨的最大損失風險：

十二月三十一日，9月30日，
20232024
無限制現金$23,789 $68,562 
受限現金12,064 70,825 
實益利益62,684 168,707 
其他— 49,767 
總$98,537 $357,861 

本公司在與其承諾資本及共同投資安排有關的若干實體中擁有可變權益，包括未合併的VIE的買方信託。雖然本公司透過承諾資本及共同投資安排持有該等未合併VIE的可變權益，並作爲出售貸款的服務機構，但本公司無權指揮對VIE的經濟表現最具重大影響的活動，並已確定其並非主要受益人。注3.可變利息實體“以獲取更多信息。截至2024年9月30日，簡明綜合資產負債表中與承諾資本及其他共同投資安排相關的作爲抵押品的貸款的公允價值爲#美元。18.9百萬美元。雖然作爲抵押品持有，但這些貸款沒有資格出售，並在公司精簡的綜合資產負債表上被歸類爲持有以供投資。

公司的受益權益要麼符合衍生品的定義，要麼符合債務證券的標準。受益權益指作為這些安排一部分的未來現金流量的價值，根據預期業績貼現至現值。截至報告日，受益利息資產代表公司預計收到未來淨現金流入的安排，而受益利息負債代表公司預計支付淨現金的安排。 下表列出了基礎貸款組合的未償還本金餘額總額以及受益利息資產的公允價值（在簡明綜合資產負債表中作為單獨的資產項目呈列）以及受益利息負債（在簡明綜合資產負債表中的其他負債中呈列）。

26
目錄
Upstart Holdings，Inc
公司簡明綜合財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
（未經審計）




2023年12月31日2024年9月30日
未償還本金餘額
公平值
未償還本金餘額
公平值
受益資產
$958,870 $41,012 $3,014,907 $131,483 
受益利息負債$769,102 $4,221 $1,150,855 $13,162 

公司按公允價值確認受益權益，並將變動報告為公允價值的一部分，並對簡明綜合經營報表和全面虧損進行其他調整. 下表列出了以下期間確認的受益權益損失：

止三個月
9月30日，		九個月結束
9月30日，
2023202420232024
公允價值調整和已實現受益權益損失，淨
$(7,171)$(948)$(9,127)$(23,158)

參考「說明6. 公平值計量」以獲取更多信息。

6.     公平值計量

下表呈列按公允價值計量並根據公允價值等級分類的資產和負債：
十二月三十一日，9月30日，
水平20232024
資產
貸款3$1,156,413 $656,120 
受益資產
341,012 131,483 
應收信用額度3— 31,514 
貸款服務資產328,092 26,705 
應收票據和剩餘憑證314,847 10,318 
利率上限(1)
25,958 2,139 
總資產$1,246,322 $858,279 
負債
應付證券化票據持有人3$141,416 $100,335 
受益利息負債34,221 13,162 
追蹤費負債34,251 4,345 
貸款償還負債32,038 1,164 
總負債$151,926 $119,006 
__________
(1)利率上限的公允價值是根據使用截至估值日的可觀察市場輸入數據（包括隱含利率）在合同期內估計未來現金流量的現值確定的。

27
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




金融工具根據整體公允價值計量中不可觀察輸入和假設的重要性歸入公允價值等級。公允價值等級內分類爲第3級的金融工具 不要在價格易於觀察的活躍市場中進行交易。公司使用重大不可觀察輸入數據來衡量這些資產和負債的公允價值。 於呈列期間，公允價值層級的第1級、第2級或第3級之間沒有轉移。
貸款

根據公司在到期前出售貸款的意圖和能力，公司簡明綜合資產負債表中包含的貸款被分類爲持作出售或持作投資。公司不時根據公司意圖和能力的變化在分類類別之間轉移貸款。合併證券化中持有的貸款包括作爲合併證券化抵押品投入並持有的貸款（UPSt 2023-2），並被分類爲持作出售。

下表列出了截至2023年12月31日和2024年9月30日公司簡明合併資產負債表中所列貸款類別的公允價值：
十二月三十一日，9月30日，
20232024
持有待售貸款$830,574 $311,299 
爲投資而持有的貸款146,768 226,301 
合併證券化中持有的貸款179,071 118,520 
總
$1,156,413 $656,120 
估值方法論
持作出售和持作投資的貸款採用貼現現金流量模型按估計公允價值計量。公允估值方法考慮預計預付款項和歷史違約、損失和收回，以預測未來損失和貸款淨現金流量。淨現金流量使用市場回報率估計進行貼現。該等貸款的公允價值還包括應計利息。

公司在主題810下選擇了測量替代方案， 整固，並最大限度地使用可觀察輸入數據來估計UPSt 2023-2金融資產和負債的公允價值。根據衡量替代方案，公司確定用於確定UPSt 2023-2負債價值的輸入數據（包括作爲此次證券化一部分發行的證券化票據和剩餘證書）比用於衡量UPSt 2023-2金融資產公允價值的輸入數據更可觀察，UPSt 2023-2金融資產的公允價值包括作爲抵押品的持有待售貸款。因此，貸款根據UPSt 2023-2證券化票據和剩餘憑證的公允價值之和進行計量，公允價值變化計入簡明綜合經營報表和全面損失。
28
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




重大輸入和假設

下表列出了有關公司持作投資和持作出售貸款的第三級公允價值計量所使用的重大不可觀察輸入數據的量化信息：
2023年12月31日2024年9月30日
最低要求極大值
加權平均(1)
最低要求最大
加權平均 (1)
貼現率9.63 %23.22 %12.06 %9.32 %23.22 %11.74 %
信用風險率
0.01 %93.10 %17.66 %0.01 %93.12 %16.89 %
預付率
0.13 %95.80 %36.52 %0.32 %89.07 %35.43 %
_________
(1)不可觀察輸入按相對公允價值加權。

下表列出了有關公司合併證券化中持有的貸款的第三級公允價值計量隱含的重大不可觀察輸入數據的量化信息，該公允價值計量由相關證券化票據和剩餘證書的公允價值之和確定：
2023年12月31日2024年9月30日
最低要求最大
加權平均(1)
最低要求最大
加權平均 (1)
貼現率6.85 %16.00 %9.99 %6.39 %15.25 %9.29 %
信用風險率
0.61 %37.70 %15.51 %0.67 %37.70 %15.55 %
預付率
6.66 %89.84 %42.73 %6.73 %89.84 %41.86 %
_________
(1)不可觀察輸入按相對公允價值加權。

貼現率- 貼現率是用於貼現未來預期現金流以得出現值（代表公允價值）的回報率。用於預計淨現金流量的貼現率是公司對市場參與者在投資這些現金流量取決於相關貸款信用質量的金融工具時所需的回報率的估計。風險溢價部分隱含地包含在貼現率中，以反映市場參與者由於信用和流動性等風險導致的工具現金流固有的不確定性而要求的補償金額。

信用風險率- 信用風險率是對金融工具整個生命週期內不會償還的淨累積本金付款的估計。信用風險率以工具原始本金額的百分比表示。估計淨累計損失代表工具壽命內每個月估計發生的淨損失減去預計將收到的平均賠償額的總和。

預付率- 提前還款率是對貸款整個期限內發生的累積本金提前還款額的估計，即貸款原始本金額的百分比。有關累積預付款的假設會影響貸款的預計餘額和預期期限。

29
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




顯著的經常性3級公允價值投入敏感性

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資貸款的公允價值對估值模型中使用的關鍵假設不利變化的敏感性：
十二月三十一日，9月30日，
20232024
持作出售和持作投資的貸款的公允價值$977,342 $537,600 
貼現率
加息100個點子(11,680)(6,195)
加息200個點子(23,127)(12,252)
基礎貸款的預期信用損失率
10%不利變化(12,453)(5,402)
20%不利變化(24,979)(10,828)
預期預付利率
10%不利變化(1,884)(1,477)
20%不利變化(3,756)(2,948)

下表列出了截至2023年12月31日和2024年9月30日合併證券化貸款公允價值對估值模型中使用的關鍵假設不利變化的敏感性：
十二月三十一日，9月30日，
20232024
合併證券化中持有的貸款的公允價值
$179,071 $118,520 
貼現率
加息100個點子(2,413)(1,385)
加息200個點子(4,785)(2,745)
基礎貸款的預期信用損失率
10%不利變化(2,669)(2,318)
20%不利變化(5,227)(4,761)
預期預付利率
10%不利變化(1,625)(990)
20%不利變化(3,234)(1,939)

3級公允價值的結轉

下表包括分類爲公允價值層級第3級的貸款的結轉：
30
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




貸款
銷售		投資性貸款合併證券化中持有的貸款總
2023年6月30日的公允價值$689,851 $147,714 $— $837,565 
貸款轉移至合併證券化(1)
(209,968)— 209,968 — 
購買貸款(2)(3)
483,921 32,714 — 516,635 
出售貸款(2)
(269,627)— — (269,627)
購買貸款立即轉售(2)
342,467 — — 342,467 
立即轉售貸款(2)
(342,467)— — (342,467)
已收到還款(2)
(40,894)(24,757)(12,302)(77,953)
計入收益的沖銷和公允價值變化(20,203)(13,235)(1,139)(34,577)
其他變化(764)1,057 — 293 
2023年9月30日的公允價值$632,316 $143,493 $196,527 $972,336 
_________
（1） 代表公允價值。
（2） 代表本金餘額。
（3） 購買活動包括截至2023年9月30日的三個月內與證券化清理呼籲相關的微不足道的未付本金餘額。
貸款
銷售		投資性貸款合併證券化中持有的貸款總
2022年12月31日的公允價值$882,810 $127,611 $— $1,010,421 
貸款轉移至合併證券化(1)
(209,968)— 209,968 — 
購買貸款(2)(3)
1,053,309 121,293 — 1,174,602 
出售貸款(2)
(888,019)— — (888,019)
購買貸款立即轉售(2)
1,023,426 — — 1,023,426 
立即轉售貸款(2)
(1,023,426)— — (1,023,426)
已收到還款(2)
(149,697)(68,212)(12,302)(230,211)
計入收益的沖銷和公允價值變化(54,767)(40,003)(1,139)(95,909)
其他變化(1,352)2,804 — 1,452 
2023年9月30日的公允價值$632,316 $143,493 $196,527 $972,336 
_________
（1） 代表公允價值。
（2） 代表本金餘額。
（3） 購買活動包括截至2023年9月30日的九個月內與證券化清理呼籲相關的微不足道的未付本金餘額。
31
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




貸款
銷售		投資性貸款合併證券化中持有的貸款總
2024年6月30日的公允價值
$497,922 $187,586 $135,120 $820,628 
購買和貸款發放(1)
475,176 85,639 — 560,815 
出售貸款(1)
(590,403)— — (590,403)
購買貸款立即轉售(1)
581,057 — — 581,057 
立即轉售貸款(1)
(581,057)— — (581,057)
已收到還款(1)
(43,633)(37,603)(11,818)(93,054)
計入收益的沖銷和公允價值變化(25,270)(14,207)(4,782)(44,259)
其他變化(2,493)4,886 — 2,393 
2024年9月30日的公允價值
$311,299 $226,301 $118,520 $656,120 
_________
（1） 代表本金餘額。

貸款
銷售		投資性貸款合併證券化中持有的貸款總
2023年12月31日的公允價值
$830,574 $146,768 $179,071 $1,156,413 
貸款重新分類(2)
(3,189)3,189 — — 
購買和貸款發放(1)(2)
1,558,844 196,580 — 1,755,424 
出售貸款(2)
(1,826,066)— — (1,826,066)
購買貸款立即轉售(2)
1,067,402 — — 1,067,402 
立即轉售貸款(2)
(1,067,402)— — (1,067,402)
已收到還款(2)
(163,606)(93,172)(36,532)(293,310)
計入收益的沖銷和公允價值變化(77,943)(37,810)(24,019)(139,772)
其他變化(7,315)10,746 — 3,431 
2024年9月30日的公允價值
$311,299 $226,301 $118,520 $656,120 
_________
(1)購買活動包括截至2024年9月30日的九個月內與證券化清理呼籲相關的微不足道的未付本金餘額。
(2)代表本金餘額。

下表呈列簡明綜合資產負債表中所有貸款和逾期90天或以上貸款的公允價值總額和未償還本金總額：

貸款貸款逾期超過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
未償還本金餘額$1,182,577 $705,779 $15,310 $13,783 
公允價值淨值和應計利息調整(26,164)(49,659)(12,260)(11,539)
公允價值(1)
$1,156,413 $656,120 $3,050 $2,244 
_________
（1） 包括$343.11000萬美元和300萬美元282.8 截至2023年12月31日和2024年9月30日，按公允價值計算的汽車貸款分別爲百萬美元，其中美元2.81000萬美元和300萬美元2.0 截至2023年12月31日和2024年9月30日，百萬分別逾期90天或以上。也
32
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




包括 非物質的 截至2023年12月31日按公允價值計算的HELCC金額和美元30.2 截至2024年9月30日，百萬，其中 非物質的 在任何一個時期，貸款都逾期90天或以上。

該公司對拖欠金額已達到的HElocc進行收費 180 逾期天數和所有其他貸款 120 逾期天數。與該等貸款相關記錄的任何應計利息將在相關期間轉回。

應收信貸額度

就其一項承諾資本和其他共同投資安排而言，該公司向第三方發放了應收循環信貸額度，該額度被歸類爲持作投資並在公司簡明綜合資產負債表上的其他資產中呈列。截至2024年9月30日，應收信用額度公允價值爲美元31.5 萬舉行之本公司 不是 截至2023年12月31日的應收信用額度。
估值方法論
應收信貸額度使用貼現現金流量模型按估計公允價值計量。公允估值方法考慮交易對手的當前信譽來預測未來損失以及當前利率與規定利率之間的差異。現金流使用市場回報率估計進行貼現。應收信貸額度的公允價值還包括應計利息。
重大輸入和假設

下表列出了有關公司與應收信貸額度相關的第三級公允價值計量所使用的重大不可觀察輸入數據的量化信息：

2023年12月31日2024年9月30日
最低要求最大
加權平均
最低要求最大
加權平均
貼現率***7.00 %7.00 %7.00 %
_________
* 不適用

貼現率- 貼現率是用於貼現未來預期現金流以得出現值（代表公允價值）的回報率。用於預計淨現金流量的貼現率是公司對市場參與者在投資該金融工具時所需的回報率的估計，現金流量取決於相關貸款的信用質量。風險溢價部分隱含地包含在貼現率中，以反映市場參與者由於信用和流動性等風險導致的工具現金流固有的不確定性而要求的補償金額。

顯著的經常性3級公允價值投入敏感性

應收信貸額度對關鍵假設不利變化的公允價值敏感性不會對公司的財務狀況或經營業績造成重大影響。

33
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




3級公允價值的結轉

下表列出了公司分類爲公允價值層級第3級的應收信貸額度的結轉：
應收信貸額度
2024年6月30日的公允價值
$8,305 
發行22,646 
在收益中記錄的公允價值變動403 
應計利息變化160 
2024年9月30日的公允價值
$31,514 
應收信貸額度
2023年12月31日的公允價值$— 
發行30,907 
在收益中記錄的公允價值變動447 
應計利息變化160 
2024年9月30日的公允價值$31,514 

與證券化交易相關的資產和負債

截至2023年12月31日和2024年9月30日，公司持有公允價值總額爲美元的應收票據和剩餘憑證14.8 億和$10.3 公司簡明合併資產負債表上的其他資產中分別爲百萬美元。餘額包括證券化票據和從未合併證券化交易中保留的剩餘證書。

截至2023年12月31日和2024年9月30日，公司確認應付證券化票據持有人款項爲美元141.4 億和$100.3 按公允價值計算分別爲百萬美元。餘額代表第三方投資者發行和擁有的與UPSt 2023-2相關的證券化票據的價值。公司保留的UPSt 2023-2證券化票據和剩餘憑證的價值在合併過程中消除。
估值方法論

公司在估計應收票據以及剩餘憑證和應付證券化票據持有人的公允價值時優先使用可觀察輸入數據。當這些金融工具的市場活動不可觀察時，公允價值使用貼現現金流量法確定。該方法使用針對這些證券特徵進行調整的基礎抵押貸款池的預計現金流量假設，這反映了公司對市場參與者用於計算公允價值的假設的最佳估計。

重大輸入和假設

下表列出了有關公司與應收票據、剩餘憑證和應付證券化票據持有人相關的第3級公允價值計量所使用的重大不可觀察輸入數據的量化信息：
34
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




2023年12月31日2024年9月30日
最低要求最大
加權平均 (1)
最低要求最大
加權平均(1)
應收票據和剩餘憑證
貼現率9.99 %23.22 %12.74 %10.52 %23.22 %13.13 %
信用風險率
0.48 %50.69 %16.32 %0.49 %50.28 %16.37 %
預付率
6.36 %89.46 %43.14 %6.37 %87.53 %42.66 %
應付證券化票據持有人
貼現率6.85 %12.30 %8.48 %6.39 %10.62 %8.21 %
信用風險率
0.61 %37.70 %15.51 %0.67 %37.70 %15.55 %
預付率
6.66 %89.84 %42.73 %6.73 %89.84 %41.86 %
_________
(1)不可觀察輸入按相對公允價值加權。


顯著的經常性3級公允價值投入敏感性

應收票據和剩餘證書

截至2023年12月31日和2024年9月30日，貼現率、信用風險率或預付費率的不利變化不會對應收票據和剩餘憑證的公允價值產生重大影響。

應付證券化票據持有人

應付證券化票據持有人的公允價值對貼現率的不利變化敏感，貼現率代表機構投資者在投資具有類似風險和回報特徵的金融工具時所需的回報率估計。平均而言，假設貼現率上升100和200個點子，會導致應付證券化票據持有人的公允價值下降美元1.9 億和$3.7 截至2023年12月31日，分別爲百萬美元和 不 導致截至2024年9月30日應付證券化票據持有人的公允價值產生重大影響。截至2023年12月31日和2024年9月30日，信用風險率和預期提前還款率的不利變化不會對應付證券化票據持有人的公允價值造成重大影響。
3級公允價值的結轉

下表包括與公司分類爲公允價值層級第3級的證券化交易相關的向證券化票據持有人發放的應收票據以及剩餘憑證和應付款項的結轉：

應收票據和剩餘證書
應付證券化票據持有人
2023年6月30日的公允價值$3,907 $— 
添加— 165,318 
還款和結算(560)(10,016)
在收益中記錄的公允價值變動(561)(1,520)
2023年9月30日的公允價值$2,786 $153,782 

35
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




應收票據和剩餘證書
應付證券化票據持有人
2022年12月31日的公允價值$6,181 $— 
添加— 165,318 
還款和結算(3,556)(10,016)
在收益中記錄的公允價值變動161 (1,520)
2023年9月30日的公允價值$2,786 $153,782 

應收票據和剩餘證書
應付證券化票據持有人
2024年6月30日的公允價值
$11,642 $113,652 
還款和結算(1,323)(14,259)
在收益中記錄的公允價值變動(1)942 
2024年9月30日的公允價值
$10,318 $100,335 

應收票據和剩餘證書
應付證券化票據持有人
2023年12月31日的公允價值$14,847 $141,416 
還款和結算(4,004)(42,705)
在收益中記錄的公允價值變動(525)1,624 
2024年9月30日的公允價值$10,318 $100,335 


貸款服務資產和負債
截至2023年12月31日和2024年9月30日，公司貸款服務資產的公允價值爲美元28.11000萬美元和300萬美元26.7 分別記錄在簡明綜合資產負債表的其他資產中。截至2023年12月31日和2024年9月30日，公司貸款償還負債的公允價值爲美元2.01000萬美元和300萬美元1.2 分別記錄在簡明綜合資產負債表的應計費用和其他負債中。
估價方法

貸款服務資產和負債使用貼現現金流量模型按估計公允價值計量。估值模型中的現金流代表向機構投資者收取的合同服務費與估計的市場服務費之間的差額。由於合同服務費通常基於基礎貸款的每月未償還本金餘額，因此模型中的預期現金流包括淨損失和預付款項的估計。
36
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




重大輸入和假設

下表列出了有關公司貸款服務資產和負債的第三級公允價值計量所使用的重大不可觀察輸入數據的量化信息：
2023年12月31日2024年9月30日
最低要求最大
加權平均(1)
最低要求最大
加權平均(1)
貼現率13.00 %20.00 %16.89 %13.00 %20.00 %17.06 %
信用風險率
0.05 %88.42 %14.93 %0.08 %65.36 %15.66 %
市場服務費率 (2)(3)
0.62 %3.72 %0.62 %0.62 %3.70 %0.62 %
預付率
1.05 %96.90 %41.05 %2.17 %96.90 %37.79 %
_________
(1)不可觀察輸入按相對公允價值加權。
(2)不包括將轉嫁給第三方服務商的輔助費用。
(3)以佔汽車貸款未償本金餘額的百分比表示 3.72%和3.70分別截至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日的個人貸款均爲%。

貼現率- 貼現率是公司對服務權市場參與者在投資類似服務權時所需回報率的估計。現有貸款服務權的貼現率進行調整，以反映貨幣的時間價值和風險溢價，該風險溢價旨在反映市場參與者因與這些工具現金流相關的不確定性而需要的補償金額。

信用風險率s-信用風險率是公司對在貸款整個期限內不會償還的淨累積本金付款的估計，以貸款原始本金額的百分比表示。有關淨累積損失的假設影響貸款的預計餘額和預期期限，這些貸款用於預測未來的服務收入。

市場服務費率- 市場服務費率是對市場參與者進行充分補償的估計指標（如果需要的話）。該利率以每年未償還本金餘額的固定百分比表示。該估計考慮了市場上爲滿足公司服務協議的未償貸款組合而需要的利潤。

預付率- 提前還款率是公司對整個貸款期限內發生的累積本金提前還款額的估計，佔貸款原始本金額的百分比。有關累積預付款的假設影響貸款的預計餘額和預期期限，這些貸款用於預測未來的服務收入。
37
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




顯著的經常性3級公允價值投入敏感性

下表列出了貸款服務資產和負債對關鍵假設不利變化的公允價值敏感性。貸款服務資產和負債的公允價值對貼現率的不利變化並不敏感，因爲此類變化不會分別對截至2023年12月31日和2024年9月30日的公允價值產生重大影響。截至2023年12月31日和2024年9月30日，預付款利率的不利變化不會對貸款償還負債的公允價值造成重大影響。
十二月三十一日，9月30日，
20232024
貸款服務資產的公允價值$28,092 $26,705 
預期市場服務費率
市場服務費率上漲10%(7,475)(8,621)
市場服務費率上漲20%(14,916)(15,784)
預期預付利率
預付款利率提高10%
(632)(2,096)
預付款利率提高20%
(1,257)(2,750)
十二月三十一日，9月30日，
20232024
貸款償還負債的公允價值$2,038 $1,164 
預期市場服務費率
市場服務費率上漲10%1,100 881 
市場服務費率上漲20%2,235 1,451 

