Upstart (NASDAQ: UPST) isn’t hopping on the bandwagon of the latest technological wave. In fact, it was ahead of the curve, as its entire business model was built on top of its foundational artificial intelligence (AI) capabilities. The company leverages AI to better assess the credit risk of borrowers who might be turned away by traditional lenders.
Despite having this innovative platform, the fintech stock trades 93% below its record (as of March 10). And it’s down 36% just in 2026. Should you invest $1,000 in Upstart right now?
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Upstart’s growth has accelerated. After posting a year-over-year revenue gain of 24% in 2024, the top line jumped 64% in 2025 to $1 billion. This was driven by an explosive 115% gain in loan originations last year. Newer lending products, like auto refinancing and home equity lines of credit, are seeing strong demand, although they’re coming off small bases.
Even more encouraging is the company’s profitability. Net income totaled $54 million in 2025.
But investors should proceed with extreme caution. Upstart’s business has proven to be highly cyclical in the past, given that its success is dependent on unpredictable interest rates and credit market conditions that influence the activity of both borrowers on one side and institutional investors on the other side that buy these loans.
This makes it almost impossible to come up with a reasonable forecast of Upstart’s future financials. Investors looking to put $1,000 to work might want to steer clear of this risky stock.
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