Upstart Holdings, Inc. (NASDAQ: UPST) saw its stock plummet 13.80% in pre-market trading on Wednesday following the release of its third-quarter earnings report and disappointing forward guidance. The AI-driven lending platform's shares took a nosedive as investors focused on revenue misses and a lowered outlook, despite beating earnings expectations.

For the third quarter, Upstart reported adjusted earnings per share of $0.52, surpassing the analyst consensus estimate of $0.42. This marked a significant improvement from the $0.06 loss per share in the same period last year. However, the company's quarterly revenue of $277.1 million fell short of the expected $279.62 million. Despite the miss, this figure still represents a substantial 70.90% year-over-year increase from $162.140 million.

The sharp decline in Upstart's stock price was primarily driven by the company's disappointing guidance for the fourth quarter and full fiscal year 2025. Upstart expects fourth-quarter revenue of $288 million, significantly below the analyst estimate of $303.61 million. Moreover, the company lowered its fiscal 2025 revenue outlook from $1.05 billion to $1.03 billion, falling short of Wall Street expectations. This guidance suggests a dramatic slowdown in growth, with the projected 32% year-over-year increase for Q4 2025 paling in comparison to the 71% growth seen in Q3. The market's negative reaction highlights investors' concerns about Upstart's growth trajectory in an increasingly challenging economic environment.