3級公允價值的結轉

下表列出了公司分類爲公允價值層級第3級的貸款服務資產和負債的結轉：
貸款服務資產貸款服務負債
2023年6月30日的公允價值
$33,339 $2,577 
出售貸款3,475 3 
還款和其他公允價值變化計入收益(6,723)(187)
2023年9月30日的公允價值$30,091 $2,393 
貸款服務資產貸款服務負債
2022年12月31日的公允價值$36,467 $3,968 
出售貸款10,512 80 
還款和其他公允價值變化計入收益(16,888)(1,655)
2023年9月30日的公允價值$30,091 $2,393 
38
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




貸款服務資產貸款服務負債
2024年6月30日的公允價值
$25,790 $1,223 
出售貸款5,552 1 
還款和其他公允價值變化計入收益(4,637)(60)
2024年9月30日的公允價值
$26,705 $1,164 
貸款服務資產貸款服務負債
2023年12月31日的公允價值$28,092 $2,038 
出售貸款11,451 3 
還款和其他公允價值變化計入收益(12,838)(877)
2024年9月30日的公允價值$26,705 $1,164 
實益權益

就某些承諾資本和其他共同投資安排而言，如果基礎貸款的信用表現偏離貸款銷售或發放時設定的初始預期，公司有義務向第三方付款，或有權從第三方收取付款，但須遵守美元上限。截至2023年12月31日和2024年9月30日，與該等安排相關的受益權益資產的公允價值爲美元41.0 億和$131.5 分別爲百萬。截至同一日期，受益利息負債的公允價值爲美元4.2 億和$13.2分別爲2.5億美元和2.5億美元。
估價方法

受益權益使用貼現現金流量模型按估計公允價值計量。該模型首先考慮預計的違約、損失、預付還款和收回，以計算基礎貸款組合的名義淨現金流量。然後，該模型根據安排的合同條款計算公司的現金流入或流出。這些淨現金流使用反映與這些現金流相關的風險溢價的市場回報率估計進行貼現。該模型使用下文討論的輸入數據，這些輸入數據本質上具有判斷性，並反映了公司對市場參與者用於確定公允價值的假設的最佳估計。
重大輸入和假設

下表列出了有關截至2023年12月31日和2024年9月30日公司受益權益公允價值計量所使用的重大不可觀察輸入數據的量化信息：
2023年12月31日2024年9月30日
最低要求最大
加權平均(1)
最低要求最大
加權平均(1)
受益資產
貼現率7.00 %14.00 %13.63 %7.00 %14.00 %13.69 %
信用風險利差(2)
(0.85)%(0.85)%(0.85)%(3.00)%7.90 %1.64 %
受益利息負債
貼現率14.00 %14.00 %14.00 %14.00 %14.00 %14.00 %
信用風險利差(2)
0.09 %9.81 %8.79 %12.90 %16.43 %13.40 %
39
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




_________
(1)不可觀察輸入按相對公允價值加權。
(2)以截至估值日的累計損失預期與截至貸款發行日期或貸款銷售日期的損失預期的百分比表示。正的信用風險利差表明與初始預期相比，截至計量日估計的額外風險。負信用風險利差表明風險低於最初估計。

貼現率-貼現率是用於貼現未來預期現金流的回報率，現值代表公允價值。預計淨現金流使用的貼現率是本公司對市場參與者在投資這些金融工具時所需回報率的估計，這些金融工具的現金流取決於相關貸款組合的信貸表現。風險溢價部分隱含在貼現率中，以反映市場參與者因信貸和流動性等風險導致的工具現金流固有的不確定性而要求的補償金額。該公司對與迄今已證明的信用表現相關的預期現金流和與未來信用表現相關的預期現金流使用兩種不同的貼現率。這些利率的差異反映了不確定性的程度，從而反映了市場參與者在投資這些工具時所要求的風險溢價。

信用風險利率利差- 受益權益的信用風險率的確定方式與基礎貸款組合相同。信用風險率是對基礎投資組合累計損失（扣除平均收回）的估計，代表在受益權益的整個生命週期內不會償還的本金金額。信用風險利率利差是發起日或銷售日（具體取決於安排）的預期信用風險率與截至估值日的估計信用風險率之間的相對差異（以百分比表示）。正的信用風險利差表明與初始預期相比，截至計量日估計的額外風險。負信用風險利差表明風險低於最初估計。

下表列出了截至2023年12月31日和2024年9月30日，受益資產和負債對估值模型中使用的關鍵假設不利變化的敏感性。截至2023年12月31日和2024年9月30日，貼現率的不利變化不會對受益利息負債的公允價值造成重大影響。
顯著的經常性3級公允價值投入敏感性
十二月三十一日，9月30日，
20232024
受益權益資產的公允價值$41,012 $131,483 
貼現率
加息100個點子(1,240)(2,621)
加息200個點子(2,431)(5,152)
基礎貸款的預期信用利差
10%不利變化(9,059)(28,780)
20%不利變化(16,743)(57,821)
受益利息負債的公允價值$4,221 $13,162 
基礎貸款的預期信用利差
10%不利變化5,606 5,721 
20%不利變化11,217 11,988 
40
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




3級公允價值的結轉

下表列出了受益資產和負債的結轉。

受益資產
受益利息負債
2023年6月30日的公允價值$28,664 $85 
獲得受益權益
14,719 — 
在收益中記錄的公允價值變動(6,409)763 
2023年9月30日的公允價值$36,974 $848 

受益資產
受益利息負債
2022年12月31日的公允價值$— $— 
獲得受益權益
45,254 — 
在收益中記錄的公允價值變動(8,280)848 
2023年9月30日的公允價值$36,974 $848 

受益資產
受益利息負債
2024年6月30日的公允價值$97,804 $11,198 
獲得受益權益
32,416 — 
受益利益的結算(1,079)(1,325)
在收益中記錄的公允價值變動2,342 3,289 
2024年9月30日的公允價值$131,483 $13,162 

受益資產
受益利息負債
2023年12月31日的公允價值$41,012 $4,221 
獲得受益權益(1)
103,817 — 
受益利益的結算(2,808)(3,692)
在收益中記錄的公允價值變動(10,538)12,633 
2024年9月30日的公允價值$131,483 $13,162 
_________
(1)自2024年6月30日起，公司將受益權益資產付款的列報與受益權益的收購合併。
追蹤費負債

該公司根據基礎貸款借款人支付本金和利息的金額和時間向某些銀行合作伙伴支付每月跟蹤費。該公司持有的跟蹤費用負債爲美元4.3 截至2023年12月31日和2024年9月30日，百萬。

41
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




估值方法論

貼現現金流方法用於估計跟蹤費用負債的公允價值，使用與基礎貸款相同的預測淨現金流。公允估值方法考慮預計預付款項和歷史違約、損失和收回，以預測未來損失和基礎貸款的淨現金流量。淨現金流量使用市場回報率估計進行貼現。
重大輸入和假設

下表列出了有關公司跟蹤費用負債的第三級公允價值計量所使用的重大不可觀察輸入數據的量化信息：

2023年12月31日2024年9月30日
最低要求最大
加權平均(1)
最低要求最大
加權平均 (1)
貼現率9.63 %23.22 %12.88 %9.32 %23.22 %13.20 %
信用風險率
0.01 %88.42 %17.61 %0.02 %69.01 %18.30 %
預付率
1.05 %94.68 %39.94 %1.99 %95.80 %37.01 %
_________
(1)不可觀察輸入按相對公允價值加權。

顯著的經常性3級公允價值投入敏感性

跟蹤費用負債對關鍵假設不利變化的公允價值敏感性不會對公司的財務狀況或經營業績造成重大影響。
3級公允價值的結轉

下表包括公司分類爲公允價值層級第3級的跟蹤費用負債的結轉：

追蹤費負債
2023年6月30日的公允價值$4,265 
發行580 
還款和結算(670)
在收益中記錄的公允價值變動(2)
2023年9月30日的公允價值$4,173 

追蹤費負債
2022年12月31日的公允價值$4,852 
發行1,414 
還款和結算(2,096)
在收益中記錄的公允價值變動3 
9月30日的公允價值。2023$4,173 

42
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




追蹤費負債
2024年6月30日的公允價值
$4,242 
發行912 
還款和結算(834)
在收益中記錄的公允價值變動25 
2024年9月30日的公允價值
$4,345 

追蹤費負債
2023年12月31日的公允價值$4,251 
發行2,101 
還款和結算(2,145)
公允價值變化計入收益 138 
2024年9月30日的公允價值$4,345 


 7.    商譽與無形資產
商譽

截至2024年9月30日止九個月內，美元的淨資產無變化67.1 公司精簡合併資產負債表上的金額爲100萬美元。
無形資產

收購的須攤銷的無形資產包括髮達的技術和客戶關係，扣除攤銷後記錄，並計入簡明綜合資產負債表的其他資產。 總資產和淨資產以及累計攤銷如下：

2023年12月31日2024年9月30日
總賬面價值
累計攤銷
賬面淨值
賬面值總額
累計攤銷
賬面淨值
發達的技術$9,400 $(8,617)$783 $9,400 $(9,400)$— 
客戶關係13,700 (3,139)10,561 13,700 (3,996)9,704 
無形資產總額
$23,100 $(11,756)$11,344 $23,100 $(13,396)$9,704 

攤銷費用爲非物質的 和$3.2 截至2023年9月30日的三個月和九個月分別爲百萬美元，以及 非物質的 截至2024年9月30日的三個月和九個月。

43
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




無形資產的預期未來攤銷費用如下：

2024年9月30日
剩餘的2024年$285 
20251,142 
20261,142 
20271,142 
20281,142 
此後4,851 
*總計$9,704 

 8.    資產負債表組成部分
其他資產

其他資產包括以下內容：
2023年12月31日2024年9月30日
應收賬款$40,490 $46,076 
應收信貸額度（按公允價值）(3)
— 31,514 
貸款服務資產（按公允價值）28,092 26,705 
其他資產18,589 21,685 
預付費用17,976 19,549 
應收票據和剩餘憑證（按公允價值）14,847 10,318 
無形資產，淨額(2)
11,356 9,716 
存款8,919 4,950 
利率上限（按公允價值）(1)
5,958 2,139 
其他資產總額$146,227 $172,652 
_________
(1)請參閱“說明4. 衍生金融工具” 以獲取更多信息。
(2)請參閱“說明7. 商譽及無形資產了解更多信息。
(3)請參閱“說明6. 公允價值衡量” 以獲取更多信息。

應收賬款指確認爲收入但尚未就與機構投資者和貸款合作伙伴的服務協議和其他協議收取的金額。
44
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




財產、設備和軟件，淨

財產、設備和軟件淨包括以下內容：
2023年12月31日2024年9月30日
內部開發的軟件$55,008 $63,551 
租賃權改進14,281 15,069 
計算機和網絡設備6,054 6,069 
傢俱和固定裝置4,761 4,795 
財產、設備和軟件總計80,104 89,484 
累計折舊和攤銷(37,449)(51,156)
財產、設備和軟件總計，淨$42,655 $38,328 

財產、設備和軟件的折舊和攤銷費用爲美元3.9 億和$12.6 截至2023年9月30日的三個月和九個月分別爲百萬美元和美元5.1 億和$14.2 截至2024年9月30日的三個月和九個月分別爲百萬美元。

扣除累計攤銷後，資本化的內部開發軟件餘額爲美元31.31000萬美元和300萬美元29.4 截至2023年12月31日和2024年9月30日，分別爲百萬。本公司確認 不是 截至2023年9月30日的三個月內內部開發軟件的減損費用並已確認美元2.6 由於2023年1月計劃，截至2023年9月30日的九個月內發生了數百萬美元的減損費用。參考“說明15. 重組費用”以獲取更多信息。截至2024年9月30日的三個月和九個月內，公司認識到 非物質的 內部開發軟件的減損費用。
應計費用和其他負債

應計費用和其他負債包括：
2023年12月31日2024年9月30日
應計費用$28,099 $35,364 
應計工資總額30,161 31,336 
應付帳款12,613 22,617 
受益負債（按公允價值）4,221 13,162 
追蹤費負債（按公允價值）4,251 4,345 
其他負債2,668 3,628 
貸款償還負債（按公允價值）2,038 1,164 
應計費用和其他負債總額$84,051 $111,616 

45
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)





 9.    借款

下表呈列簡明綜合資產負債表中所有債務的未償還本金總額：
借款
2023年12月31日2024年9月30日
倉儲信貸安排$387,425 $170,084 
可轉換優先票據661,250 730,379 
應領的款項總額1,048,675 900,463 
未攤銷債務貼現(8,251)(13,096)
借款總額$1,040,424 $887,367 
下表總結了所有借款的到期總額：
2024年9月30日
剩餘的2024年$— 
202547,477 
2026378,301 
2027— 
202843,435 
2029431,250 
此後— 
總$900,463 
46
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




倉儲信貸安排
下表列出了公司循環倉庫信貸便利的詳細信息：
2023年12月31日2024年9月30日
規定利率(1)
終止和成熟(2)
總借款能力
(3)
抵押品(4)
未償還借款
抵押品(4)
未償還借貸
新興汽車倉庫信託基金
基準利率+ 3.0%
2024年6月至2025年12月$— $278,022 $139,483 $190,861 $47,477 
初創汽車倉庫信託2
基準利率+ 0% - 4.0%
2025年6月至2026年6月50,000 — — 10,472 5,437 
初創貸款信託
基準利率+ 2.8% - 3.8%
2025年6月至2026年6月325,000 361,195 247,942 94,963 73,735 
新興小額貸款信託
基準利率+ 5.5%
2027年6月至2028年6月100,000 — — 77,179 43,435 
總$475,000 $639,217 $387,425 $373,475 $170,084 
_________
(1)我們倉庫信貸設施的利率是浮動的，並設計爲參考利率加利差。參考利率包括複合擔保隔夜融資利率和貸方發行的商業票據的加權平均成本。規定的利率不包括未使用的承諾費，範圍從 0.5%到 1.0%. Upstart小額貸款信託的未提取費用是如果日均未償本金餘額總額等於 75當時適用借款基礎的%。
(2)第一個日期代表公司可以借入倉庫最大容量的最終日期。第二個日期是到期日，此時未償本金額以及應計和未付利息將全額到期並支付。
(3)總容量截至2024年9月30日。所有金額均已承諾，但Upstart小額貸款信託基金爲美元100.0 百萬美元和Upstart Loan Trust，其中美元150.0美元中的1000萬美元325.0 百萬總容量尚未承諾。截至 2024年9月30日，Upstart Auto Warehouse Trust工具已處於攤銷期，無法再提取。
(4)代表抵押作爲抵押品的受限制現金和未付貸款本金餘額總額。

2024年4月24日，Upstart Loan Trust對經修訂和重述的循環信貸和證券協議進行了修訂，將購買無擔保個人貸款的總借款能力中的未承諾部分從美元增加75.02000萬美元至2000萬美元150.0 萬該協議的所有其他關鍵條款保持不變。截至2024年9月30日，該公司違反了該設施中抵押的精選貸款池的某些陳述。2024年9月30日之後，公司支付了美元26.8 該融資的未償預付款中的百萬美元，並且符合2024年11月4日生效的所有適用契約。

截至2024年3月31日的三個月內，Upstart Auto Warehouse Trust因違反Upstart Auto Warehouse Trust融資項下的某些契約而獲得豁免，該融資於2024年6月14日到期。2024年6月7日，在到期前，Upstart Auto Warehouse Trust修改了其信貸協議，將到期日延長至2025年12月14日。攤銷期於2024年6月14日開始，因此，Upstart Auto Warehouse Trust可能不再提取該設施，所有代表償還該設施下作爲抵押品的貸款的收款均用於減少未償餘額。截至2024年9月30日，該設施符合所有適用契約。
47
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)





2024年6月28日，Upstart Auto Warehouse Trust 2爲汽車貸款訂立了倉庫信貸安排，Upstart Small Dollar Loan Trust爲小額美元貸款訂立了倉庫信貸安排。這些倉庫信貸設施由汽車或小額美元貸款（如適用）的抵押權和擔保權益擔保，其購買由借款提供資金。Upstart Auto Warehouse Trust 2和Upstart Small Dollar Loan Trust均可在設施終止日之前借入最多容量，並且必須在到期日之前根據其各自的倉庫信貸設施支付所有未償金額。

可轉換優先票據
2021年8月，該公司發行了美元661.3本金總額爲3,000,000元0.25% 2026年到期的可轉換優先票據（「2026年票據」），並於2024年9月發行了美元431.3本金總額爲3,000,000元2.00% 2029年到期的可轉換優先票據（「2029年票據」，連同2026年票據，統稱爲「票據」）。在發行2029年票據的同時，公司使用了約美元302.4 萬 的 回購收益約爲美元334.2 單獨談判交易中未償2026年票據的本金總額爲百萬美元。該公司額外回購了約美元27.9 2024年第三季度通過公開市場購買發行了100萬美元的2026年未償票據。 下表列出了截至2024年9月30日止九個月內票據的活動：
截至2023年12月31日未償票據本金餘額
$661,250 
發行2029年票據
431,250 
2026年票據回購
(362,121)
截至2024年9月30日未償票據本金餘額
$730,379 
2026年票據的回購被視爲債務消滅。回購2026年票據支付的代價與2026年票據的公允價值之間的差額導致債務消除收益爲美元33.4 萬 單獨報告 截至2024年9月30日止三個月和九個月的簡明綜合經營報表和全面虧損。部分消失並未導致2026年票據的條款發生任何變化。
每一系列票據由其各自的契約(每個爲「契約」)管理，並代表本公司的優先無擔保債務。這個2026年筆記2026年8月15日到期，2029年到期的債券2029年10月1日，除非該等債券已按其條款於較早前兌換、贖回或購回。公司不得在2024年8月20日之前贖回2026年債券或在2029年8月20日之前贖回2029年債券2027年10月6日。公司可選擇在2024年8月20日或之後贖回全部或任何部分債券，如屬2026年債券，則可在當日或之後贖回2027年10月6日，在2029年票據，如果公司普通股的最後報告銷售價格至少130適用系列債券當時有效的兌換價格的百分比20 任何交易日（無論是否連續） 30連續交易日(包括該期間的最後一個交易日)，直至緊接本公司就該系列債券發出贖回通知之日的前一個交易日爲止，贖回價格相等於100將贖回的該系列債券本金的%，另加贖回日(但不包括贖回日)的任何應計及未償還利息。

下表列出了註釋的詳細信息：

48
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




利率
每1，000美元本金的初始轉換率
初始折算價格
換算日期
2026年筆記
0.25%;每半年支付一次，日期爲2月15日和8月15日
3.5056$285.262026年5月15日
2029年筆記
2.00%;每半年支付一次，分別於4月1日和10月1日
21.9029$45.662029年7月1日

票據持有人僅在以下情況下可在各自兌換日期前的營業日營業結束前隨時選擇兌換其票據：

(1)對於2026年票據，在2021年12月31日之後開始的任何日曆季度和對於2029年票據，在2024年12月31日之後開始的任何日曆季度（且僅在該日曆季度），如果公司普通股的最後報告的售價至少 20 期間的交易日（無論是否連續） 30 截至（含）上一個日曆季度最後一個交易日的連續交易日大於或等於 130各票據在每個適用交易日適用換股價的%;

(2)期間 五 任何之後的工作日期間 五 連續交易日期間，其中適用系列票據每個交易日每1，000美元本金額的交易價格 五 連續交易日週期少於 98公司普通股最後報告的銷售價格與每個交易日相應票據的轉換率的積的%;

(3)如果公司在贖回日期前第二個預定交易日營業結束前的任何時間贖回適用系列的任何或所有票據;或

(4)發生指定企業活動時。

在各自的兌換日期或之後，適用系列票據的持有人可以在適用到期日前第二個預定交易日營業結束前的任何時間交出其所有或任何部分該系列票據進行兌換，無論上述條件如何。轉換後，公司將根據其選擇支付或交付現金、普通股股份或現金和普通股股份的組合。

如果發生某些事件，各系列票據的轉換價格將進行調整。此外，在適用到期日之前或公司發出一系列票據贖回通知後可能發生的某些公司事件後，公司可能需要提高該系列票據持有人的兌換率，該持有人選擇在與此類公司事件相關或在某些情況下在相關贖回期內兌換此類票據。此外，在發生構成適用契約「根本性變化」的公司事件後，適用系列票據的持有人可以要求公司以相當於待贖回的該系列票據本金額100%的購買價格回購全部或部分該票據以換取現金，另加應計和未付利息（但不包括）基本改變回購日期。

該公司將各系列票據的發行按面值作爲單一負債進行會計處理，因爲各系列票據的轉換特徵不需要根據ASC 815作爲衍生品進行分拆，並且該票據並非以大幅溢價發行。與2026年票據和2029年票據相關的債務發行成本總計美元15.71000萬美元和300萬美元10.4 分別百萬，在合同期限內按照實際利率法攤銷爲利息費用。 這個2026年票據和2029年票據的實際利率爲 0.7%和2.5%，分別。本公司錄得 非物質的 與票據相關的息票利息費用和 非物質的 其他收入中債務發行成本攤銷，扣除簡明綜合經營報表和所列所有期間的全面虧損。
49
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)





下表列出了截至2023年12月31日和2024年9月30日的票據組成部分：

2023年12月31日2024年9月30日
本金金額
未攤銷
債務
折扣
網絡
攜帶
量
公平
價值
本金金額
未攤銷
債務
折扣
網絡
攜帶
量
公平
價值
2026年筆記
$661,250 $(8,251)$652,999 $488,700 $299,129 $(2,687)$296,442 $265,851 
2029年筆記
— — — — 431,250 (10,409)420,841 471,162 
總
$661,250 $(8,251)$652,999 $488,700 $730,379 $(13,096)$717,283 $737,013 

估計公允價值代表公允價值層級中的第2級估值，並根據場外市場上票據的估計或實際出價和報價確定。


有上限的呼叫交易

就2026年票據和2029年票據的發行而言，該公司與某些金融機構簽訂了單獨的私下談判上限看漲工具（關於2026年票據的「2026年上限看漲期權」和關於2029年票據的「2029年上限看漲期權」，以及2026年上限通話以及2029年上限通話，統稱爲「上限通話」）。

上限認購通常預計將抵消任何票據轉換後公司普通股的潛在稀釋和/或減少公司需要支付的超過已轉換票據本金金額的任何現金付款（視情況而定），如果公司普通股每股市場價格（根據上限認購條款衡量），高於上限認購的執行價格，該抵消和/或減少受到上限的限制。然而，如果根據上限認購條款衡量的普通股每股市場價格超過上限認購的上限價格，則在每種情況下，將存在稀釋和/或不會減少此類潛在現金付款，直至公司普通股每股市場價格超過上限認購的上限價格。

