SAN DIEGO, April 23, 2026 /PRNewswire/ — Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Upstart Holdings, Inc. (NASDAQ: UPST) securities between May 14, 2025 and November 4, 2025. Upstart, together with its subsidiaries, operates a cloud-based artificial intelligence (“AI”) lending platform in the U.S.
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What is the class period? May 14, 2025 – November 4, 2025
What are the allegations? Robbins LLP is Investigating Allegations that Upstart Holdings, Inc. (UPST) Misled Investors Regarding its Business Prospects
According to the complaint, in early May 2025, Upstart launched the latest iteration of its AI model, referred to as “Model 22”. At all relevant times, defendants touted the purported accuracy of Model 22, claiming that it was increasing loan approval rates and, accordingly, the Company’s revenues and growth. For example, in February 2025, Upstart issued financial guidance for the full year (“FY”) of 2025, including, inter alia, revenue of approximately $1 billion, which included revenue from fees of approximately $920 million. In May 2025, defendants slightly raised the foregoing guidance to revenue of approximately $1.01 billion, which still included revenue from fees of approximately $920 million. Then, in August 2025, defendants substantially raised the foregoing guidance to revenue of approximately $1.055 billion, which included revenue from fees of approximately $990 million – $70 million more than previously projected – citing improvements in performance driven by Model 22.
Plaintiff alleges that during the class period, defendants failed to disclose that: (i) Model 22 frequently overreacted to negative macroeconomic signals in performing its risk-separation
processes; (ii) accordingly, Model 22’s overall accuracy and propensity to increase loan approval
rates were overstated; and (iii) Model 22’s overly conservative assessment of credit and macroeconomic conditions was having a significant negative impact on Upstart’s revenue results, rendering the Company’s previously issued FY 2025 revenue guidance unreliable and/or unrealistic.
The complaint alleges that Upstart reported its financial results for the third quarter of 2025 on November 4, 2025, reporting. inter alia, Q3 2025 revenue of $277 million, missing its previously issued Q3 2025 revenue guidance of approximately $280 million, as well as consensus estimates by $2.62 million. Upstart also reported that it expected to generate revenue of only $288 million in the fourth quarter of 2025, significantly below consensus estimates of $303.7 million. Further, Upstart negatively revised its FY 2025 revenue guidance to approximately $1.035 billion, versus the $1.06 billion consensus estimate and its prior guidance of approximately $1.055 billion, as well as its expected FY 2025 revenue from fees, which it reduced to approximately $946 million from its prior outlook of approximately $990 million. On this news, Upstart’s stock price fell $4.49 per share, or 9.71%, to close at $41.75 per share on November 5, 2025.
What can shareholders do now? You may be eligible to participate in the class action against Upstart Holdings, Inc. Shareholders who wish to serve as lead plaintiff for the class must submit their papers to the court by June 8, 2026. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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SOURCE Robbins LLP
