Upstart Holdings Inc
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 8, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows
| Nine Months Ended September 30, | ||
|---|---|---|
| 2023 | 2024 | |
| Cash flows from operating activities | ||
| Net loss | $(197,734) | $(125,826) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||
| Change in fair value of loans | 131,222 | 167,545 |
| Change in fair value of servicing assets | 16,888 | 12,838 |
| Change in fair value of servicing liabilities | (1,655) | (877) |
| Change in fair value of beneficial interest assets | 9,128 | (35,825) |
| Change in fair value of beneficial interest liabilities | (848) | 12,633 |
| Change in fair value of other financial instruments | (3,418) | 8,263 |
| Stock-based compensation | 142,273 | 103,604 |
| Gain on loan servicing rights, net | (10,432) | (11,448) |
| Gain on debt extinguishment | — | (33,361) |
| Depreciation and amortization | 15,800 | 15,850 |
| Non-cash interest expense | 2,296 | 2,156 |
| Other | (2,260) | (10,874) |
| Net changes in operating assets and liabilities: | ||
| Purchases of loans held-for-sale | (2,076,734) | (2,626,246) |
| Proceeds from sale of loans held-for-sale | 1,875,358 | 2,613,039 |
| Principal payments received for loans held-for-sale | 139,582 | 157,010 |
| Principal payments received for loans held by consolidated securitization | 12,302 | 36,532 |
| Payments on beneficial interest liabilities | — | (3,692) |
| Other assets | 27 | (2,110) |
| Operating lease liability and right-of-use asset | 1,563 | (600) |
| Payable to investors for beneficial interest assets(1) | 5,749 | — |
| Accrued expenses and other liabilities | (25,220) | 18,646 |
| Net cash provided by operating activities | 33,887 | 297,257 |
| Cash flows from investing activities | ||
| Purchases and originations of loans held-for-investment | (121,294) | (196,580) |
| Proceeds from sale of loans held-for-investment | 774 | — |
| Principal payments received for loans held-for-investment | 78,327 | 99,768 |
| Principal payments received for notes receivable and repayments of residual certificates | 3,556 | 4,004 |
| Purchases of property and equipment | (1,285) | (837) |
| Capitalized software costs | (9,135) | (5,734) |
| Acquisition of beneficial interest assets | (39,505) | (63,246) |
| Proceeds from beneficial interest assets | — | 2,808 |
| Net cash used in investing activities | (88,562) | (159,817) |
| Cash flows from financing activities | ||
Condensed Consolidated Statements of Cash Flows
| Nine Months Ended September 30, | ||
|---|---|---|
| 2023 | 2024 | |
| Proceeds from warehouse borrowings | 529,494 | 297,587 |
| Proceeds from convertible notes issuance, net of debt issuance costs paid to lender | — | 423,002 |
| Payment of debt issuance costs to third party | — | (1,455) |
| Repayments of warehouse borrowings | (514,792) | (293,179) |
| Payments for repurchases of convertible notes | — | (325,344) |
| Purchase of capped calls | — | (40,883) |
| Settlement of capped calls | — | 580 |
| Principal payments made on securitization notes | (10,016) | (42,705) |
| Payable to investors(1) | (50,668) | 12,990 |
| Proceeds from issuance of securitization notes | 165,318 | — |
| Proceeds from issuance of common stock under employee stock purchase plan | 8,431 | 7,685 |
| Proceeds from exercise of stock options | 9,475 | 12,281 |
| Taxes paid related to net share settlement of equity awards | (6) | (19) |
| Net cash provided by financing activities | 137,236 | 50,540 |
| Change in cash and restricted cash | 82,561 | 187,980 |
| Cash and restricted cash | ||
| Cash and restricted cash at beginning of period | 532,467 | 467,787 |
| Cash and restricted cash at end of period | $615,028 | $655,767 |
| Supplemental disclosures of cash flow information | ||
| Cash paid for interest | $22,481 | $34,795 |
| Cash (received) paid for income taxes, net | (982) | 250 |
| Supplemental disclosures of non-cash investing and financing activities | ||
| Settlement of borrowings in connection with loan sale | $— | $221,749 |
| Beneficial interests obtained in connection with loan sale | — | 45,971 |
| Capitalized stock-based compensation expense | 5,890 | 2,809 |
| Issuance costs of new convertible notes | — | (714) |
| Issuance of line of credit receivable | — | (30,907) |
| Securities retained under consolidated securitization transaction | 44,763 | — |
| Beneficial interest assets included in payable to investors | 5,749 | — |
(1)During the nine months ended September 30, 2024, the Company elected to change the presentation of changes in the payable to investors balance on the condensed consolidated statement of cash flows, refer to “Note 1. Description of Business and Significant Accounting Policies” for further details.
Condensed Consolidated Statements of Cash Flows (Continued)
The following presents cash and restricted cash by category within the unaudited condensed consolidated balance sheets:
| December 31, | September 30, | |
|---|---|---|
| 2023 | 2024 | |
| Cash | $368,405 | $445,274 |
| Restricted cash | 99,382 | 210,493 |
| Total cash and restricted cash | $467,787 | $655,767 |
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