下表列出了截至2024年9月30日與各系列票據相關的上限看漲期權的其他關鍵術語：

每股初始行使價，須進行某些調整
每股初始上限價格，須進行某些調整
所涵蓋的普通股股份，須進行反稀釋調整
(單位：百萬)
最終收件箱日期
2026年上限通話
$285.26$400.361.02026年8月15日
2029年上限通話
$45.66$70.249.42029年9月27日

上限看漲期權被確定爲符合權益分類標準的獨立金融工具;因此，上限看漲期權被記錄爲股東權益中額外實繳資本的減少。

2024年第三季度，就上述2026年票據的部分回購而言，公司達成協議，終止與回購的2026年票據本金額對應的2026年上限看漲期權部分。由於2026年上限通話部分終止，
50
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




公司收到的信息無關緊要 CAsh付款，記錄爲股東權益內額外繳入資本的增加。


 10.    股東權益
預留供未來發行的普通股

2020年12月，公司修訂並重述的公司註冊證書生效，授權發行 700,000,000 面值爲美元的普通股0.0001 每股 保留供發行的普通股股份（按轉換後的基礎）如下：
十二月三十一日，9月30日，
20232024
已發行和未償還的期權12,617,254 12,350,352 
已發行的限制性股票單位5,534,394 4,511,475 
2020年計劃下可供未來發行的股票6,420,703 7,692,542 
根據僱員購股計劃可供發行的股份2,896,226 3,425,952 
總27,468,577 27,980,321 
股份回購計劃

2022年2月，董事會授權公司購買最多美元400.0 百萬美元的公司普通股。公司可以不時通過公開市場購買、私下談判交易或其他方式回購股份，包括通過使用符合規則10 b5 -1規定資格的交易計劃。回購計劃不要求公司收購任何特定數量的普通股，公司可以隨時酌情暫停或終止該計劃，無需事先通知。

公司在結算日記錄股票回購。回購的股份隨後退役並恢復到授權但未發行的狀態。該公司的股份報廢政策是將面值與回購價格之間的超出部分（包括成本和費用）分配給額外的實繳資本。截至2024年9月30日的九個月內，公司 不是 回購普通股。截至2024年9月30日，美元222.1 根據股票回購計劃，仍有100萬美元可用於未來購買我們的普通股。
股權激勵計劃

2020年股權激勵計劃授權向符合條件的參與者授予激勵股票期權、非法定股票期權、股票增值權、限制性股票、限制性股票單位和績效獎勵。

51
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




股票期權

下表總結了截至2024年9月30日止九個月的股票期權活動：
選項數量加權平均每股行權價加權平均剩餘合同壽命（年）集料
固有的
價值
2023年12月31日餘額12,617,254 $14.57 6.1$375,897 
授予的期權1,324,632 26.48 
行使的期權(1,488,118)8.25 
期權被取消和沒收(103,416)22.87 
2024年9月30日餘額12,350,352 16.54 5.8334,377 
可行使期權-2024年9月30日8,718,678 13.32 4.7265,970 
期權已歸屬和預計將歸屬-2024年9月30日12,328,033 $16.51 5.8$334,105 

總內在價值計算爲基礎獎勵的行使價與截至2024年9月30日公司股票公允價值之間的差額。截至2023年9月30日和2024年9月30日止九個月行使的期權的總內在價值爲美元18.5 億和$34.0 分別百萬。截至2023年9月30日和2024年9月30日止九個月期間授予的期權的加權平均授予日期公允價值爲美元8.06、和$14.42 分別爲每股。截至2023年和2024年9月30日止九個月歸屬期權的總公允價值爲 $26.4 萬、和$23.2 分別爲百萬。

截至2024年9月30日，與未歸屬股票期權相關的未確認股票薪酬費用總額爲美元40.4 百萬，預計將在剩餘加權平均期內確認 2.5 年
限售股單位

公司向員工和非員工授予限制性股票單位（「RSU」）。RSU在滿足基於服務的條件時歸屬，該條件通常滿足 一 到 四年. 下表總結了截至2024年9月30日的九個月RSU活動：
股份數量加權平均授予日期每股公允價值
未歸屬於2023年12月31日5,534,394$34.90 
已批准的RSU2,505,38328.55 
歸屬的RSU(2,846,811)32.36 
RSU被取消和沒收(681,491)33.79 
2024年9月30日未歸屬4,511,475$33.14 

截至2024年9月30日，與未償還的未歸屬RSU相關的未確認股票補償費用總額爲美元114.7 百萬，預計將在剩餘加權平均期內確認 1.7 年
52
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




限制性股票

與收購Prodigy Software，Inc.有關（「神童」）於2021年4月， 82,201 公允價值爲美元的公司限制性股票10.1 向某些Prodigy員工發放了100萬美元。在授予時，限制性股票受到轉讓限制和回購選擇權的約束，並且取決於員工是否繼續在公司工作。該限制性股票受到限制，每季度失效一次 兩年 從收購Prodigy時起。

有幾個不是 截至2024年9月30日的九個月內尚未發放的限制性股票獎勵。
基於業績的限制性股票單位

2023年2月24日，公司董事會薪酬委員會批准取消可能結算的基於業績的限制性股票單位獎勵（「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時，PRSU旨在作爲高管至2029年曆年的主要薪酬，因此，與授予PRSU相關，高管的現金薪酬僅限於允許高管參與本公司普遍適用的廣泛員工福利所需的金額。在作出取消PRSU的決定時，薪酬委員會廣泛考慮了PRSU的目的，並確定贈款不再爲行政人員提供預定的留用和激勵價值。在考慮了各種替代方案和這些方案的利弊，並諮詢了外部顧問後，薪酬委員會認爲，取消PRSU以換取高管現金薪酬的恢復，符合公司及其股東的最佳利益，其中包括高管的年度基本工資和參與公司2023年高管獎金計劃的資格，年度目標獎金機會等於75高管年度基本工資的%。

與PRSU相關的補償費用使用直線歸因法確認每個 九 在各自衍生服務期內的歸屬份額。使用蒙特卡洛模擬的加權平均授予日期公允價值爲美元68.76 每股公司對受市場歸屬條件約束的獎勵確認股票補償費用，無論這些條件是否會實現，並且如果不滿足市場條件，任何此類獎勵的股票補償費用不會被逆轉。該公司將取消授予視爲無對價和剩餘未確認補償費用美元的和解39.0 與該補助相關的100萬美元已加速並由公司記錄爲截至2023年9月30日止九個月的簡明綜合經營報表和全面虧損中的工程和產品開發費用的一部分。

有幾個不是 截至2024年9月30日的九個月內未償還的PRSU.
2020年員工購股計劃

我們的員工股票購買計劃（「ESPP」）提供連續的 六個月 提供期限。發行期定於每年2月15日和8月15日或之後的第一個交易日開始。ESPP允許參與者購買金額爲 85發行期第一個交易日或行使日我們普通股股票公平市值中較低者的%。截至2024年9月30日的九個月內, 333,564 C股常見股票是根據ESPP購買的。

截至2024年9月30日，與ESPP相關的未確認股票薪酬費用總額爲 非物質的.

53
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




所授予獎項的公允價值

在確定基於股票的獎勵的公允價值時，該公司對其授予的期權和ESPP購買權使用布萊克-斯科爾斯期權定價模型。用於估計期內授予的期權和ESPP購買權的公允價值的輸入數據包括：

普通股公允價值- 公司普通股的公允價值由其在納斯達克全球精選市場交易的普通股在授予日期的收盤價確定。

預期期限- 預期期限代表公司股票期權和ESPP購買權預計尚未行使的時期。我們根據簡化方法估計預期期限，即歸屬時間和合同到期日的加權平均時間。

波動率- 由於公司在足夠長的時間內尚未擁有活躍的普通股交易市場，因此預期波動率是根據可比上市公司在相當於股票期權授予預期期限的時期內的平均波動率估計的。

無風險利率- 無風險利率假設基於授予時有效的美國財政部零息發行，期限與期權的預期期限相對應。

分紅- 公司從未支付普通股股息，並且預計在可預見的未來也不會支付普通股股息。因此，公司使用的預期股息收益率爲 零.

以下假設用於估計所授予期權的公平值：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
預期期限(以年爲單位)
5.3
5.1 - 6.7
5.2 – 7.0
5.1 – 7.0
預期波幅
53.33% – 53.38%
50.96% - 53.49%
50.96% – 53.38%
50.32% – 53.49%
無風險利率
4.23% – 4.60%
3.76%
3.45% – 4.60%
3.76% – 4.27%
股息率—%—%—%—%

.
以下假設用於估計ESPP購買權的公允價值：
截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
預期期限(以年爲單位)0.50.50.50.5
預期波幅131.05%88.37%
97.74% – 131.05%
88.37% – 96.69%
無風險利率5.55%5.04%
4.97% – 5.55%
5.04% – 5.30%
股息率—%—%—%—%
基於股票的薪酬

該公司在其簡明綜合經營報表以及員工和非員工全面虧損中將股票補償計入以下費用類別：
54
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




截至9月30日的三個月，九個月結束
9月30日，
2023202420232024
銷售和營銷$3,231 $3,040 $5,097 $9,096 
客戶運營2,768 1,596 8,744 5,679 
工程和產品開發17,357 18,013 92,725 55,140 
常規、管理和其他12,212 10,969 35,707 33,689 
總$35,568 $33,618 $142,273 $103,604 

 11.    租契

該公司的經營租賃到期日期： 2027年和2029年 主要用於位於加利福尼亞州聖馬特奧和俄亥俄州哥倫布市的公司總部，以及位於俄亥俄州哥倫布市和德克薩斯州奧斯汀的額外辦公空間。某些租賃有租金減免、租金支付升級規定、租約續簽選擇和租戶津貼。租金費用在不可取消租賃期內以直線法確認，除非合理確定將行使續訂選擇權。

就公司的租賃協議而言，代表公司爲房東簽發了總額爲美元的信用證2.6 萬信用證以存款證明爲抵押，存款證明計入簡明綜合資產負債表的受限制現金中。

未來最低租賃付款如下：
2024年9月30日
剩餘的2024年$3,750 
202515,402 
202615,850 
202715,474 
20286,143 
此後2,990 
未貼現的租賃付款總額59,609 
減去：現值調整(6,261)
經營租賃負債$53,348 

55
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




截至2023年9月30日的三個月和九個月內，融資租賃費用並不重大。截至2024年9月30日止三個月和九個月，公司沒有融資租賃費用。公司的經營租賃費用包括租金和可變租賃付款。公共區域維護和停車費等可變租賃付款已計入運營費用。在所列期間，公司短期租賃的租金費用並不重大。本公司 不是 截至2023年9月30日的三個月和九個月內的分包收入。轉租收入爲 非物質的 截至2024年9月30日的三個月和九個月內。 經營租賃費用如下：

截至9月30日的三個月，九個月結束
9月30日，
2023202420232024
房租費用$4,016 $3,542 $12,062 $10,625 
可變租賃費$1,016 $937 $2,936 $2,862 

與公司經營租賃相關的補充現金流和非現金信息如下：
截至9月30日的三個月，九個月結束
9月30日，
2023202420232024
爲計入租賃負債的金額支付的現金$3,803 $3,591 $11,263 $10,850 

與公司經營租賃相關的補充資產負債表信息如下：
2023年12月31日2024年9月30日
加權平均剩餘租賃年限(年)4.563.84
加權平均貼現率5.11%5.18%

 12.    承付款和或有事項
承付款

根據公司與某些貸款合作伙伴的貸款協議，該公司負有貸款購買義務。這些貸款合作伙伴保留通過Upstart平台提供的貸款的所有權， 三天 或根據各自協議的要求，發起後更長時間（「持有期」）。該公司已承諾在所需持有期結束時購買貸款。截至2023年12月31日和2024年9月30日，貸款購買承諾總額包括未償還本金餘額美元36.61000萬美元和300萬美元66.8分別爲2.5億美元和2.5億美元。

該公司已就其承諾資本之一和其他共同投資安排延長了信貸額度。截至2024年9月30日，公司有與美元信用額度相關的無資金承諾8.0 萬舉行之本公司 不是 截至2023年12月31日的應收信用額度。

該公司承諾爲HELCC的未來預付款提供資金。截至2023年12月31日和2024年9月30日，這些承諾爲 非物質的 和$2.8 然而，由於這些承諾可能會在未動用的情況下到期，因此承諾總額不一定代表未來的現金需求。
56
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




或有事件
或有事項的會計處理要求公司使用與損失的可能性以及損失金額或範圍的估計相關的判斷。當可能產生負債且損失金額能夠合理估計時，公司記錄或有損失。當公司認爲損失不太可能但合理可能發生時，公司會披露重大或有可能發生的情況，並可以自願提供有關額外或有情況的信息。

公司不時受到且目前正在參與因正常業務活動過程中產生的各種訴訟和法律程序，而公司無法合理確定其結果。除了下文所述的集體訴訟和衍生訴訟外，公司認爲其目前不屬於任何訴訟的一方，其結果將單獨或合併對我們的業務、經營業績、現金流或財務狀況產生重大不利影響。截至2023年12月31日，沒有記錄與法律訴訟有關的損失或有記錄。截至2024年9月30日，已記錄與法律訴訟有關的非重大損失或有情況。

彌償

在正常業務過程中，公司可能會就某些事項向供應商、董事、高級職員和其他各方提供不同範圍和條款的賠償。此外，公司已與董事以及某些高級職員和員工簽訂了賠償協議，其中要求公司（除其他外）就因其作爲董事、高級職員或員工的身份或服務而可能產生的某些責任向他們進行賠償。沒有要求公司根據該等協議提供賠償，因此，公司所知，不存在可能對公司的簡明綜合財務報表產生重大不利影響的索賠。
回購

根據公司與機構投資者之間的貸款購買和貸款服務協議的條款，以及與投資者的證券化和直通憑證交易協議的條款，在某些情況下，公司可能有義務從此類機構投資者手中回購貸款。一般來說，這些情況包括可驗證的身份盜竊的發生、出售的貸款未能滿足某些貸款級陳述和擔保（截至發起或銷售時）的條款、未能遵守與機構投資者的其他合同條款，或違反適用的聯邦、州或地方貸款法。

該義務下相關的未來付款的最大潛在金額是出售給機構投資者的貸款的未償餘額，2023年12月31日和2024年9月30日爲美元12,208.1 億和$11,042.1 分別爲百萬。與公司回購和賠償義務相關的實際付款爲 非物質的 和$4.9 截至2024年9月30日的三個月和九個月分別爲百萬美元。

截至2023年12月31日和2024年9月30日，公司不存在與未來貸款回購義務相關的重大或有負債。這些金額包括在公司簡明綜合資產負債表上的應計費用和其他負債中。
法律

2022年7月26日，俄亥俄州南區美國地方法院提起訴訟，標題爲Crain訴Upstart Holdings，Inc.等人，案例2：22-cv-02935-ALm-EPD（SD俄亥俄州）起訴該公司、該公司首席執行官和首席財務官，指控被告違反第一條對公司的業務、運營和前景做出虛假和/或誤導性陳述或遺漏
57
目錄
Upstart Holdings，Inc
公司簡明綜合財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
（未經審計）




經修訂的1934年《證券交易法》第10(B)條，或《交易法》及其頒佈的第100億.5條，以及《交易法》第20(A)節。克雷恩的訴訟要求未指明的損害賠償和法律費用。2022年8月16日，法院任命了克雷恩訴訟的首席原告，並批准了首席律師。2022年12月5日，首席原告提交了一份合併的修訂後的起訴書，其中列出了與前一份起訴書相同的被告，以及兩名公司高管，以及Third Point LLC及其首席執行官和Third Point Ventures LLC及其管理合夥人(也是前upstart董事會成員)。合併後的修改後的申訴提出了與前一申訴相同的索賠，但根據《交易法》第20A條增加了一項索賠。2023年2月24日，upstart被告人提起駁回合併修改訴狀的動議。2023年9月29日，法院作出裁定，部分准予和部分駁回upstart被告人的動議。2023年11月7日，upstart被告人提起復議動議，法院於2024年8月5日予以駁回。2024年2月2日，首席原告環球投資-Gesellschaft MBH以及原告凱西·布魯克斯和凱文·克雷恩提出動議，要求下令將此事認證爲集體訴訟，並指定自己爲集體代表，並批准他們選擇Motley Rice LLC和Robbins Geller Rudman&Dowd LLP作爲共同訴訟律師。該公司認爲訴訟中的其餘索賠是沒有根據的，並打算積極爲自己辯護。

2022年7月28日，俄亥俄州南區美國地方法院提起衍生訴訟，標題爲奧康納訴胡伯等人案，案例2：22-cv-02961-EAS-KAJ（SD俄亥俄州）。奧康納的訴訟包括與克萊恩投訴中類似的指控，並將公司現任董事會成員和首席財務官列爲被告。該公司被列爲名義被告。奧康納的訴訟包括違反《交易法》第10（b）條及其頒佈的100億.5條規則、違反受託義務、協助和教唆違反受託義務、不當致富和浪費公司資產的指控。奧康納的訴訟尋求被告個人的未具體說明的金錢損失和賬目。奧康納的訴訟還尋求未具體說明的公司治理和內部程序修改、懲罰性賠償和法律費用。

2022年10月7日，第二起衍生訴訟在俄亥俄州南區美國地方法院提起，標題爲Chung訴Huber等人，第2號：22-cv-03620-MHW-MV（SD俄亥俄州）。Chung的訴訟包括與奧康納投訴中類似的指控，並將公司現任董事會成員、一名前董事會成員及其首席財務官列爲被告。該公司被列爲名義被告。Chung的訴訟包括違反《交易法》第10（b）、14（a）和21 D條、違反受託責任、不當致富、濫用控制、嚴重管理不善和浪費企業資產的指控。Chung的訴訟向被告個人尋求未具體說明的金錢損害賠償、賠償以及律師費和費用。它還尋求公司治理和內部程序修改。

2022年12月12日，根據雙方的聯合動議，法院合併了奧康納和鄭案，任命了聯合首席律師，並擱置了合併案件，直至相關證券集體訴訟得到解決。2024年4月24日，合併訴訟中的原告提出了修改後的投訴。修改後的投訴包括與奧康納訴訟中最初投訴中的指控類似的指控，並列出了與最初投訴相同的被告，以及一名額外的公司高管和另一名前董事會成員。修改後的投訴提出了與奧康納訴訟中的最初投訴相同的索賠，但增加了根據《交易法》第14（a）條和據此頒佈的第14 a-9條提出的索賠、根據《交易法》第10（b）條和第21 D條提出的繳款以及濫用控制和嚴重管理不善的索賠。修改後的投訴尋求與奧康納訴訟中最初投訴中尋求的救濟類似的救濟。

2023年2月3日，第三起衍生訴訟在美國特拉華州地區法院提起，標題爲Hsu訴Girouard等人案，1：23-cv-00132-UNA（D.德爾。）。Hsu的訴訟包括與俄亥俄州懸而未決的合併衍生品事項類似的指控，並將公司現任董事會成員、一名前董事會成員及其首席財務官列爲被告。該公司被列爲名義被告。Hsu的訴訟包括違反《交易法》第14（a）條以及違反受託義務的索賠，並向個別被告尋求未具體說明的金錢損害賠償、賠償以及律師費和費用。它還尋求公司治理和內部程序修改。對
58
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




2023年2月16日，根據雙方提交的聯合規定和擬議命令，法院暫緩對Hsu的訴訟，直至相關證券集體訴訟得到解決。

2023年3月8日，美國特拉華州地區法院提起了第四起衍生品訴訟，標題爲Sornchai等人。V.Girouard等人，1：23-cv-00253-MN(D.Del)。Sornchai的訴訟包括類似於在俄亥俄州懸而未決的合併衍生品案件中的指控，並將公司現任董事會成員、一名前董事會成員、首席財務官和一名公司高管列爲被告。該公司被列爲名義上的被告。Sornchai的訴訟包括對違反交易法第10(B)、14(A)和21D條、違反受託責任、通過挪用重大非公開信息違反受託責任以及不當得利的索賠，並要求個別被告支付未指明的金錢損害賠償、恢復原狀以及律師費和費用。它還尋求修改公司治理和內部程序。2023年3月24日，針對當事人提交的一項聯合規定和擬議命令，法院擱置了索恩猜訴訟，直到相關證券集體訴訟得到解決。

2023年4月5日，特拉華州衡平法院提起了第五起衍生品訴訟，標題爲Okhai訴Girouard等人，C.A.編號2023-0401-SG(Del.Ch.)。Okhai的訴訟包括與俄亥俄州未決的合併衍生品案件中的指控類似的指控，並將該公司的現任董事會成員、兩名前董事會成員、首席財務官、兩名現任或前任公司高管以及Third Point LLC和Third Point Ventures LLC列爲被告。Okhai的訴訟包括對違反信託、協助和教唆此類被指控的違規行爲和不當得利的索賠，並向個別被告尋求公平和/或禁令救濟、恢復原狀以及律師費和費用。2023年8月3日，針對奧凱訴訟被告提出的暫緩起訴動議，法院暫緩審理奧凱訴訟，直至駁回相關證券集體訴訟的動議得到解決。繼2023年9月29日關於撤銷相關證券集體訴訟動議的命令發佈後，2023年11月16日，針對當事人提交的聯合規定和建議命令，法院擱置了Okhai訴訟，直到2023年9月29日關於相關證券集體訴訟撤銷動議的複議動議得到決議。在相關證券集體訴訟中的複議動議被駁回後，Okhai訴訟的各方完成了簡報，並就被告繼續暫緩審理的動議進行了辯論。2024年10月24日，法院將暫緩執行延續至2025年2月1日。

2023年10月13日，第六起衍生訴訟在特拉華州大法官法院提起，標題爲Romanyshyn訴Girouard等人，C.A. No. 2023-1029-SG（Del. Ch.）。Romanyshyn的訴訟包括與俄亥俄州懸而未決的合併衍生品事項類似的指控，被告包括現任和前任董事和公司高管，以及Third Point LLC及其首席執行官和Third Point Ventures LLC。Romanyshyn訴訟包括對違反信託的索賠，並向個別被告尋求未具體說明的金錢損害賠償、賠償以及律師費和費用。它還尋求公司治理和內部程序修改。2023年11月3日，根據雙方提交的聯合規定和擬議命令，法院暫停了Romanyshyn訴訟，等待擱置相關Okhai衍生訴訟的動議的結果（該擱置現已持續至2025年2月1日）。

2023年10月24日，特拉華州大法官法院提起第七起衍生訴訟，標題爲Agarwal訴Girouard等人案，C.A. No. 2023-1075-SG（Del. Ch.）。Agarwal的訴訟包括與俄亥俄州懸而未決的合併衍生品事項類似的指控，被告包括現任和前任董事和公司高管，以及Third Point LLC及其首席執行官和Third Point Ventures LLC。Agarwal訴訟包括對違反信託的索賠，並向個別被告尋求未具體說明的金錢損害賠償、賠償以及律師費和費用。它還尋求公司治理和內部程序修改。2023年11月3日，根據雙方提交的聯合規定和擬議命令，法院暫緩執行Agarwal訴訟，等待暫緩執行相關Okhai衍生訴訟的動議的結果（該暫緩執行現已持續至2025年2月1日）。

59
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




鑑於上述訴訟的不確定性、案件的初步階段以及類別認證和勝訴等必須滿足的法律標準，公司無法估計這些行爲可能導致的合理可能損失或損失範圍。

2023年11月17日，我們收到了美國證券交易委員會的傳票，要求提供有關我們披露的各種文件和信息，包括對我們人工智能模型和貸款的使用等。我們正在與SEC合作，無法預測此事的結果。

 13.    所得稅

公司截至2023年和2024年9月30日的三個月和九個月的實際稅率如下：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
所得稅撥備$10 $45 $44 $74 
實際稅率(0.03)%(0.67)%(0.02)%(0.06)%

公司中期期間的稅收撥備和由此產生的實際稅率是根據其估計的年度實際稅率確定的，並根據期間產生的離散項目的影響進行調整。該公司截至2024年9月30日的三個月和九個月的有效稅率與2023年同期相比保持相對一致，因爲該公司繼續維持全額估值撥備和剩餘當年州稅。實際稅率與美國法定稅率不同，主要是由於公司遞延所得稅資產的估值備抵，因爲部分或全部遞延所得稅資產很可能無法實現。

 14.    每股淨虧損

每股普通股基本淨虧損基於相關期間發行在外的加權平均普通股。每股稀釋淨虧損基於相關期間發行在外的加權平均普通股，並根據股份獎勵和可轉換債務的稀釋影響進行調整。

在公司報告淨虧損的期間，每股基本和稀釋淨虧損相同，因爲如果潛在稀釋普通股的影響具有反稀釋性，則不假設已發行。
60
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
分子：
淨虧損$(40,315)$(6,758)$(197,734)$(125,826)
分母：
加權平均流通普通股用於計算每股淨虧損，基本84,404,966 90,119,481 83,158,146 88,534,495 
用於計算每股淨虧損的加權平均流通普通股，稀釋後84,404,966 90,119,481 83,158,146 88,534,495 
每股淨虧損，基本$(0.48)$(0.07)$(2.38)$(1.42)
稀釋後每股淨虧損$(0.48)$(0.07)$(2.38)$(1.42)

以下證券因其反稀釋效應而被排除在所列期間每股稀釋淨虧損的計算之外。這些金額代表每個期末未償還工具的數量：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
購買普通股的期權13,014,493 12,350,352 13,014,493 12,350,352 
未歸屬的RSU6,391,568 4,511,475 6,391,568 4,511,475 
根據ESPP承諾的購買權191,677 162,977 191,677 162,977 
可轉債2,318,078 10,494,253 2,318,078 10,494,253 
總21,915,816 27,519,057 21,915,816 27,519,057 



15.    重組費用

2023年1月31日，公司實施重組計劃（「2023年1月計劃」）。2023年1月計劃旨在降低運營成本、簡化運營並使公司恢復盈利。作爲2023年1月計劃的一部分，公司裁員約 20%，或365 員工，並暫停了小企業貸款產品的開發。

截至2023年9月30日的九個月內，公司發生了美元15.5 與2023年1月計劃相關的數百萬美元重組費用，主要包括與員工現金補償、福利和相關稅收相關的遣散費。公司還確認了美元的減損費用2.6 之前資本化的內部開發軟件成本，百萬美元。除了這些費用外，公司還確認了美元2.9 與截至2023年9月30日止九個月內與沒收股票獎勵相關的先前支出的股票補償的逆轉有關的一次性非現金節省數百萬美元。該等重組成本在簡明綜合經營報表和全面虧損的相關經營費用標題中報告。

61
目錄表
Upstart Holdings，Inc
簡明合併財務報表附註
（表格金額以千計，份額和每股數據和比率除外，或如所述）
(未經審計)




爲了進一步降低運營成本、簡化運營並使Upstart在未來恢復盈利，公司實施了一系列額外舉措，使公司的員工人數減少了約 10截至2024年9月30日的九個月內爲%。就這些舉措而言，公司發生了美元3.8 截至2024年9月30日的九個月內，與遣散費、員工福利和相關稅收相關的費用爲百萬美元。該等重組成本在簡明綜合經營報表和全面虧損的相關經營費用標題中報告。截至2024年9月30日，公司已向受影響員工支付所有現金。截至2023年9月30日和2024年9月30日的三個月內，公司發生了 不是 重組費用。

16.    後續事件

的Company評估了截至本季度報告10-Q表格提交日期發生的事件。根據其評估，除簡明綜合財務報表及相關附註中記錄或披露的任何項目外，公司確定無需確認或披露後續事件。






62
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）

項目2.管理層對財務狀況和經營成果的討論和分析
以下對我們財務狀況和經營業績的討論和分析應與本季度報告10-Q表格其他地方包含的簡明合併財務報表及其相關注釋一起閱讀。本討論包含涉及風險和不確定性的前瞻性陳述。可能導致或促成此類差異的因素包括以下確定的因素以及標題爲「風險因素」的部分和本季度報告10-Q表格的其他部分中討論的因素。我們的歷史結果並不一定表明未來任何時期可能預期的結果。
概述

Upstart將人工智能（「AI」）模型和雲應用程序應用於消費信貸承保流程。我們的人工智能市場將消費者與我們的貸款合作伙伴聯繫起來。消費者可以通過Upstart.com、我們貸款合作伙伴自己網站上的貸方品牌產品以及使用我們Upstart Auto Retail軟件的汽車經銷商獲得Upstart支持的貸款。我們使我們的貸款合作伙伴能夠爲消費者提供卓越的數字優先體驗，並推出有價值的信貸產品。隨着我們的技術不斷改進以及更多貸款合作伙伴採用我們的平台，消費者將受益於更好地獲得負擔得起且無摩擦的信貸。

我們相信，銀行和其他傳統貸款機構將繼續處於美國消費貸款的前沿。我們相信，隨着該行業繼續經歷廣泛的數字化轉型，人工智能貸款將變得越來越重要。我們的戰略是與銀行和信用合作社合作，爲他們提供進入人工智能貸款市場的機會，他們可以根據自己的業務和監管要求，在以自己的品牌發放消費貸款時進行配置。

通過我們的市場發放的貸款由我們的貸款合作伙伴保留，由我們的機構投資者網絡購買，或由Upstart的資產負債表提供資金。投資者還可以通過我們的傳遞和證券化計劃投資Upstart驅動的貸款。

截至2024年9月30日的九個月內，在我們市場上交易的貸款本金總額中，67%由機構投資者購買，25%由我們的貸款合作伙伴保留，8%由我們的資產負債表上持有。我們在資產負債表上保留貸款，以填補投資者需求的缺口、幫助發現價格以及用於研發目的（「研發貸款」），包括測試和評估我們針對這些貸款的人工智能模型。研發貸款主要是我們的汽車再融資和汽車零售貸款產品、向新類別借款人發放的個人貸款產品以及其他新貸款產品，包括小額美元貸款和HELCC。研發貸款尚未成爲我們與機構投資者建立的全面資本市場計劃的一部分，我們將繼續努力開發此類計劃。我們資產負債表上的其餘貸款代表核心個人貸款，Upstart將其出售給機構投資者。

爲了提高我們市場在整個商業和宏觀經濟週期中的貸款融資能力，我們從2023年開始與機構投資者和其他第三方達成了多項承諾資本和其他聯合投資安排，這些安排已向Upstart市場提供了大量貸款融資。我們繼續努力擴大市場的貸款融資能力。
63
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
我們的經濟模式

Upstart的收入主要是爲了換取使用我們的平台以及通過我們的貸款市場向我們的貸款合作伙伴提供的借款人轉介服務。這些服務的費用可以是固定的，也可以基於每單位的可變價格，具體取決於合同安排。平台服務導致我們的貸款合作伙伴使用我們的平台發放貸款，而轉介服務導致借款人從我們的貸款合作伙伴獲得貸款。出於會計目的，這些費用被合併在一起，因爲它們代表單一的績效義務。我們不會向我們平台上的借款人收取任何轉介費、平台費或其他類似費用由我們的貸款合作伙伴發放。

我們還根據貸款期限內未償還本金向貸款持有人（貸款合作伙伴或機構投資者）收取服務費，以持續償還貸款。此外，作爲貸款服務的一部分，我們還收到某些輔助借款人費用，包括逾期付款費和ACH失敗費。此外，我們的一部分收入來自資產負債表上持有的貸款的利息收入。
目前我們平台上的貸款主要來自Upstart.com。對於這些貸款，我們承擔借款人獲取成本以及借款人驗證和服務成本等可變成本。借款人獲取、驗證和服務成本與交易量（定義如下）高度相關，交易量逐季度波動。我們繼續專注於通過日益複雜的風險模型和不斷變化的渠道組合來提高自動化水平和轉換率（定義見下文），這有助於隨着時間的推移改善我們的貸款單位經濟性。
信用表現

我們認爲Upstart驅動貸款的信用表現是衡量人工智能模型有效性的最重要指標之一。然而，信貸表現受到多種因素的影響，包括我們的模型無法預測的因素，例如宏觀經濟狀況。

我們通過將發放時的預期目標回報與貸款合作伙伴和機構投資者收到的回報進行比較來評估核心個人貸款的信用表現。目標回報是我們貸款定價的關鍵組成部分，是使用估計現金流計算的，該估計現金流是根據多種因素（包括信用損失和預付費利率）制定的。雖然我們的貸款合作伙伴和機構投資者的目標回報因其計劃的目標和風險承受能力而異，但總體績效是根據最初預期回報與投資於Upstart驅動貸款的實際資本回報之間的差異計算的。

貸款是一個週期性行業，我們認爲從長遠角度看待信貸表現很重要。對2018年第一季度至2024年第一季度發起的所有由Upstart驅動的核心個人貸款進行同等投資，目前預計將實現與9.5%的混合目標一致的回報率。

從更細的層面來看，2018年至2020年第四季度發起的所有季度核心個人貸款預計將達到或超過貸款發放時設定的目標回報。

然而，目前預計2021年第一季度至2023年第四季度的核心個人貸款季度表現將低於其目標回報。儘管我們的承保模型隨着時間的推移利用了更多有關借款人的變量和數據點，從而改善了模型性能，但它們的設計並不是爲了預測近期宏觀經濟狀況變化、信貸市場波動和利率波動的嚴重影響而設計的，所有這些都是（現在仍然）超出了我們的控制範圍。這些年份的預期表現不佳反映了該時期發生的一系列因素的影響，包括政府刺激措施的取消以及通貨膨脹上升和由此導致的利率大幅上升導致宏觀經濟環境惡化。
64
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
那段時期不斷變化的宏觀經濟狀況導致沒有償還個人貸款的借款人比承保時的預期還要多。例如，借款人可能優先償還以必需品爲擔保的貸款，例如抵押貸款或汽車貸款，而不是無擔保的個人貸款。更高的利率也可能導致更高的付款義務，從而降低借款人保持當前債務的能力。這些因素導致借款人違約、違約和破產增加，導致更多的沖銷和更少的收回，所有這些都對該時期我們市場上提供的貸款的信用表現產生了不利影響。

爲了更快地應對宏觀經濟變化，我們於2023年推出了Upstart宏觀指數（「UMI」），該指數估計觀察到的宏觀經濟變化可能對Upstart驅動的無擔保個人貸款的信用表現產生的影響。

目前預計，2024年第一季度或更晚發放的核心個人貸款將提供與目標收益率一致的回報。相對於2021年第一季度至2023年第四季度核心個人貸款的季度年份，業績的這種回歸是由多種因素共同推動的，包括承保方面增加的保守性和宏觀經濟狀況的相對穩定，這反映在UMI中，這幫助信貸表現與我們模型的預測一致，因爲影響貸款表現的宏觀經濟因素的意外波動較少。我們最新的人工智能模型也受益於更多關於宏觀經濟重大變化期借款人還款模式的數據。這導致觀察到的和預期的借款人還款發生了實質性的積極變化，即使是調味料有限的年份也是如此。這使得我們最近的模型比2021年初使用的模型更準確。請參閱小節“影響我們業績的因素--宏觀經濟環境的影響有關更多詳細信息，請參閱「T」。

對於我們資產負債表上持有的核心個人貸款，目標回報的設定與我們的機構投資者的目標回報相似。我們購買核心個人貸款以應對市場供需波動，並定期在這些貸款到期前將其出售給機構投資者。所證明的信用表現顯着影響這些交易中的銷售價格並影響我們的整體財務業績。

我們衡量研發貸款的信用表現，這是我們資產負債表上持有的貸款組合的重要組成部分(請參閱第“)，使用類似於我們資產負債表上持有的核心個人貸款的方法。這些貸款的目標回報和實際回報之間的差異預計會更大，因爲與核心個人貸款相比，基本風險模型處於開發週期的早期階段。這些產品的初始目標回報率也普遍低於可比較的市場基準。這些因素的結合降低了我們資產負債表上研發貸款的價值，這對我們的整體財務業績產生了負面影響。然而，這是我們產品開發週期中必需的一部分，應該與數據科學和工程等其他產品開發成本一起考慮。這些成本作爲產品開發總投資的一部分進行管理。隨着我們研發模型的改進，我們預計目標回報和交付回報之間的差異將會縮小，並向市場回報趨同。這將使我們能夠爲我們的貸款夥伴和機構投資者推出這些產品，屆時它們將成爲我們核心產品的一部分。
影響我們業績的因素
持續改進我們的人工智能模型

我們的大部分歷史增長都是由人工智能模型的改進推動的。隨着時間的推移，這些模型受益於機器學習系統特徵的慣性效應：還款數據的積累會提高風險和欺詐預測的準確性，這通常會導致更高的批准率和更低的利率，從而導致數量增加，從而增加還款數據的積累。這種良性循環描述了一種重要的機制，我們的業務只需通過模型學習和重新校準即可增長。我們預計將繼續大力投資人工智能模型和平台功能的開發。
65
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）

除了持續積累用於訓練我們模型的還款數據之外，我們還經常通過升級算法和納入新變量來對模型準確性進行離散改進，這兩種方法在歷史上都導致了更高的批准率、更有競爭力的貸款報價、更高的自動化和更快的增長。作爲二級效應，這些改進對我們轉化渠道的影響還使我們能夠隨着時間的推移解鎖以前不盈利的新營銷渠道。

我們相信，以這種方式不斷改進我們的技術將使我們能夠進一步擴大獲得機會並降低信譽良好的借款人的利率，這將繼續推動我們的增長。如果這些改進的步伐放緩或停止，或者我們發現以犧牲數量爲代價來提高準確性的模型升級形式，我們的增長率可能會受到不利影響。

宏觀經濟環境的影響

在經濟低迷的情況下，我們認爲消費者貸款總體上會收縮。貸款合作伙伴和機構投資者通常會要求更高的回報率，這反過來又會提高向借款人提供的利率，導致借款人需求下降。由於我們的貸款合作伙伴和機構投資者風險偏好的變化，宏觀經濟因素也可能導致我們的貸款市場可用資本波動。我們預計這些動態通常會在經濟上升時逆轉。

機構投資者提供的貸款資金從2022年開始受到限制， 仍然受到限制， 主要是出於對宏觀經濟環境的擔憂。爲了應對通脹壓力，聯儲局提高了利率，導致借款人類別的貸款價格更加昂貴。與此同時，宏觀經濟的不確定性普遍使機構投資者更加謹慎，並導致他們減少可用於資助初創貸款的資本數量。

爲了應對這一充滿挑戰的宏觀經濟環境，許多貸方和信貸投資者大幅減少或暫停了對Upstart驅動貸款的投資，我們於2023年1月宣佈裁員（「2023年1月計劃」），導致我們約20%的員工被解僱。爲了進一步降低運營成本、簡化運營並使Upstart在未來恢復盈利，du鈴聲響起截至2024年9月30日的九個月裏，公司實施了一系列額外舉措，使公司的員工人數減少了約10%。參考“說明15. 重組費用”以獲取更多信息。金融市場的進一步混亂可能會損害我們的貸款合作伙伴，並導致資金進一步受到限制，這將對我們的業務、財務狀況和經營業績產生不利影響。

爲了爲我們的業務創造更大的穩定性，從2023年開始，我們與機構投資者和其他提供更長期限貸款融資的第三方達成了多項承諾資本和共同投資安排。我們繼續努力擴大貸款融資能力，在過渡期間，我們已經並可能繼續利用我們的資產負債表來支持貸款融資。雖然我們的目標仍然是作爲一個輕資本的信貸市場運營，但在評估實施承諾資本和共同投資結構的機會時，我們將繼續在短期內利用我們的資產負債表。

我們的信貸決策過程考慮了我們從第三方來源收到的宏觀經濟狀況數據，例如失業率和個人儲蓄率。爲了應對宏觀經濟變化並向我們的貸款合作伙伴提供相關的最新信息，我們於2023年推出了新指標UMI。UMI旨在量化相對於良性信貸環境的潛在宏觀經濟風險水平，具體針對我們的借款人基礎。UMI爲1.0反映了該基線利率下的貸款損失。我們隨後推出了UMI更新，刪除了季節性模式，以更好地描述潛在的宏觀經濟影響。截至2024年9月30日，UMI約爲1.52，這意味着與基線相比，當前宏觀經濟狀況對Upstart驅動的無擔保個人貸款的還款績效造成了約52%的增量風險。

66
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
UMI會影響我們市場上提供的貸款的利率，因此會影響合格潛在借款人的數量和消費者對貸款的需求。UMI水平的提高導致我們市場上提供的貸款利率更高，反過來又減少了合格潛在借款人的規模和此類貸款的借款人接受率。通過對UMI的投資，我們專注於在不斷變化的宏觀經濟條件下在信貸決策過程中更好地區分借款人之間風險的能力。

我們持續監控當前宏觀經濟狀況（包括利率變化）對我們的業務、財務狀況和經營業績的直接和間接影響。
貸款合作伙伴和市場採用

貸款合作伙伴在Upstart的生態系統中發揮着兩個關鍵作用：爲貸款提供資金和獲取新客戶。銀行等傳統貸款機構因其龐大的存款基礎而往往享有高效的資金來源。隨着他們採用我們的技術併爲我們市場交易中越來越大的比例提供資金，向借款人提供的報價通常會改善，通常會導致我們平台的轉化率更高和增長更快。

新的貸款合作伙伴還代表着額外的收購渠道，我們可以通過這些渠道接觸和尋找潛在的新借款人，因爲這些貸款合作伙伴開發和實施自己的數字和分行內活動，以將流量從其現有客戶群轉移到我們的平台。我們認爲這一新興的增長渠道是我們目前在Upstart運行的營銷獲取計劃的補充。

爲了提供貸款合作伙伴以外的資金支持，我們建立了並繼續擴大了廣泛的機構投資者網絡，這些投資者可以通過二級貸款購買、發行直通憑證和資產支持證券化爲Upstart驅動的貸款提供資金。這種多元化的資本網絡有助於最大限度地減少我們對任何一個資金來源的依賴。然而，貸款合作伙伴參與度下降的任何趨勢通常都會削弱我們平台上報價的整體競爭力，而更廣泛的機構投資市場在Upstart驅動的貸款資金可用性方面的參與度下降的趨勢都將對我們的業務產生不利影響。

我們認爲，銀行業的混亂可能會限制我們吸引新貸款合作伙伴的能力，並可能導致現有貸款合作伙伴減少我們平台上的貸款發放。爲了解決我們個人貸款最近的資金限制問題，Upstart利用其資產負債表來支持貸款的短期資金需求，否則這些貸款將被機構投資者購買和持有或證券化。我們已與機構投資者和其他第三方達成了多項承諾資本和共同投資安排，這些安排已經並預計將向Upstart市場提供大量貸款資金。

我們相信，隨着時間的推移，繼續專注於改進我們的人工智能模型並展示由Upstart驅動的貸款的強勁表現，將使我們能夠進一步多元化貸款市場的資金來源，並減輕貸款資金供應的波動性。

產品擴展和創新

我們相信，將不斷髮展的人工智能技術應用於其他信貸領域存在重大增長機會，並且我們將繼續投資於產品的研發。我們於2022年爲對小額貸款感興趣的借款人推出了新的個人貸款產品，於2023年第三季度推出了HESYS產品，並於2024年第二季度推出了汽車擔保個人貸款。我們可能會產生費用來支持新產品的推出並資助早期貸款發放。新產品的貨幣化前景不確定，與整合、開發和營銷新產品相關的成本可能無法收回，這可能會給我們的收入增長和盈利能力帶來壓力。
67
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
關鍵運營和非GAAP財務指標

我們專注於幾項關鍵的運營和非GAAP財務指標，以衡量我們的業務績效並幫助確定戰略方向。以下列出了我們的關鍵運營和財務指標：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
交易量，美元$1,219,262$1,582,317$3,392,446$3,822,847
交易量、貸款數量(1)
114,464188,149307,995451,429
轉換率9.5%16.3%9.1%15.3%
完全自動化的貸款百分比88%91%87%91%
貢獻利潤(2)
$94,154$102,376$257,699$259,635
貢獻按金(2)
64%61%63%60%
調整後的EBITDA(2)
$2,252$1,413$(17,836)$(28,182)
調整後EBITDA利潤率(2)
2%1%(5)%(7)%
調整後淨虧損(2)
$(3,869)$(5,325)$(37,207)$(47,770)
調整後每股淨虧損：
基本信息(2)
$(0.05)$(0.06)$(0.45)$(0.54)
稀釋(2)
$(0.05)$(0.06)$(0.45)$(0.54)
_______
(1)交易量、貸款數量以1顯示所示期間的單位顯示。
(2)代表非GAAP財務指標。請參閱標題爲“的部分管理層對財務狀況和經營結果的討論和分析-非GAAP財務指標的對賬了解更多信息。
交易額

我們將交易量，美元定義爲在本報告所述期間在我們的市場上促成的貸款本金總額(或HELOC的承諾金額)。我們將交易量，貸款數量定義爲在本報告所述期間在我們的市場上促成的貸款發起(或爲HELOC發放的承諾)的數量。交易量的增加取決於我們的貸款融資計劃是否有足夠的資金來源。由於資本市場波動和宏觀經濟狀況等因素，可獲得的資金減少，通常會導致交易量下降。交易量是由我們人工智能模型和技術的改進推動的，包括我們簡化和自動化貸款申請和發起流程的能力。交易量也可能受到其他幾個因素的推動，包括借款人的接受率及其對我們平台提供的利率的敏感性。我們相信，這些指標很好地反映了我們作爲一個市場的整體規模和覆蓋範圍。交易量，美元在截至2024年9月30日的三個月中與2023年同期相比增長了30%，在截至2024年9月30日的9個月與2023年同期相比。交易量、貸款數量在截至2024年9月30日的三個月和九個月中分別增長了和47%分別爲2023年同期。這些增長主要是由於模式改進和產品倡議，導致符合條件的借款人數量增加。交易量、貸款數量的增加高於交易量、美元的增加，主要是由於平均貸款規模的減少，主要是因爲小額美元貸款的增加。
68
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
轉化率

我們將轉換率定義爲交易量，即一段時間內的貸款數量除以我們估計爲合法的利率查詢數量，當借款人在我們的平台上請求貸款時，我們會記錄這一數字。我們跟蹤這一指標，以了解借款人漏斗效率的提高對我們整體增長的影響。從歷史上看，我們的轉換率得益於我們技術的改進，這使得我們對風險的評估更加準確，我們的驗證過程更加自動化，或者得益於貸款合作伙伴的加入，這使得我們的報價更具競爭力。然而，我們的轉化率可能會受到各種內部因素的影響，例如我們收取的發起費金額的變化，或者我們爲貸款合作伙伴和機構投資者設定的回報率的變化。外部因素，如宏觀經濟狀況的變化，包括利率變化，也影響我們的轉換率。我們能否繼續提高轉換率，在一定程度上取決於我們是否有能力繼續改進我們的人工智能模型、全自動貸款的百分比以及在任何給定期限內的營銷渠道組合OD。在截至2024年9月30日的三個月和九個月中，我們的轉換率分別增加到16.3%和15.3%分別爲frOM分別爲9.5%和9.1%這主要是由於承保模式的改進和新產品的推出，再加上我們收購渠道的持續優化。
完全自動化的貸款百分比

我們貢獻利潤率和運營效率的一個驅動因素是全自動貸款的百分比，它的定義是在給定的時期內(從個人貸款和小額貸款的初始利率請求到最終融資，以及從初始利率請求到汽車貸款貸款協議的簽署)，公司在沒有人工參與的情況下獲得的貸款總數除以同期的交易量和貸款數量。在過去的幾年裏，我們成功地提高了該平台的貸款自動化水平，同時將欺詐率保持在非常低的水平。我們相信，過去幾年我們的增長在一定程度上得益於我們快速簡化和自動化貸款申請的能力，以及在我們的平台上進行索具加工。我們預計全自動貸款比例的增長將在短期內回落。然而，隨着我們擴大貸款供應，這一百分比可能會根據貸款供應組合和其他外部因素而在不同時期波動。我們的貸款完全自動化的百分比增額截至2024年9月30日的三個月和九個月分別爲91%和91%，而2023年同期爲88%和87%。
69
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
貢獻利潤和貢獻率

爲了獲得貢獻利潤，我們從收入中減去費用、淨借款人收購成本以及借款人驗證和服務成本。爲了計算貢獻利潤率，我們將貢獻利潤除以費用淨收入。

下表提供了貢獻利潤和貢獻利潤的計算：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
費用收入，淨146,755 167,590 $407,585 $436,190 
借款人收購成本(1)
(23,598)(32,749)(62,359)(80,785)
借款人驗證和服務費用(2)
(29,003)(32,465)(87,527)(95,770)
直接費用總額(52,601)(65,214)(149,886)(176,555)
貢獻利潤$94,154 $102,376 $257,699 $259,635 
貢獻按金64 %61 %63 %60 %
_______
(1)借款人收購成本包括我們的銷售和營銷費用，經過調整，以排除不直接歸因於吸引新借款人的成本，例如我們的業務發展和營銷團隊以及其他運營、品牌知名度和營銷活動的工資相關費用。這些成本不包括重組費用。
(2)借款人核實和服務成本包括從事貸款入職、核實和服務的人員的工資和其他人員相關費用，以及服務系統成本。它不包括我們客戶運營團隊中某些成員的工資和人員相關費用以及基於股票的薪酬，這些成員的工作不直接歸因於入職和服務貸款。這些成本不包括重組費用。

見標題爲「」的部分管理層對財務狀況和經營結果的討論和分析-非GAAP財務指標的對賬“用於將運營收入與利潤貢獻進行對賬。

調整後的EBITDA和調整後的EBITDA利潤率

我們將調整後EBITDA計算爲淨利潤（損失），經調整以排除股票補償費用和某些工資稅費用、折舊和攤銷、可轉換票據費用、所得稅撥備、債務消除收益和重組費用。我們計算調整後EBITDA利潤率爲調整後EBITDA除以總收入。調整後EBITDA和調整後EBITDA利潤率包括在賺取相應利息收入過程中產生的公司債務和倉庫信貸設施的利息費用。請參閱標題爲“的部分管理層對財務狀況和經營結果的討論和分析-非GAAP財務指標的對賬“用於淨利潤（虧損）與調整後EBITDA和調整後EBITDA利潤率的對賬。
調整後每股淨利潤（虧損）和調整後每股淨利潤（虧損）

我們將調整後淨利潤（損失）定義爲淨利潤（損失），不包括股票補償費用和某些工資稅費用以及與核心業務和持續運營無關的某些項目，例如債務消除收益和重組費用。調整後每股淨利潤（虧損）的計算方法是將調整後每股淨利潤（虧損）除以加權平均已發行普通股。請參閱標題爲“的部分管理層對財務狀況和經營結果的討論和分析-非GAAP財務指標的對賬“用於淨利潤（虧損）與調整後淨利潤（虧損）和調整後每股淨利潤（虧損）的對賬。
70
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
經營成果的構成部分
費用收入，淨
平台和推薦費，淨

我們向貸款合作伙伴收取平台費用，以換取使用我們的人工智能貸款市場，其中包括收集貸款申請數據、承保信用風險、驗證和欺詐檢測以及交付電子貸款報價和相關文檔。我們還向貸款合作伙伴收取推薦費，以換取Upstart.com推薦借款人。貸款發放後，按每位借款人向貸款合作伙伴收取推薦費。這些費用扣除了貸款合作伙伴向Upstart收取的任何費用。Upstart在最低持有期完成後向這些貸款合作伙伴支付一次性貸款溢價費。Upstart還根據基礎貸款借款人支付本金和利息的金額和時間向某些貸款合作伙伴支付每月貸款跟蹤費。

該公司還認可與汽車經銷商簽訂的使用Upstart Auto Retail軟件的合同相關的費用，Upstart Auto Retail軟件是一種基於雲的解決方案，可以促進經銷商的運營，並使他們能夠爲消費者提供獲得Upstart支持的汽車貸款的機會。參考“說明2. 收入“請參閱本季度報告第一部分第1項中的簡明合併財務報表（表格10-Q）了解更多信息。
服務費和其他費用，淨
服務費按未償還本金的百分比計算，並按月向持有通過我們的市場提供便利的貸款的任何實體收取，以補償我們在整個貸款期限內開展的活動，包括收取、處理和核對收到的付款、機構投資者報告和借款人客戶支持。維修費用在扣除在相關服務權利及義務中確認的任何收益、虧損或公允價值變動後入賬，該等權益及義務在我們的簡明綜合資產負債表中作爲資產及負債列賬。Upstart目前擔任通過upstart市場提供的幾乎所有未償還貸款的貸款服務商。借款人催收逾期超過30天或已註銷的貸款，通常會外包給第三方催收機構。Upstart向貸款夥伴和機構投資者收取與其未償還貸款組合相關的催收代理費。Upstart還按每筆交易收取一定的輔助費用，包括滯納金和ACH失敗費。
利息收入、利息分配和公允價值調整，淨額

利息收入、利息費用和公允價值調整淨額由利息收入、利息費用和作爲我們持續經營活動一部分在我們的簡明綜合資產負債表上持有的金融工具公允價值淨變化組成，不包括貸款服務資產和負債。利息收入、利息費用和公允價值調整淨額還包括出售貸款的已實現損益。利息收入、利息費用和公允價值調整淨額可能會根據我們簡明綜合資產負債表上持有的金融工具的公允價值而波動。歷史上，這一金額只佔我們總收入的一小部分，而且我們在管理業務時並不專注於增長這一收入部分。
銷售和市場營銷

銷售和營銷費用主要包括各種廣告渠道產生的成本，包括與提供借款人推薦、直郵和數字廣告活動的第三方合作的費用，以及與建立整體品牌知名度相關的其他費用和體驗式營銷成本。銷售和營銷費用還包括工資和其他人員相關成本，包括基於股票的薪酬費用。這些成本在發生期間確認。我們預計，我們的銷售和營銷費用通常會在不同時期內波動，並且隨着我們僱用額外的銷售和營銷人員、增加營銷活動和建立更大的品牌知名度而增加。
71
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
客戶運營

客戶運營費用包括從事借款人入職、貸款服務、客戶支持和其他運營團隊的人員的工資和其他人員相關費用，包括基於股票的補償費用。這些成本還包括我們用作貸款服務、信息驗證、欺詐檢測和支付處理活動一部分的系統、第三方服務和工具。這些成本在發生期間確認。我們預計，我們的客戶運營費用通常會在不同時期內波動，並且隨着我們擴大投資組合，絕對金額可能會增加。
工程和產品開發

工程和產品開發費用主要包括工程和產品開發團隊的工資和其他與人員相關的費用，包括基於股票的報酬費用，以及這些團隊使用的系統和工具的成本。這些成本在發生期間確認。我們預計，我們的工程和產品開發費用通常會在不同時期內波動，並且隨着我們擴大工程和產品開發團隊以繼續改進我們的人工智能模型並開發新產品和產品增強功能，絕對金額可能會增加。
一般、行政和其他

一般、行政和其他費用主要包括工資和其他與人員相關的費用，包括法律和合規、財務和會計、人力資源和設施團隊的股票補償費用，以及財產、設備、軟件和無形資產的折舊和攤銷、專業服務費、設施和差旅費。這些成本在發生期間確認。我們預計將擴大一般和行政職能的規模，以支持業務的進一步增長。因此，我們預計我們的一般、行政和其他費用將以絕對美元計算增加，但佔我們總收入的百分比可能會在不同時期波動。
其他收入，淨額

其他淨收入主要包括公司通過其不受限制現金餘額賺取的股息收入，以及票息費用和票據債務折扣的攤銷。
消除債務的收益

債務消除收益包括回購一部分營業額確認的收益觀察 2026年筆記。參考「注9。借款」 請參閱本季度報告（表格10-Q）的第一部分第1項，了解我們的更多詳細信息 備註.
72
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
經營成果

下表總結了我們的歷史簡明綜合運營報表數據：

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
收入：  
費用收入，淨$146,755 $167,590 $407,585 $436,190 
利息收入、利息費用和公允價值調整，淨額：
利息收入37,692 40,845 116,923 144,899 
利息開支(9,414)(10,818)(20,828)(33,002)
公允價值和其他調整，淨額
(40,476)(35,477)(130,430)(130,523)
利息收入、利息費用和公允價值調整總額，淨額
(12,198)(5,450)(34,335)(18,626)
總收入134,557 162,140 373,250 417,564 
運營費用(1):
銷售和營銷33,042 43,229 88,371 111,337 
客戶運營36,914 39,302 114,301 117,394 
工程和產品開發54,941 64,887 222,986 186,431 
常規、管理和其他53,505 59,874 156,616 170,508 
總運營支出178,402 207,292 582,274 585,670 
運營虧損(43,845)(45,152)(209,024)(168,106)
其他收入，淨額
3,540 5,078 11,334 8,993 
債務清償收益— 33,361 — 33,361 
所得稅前淨虧損(40,305)(6,713)(197,690)(125,752)
所得稅撥備
10 45 44 74 
淨虧損$(40,315)$(6,758)$(197,734)$(125,826)
________
(1)包括基於股票的薪酬費用如下：
截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
銷售和營銷$3,231 $3,040 $5,097 $9,096 
客戶運營2,7681,5968,7445,679
工程和產品開發17,35718,01392,72555,140
常規、管理和其他12,21210,96935,70733,689
基於股票的薪酬總額$35,568 $33,618 $142,273 $103,604 
73
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
收入
費用收入，淨

下表列出了所示期間我們的費用淨收入：

截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
平台和推薦費，淨$112,437 $134,199 $21,762 19 %$295,859 $336,653 $40,794 14 %
服務費和其他費用，淨額34,318 33,391 (927)(3)%111,726 99,537 (12,189)(11)%
費用總收入，淨$146,755 $167,590 $20,835 14 %$407,585 $436,190 $28,605 7 %


截至2024年9月30日的三個月，與2023年同期相比，費用收入淨增加2080萬美元，增幅14%，其中平台和推薦費淨收入增加2180萬美元，服務費淨減少90萬美元。平台和轉介費淨額的增加主要是由於交易量從截至2023年9月30日三個月的12.193億美元增加30%至2024年同期的15.823億美元，部分被同期我們服務價格的下降所抵消。服務費減少主要是由於服務貸款的未償還本金減少。

截至2024年9月30日的九個月，費用收入與2023年同期相比淨增加2860萬美元，增幅7%，其中平台和推薦費收入淨增加4080萬美元，服務費淨減少1220萬美元。平台和轉介費淨增長主要是由於貸款交易量增加13%，從截至2023年9月30日的9個月的33.924億美元增加到2024年同期的38.228億美元，部分被我們服務價格的下降所抵消。服務費減少主要是由於服務貸款的未償還本金減少，但被貸款銷售和公允價值調整後與貸款服務權相關的淨虧損減少部分抵消。
74
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
利息收入、利息分配和公允價值調整，淨額

截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
經營實體(1):
利息收入$27,644 $34,097 $6,453 23 %$106,875 $121,813 $14,938 14 %
利息開支(5,660)(8,546)(2,886)(51)%(17,074)(25,456)(8,382)(49)%
公允價值調整，淨額(40,843)(29,751)11,092 27 %(130,797)(104,880)25,917 20 %
合併證券化實體：
利息收入10,048 6,748 (3,300)(33)%10,048 23,086 13,038 130 %
利息開支(3,754)(2,272)1,482 39 %(3,754)(7,546)(3,792)(101)%
公允價值調整，淨額367 (5,726)(6,093)(1,660)%367 (25,643)(26,010)(7087)%
公司總數：
利息收入37,692 40,845 3,153 8 %116,923 144,899 27,976 24 %
利息開支(9,414)(10,818)(1,404)(15)%(20,828)(33,002)(12,174)(58)%
公允價值調整，淨額(40,476)(35,477)4,999 12 %(130,430)(130,523)(93)0 %
利息收入、利息費用和公允價值調整總額，淨額 $(12,198)$(5,450)$6,748 55 %$(34,335)$(18,626)$15,709 46 %
_________
(1)由參與公司持續經營活動的實體確認的餘額組成，不包括與UPSt 2023-2合併證券化相關的實體。

利息收入、利息支出和公允價值調整，與2023年同期相比，在截至2024年9月30日的三個月中淨增加670美元萬，或55%。這一增長是由於不利的公允價值調整減少了500美元萬和利息收入增加了320美元，但利息支出增加了140美元萬，部分抵消了這一增長。不利公允價值調整的減少主要是由於與2023年同期相比，在截至2024年9月30日的三個月中，受益權益的公允價值虧損減少了620美元，但未實現虧損和貸款沖銷的萬增加了120美元，部分抵消了這一減少。利息收入的增加是由於經營實體確認的利息收入增加了650美元萬，但被合併證券化實體確認的利息收入減少330美元萬部分抵消，這與期內經營實體在簡明綜合資產負債表上持有的貸款的平均未償還本金增加以及綜合證券化中持有的貸款的未償還本金減少相一致。利息收入的增加和不利公允價值調整的減少被利率上限公允價值減少導致的利息支出增加以及綜合證券化實體由於同期支付給證券化票據持有人的金額減少而確認的利息支出減少150萬美元而被部分抵消。

75
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
利息收入、利息支出和公允價值調整，與2023年同期相比，在截至2024年9月30日的9個月中淨增加1,570美元萬，或46%。這一增長主要是由於期內壓縮綜合資產負債表上貸款的平均未償還本金餘額增加，導致利息收入增加2,800美元，其中包括綜合證券化實體確認的1,300美元萬利息收入。與2023年同期相比，這一期間的平均借款增加，包括合併證券化實體確認的380美元萬增加，部分抵消了利息支出的增加。合併證券化實體確認的利息收入和利息支出的增加是由於交易的時機，導致2024年確認的全年收入和支出與2023年的一個季度相比。在截至2024年9月30日的9個月中，淨額與2023年同期持平，這對公允價值調整不利。
運營費用
銷售和市場營銷
截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
銷售和營銷$33,042$43,229$10,18731 %$88,371$111,337$22,96626 %
佔收入的百分比25 %27 %24 %27 %

截至2024年9月30日的三個月，銷售和營銷費用與2023年同期相比增加了1020萬美元，即31%。這一增長主要是由於廣告和其他流量獲取成本增加了920萬美元，工資和其他人員相關費用增加了80萬美元。銷售和營銷費用佔總收入的比例從25%增加到27%。

截至2024年9月30日的九個月內，銷售和營銷費用與2023年同期相比增加了2300萬美元，即26%。這一增長主要是由於廣告和其他流量獲取成本增加了1840萬美元，以及工資和其他人員相關費用增加了440萬美元。銷售和營銷費用佔總收入的比例從24%增加到27%。

客戶運營
截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
客戶運營$36,914$39,302$2,3886%$114,301$117,394$3,0933%
佔收入的百分比27 %24 %31 %28 %

截至2024年9月30日的三個月，客戶運營費用與2023年同期相比增加了240萬美元，增幅爲6%。增加主要是由於服務費用增加330萬美元、信息驗證費用增加80萬美元以及系統費用增加60萬美元。由於人數減少，工資和其他人員相關費用減少了220萬美元，部分抵消了這一增加。客戶運營費用佔總收入的比例從27%下降至24%。

截至2024年9月30日的九個月內，客戶運營費用與2023年同期相比增加了310萬美元，增幅爲3%。增加的主要原因是服務費用增加了1140萬美元、信息驗證費用增加了190萬美元以及上一期業務應急準備金減少了120萬美元。工資和其他人員相關費用減少1，110萬美元以及備用服務費減少2，000萬美元部分抵消了這一增長。客戶運營費用佔總收入的比例從31%下降至28%。
76
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
工程和產品開發 
截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
工程和產品開發$54,941$64,887$9,94618%$222,986$186,431$(36,555)(16)%
佔收入的百分比41 %40 %60 %45 %

截至2024年9月30日的三個月，工程和產品開發費用與2023年同期相比增加了990萬美元，即18%。增加主要是由於工資和其他人員相關費用增加了870萬美元，以及其他工程運營費用增加了120萬美元。工程和產品開發費用佔總收入的比例從41%下降至40%。

截至2024年9月30日的九個月，工程和產品開發費用與2023年同期相比減少了3660萬美元，即16%。減少主要是由於截至2023年9月30日的九個月內與取消PRSU相關的費用導致工資和其他人員相關費用減少了3，510萬美元，請參閱 「注10。 股東權益」，其他工程運營費用減少150萬美元。工程和產品開發費用佔總收入的比例從60%下降至45%。
一般、行政和其他 
截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
常規、管理和其他$53,505$59,874$6,36912 %$156,616$170,508$13,892 9 %
佔收入的百分比40 %37 %42 %41 %

截至2024年9月30日的三個月，一般、行政和其他費用與2023年同期相比增加了640萬美元，即12%。增加主要是由於工資和其他人員相關費用增加了450萬美元，法律和合規費用增加了220萬美元，部分被辦公室租金和其他設施費用減少70萬美元所抵消。一般、行政和其他費用佔總收入的比例從40%下降到37%。

與2023年同期相比，截至2024年9月30日的九個月內，一般、行政和其他費用增加了1390萬美元，即9%。增加主要是由於法律和合規費用增加了820萬美元，工資和人員相關費用增加了720萬美元。辦公室租金和其他設施費用減少190萬美元，部分抵消了這一增加。一般、行政和其他費用佔總收入的比例從42%下降到41%。
77
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
其他收入，淨額
截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
其他收入，淨額
$3,540 $5,078 $1,538 43 %$11,334 $8,993 $(2,341)(21)%

截至2024年9月30日的三個月，其他收入與2023年同期相比淨增加了150萬美元，增幅爲43%，原因是其他雜項收入淨增加了270萬美元，部分被股息收入減少100萬美元所抵消。

截至2024年9月30日的九個月內，其他收入淨比2023年同期減少230萬美元，即21%，原因是股息收入減少270萬美元，但部分被其他雜項收入淨減少50萬美元所抵消。
消除債務的收益
截至9月30日的三個月，變化截至9月30日的9個月，變化
20232024$%20232024$%
債務清償收益
$— $33,361 $33,361 100 %$— $33,361 $33,361 100 %

截至2024年9月30日的三個月和九個月，債務消除收益與2023年同期相比增加了3340萬美元。2024年第三季度，公司回購了2026年票據的部分未償還本金。與部分回購2026年票據有關，公司在截至2024年9月30日的三個月和九個月內確認了3340萬美元的債務消除收益。

非GAAP財務指標的對賬

爲了補充我們根據GAAP編制和列報的簡明合併財務報表，我們使用非GAAP財務指標：貢獻利潤、貢獻利潤率、調整後EBITDA利潤率、調整後EBITDA利潤率、和調整後淨利潤（損失）和調整後淨利潤（損失）每股爲投資者提供有關我們財務業績的更多信息，並增強對我們過去業績的整體了解，未來的前景。我們提出這些非GAAP財務指標是因爲我們相信它們爲投資者提供了一個額外的工具，用於比較我們多年的核心財務業績與其他公司的業績。

然而，非GAAP財務指標對投資者的有用性存在侷限性，因爲它們沒有GAAP規定的標準化含義，並且沒有根據任何全面的會計規則或原則制定。此外，非GAAP財務指標的計算方式可能與其他公司使用的類似標題的指標不同，因此可能無法直接比較。因此，非GAAP財務措施應被視爲我們根據GAAP編制和列報的簡明合併財務報表的補充，而不是替代或替代。

爲了解決這些限制，我們提供了貢獻利潤、貢獻利潤率、調整後EBITDA、調整後EBITDA利潤率以及調整後淨利潤（損失）和調整後每股淨利潤（損失）分別與運營收入（損失）和淨利潤（損失）的對賬。我們鼓勵投資者和其他人
78
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
審查我們的全部財務信息，不依賴任何單一財務指標，並結合各自相關的GAAP財務指標查看貢獻利潤、利潤率貢獻、調整後EBITDA利潤率、調整後淨利潤（虧損）和調整後每股淨利潤（虧損）。
貢獻利潤和貢獻率

我們將貢獻利潤和貢獻利潤作爲整體績效評估的一部分，包括編制年度運營預算和季度預測，以評估我們業務戰略的有效性，並就我們的財務業績與董事會溝通。我們相信，貢獻利潤和貢獻利潤率對於投資者對我們的業務進行逐年比較以及評估和了解我們的經營業績和規模能力很有用。貢獻利潤和貢獻利潤率對投資者也很有用，因爲我們的管理層使用貢獻利潤和貢獻利潤率，以及根據GAAP編制的財務指標來評估我們的經營業績和財務業績以及我們戰略的有效性。

貢獻利潤和貢獻利潤作爲分析工具存在侷限性，不應孤立地考慮或作爲對我們根據GAAP報告的業績分析的替代品。貢獻利潤和貢獻利潤率不是GAAP財務指標，也不意味着盈利能力。即使我們的收入隨着時間的推移超過可變費用，我們也可能無法實現或維持盈利能力，而且收入與可變費用的關係不一定能指示未來的業績。貢獻利潤和貢獻利潤並不反映我們所有的可變費用，並涉及對哪些成本直接隨貸款量變化的一些判斷和自由裁量權。其他提供貢獻利潤和貢獻利潤率的公司可能會以不同的方式計算，因此，其他公司提供的類似標題的指標可能無法與我們直接比較。

下表列出了運營損失與貢獻利潤和貢獻利潤的對賬。我們將運營利潤率定義爲運營損失除以費用淨收入。
截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
費用收入，淨$146,755 $167,590 $407,585 $436,190 
運營虧損
(43,845)(45,152)(209,024)(168,106)
營業利潤率(30)%(27)%(51)%(39)%
銷售和營銷，扣除借款人收購成本(1)
$9,444 $10,480 $26,012 $30,552 
客戶運營，扣除借款人驗證和服務成本(2)
7,911 6,837 26,774 21,624 
工程和產品開發54,941 64,887 222,986 186,431 
常規、管理和其他53,505 59,874 156,616 170,508 
利息收入、利息費用和公允價值調整，淨額
12,198 5,450 34,335 18,626 
貢獻利潤$94,154 $102,376 $257,699 $259,635 
貢獻按金64 %61 %63 %60 %
_________
(1)借款人收購成本爲2360萬美元， 3270萬美元 截至2023年9月30日和2024年9月30日的三個月，分別爲6，240萬美元，以及 8080萬美元 分別截至2023年9月30日和2024年9月30日的九個月。借款人收購成本包括我們的銷售和營銷費用，經過調整，以排除不直接歸因於吸引新借款人的成本，例如我們的業務發展和營銷團隊以及其他運營、品牌知名度和營銷活動的工資相關費用。這些成本不包括重組費用。
(2)截至2023年9月30日和2024年9月30日的三個月，借款人核實和服務成本分別爲2900萬美元和3250萬美元，爲8750萬美元，和 9580萬美元 分別截至2023年9月30日和2024年9月30日的九個月。
79
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
借款人核實和服務成本包括從事貸款入職、核實和服務的人員的工資和其他人員相關費用，以及服務系統成本。它不包括我們客戶運營團隊中某些成員的工資和人員相關費用以及基於股票的薪酬，這些成員的工作不直接歸因於入職和服務貸款。這些成本不包括重組費用。

調整後的EBITDA和調整後的EBITDA利潤率

我們相信，調整後EBITDA和調整後EBITDA利潤率對於投資者來說很有用，用於比較我們的財務業績與其他公司的業績，原因如下：
•投資者和證券分析師廣泛使用調整後EBITDA和調整後EBITDA利潤率來衡量公司的經營業績，而不考慮折舊和利息費用等項目，這些項目因公司而異，具體取決於其融資和資本結構以及資產收購方法;和
•調整後EBITDA和調整後EBITDA利潤率消除了某些項目的影響，例如基於股票的薪酬費用和某些工資稅費用、可轉換債券的費用n可能掩蓋我們業務基本業績趨勢的OTES、債務消除收益和重組費用;以及
•調整後EBITDA和調整後EBITDA利潤率提供了與o的一致性和可比性您過去的財務表現，並促進與其他公司的比較，其中許多公司使用類似的非GAAP財務指標來補充其GAAP業績。

我們使用調整後EBITDA和調整後EBITDA利潤率作爲分析工具存在侷限性，不應孤立地考慮這些指標或作爲對我們根據GAAP報告的財務業績分析的替代品。其中一些限制如下：
•儘管折舊費用是非現金費用，但被折舊的資產可能必須在未來更換，並且調整後EBITDA和調整後EBITDA利潤率並不反映此類更換或新資本支出要求的現金資本支出要求;
•調整後EBITDA和調整後EBITDA利潤率不包括股票薪酬費用和員工股票交易的某些僱主工資稅。基於股票的薪酬費用一直是並將在可預見的未來繼續是我們業務的一項重要經常性費用，也是我們薪酬戰略的重要組成部分。員工股票交易中與僱主工資稅相關的費用金額取決於我們的股價和其他超出我們控制範圍且與業務運營無關的因素;
•調整後EBITDA和調整後EBITDA利潤率不反映：（1）我們營運資金需求的變化或現金需求;（2）利息費用，或支付債務利息或本金所需的現金需求，這減少了我們可用的現金;或（3）可能代表我們可用現金減少的稅款;和
•我們在計算調整後EBITDA和調整後EBITDA利潤率時排除的費用和其他項目可能與其他公司在報告經營業績時可能從調整後EBITDA和調整後EBITDA利潤率中排除的費用和其他項目（如果有的話）不同。

由於這些限制，調整後EBITDA和調整後EBITDA利潤率應與根據GAAP提出的其他運營和財務績效指標一起考慮。下表提供了淨虧損和淨虧損利潤率與調整後EBITDA利潤率的對賬。我們將淨虧損率定義爲淨虧損除以總收入。
80
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
總收入
$134,557 $162,140 $373,250 $417,564 
淨虧損(40,315)(6,758)(197,734)(125,826)
淨虧損率(30)%(4)%(53)%(30)%
調整以排除以下內容：
股票補償和某些工資稅費用(1)
$36,446 $34,794 $144,991 $107,639 
折舊及攤銷4,934 5,390 15,800 15,850 
重組費用— — 15,536 3,778 
可轉換票據的發票1,177 1,303 3,527 3,664 
債務清償收益— (33,361)— (33,361)
所得稅撥備
10 45 44 74 
調整後的EBITDA$2,252 $1,413 $(17,836)$(28,182)
調整後EBITDA利潤率2 %1 %(5)%(7)%
_________
(1)工資稅費用包括員工股票交易中與僱主工資稅相關的費用，因爲金額取決於我們的股價和其他超出我們控制範圍且與我們業務運營無關的因素。

81
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
調整後每股淨利潤（虧損）和調整後每股淨利潤（虧損）

我們將調整後淨利潤（損失）定義爲淨利潤（損失），不包括股票補償費用和某些工資稅費用， 債務消除的收益，以及 重組費用。調整後每股淨利潤（虧損）的計算方法是將調整後每股淨利潤（虧損）除以加權平均已發行普通股。我們相信，調整後淨利潤（虧損）和調整後每股淨利潤（虧損）是投資者評估我們創造盈利能力的有用指標，更容易比較過去和未來時期，並提供我們業績與其他公司業績的可比性。

截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
淨虧損$(40,315)$(6,758)$(197,734)$(125,826)
調整以排除以下內容：
股票補償和某些工資稅費用(1)
36,446 34,794 144,991 107,639 
重組費用— — 15,536 3,778 
債務清償收益— (33,361)— (33,361)
調整後淨虧損$(3,869)$(5,325)$(37,207)$(47,770)
每股淨虧損：
基本信息$(0.48)$(0.07)$(2.38)$(1.42)
稀釋$(0.48)$(0.07)$(2.38)$(1.42)
調整後每股淨虧損：
基本信息$(0.05)$(0.06)$(0.45)$(0.54)
稀釋$(0.05)$(0.06)$(0.45)$(0.54)
加權平均已發行普通股：
基本信息84,404,966 90,119,481 83,158,146 88,534,495 
稀釋84,404,966 90,119,481 83,158,146 88,534,495 
_________
(1)工資稅費用包括員工股票交易中與僱主工資稅相關的費用金額，因爲該金額取決於我們的股價和其他超出我們控制範圍且與我們業務運營無關的因素。

流動性與資本資源

現金的來源和用途

截至2024年9月30日，我們的主要流動性來源是44530萬美元的無限制現金。截至2024年9月30日，我們還持有500萬美元期限超過三個月的定期存款投資。現金餘額的變化通常是由於流動資金波動以及通過我們的市場促進的貸款買賣時間的結果。爲了爲通過我們的貸款市場促進的某些貸款的購買提供資金，我們依靠特殊目的信託和企業現金的倉庫信貸設施。

我們的可轉換優先票據本金總額爲73040萬美元，2026年票據的年利率爲0.25%，2029年票據的年利率爲2.00%，每種情況下每半年支付一次。2026年票據到期 2026年8月15日和2029年票據均於2029年10月1日到期 除非根據其條款提前轉換、贖回或回購。參考“說明9. 借貸“請參閱本季度報告（表格10-Q）的第一部分第1項，了解有關我們註釋的更多詳細信息。

82
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
我們的倉庫信貸設施於2025年12月至2028年6月期間到期，允許我們借入總計高達32500萬美元用於購買無擔保個人貸款，借入10000萬美元用於購買小額貸款，以及高達5000萬美元用於購買汽車貸款。截至2024年6月14日，Upstart Auto Warehouse Trust的循環期結束，我們可能不再從該設施提款。Upstart Auto Warehouse Trust工具將於2025年12月到期，屆時所有未償金額必須償還。截至2024年9月30日，我們已從倉庫信貸設施中提取總計17010萬美元。參考“說明9. 借貸“請參閱本表格10-Q第一部分第1項，了解有關我們倉庫信貸設施的更多詳細信息。

我們根據經營租賃協議租賃辦公設施，該協議於2027年至2029年到期。我們與這些租賃協議相關的現金需求爲5960萬美元，其中1530萬美元預計將在未來12個月內支付。參考“注11。 租賃“請參閱本季度報告表格10-Q的第一部分第1項，了解有關我們經營租賃義務的更多詳細信息。

我們承諾在所需的持有期結束時（通常等於三個工作日）從某些貸款合作伙伴購買貸款。截至2024年9月30日，貸款購買承諾總額爲6680萬美元。我們還就我們的一項承諾資本和其他共同投資安排向第三方提供了信貸額度。截至2024年9月30日，該公司有與800萬美元信用額度相關的無資金承諾。該公司還承諾爲HELCC的未來預付款提供資金。截至2024年9月30日，這些承諾爲280萬美元，但由於這些承諾可能會在未提取的情況下到期，因此承諾總額不一定代表未來的現金需求。見“說明12. 承諾和意外情況“請參閱本季度報告（表格10-Q）第一部分第1項，了解有關我們承諾的更多詳細信息。

就我們的承諾資本和其他共同投資安排而言，我們有義務將一定數量的資產置於與基礎貸款的信用表現相關的風險中。這些安排中的風險受到美元上限的限制，這代表公司在特定安排中面臨的最大損失風險。截至2024年9月30日，該公司的最大損失風險總額爲3.579億美元。參考“說明5. 實益權益“請參閱本季度報告10-Q表格第一部分第1項，了解有關我們承諾資本和共同投資安排的更多詳細信息。我們未來12個月與這些現有安排投資相關的現金需求估計高達2.22億美元。

雖然我們相信我們手頭的現金將足以滿足至少未來12個月的流動性需求，但我們未來的資本需求將取決於多種因素，包括我們的收入增長、營運資本要求、用於產品開發目的或市場低迷期間的貸款購買量以及我們的資本支出。我們可能決定通過出售股權、股權掛鉤證券或債務證券或其他債務融資安排來籌集額外資本。如果我們通過發行股權或與股權掛鉤的證券來籌集額外資金，我們的股東可能會受到稀釋。未來的債務融資，如果可行，可能涉及限制我們的業務或我們產生額外債務的能力的契約。我們籌集的任何債務或股權融資可能包含對我們或我們的股東不利的條款。此外，如果我們無法籌集額外資本，而我們的現金餘額和運營產生的現金不足以滿足流動性需求，我們的運營業績和財務狀況將受到實質性和不利的影響。
83
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）

現金流

下表總結了我們在所示期間的現金流量：

九個月結束
9月30日，
20232024
經營活動提供的淨現金$33,887 $297,257 
投資活動所用現金淨額(88,562)(159,817)
融資活動提供的現金淨額137,236 50,540 
現金和限制性現金的變動$82,561 $187,980 

經營活動所得現金淨額

我們通過經營活動提供的主要現金來源是根據與貸款合作伙伴和機構投資者的合同賺取的費用收入，以及我們從資產負債表上持有的貸款獲得的利息收入。

我們在經營活動中使用現金的主要用途包括向營銷合作伙伴付款、供應商付款、工資和其他人員相關費用、設施付款以及其他一般業務支出。

截至2024年9月30日止九個月，經營活動提供的淨現金爲29730萬美元，其中包括非現金項目調整23050萬美元、經營資產和負債淨變化19260萬美元以及淨損失12580萬美元。非現金調整的增加主要與公司資產負債表上持有的貸款公允價值變化16750萬美元和股票補償10360萬美元有關，部分被3580萬美元的受益權益資產公允價值變化和3340萬美元的債務消滅收益所抵消。經營資產和負債淨變動增加主要與持有待售貸款收到本金15700萬美元和合並證券化持有貸款收到本金3650萬美元有關。

投資活動所得現金淨額

截至2024年9月30日的九個月，投資活動中使用的淨現金爲15980萬美元，原因是購買和發放持作投資的貸款19660萬美元以及收購受益利息資產6320萬美元，部分被持作投資的貸款收到的本金付款9980萬美元所抵消。

融資活動所得現金淨額

截至2024年9月30日止九個月，融資活動提供的淨現金爲5050萬美元，主要是由於發行2029年票據的收益爲4.215億美元，扣除債務發行成本和倉庫借款的收益29760萬美元，部分被回購可轉換票據的付款32530萬美元所抵消，29320萬美元的倉庫借款償還，以及4090萬美元的與我們的可轉換債務發行相關的上限看漲期權購買。

84
目錄表
Upstart Holdings，Inc
管理層對財務狀況和經營成果的探討與分析
（表格金額以千計，份額和每股數據和比率除外，或如所述）
資產負債表貸款組合構成

截至2024年9月30日，我們在精簡合併資產負債表上持有65610美元的萬貸款。其中399.2-10萬美元用於研發目的，主要用於支持我們的汽車貸款產品HELOC，以及將我們的無擔保個人貸款產品擴展到新的借款人類別。我們還持有13840美元的萬核心個人貸款，否則機構投資者將立即購買這些貸款，以及綜合證券化持有的118.5億美元核心個人貸款。我們將繼續利用我們的資本支持研發活動，有時還會在市場資金緊張的時期作爲核心個人貸款的資金來源。利用我們的資本作爲貸款資金來源的程度和時機將在很大程度上取決於我們市場上相對於合格借款人的需求的資本可用性和我們的業務優先事項。我們計劃隨着時間的推移，以二次出售或證券化的形式，將我們資產負債表上持有的貸款出售給機構投資者。

表外安排

在正常業務過程中，我們從事未反映在我們的簡明合併資產負債表中的活動，通常稱爲表外安排。這些活動涉及與未合併VIE的交易，包括出售全部貸款、承諾資本和其他共同投資安排，以及我們以合同方式提供服務的發起和共同發起證券化交易。我們利用這些交易提供流動性來源，爲我們的業務融資並使我們的機構投資者基礎多元化。如果我們是證券化交易的保留髮起人，法律要求我們保留這些證券化中發行的證券至少5%的信用風險。我們在“中提供有關與未合併VIE交易的額外信息注3.可變利息實體“在本季度報告的第一部分第1項中，表格10-Q。
關鍵會計政策和估算

編制簡明綜合財務報表要求我們做出影響資產、負債、收入、成本和費用以及相關披露的報告金額的判斷、估計和假設。我們的估計基於歷史經驗和我們認爲在當時情況下合理的各種其他假設。實際結果可能與我們的估計存在顯着差異。如果我們的估計與實際結果存在差異，我們未來的財務報表列報、財務狀況、經營結果和現金流量將受到影響。

我們的關鍵會計政策在第二部分第7項中進行了描述，”關鍵會計政策和估算“在我們截至2023年12月31日的年度10-k表格年度報告中。截至2024年9月30日止九個月，這些政策沒有重大變化。

近期會計公告

參考「注1。 業務和重要會計政策的描述」 本季度報告第一部分第1項（表格10-Q）中列出了最近採用的會計公告和最近發佈的尚未採用的會計公告（適用時）。

項目3.關於市場風險的定量和定性披露
我們在日常業務過程中面臨市場風險，主要與市場貼現率、信用風險和利率的波動有關。我們直接面臨市場風險，因爲我們的精簡合併資產負債表上持有的貸款和證券、進入證券化市場的機會、通過我們的市場促進的機構投資者對貸款的需求以及我們的市場下的資金可用性
85
目錄表
Upstart控股有限公司
倉庫信貸設施。我們無法或未能管理市場風險可能會損害我們的業務、財務狀況或運營結果。
貼現率風險
貼現率敏感性是指市場貼現率變化可能導致未來盈利、價值或未來現金流量損失的風險。
截至2023年12月31日和2024年9月30日，我們在精簡綜合資產負債表上持有的貸款分別面臨97730美元萬和53760美元萬的市場貼現率風險，不包括以合併證券化方式持有的貸款。這些貸款的公允價值是使用貼現現金流方法估計的，其中貼現率代表市場參與者對所需回報率的估計。我們資產負債表上的貸款貼現率的變化反映了市場上可獲得的類似金融工具的預期收益，可能是由市場利率、預期貸款表現和其他因素的變化引起的。貼現率變動帶來的任何收益和損失都計入收益。假設貼現率上調100個點子和200個點子，將導致截至2023年12月31日的貸款公允價值分別減少1,170美元萬和2,310美元萬，截至2024年9月30日的貸款公允價值分別減少6，20美元萬和1,230美元萬。

截至2023年12月31日和2024年9月30日，我們分別持有合併證券化中持有的貸款17910萬美元和11850萬美元，這些貸款按公允價值計入簡明合併資產負債表上的貸款。這些貸款的公允價值由相關證券化票據和作爲合併證券化一部分發行的剩餘憑證的公允價值之和確定，並使用與基礎抵押貸款池相同的預計淨現金流量。由於公司保留了合併證券化發行的所有剩餘證書，因此作爲合併過程的一部分，其價值將被消除。假設貼現率上升100個點子和200個點子，將導致截至2023年12月31日合併證券化中持有的貸款公允價值分別減少240萬美元和480萬美元，截至2024年9月30日，分別減少140萬美元和270萬美元。

截至2023年12月31日和2024年9月30日，我們還面臨應付證券化票據持有人的市場貼現率風險，分別爲14140萬美元和10030萬美元。假設貼現率上升100個點子和200個點子將導致截至2023年12月31日的簡明合併資產負債表上應付證券化持有人的公允價值分別減少190萬美元和370萬美元，並且不會對截至9月30日應付證券化票據持有人的公允價值造成重大影響，2024.

截至2023年12月31日和2024年9月30日，我們還面臨其他金融工具的市場貼現率風險，分別包括4100萬美元和13150萬美元的受益利息資產。受益資產使用貼現現金流模型按公允價值估計，該模型考慮預計違約、損失和收回，以預測未來損失和基礎貸款的淨現金流量。我們對與迄今爲止證明的信用表現相關的預期現金流和與未來信用表現相關的預期現金流使用兩種不同的貼現率。貼現率變化產生的任何損益均記錄在收益中。假設貼現率上升100個點子和200個點子，將導致截至2023年12月31日的受益權益資產公允價值分別減少120萬美元和240萬美元，截至2024年9月30日，分別減少260萬美元和520萬美元。
信用風險

信用風險是指個別借款人因無力或不願履行財務義務而違約而導致我們簡明綜合資產負債表上貸款損失的風險。我們簡明綜合資產負債表上某些金融工具（包括貸款、受益權益、證券化票據和剩餘憑證以及應付證券化票據持有人的款項）的表現取決於我們促成的貸款的信用表現。爲了管理這種風險，我們通過貸款市場監控借款人的付款表現，並利用我們的人工智能功能以我們認爲反映其信用風險的方式對貸款定價。
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該等貸款、受益權益、證券化票據和剩餘憑證以及應付證券化票據持有人的公允價值是根據貼現現金流模型估計的，該模型涉及使用重大不可觀察輸入數據和假設。這些工具對信用風險變化敏感。

截至2023年12月31日和2024年9月30日，我們簡明合併資產負債表上持有的貸款分別面臨97730萬美元和53760萬美元的信用風險，不包括合併證券化中持有的貸款。貸款按固定利率計算，並按公允價值計入我們的簡明綜合資產負債表。截至2023年12月31日，假設信用風險增加10%和20%將導致1250萬美元和2500萬美元減少，而截至2024年9月30日，假設信用風險增加10%和20%將導致貸款公允價值分別減少540萬美元和1080萬美元。

截至2023年12月31日和2024年9月30日，我們分別持有合併證券化中持有的貸款17910萬美元和11850萬美元，這些貸款按公允價值計入簡明合併資產負債表上的貸款。這些貸款的公允價值由合併實體發行的相關證券化票據和剩餘憑證的公允價值之和確定，並使用與基礎抵押貸款池相同的預計淨現金流量。由於公司保留了合併證券化發行的所有剩餘證書，因此作爲合併過程的一部分，剩餘證書價值將被消除。假設信用風險增加100個和200個點子，將導致截至2023年12月31日合併證券化中持有的貸款公允價值分別減少270萬美元和520萬美元，截至2024年9月30日，分別減少230萬美元和480萬美元。

截至2023年12月31日，我們還面臨簡明綜合資產負債表上持有的受益利息資產和受益利息負債的信用風險，分別爲4100萬美元和420萬美元，截至2024年9月30日，分別爲13150萬美元和1320萬美元。假設信用風險利差增加10%和20%將導致我們簡明綜合資產負債表上持有的受益利息資產的公允價值分別減少910萬美元和1670萬美元，並將導致我們簡明綜合資產負債表上的受益利息負債的公允價值分別增加560萬美元和1120萬美元，截至2023年12月31日。假設信用風險利差增加10%和20%將導致受益利息資產的公允價值分別減少2880萬美元和5780萬美元，並將導致受益利息負債的公允價值分別增加570萬美元和1200萬美元，截至2024年9月30日。

交易對手風險

我們面臨衍生金融工具、應收信用額度、受益權益、倉庫設施和第三方託管人產生的風險。這些活動通常涉及與無關聯貸方或其他個人或實體（在此類交易中稱爲「交易對手方」）交換義務。如果交易對手違約或以其他方式未能履行義務，如果該交易對手無法履行其對我們的義務，我們可能會面臨損失。我們通過僅選擇我們認爲財務實力雄厚的交易對手、在多個此類交易對手之間分散風險，並對對任何單一交易對手的依賴程度進行合同限制來管理這種風險。

截至2023年12月31日和2024年9月30日，我們在美國多家金融機構的商業支票帳戶和生息存款帳戶中分別持有46780萬美元和65580萬美元與現金相關。如果這些金融機構違約，我們的簡明綜合資產負債表上記錄的金額超過聯邦存款保險公司（FDIC）的保險金額，我們將面臨信用風險。我們通過將現金和受限制現金存放在信譽良好的機構來降低信貸風險。
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利率風險

利率上升通常會導致貸款合作伙伴和機構投資者要求的回報率上升，從而導致借款人需求下降。更高的利率還與借款人更高的付款義務相對應，這可能會降低個人借款人保持當前義務的能力，導致拖欠、違約、借款人破產和沖銷增加，以及收回減少，所有這些都可能對我們的業務產生重大不利影響。我們預計這些結果通常會在利率下降的環境中逆轉。

利率的上升或下降也可能影響我們倉庫信貸設施的利率風險。截至2023年12月31日和2024年9月30日，我們在浮動利率的倉庫信貸機制下分別面臨38740萬美元和17010萬美元的利率風險。利率變化可能會影響我們的借貸成本。我們已就名義總額爲25450萬美元的某些倉庫信貸融資簽訂了利率上限協議。利率上限爲某些信貸設施提供保護，以免受1個月SOFR超過執行利率的現金流變化風險。Upstart Auto Warehouse Trust利率上限將於2029年4月到期，Upstart Loan Trust利率上限將於2025年6月到期。參閱 「注4。 衍生金融工具」 了解更多詳情。
股權投資風險

我們的非有價股權證券面臨各種市場相關風險，這些風險可能會大幅減少或增加我們投資的公允價值。

我們的非上市股權投資是私人持股公司的股權證券，公允價值不容易確定。吾等選擇以成本減去減值(如有)的計量替代方法對每項該等投資進行會計處理，並就同一發行人的相同或類似投資的有序交易中可見價格變動所導致的變動作出調整。要確定一筆有序的交易是針對相同還是類似的投資，需要管理層做出重大判斷，而且由於缺乏現成的市場數據，這本身就很複雜。我們考慮各種因素，如投資的權利和偏好的差異，以及這些差異對每項投資的公允價值的影響程度。我們還按季度評估我們的非流通股本證券的減值。我們的減值分析包括對定性和定量因素的評估，包括被投資方的財務指標、市場對被投資方產品或技術的接受度、一般市場狀況和流動性考慮。調整和減值在簡明綜合經營報表中計入其他費用，並在確認該等調整或減值後計入全面虧損。截至2023年12月31日和2024年9月30日，我們的非上市股權證券的賬面價值總計4,130美元萬，這些證券沒有容易確定的公允價值。
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項目4.控制和程序
a.信息披露控制和程序的評估

我們的管理層在首席執行官和首席財務官的參與和監督下，評估了《交易法》第13 a-15（e）條和第15 d-15（e）條所定義的披露控制和程序的有效性。根據該評估，我們的首席執行官和首席財務官得出的結論是，截至2024年9月30日，我們的披露控制和程序的設計和運作有效，旨在提供合理保證我們在根據《交易法》提交或提交的報告中要求披露的信息得到記錄、處理、總結，並在SEC規則和表格指定的時間段內報告，並且此類信息被積累並傳達給我們的管理層，包括我們的首席執行官和首席財務官（視情況而定），以便及時就所需的披露做出決定。
b.信息披露控制和程序有效性的內在限制

我們的管理層不期望我們的披露控制和程序或我們對財務報告的內部控制將防止所有錯誤和所有欺詐。一個控制系統，無論設計和操作得多麼好，都只能提供合理的保證，而不是絕對的保證，以確保控制系統的目標得以實現。此外，披露控制和程序的設計必須反映這樣一個事實，即存在資源限制，要求管理層在評估可能的控制和程序相對於其成本的益處時作出判斷。由於所有控制系統的固有侷限性，任何控制評價都不能絕對保證所有控制問題和舞弊事件都已被發現。這些固有的侷限性包括這樣的現實，即決策過程中的判斷可能是錯誤的，故障可能會因爲一個簡單的錯誤或錯誤而發生。此外，某些人的個人行爲、兩個或更多人的串通或通過控制的管理凌駕，都可以規避控制。任何控制系統的設計也部分基於對未來事件可能性的某些假設，不能保證任何設計在所有可能的未來條件下都能成功地實現其所述目標；隨着時間的推移，控制可能會因爲條件的變化而變得不充分，或者遵守政策或程序的程度可能會惡化。由於具有成本效益的控制系統的固有限制，由於錯誤或欺詐而導致的錯誤陳述可能會發生，並且不會被發現。
c.財務報告內部控制的變化

截至2024年9月30日的季度，我們對財務報告的內部控制（定義見《交易法》第13 a-15（d）條和第15 d-15（d）條）沒有發生對我們對財務報告的內部控制產生重大影響或合理可能產生重大影響的變化。

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第二部分：其他信息
項目1.法律程序
有關我們未決法律訴訟材料的描述，請參閱“說明12. 承諾和意外情況「在本季度報告第一部分第1項中，表格10-Q和」風險因素“本季度報告第二部分第1A項（表格10-Q）納入本文作爲參考。
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第1A項。風險因素
風險因素

投資我們的普通股涉及很高的風險。應仔細考慮以下描述的風險和不確定性，以及本季度報告10-Q表格中的所有其他信息，包括題爲「管理層對財務狀況和經營業績的討論和分析」的部分以及我們的 在做出投資我們普通股的決定之前，簡明合併財務報表和相關附註。我們的業務、財務狀況、運營業績或前景也可能受到我們目前未知或我們目前認爲不重大的風險和不確定性的損害。如果任何風險實際發生，我們的業務、財務狀況、運營業績和前景都可能受到不利影響。在這種情況下，我們普通股的市場價格可能會下跌，您可能會損失部分或全部投資。

風險因素摘要

可能影響我們業務、財務狀況或經營業績的重大風險包括但不限於與以下相關的風險：
•我們的業務已經並將繼續受到經濟狀況和我們無法控制的其他因素的不利影響。
•如果我們無法維持機構投資者向市場提供多元化和彈性的貸款融資，或者成功管理與承諾資本和其他共同投資安排相關的風險，我們的增長前景、業務、財務狀況和運營業績可能會受到不利影響。
•如果我們無法繼續改進我們的人工智能模型，或者我們的人工智能模型包含錯誤或無效，我們的增長前景、業務、財務狀況和運營業績將受到不利影響。
•如果我們的人工智能模型不能及時準確反映經濟狀況對借款人信用風險的影響，那麼Upstart驅動的貸款的表現可能會比預期更差，我們的人工智能模型可能會被視爲無效。
•如果我們無法批准大量借款人通過我們的市場貸款，我們的增長前景、業務、財務狀況和運營業績將受到不利影響。
•如果我們現有的貸款合作伙伴停止或限制他們對我們市場的參與，或者如果我們無法吸引新的貸款合作伙伴進入我們的市場，我們的業務、財務狀況和運營業績將受到不利影響。
•我們的運營歷史相對有限，這可能會導致風險、不確定性、費用和困難增加，並難以評估我們的未來前景。
•如果我們無法管理與Upstart Macro指數（UMI）相關的風險（我們於2023年推出，該指數沒有悠久的歷史或可靠的業績記錄），我們的信譽、聲譽、業務、財務狀況和運營業績可能會受到不利影響。
•我們已經出現了淨虧損，未來可能無法實現盈利。
•如果我們無法管理與資產負債表上貸款相關的風險，我們的業務、財務狀況和經營業績可能會受到不利影響。
•我們過去的收入增長率和財務表現可能無法指示未來的表現。
•我們的季度業績可能會波動，因此可能會對我們普通股的交易價格產生不利影響。
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•我們與機構投資者、證券化和倉庫信貸設施的貸款融資安排使我們面臨某些風險，如果我們未能成功管理此類風險，可能會導致貸款融資資本供應減少，或要求我們爲我們的市場尋求成本更高或效率更低的融資。
•我們的前三大貸款合作伙伴佔我們市場貸款發放和收入的很大一部分。
•我們的聲譽和品牌對我們的成功至關重要，如果我們無法繼續發展我們的聲譽和品牌，我們保留現有和吸引新貸款合作伙伴的能力、吸引借款人進入市場的能力、我們維持多元化和彈性貸款融資的能力以及我們維持和改善與行業監管機構關係的能力都可能受到不利影響。
•我們的業務受到一系列法律和法規的約束，其中許多法律和法規正在不斷髮展，不遵守或被認爲不遵守此類法律和法規可能會損害我們的業務、財務狀況和運營業績。
•如果我們無法管理與貸款服務和收款義務相關的風險，我們的業務，
財務狀況和運營業績可能會受到不利影響。
•我們幾乎所有的收入都來自單一貸款產品，因此我們特別容易受到無擔保個人貸款市場波動的影響。
•新貸款合作伙伴的銷售和入職過程可能需要比預期更長的時間，從而導致預期收入和運營業績的波動或變化。
•我們正在繼續推出和開發新的貸款產品和服務產品，如果這些產品不成功或我們無法管理相關風險，我們的增長前景、業務、財務、狀況和運營業績可能會受到不利影響。
•我們依賴與貸款聚合商的戰略關係來吸引申請人進入我們的市場，如果我們無法與貸款聚合商保持有效的關係或成功替換他們的服務，我們的業務可能會受到不利影響。

與我們的商業和行業相關的風險
我們的業務已經並將繼續受到經濟狀況和我們無法控制的其他因素的不利影響。

歷史上，總體經濟狀況的不確定性、波動性和負面趨勢爲我們的行業創造了艱難的經營環境。許多因素，包括我們無法控制的因素，已經並將繼續影響我們的業務、財務狀況和經營業績，影響我們的貸款合作伙伴和機構投資者向我們市場的資金供應，影響借款人對upstart貸款的需求，以及借款人償還貸款的能力和意願。這些因素包括但不限於利率、通脹、個人儲蓄率、美國政治和總統和國會選舉、財政和貨幣政策、失業率、銀行業中斷、消費者信心下降、消費者可自由支配支出減少、房地產市場狀況、移民政策、天然氣價格、能源成本、政府關門、貿易戰和退稅延遲，以及自然災害、戰爭行爲、地緣政治衝突、恐怖主義、災難和流行病等事件。如果這些因素中的任何一個對借款人、貸款合作伙伴或機構投資者造成負面影響，或者如果我們無法減輕與他們相關的風險，我們的業務、財務狀況和運營結果可能會受到不利影響。

近年來，美國經歷了歷史高位的通貨膨脹。作爲回應，政府實施了政策干預。聯儲局在2022年和2023年加息十一次。雖然目標是抑制通脹，但這些干預措施可能已經並可能繼續產生廣泛的宏觀經濟影響，包括導致經濟衰退、失業率上升或銀行業受到干擾。爲了應對通脹水平下降的跡象，聯儲局於2024年9月減息，預計將繼續減息。
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當前的宏觀經濟環境以及由此產生的不確定性和波動性已經並可能繼續對我們的業務和經營業績產生多方面影響，其中包括：

•貸款發放量減少;
•來自貸款合作伙伴和機構投資者的貸款資金減少;
•資本市場流動性減少;
•申請人對貸款提議的認可度和接受度較低;
•增加我們的資產負債表利用率，爲Upstart驅動的貸款提供資金;
•新貸款合作伙伴延遲採用我們的人工智能貸款市場;
•Upstart驅動的貸款的拖欠率和違約率增加;以及
•裁員。
當前的宏觀經濟環境已經並可能繼續對我們的業務產生重大不利影響，因爲它影響了機構投資者和貸款合作伙伴向我們的市場提供資金。有關更多信息，請參閱標題爲「-」的風險因素如果我們無法維持機構投資者向市場提供多元化和彈性的貸款融資，我們的增長前景、業務、財務狀況和運營業績可能會受到不利影響「和」-如果我們現有的貸款合作伙伴停止或限制他們對我們市場的參與，或者如果我們無法吸引新的貸款合作伙伴進入我們的市場，我們的業務、財務狀況和運營業績將受到不利影響”.

我們在我們的市場上提供消費者貸款，例如個人和汽車貸款，許多來到我們市場的消費者的信用記錄很差、有限或沒有。這些消費者歷來並可能受到不利宏觀經濟狀況的不成比例的影響。通貨膨脹、利率上升、福利計劃的可用性、失業、破產、政府幹預（例如刺激措施）、重大醫療費用、離婚或死亡可能會影響借款人借款或償還貸款的能力或意願。最近的宏觀經濟趨勢對借款人的借貸和還款能力和意願產生了負面影響。有關更多信息，請參閱標題爲「-」的風險因素如果我們無法批准大量借款人通過我們的市場貸款，我們的增長前景、業務、財務狀況和運營業績將受到不利影響.”

在經濟下行週期中，借款人無法償還貸款的風險更大。借款人不得優先償還無擔保的個人貸款，而不是以必需品爲擔保的貸款，例如抵押貸款或汽車貸款。更高的利率往往會導致更高的償付義務，這可能會降低借款人償還債務的能力。這些因素導致借款人宣佈的拖欠、違約和破產增加，導致更多的沖銷和更少的回收，所有這些都已經並可能繼續對我們的市場和業務所提供的貸款的信用表現產生實質性的不利影響。例如，預計2021年第一季度至2023年第四季度發放的核心個人貸款的年份相對於貸款發放時設定的目標回報率將表現不佳。當借款人拖欠貸款時，它會增加我們償還貸款的成本。由於違約率一直高於預期，它已經並可能繼續負面影響我們的貸款合作伙伴發起貸款的需求，以及通過我們的市場推動的機構投資者爲貸款提供資金的需求。申請人批准或接受貸款提議或貸款發放量的任何持續下降，或借款人違約或違約的任何超出我們預期的增加，都將損害我們的業務、財務狀況和經營業績。

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如果我們無法維持機構投資者向市場提供多元化和彈性的貸款融資，或者成功管理與承諾資本和其他共同投資安排相關的風險，我們的增長前景、業務、財務狀況和運營業績可能會受到不利影響。

我們的業務依賴於從機構投資者向我們的市場尋找和保持多樣化和彈性的貸款資金。機構投資者通過購買全部貸款、過關憑證和資產支持證券，爲我們的市場提供貸款資金。在截至2024年9月30日的9個月內，在我們的市場上促成的貸款本金總額中，67%由機構投資者購買。從機構投資者獲得貸款資金的能力和能力取決於許多我們無法控制的因素，例如經濟和市場狀況、利率、資本市場的流動性和監管改革。雖然自2022年以來，由於宏觀經濟環境，我們經歷了資金緊張，但我們相信，來自機構投資者的市場情緒已開始改善，自那以來，我們增加了貸款融資能力。我們不能肯定現有的資金來源將繼續可用，或任何新的資金來源將以商業合理的條件或根本不存在。來自機構投資者的資金減少在過去對我們的業務產生了負面影響，並可能在未來對我們產生負面影響。投資者對upstart貸款或以該等貸款爲抵押的證券的需求因任何原因而持續下降，包括由於不利的經濟狀況或任何超出我們預期的拖欠、違約或虧損的增加，都可能對我們的財務業績產生不利影響。

我們來自機構投資者的貸款資金有很大一部分來自承諾資本和其他共同投資安排。這些安排可能包括提供下行風險保護的條款，但須受某些限制和條件的限制。特別是，我們已同意，如果這些安排下的貸款的信貸表現偏離我們的初始預期，以及在某些條件下，如果我們無法向我們承諾的資本提供者大量出售貸款，我們將在一定限度內補償投資者。因此，如果由於借款人行爲、支付能力或其他方面的意外變化，如果我們的借款人在upstart平台上的貸款需求減少，或者如果我們的模型對信用表現的預期因任何原因而不準確，我們的財務業績可能會受到不利影響。截至2024年9月30日，根據這些承諾資本和其他共同投資安排，我們對虧損的最大敞口約爲35790美元萬。由於我們達成了更多承諾資本和其他共同投資安排，這一金額從截至2023年9月30日的6610萬美元增長。隨着我們在這些安排下的最大虧損額增長，並可能在未來繼續增長，與承諾資本和其他共同投資安排相關的風險可能會對我們的業務、財務狀況和運營結果產生更大的影響。承諾資本和其他共同投資安排通過不利的公允價值調整對我們的財務業績產生了負面影響，並可能在未來繼續這樣做。如果現有的承諾資本或其他資本安排不能按商定的條款提供資金，或者我們無法在未來以商業合理的條款或根本不能獲得額外的承諾資本或其他資本安排，我們的收入和交易量也可能會下降。此外，如果利率下降，而這些安排的條款在整個經濟週期內保持不變，我們最近在高利率環境下達成的資本安排，例如承諾資本和其他共同投資安排，可能會變得更加昂貴。儘管我們作出了努力，但我們可能會繼續遇到資金緊張的情況，不能確定我們已經採取的任何措施，如承諾資本或其他共同投資安排，或將採取的任何措施，以解決或減輕資金緊張的影響，是否足夠或成功。在資金緊張的情況下，我們可能無法維持目前的貸款發放量，而不會招致大幅增加的融資成本、同意對我們不利的條款或依賴我們的資產負債表來支持融資，每一種情況都可能對我們的業務、財務狀況和運營結果產生不利影響。

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違約或違反財務、業績或其他契約的事件，或者支撐我們資產支持證券化、債務融資或其他結構化和非結構化交易的某些貸款池的業績低於預期，過去已經受到限制，並可能限制我們從機構投資者那裏獲得資金。例如，包含在我們資產支持證券化中的2021年至2022年中期產生的貸款相對於其在發起時的預期目標回報表現不佳，導致評級機構對我們的幾項基於資產的證券化採取負面行動。我們無法確定投資者對證券化的需求是否以及何時會恢復。

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.

我們吸引潛在借款人的能力，從而增加我們市場上的貸款來源，在很大程度上取決於我們能否有效地評估借款人的信譽和違約的可能性，並根據評估提供具有競爭力的貸款。我們的整體運營效率和利潤率進一步取決於我們在貸款申請過程中保持高度自動化的能力，並在自動化程度上實現漸進式改進。如果我們的人工智能模型由於我們的模型設計或編程或任何其他錯誤或不準確而無法充分預測借款人的信譽和違約的可能性，並且我們的人工智能模型沒有檢測到或解釋此類錯誤或不準確，或者我們信用決策過程的任何其他組件失敗，我們可能會經歷高於預測的貸款損失。上述任何一項都可能導致次優定價的貸款或不正確的貸款批准或拒絕，其中任何一項都可能導致借款人的需求下降，並減少貸款來源和我們的收入。此外，除了借款人需求下降外，upstart貸款的虧損高於預期，可能會進一步損害我們吸引資本進入市場的能力。如果我們的貸款合作伙伴和機構投資者因貸款表現不佳而遭受高於預期的資金成本損失，他們可能會決定限制他們的資金或減少他們提供資金的數量或貸款類型。與我們的人工智能模型設定的預期相比，upstart貸款的表現不佳可能會對我們的財務業績產生負面影響，因爲雖然受到一定限制，但我們有義務向我們的資本合作伙伴提供下行風險保護，並就與承諾資本和其他共同投資安排相關的出售貸款的預期信用表現的任何偏離向他們進行補償。它還可能阻礙我們增加債務安排或其他融資安排的規模或達成新的融資安排的能力。

我們的人工智能模型還針對和優化貸款過程的其他方面，如借款人獲取、欺詐檢測、違約時機、貸款堆疊和提前還款時機。我們對這類模式的持續改進使我們能夠以低成本和幾乎即時的方式促進貸款，在保持貸款業績的同時獲得消費者的高度滿意。然而，由於各種原因，我們的人工智能模型的此類應用可能被證明不如我們預期的或過去的預測，包括構建此類模型時的不準確假設或其他錯誤，對此類模型結果的錯誤解釋，以及未能及時更新模型假設和參數。我們市場上的即時審批程序也可能使我們成爲某些借款人的目標，這些借款人打算儘快積累儘可能多的債務，而不考慮償還的可行性。此外，這類模型可能無法有效地考慮到一些本質上難以預測和我們無法控制的問題，如宏觀經濟狀況、信貸市場波動和利率波動，這些因素往往涉及一些獨立和獨立的變量和因素之間的複雜相互作用。此類人工智能模型中的重大錯誤或不準確可能導致我們做出不準確或次優的運營或戰略決策，這可能會對我們的業務、財務狀況和運營結果產生不利影響。

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如果我們的人工智能模型不能及時準確反映經濟狀況對借款人信用風險的影響，那麼Upstart驅動的貸款的表現可能會比預期更差，我們的人工智能模型可能會被視爲無效。

通過我們的市場提供便利的貸款的表現在很大程度上取決於我們專有的人工智能模型的有效性，這些模型用於評估借款人的信用狀況和違約可能性。我們的人工智能模型在經濟低迷或衰退期間沒有經過廣泛的測試。即使信貸決策考慮了宏觀經濟狀況，也不能保證我們的人工智能模型能夠準確預測經濟狀況不利時期的貸款表現，或對不斷變化的經濟狀況做出快速反應。如果我們的人工智能模型無法準確反映這種經濟條件下貸款的信用風險，我們、我們的貸款合作伙伴和機構投資者在此類貸款上的損失將超過預期，這將損害我們的聲譽，並侵蝕我們與貸款合作伙伴和機構投資者建立的信任。我們已經並可能繼續經歷最近一段時間使用我們的人工智能模型發放的貸款的高違約率和不良表現。例如，2021年第一季度至2023年第四季度發放的核心個人貸款的季度年份預計將遜於貸款發放時設定的目標回報。我們資產負債表上貸款的公允價值已經下降，並可能繼續下降。如果我們的人工智能模型不能準確和及時地評估宏觀經濟狀況對通過我們的市場提供的貸款的業績和違約率的影響，我們的業務、財務狀況和運營結果可能會繼續受到不利影響。

如果我們無法批准大量借款人通過我們的市場貸款，我們的增長前景、業務、財務狀況和運營業績將受到不利影響。

我們的絕大部分收入來自平台和推薦費以及通過我們的市場提供的貸款服務費。增加我們的費用收入在很大程度上取決於我們增加市場上消費貸款交易量的能力。爲了滿足更多消費者對信貸的需求並增加市場上的交易量，我們必須從貸款合作伙伴和機構投資者那裏獲得充足的資本供應，我們必須推動尋求貸款的潛在借款人的足夠需求，借款人必須滿足我們的模型和貸款合作伙伴的批准要求。

雖然我們繼續提高我們人工智能模型的準確性，我們認爲這是我們長期成功的關鍵，但這種改進可能不會導致更多借款人在我們的平台上獲得批准。這些改進使我們在過去和將來可能會重新評估我們的信貸決策過程，包括與某些借款人相關的風險。借款人違約模式的變化和違約借款人數量的增加在過去和未來都會導致在我們平台上獲得貸款的借款人減少。此外，我們的貸款合作伙伴的信用要求以及我們的機構投資者和貸款合作伙伴爲向我們的市場提供資本而要求的目標回報，已經並可能繼續對我們以具有競爭力的條款或根本不向我們市場上的某些借款人提供貸款的能力產生負面影響。如果我們不能履行機構投資者或貸款合作伙伴的融資承諾，我們就有可能危及我們目前或未來對我們市場的資本供應。

在當前借貸成本和消費信貸相關風險上升的宏觀經濟環境下，合格借款人的數量變得越來越小，在我們的市場上收到或接受貸款報價的申請人比過去更少。在我們的平台上批准更多借款人也可能受到限制，因爲由於監管原因，我們歷來將Upstart支持的貸款的最高年百分比率保持在35.99%或更低。此外，在當前利率較高的環境下，貸款條款變得不太適合借款人，借款人需求總體下降。這些因素已經並可能繼續對我們市場的交易量產生負面影響，從而對我們的收入產生負面影響。如果我們無法維持或增加市場上的交易量，或吸引和留住合格借款人，我們的增長前景、業務、財務狀況和運營業績將受到不利影響。

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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.

我們與我們的每個貸款夥伴簽訂了一份單獨的協議。我們與貸款夥伴的協議是非排他性的，可能包含最低手續費金額。我們的貸款合作伙伴可以決定停止與我們合作，當他們的協議需要續簽或與我們的競爭對手建立排他性或更有利的關係時，要求以成本禁止的方式修改他們的協議條款。此外，他們的監管機構可能會要求他們終止或以其他方式限制他們與我們的業務往來，或者施加監管壓力，限制他們與我們做生意的能力。請參閱標題爲“-我們的業務受到廣泛的法律和法規的約束，其中許多正在演變，不遵守或被認爲不遵守這些法律和法規可能會損害我們的業務、財務狀況和運營結果「和」-CFPB有時會對其監管消費者金融服務的權力採取擴張性的看法，導致該機構的行動或任何其他機構的行動可能如何影響我們的業務的不確定性了解更多信息。此外，我們未來可能會與我們的任何貸款夥伴發生分歧或爭端，這可能會對我們與他們的關係產生負面影響或威脅。在我們與貸款合作伙伴的協議中，我們就我們遵守貸款合作伙伴的特定政策、適用於我們的貸款合作伙伴的法律法規的某些程序和指南以及我們將提供的服務做出某些陳述、保證和契諾。如果這些陳述和保證在作出時不準確，或者如果我們未能履行契約，我們可能要對由此產生的任何損害負責，包括可能與受影響貸款相關的任何損失，我們繼續吸引新貸款合作伙伴的聲譽和能力將受到不利影響。此外，我們的貸款合作伙伴可能會與彼此、我們的競爭對手或第三方進行合併、收購或合併，其中任何一項都可能擾亂我們與貸款合作伙伴現有的和未來的關係。如果我們不能維持或增加貸款合作伙伴的數量，我們的業務、財務狀況和經營結果可能會受到不利影響。
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基於我們對upstart支持的無擔保個人貸款組合中的損失的分析，不包括小額美元貸款，並且特定於我們的借款人基礎。由於我們借款人基礎的構成隨着時間的推移而變化，而且UMI是對所有upstart支持的無擔保個人貸款(小額美元貸款除外)進行計算的總和，因此UMI可能不是衡量特定貸款子集或借款人群體宏觀經濟風險水平的最佳指標。UMI並不打算以非upstart貸款的貸款組合或資產的損失來衡量宏觀經濟風險，這些貸款包括美國人口的其他部分持有的貸款。它的目的不是衡量整體經濟的當前狀態，也不是爲了衡量或預測未來的宏觀經濟狀況、趨勢或風險。它也不是爲了衡量或預測upstart未來的貸款業績、經營業績或股價。投資者、貸款合作伙伴和分析師可能出於這些或其他非預期目的不當使用或依賴UMI，或以其他方式誤解或曲解UMI。如果UMI在這些方面被誤解或曲解，可能會損害我們在貸款合作伙伴和機構投資者中的聲譽和可信度，並削弱我們留住他們並將他們吸引到我們貸款市場的能力。這可能會進一步減少我們的貸款合作伙伴和機構投資者願意資助的貸款產品的數量或類型。任何未能管理前述風險的行爲都可能對我們維持市場多樣化和彈性貸款融資的能力造成不利影響，進而對我們的業務、財務狀況和運營結果產生負面影響。

我們已經出現了淨虧損，未來可能無法實現盈利。

在截至2024年9月30日的9個月中，我們發生了12580美元的萬淨虧損。我們已經並打算繼續花費大量資金來開發和改進我們的專有人工智能模型，吸引更多的借款人進入我們的市場，增強我們平台上的功能和整體用戶體驗，擴大貸款產品供應，並以其他方式繼續增長我們的業務，我們可能無法增加足夠的收入來抵消這些重大支出。由於一些原因，包括本節所述的其他風險，以及不可預見的費用、困難、複雜情況和延誤、宏觀經濟狀況和其他未知事件，我們已經並預計將在未來招致重大損失。任何不能充分增加我們的收入以跟上我們的投資和其他費用的速度，都將使我們無法盈利。如果我們不能在遇到這些風險和挑戰時成功應對，我們的業務、財務狀況和經營業績可能會受到不利影響。

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.

近年來，我們在資產負債表上持有了更多upstart支持的貸款，未來可能會繼續這樣做。我們已經使用並可能繼續使用我們的資產負債表來支持我們針對新貸款產品和借款人細分市場的研發活動。除了研究和開發活動，我們已經並可能繼續利用我們的資產負債表從貸款合作伙伴那裏購買貸款，以應對我們市場的供需波動，並在貸款到期前定期將這些貸款出售給機構投資者。在截至2024年9月30日的9個月內，在我們的市場上促成的貸款本金總額中，8%是在我們的資產負債表上持有的。截至2024年9月30日，我們的資產負債表上持有537.6美元的貸款，不包括以合併證券化方式持有的貸款。我們在資產負債表上以公允價值持有貸款，並使用貼現現金流方法估計公允價值。市場利率的上升會增加貼現現金流量法下用於確定公允價值的貼現率，從而減少我們資產負債表上持有的貸款的公允價值。目前，我們處於高利率環境中。高利率對我們資產負債表上持有的貸款的公允價值產生了負面影響，未來可能會繼續如此。此外，對於這些貸款和任何未來將在我們的資產負債表上持有的貸款，我們承擔
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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，這些貸款的違約率和沖銷率高於某些貸款類別的預期，因此，我們不得不對資產負債表上的貸款進行不利的公允價值調整。這些不利的公允價值調整對我們的收入產生了負面影響，如果我們繼續經歷高於預期的違約率或貸款未能按預期執行，我們將需要在未來進行額外的不利公允價值調整，這將對我們的收入產生負面影響。如果我們以不利的價格出售資產負債表上持有的貸款，如研發貸款，也有可能確認損失。此外，我們收入的一部分是從資產負債表上持有的貸款獲得的利息收入，如果我們增加資產負債表上持有的貸款金額，我們將變得更加依賴利息收入作爲收入來源，並變得更容易受到與這些貸款相關的信用風險和借款人違約的影響。從流動性的角度來看，我們資產負債表上不斷增長的貸款額增加了我們的流動性風險。我們不能確定我們是否能夠以商業上合理的條款出售這些貸款，或者任何未來放在我們資產負債表上的貸款。如果我們無法做到這一點，我們滿足業務需要和履行義務的能力可能會受到干擾。此外，使用我們的資產負債表轉移了財務資源用於其他用途，如改善我們的產品和服務，這可能會對我們的運營結果產生不利影響。

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.

我們相信，我們的增長在很大程度上是由我們的人工智能模型以及我們對人工智能模型的持續改進推動的。未來對人工智能模型的漸進改進可能不會帶來與過去相同水平的增長。此外，我們相信我們過去的增長在一定程度上是由於我們能夠快速簡化和自動化平台上的貸款申請和發放流程。我們預計完全自動化貸款比例將趨於平穩並長期保持相對穩定。然而，我們的貸款產品擴展到無擔保個人貸款（例如汽車貸款和房屋淨值信貸額度）之外，可能會導致該百分比在不同時期的波動，具體取決於貸款產品組合。由於這些因素，我們的收入可能會進一步下降，我們的財務表現可能會繼續受到不利影響。

我們的季度業績可能會波動，因此可能會對我們普通股的交易價格產生不利影響。

我們的季度運營業績，包括收入、淨利潤（虧損）和其他關鍵指標，未來可能會出現顯着變化，並且對我們的運營業績進行的期與期比較可能沒有意義。因此，任何一個季度的業績不一定是未來業績的準確指標。我們的季度財務業績可能會因多種因素而波動，其中許多因素超出了我們的控制範圍。可能導致季度財務業績波動的因素包括但不限於：
•總體經濟狀況，包括經濟放緩、衰退、利率變化、通貨膨脹、信貸市場收緊和銀行業中斷;
•我們的借貸成本和獲得貸款資金來源;
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•我們提高人工智能模型有效性和預測性的能力，包括對交易量產生負面影響的改進，例如降低批准率;
•我們吸引新貸款合作伙伴和機構投資者進入我們的市場的能力;
•我們與現有貸款合作伙伴和機構投資者維持關係的能力;
•我們維持或增加貸款量、改善貸款組合以及貸款、貸款合作伙伴和貸款資金來源渠道的能力;
•我們有能力與潛在借款人訪問我們的網站的貸款聚合商保持有效的關係;
•我們識別和預防欺詐活動的能力以及欺詐預防措施的影響;
•資產負債表上資產和負債的公允價值變化;
•新產品和服務的時機和成功;
•我們的直接營銷和其他營銷渠道的有效性;
•與維持和擴大我們的業務、運營和基礎設施相關的運營費用的金額和時間，包括收購新的和維持現有的貸款合作伙伴和機構投資者以及吸引借款人進入我們的市場;
•我們平台上提供的貸款預付的數量和程度;
•我們的網絡、產品和服務或基礎設施的可用性和完整性，或者我們或我們依賴運營業務的第三方經歷的實際或感知的安全漏洞或事件;
•我們參與訴訟或監管執法工作（或其威脅）或對我們行業產生總體影響的工作;
•與收購新貸款合作伙伴相關的入職過程的長度;
•影響我們業務的法律法規的變化；以及
•我們行業競爭動態的變化，包括競爭對手之間的整合或資金充足的大型現有企業開發有競爭力的產品。

此外，我們對Upstart驅動的貸款的需求通常會經歷季節性，第一季度的需求通常較低。這種季節性放緩主要是由於第四季度假期前後貸款需求高，以及第一季度借款人可用現金流普遍增加，包括從退稅中收到的現金，這暫時減少了借款需求。這種季節性和季度業績的其他波動也可能對我們普通股的交易價格產生不利影響，並增加其波動性。

我們與機構投資者、證券化和倉庫信貸設施的貸款融資安排使我們面臨某些風險，如果我們未能成功管理此類風險，可能會導致貸款融資資本供應減少，或要求我們爲我們的市場尋求成本更高或效率更低的融資。

我們已經推動了upstart貸款的證券化，並在未來可能會促進更多的證券化，以允許我們的機構投資者、某些貸款合作伙伴和/或我們自己通過資產支持證券市場或其他資本市場產品清算或融資此類貸款。在資產支持證券交易中，我們將貸款池出售並轉讓給特殊目的實體(SPE)。同樣，我們通過將貸款出售給倉儲信託特殊目的實體，並利用相關的倉儲信貸安排，爲資產負債表上的某些貸款提供資金。每個證券化SPE根據契約和信託協議的條款發行票據和/或證書，或者在倉庫信貸安排的情況下，倉庫信託SPE根據信貸和擔保協議向銀行借款。特殊目的實體在資產擔保證券化交易中發行的證券和倉儲特殊目的實體借入的信貸額度均由適用的特殊目的實體擁有的貸款池擔保。我們，我們的機構投資者，已經購買了全部貸款或者通行證，
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和/或我們的貸款合作伙伴向SPE提供貸款，並作爲交換，接收代表該SPE債務和/或股權的現金和/或證券。

當我們是證券化的唯一保薦人時，根據RR規則，我們必須根據證券化的資產類型，在特定的時間段內保留此類交易中至少5%的信用風險。我們過去有，並可能選擇保留在我們發起或協助的資產擔保證券化交易中發行的額外證券，如票據或證書。這些證書代表特殊目的實體的剩餘權益，從屬於票據，因此面臨更大的信用風險。2023年，我們擔任資產證券化的唯一留存保薦人，其中一次，我們不僅保留了RR法規規定的用於風險保留目的的證券，還保留了額外的剩餘股權，使我們面臨更大的信用風險。我們保留的證券可能會貶值，包括變得一文不值。未來，我們可能會再次保留作爲證券化的一部分發行的證券，而不是風險保留要求。此外，其他事項，例如適用於持有資產支持證券的銀行和其他受監管金融機構的資本和槓桿要求，或來自其他資產支持證券發行人的日益激烈的競爭，可能會減少機構投資者對通過我們的證券化交易發行的證券的需求，從而對我們的業務產生負面影響。此外，遵守某些監管要求，包括修訂後的《多德-弗蘭克法案》、1940年《投資公司法》或《投資公司法》，以及所謂的《沃爾克規則》，可能會影響我們能夠完成的證券化類型。

如果我們未來不可能或不經濟地將貸款證券化，或者我們作爲證券化中的風險保留持有人，以造福購買完整貸款或直通憑證的投資者和/或我們的貸款合作伙伴，我們可能需要尋求替代融資來提供貸款資金爲我們的市場並履行我們現有的債務義務。此類資金可能無法以商業上合理的條款提供，或者根本無法提供。如果此類貸款融資機制的成本高於我們證券化的成本，將對我們的運營結果產生負面影響。如果我們無法獲得此類融資，我們發放貸款的能力以及我們的運營業績、財務狀況和流動性可能會受到重大不利影響。

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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我們依賴我們的關鍵人員和其他高技能人員，如果我們未能吸引、留住和激勵我們的人員，我們的業務、財務狀況和運營業績可能會受到不利影響。

我們的成功在很大程度上取決於我們的高級管理團隊和其他高技能人員的持續服務。我們的成功還取決於我們爲組織各個領域識別、僱用、培養、激勵和保留高素質人才的能力。

對技術人才的競爭非常激烈，包括工程和數據分析人員，特別是在我們的一個總部所在的舊金山灣區。雖然我們已經過渡到數字優先的工作模式，允許我們在全國範圍內招聘，但我們已經經歷了一些困難，預計將繼續面臨尋找和招聘合格人員的困難，特別是在我們追求增長戰略的過程中。我們可能無法以符合我們現有薪酬和薪金結構及政策的薪酬或彈性水平聘用或保留這些人員。我們定期審查我們的薪酬水平，以確保它們保持競爭力，並在我們認爲市場條件允許的時候提高它們。然而，我們可能需要進一步提高現有的薪酬水平，以應對競爭、不斷上升的通脹或勞動力短缺，這將增加我們的運營成本，降低我們的利潤率。與我們競爭的許多公司擁有比我們更多的資源，或許能夠提供更有吸引力的僱傭條件。特別是，候選人在做出就業決定時，特別是在高科技行業，往往會考慮他們可能獲得的與其就業有關的任何股權的價值。我們股票價格最近的大幅波動可能對我們吸引或留住高技能技術、財務和營銷人員的能力產生了不利影響，而且在未來可能會影響到這一能力。

此外，我們投入大量時間和費用來培訓員工，這增加了他們對可能尋求招聘他們的競爭對手的價值。如果我們未能留住員工，我們可能會在僱用和培訓他們的替代者方面承擔大量費用。雖然我們正在培訓他們的替代者，但我們的服務質量以及爲我們的貸款合作伙伴、機構投資者和借款人提供服務的能力，他們的貸款可能會受到影響，從而對我們的業務產生不利影響。

此外，我們過去曾裁員，未來可能會進一步裁員，以降低運營成本和精簡運營。我們這些裁員可能會對員工士氣、我們的文化以及我們吸引和留住對我們業務至關重要的人員的能力產生不利影響。由於資源和人員不足，這也可能對我們採取新舉措的能力產生負面影響。我們可能無法成功地將受影響員工的職責和義務分配給其餘員工。我們也可能無法實現預期的收益和成本節約，並可能遭受意想不到的後果，例如失去機構知識、高於預期的員工流動率以及我們日常運營的重大中斷。如果我們無法通過裁員實現預期的運營效率或成本節約，或者如果我們因此經歷了重大的不利後果，我們的業務、財務狀況和運營結果可能會受到不利影響。

如果我們未能有效管理業務的波動，我們的業務、財務狀況和經營業績可能會受到不利影響。

我們過去的增長對我們的管理、流程以及運營、技術和財務資源提出了巨大的要求。近年來的經濟逆風導致我們宣佈裁員，目的是幫助我們實現一個更具成本效益的組織。我們業務勢頭的這些波動挑戰了我們有效管理增長以及將新員工和技術整合到現有業務中的能力。作爲一家企業，我們的成功繼續要求我們留住、吸引、培訓、激勵和管理員工，並進行戰略性投資，以完善我們的運營、技術和金融基礎設施。另見題爲“-我們依賴我們的關鍵人員和其他高技能人員，如果我們不能吸引、留住和激勵我們的人員，我們的業務、財務狀況和經營結果可能會受到不利影響“作爲這一努力的一部分，我們不時地依靠臨時獨立承包商計劃來擴大我們的運營團隊。如果不能有效地實施和管理這些計劃，可能會導致政府錯誤分類或其他與就業有關的索賠或查詢
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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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如果我們的貸款合作伙伴發放的貸款被發現違反了一個或多個州的法律，無論是貸款合作伙伴在發放時還是銷售後，通過我們的市場提供的貸款可能無法執行或以其他方式受損，我們或我們的貸款合作伙伴或機構投資者可能會受到罰款和處罰等，和/或我們的商業關係可能會受到影響，其中每一項都會對我們的業務和運營業績產生不利影響.

在建立利率和結構(以及根據聯邦和州銀行法構成利息的某些費用的金額和結構，如發放費、滯納金和資金不足費用)時，我們的貸款合作伙伴依賴聯邦法律下的某些權力來輸出每個貸款合作伙伴所在州的利率要求。此外，我們、我們的證券化工具和我們的機構投資者購買由我們的貸款合作伙伴發起的upstart支持的貸款，依賴於作爲貸款的後續持有人繼續收取利率和費用結構的能力，並在聯邦銀行法允許的情況下執行貸款合作伙伴和借款人之間商定的其他合同條款。目前，通過我們的市場提供便利的貸款的最高年利率爲35.99%。在一些州，某些upstart支持的貸款的利率超過了非銀行貸款人向居住在這些州或與這些州有聯繫的借款人發放消費貸款的最高利率。幾個州還出台了立法，阻止州特許銀行將更高的利率輸出到選擇退出允許這種做法的聯邦法律的州。此外，並非所有州都允許非銀行購買者使用upstart支持的貸款的利率結構，和/或與upstart支持的貸款相關的某些費用的金額或結構可能不適用於所有州的非銀行購買者。此外，其他州也提出或頒佈了對利率和費用的額外限制，例如伊利諾伊州、緬因州和新墨西哥州的法律，將某些貸款的利率上限定爲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.

參見《馬登訴米德蘭基金》一案，載於《聯邦判例彙編》第3集，第786卷，第246頁(第二巡回法庭)。2015)，Cert.拒絕，136攝氏度。2505(2016年6月27日)，例如，美國第二巡迴上訴法院裁定，違約信用卡債務的非銀行購買者不能依靠適用於此類債務發起人的《國家銀行法》下的優先購買權標準來抗辯高利貸索賠。Madden案涉及的情況是，消費者信用卡帳戶下的違約信用延期在違約後被轉讓給非銀行債務購買者，該購買者隨後試圖收回貸款並繼續按合同約定的利率收取利息。債務人提起訴訟，除其他索賠外，聲稱非銀行託收實體收取的利率超過了紐約州高利貸法律允許的此類實體的高利貸利率。第二巡迴法院推翻了下級法院的裁決，認爲《國家銀行法》適用於發行信用卡的銀行的優先購買權標準不適用於非銀行債務買家，作爲對高利貸索賠的抗辯。在第二巡迴法院駁回重審請求後，被告尋求美國最高法院的複審。最高法院於2016年6月27日駁回了移審令，因此，第二巡迴法院的裁決對第二巡迴法院(包括紐約、康涅狄格州和佛蒙特州的所有聯邦法院)仍然具有約束力。在發回地方法院考慮其他問題後，雙方於2019年解決了這一問題。

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第二巡迴法院馬登裁決的範圍和有效性仍有待質疑和澄清。例如，科羅拉多州統一消費者信用代碼(UCCC)科羅拉多州行政長官就兩個在線貸款平台的投訴達成和解，這兩個在線貸款平台的運營與我們有某些共同點，包括髮起貸款的貸款合作伙伴和此類貸款的非銀行購買者的角色。這些投訴包括基於第二巡迴法院馬登裁決的指控，即某些貸款的利率和費用不能由非銀行購買者合法地購買銀行發起的貸款。根據和解協議，銀行和非銀行買家承諾將向科羅拉多州消費者提供貸款的年利率(APR)限制在36%，並採取其他行動確保銀行實際上是真正的貸款人。非銀行買家還同意獲得並保留科羅拉多州的貸款許可證。在科羅拉多州，這項和解爲構成可接受的銀行合夥模式創造了一個有用的模式；然而，科羅拉多州通過了一項立法，選擇退出允許州特許銀行輸出利率的聯邦法律，該法律定於2024年7月1日生效，但後來在等待該法律的法律挑戰結果之前受到了禁令的限制。無論如何，和解協議也可能會邀請其他州發起自己的行動，並通過執行來設定自己的監管標準。

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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