Fintech companies Upstart and Toast saw major gains on Friday following better-than-expected earnings reports. Upstart, which uses artificial intelligence for online lending decisions, soared 46%, marking its best single-day performance in over three years. Payments technology provider Toast also jumped 14%, closing at its highest point since 2021.
Upstart reported a strong third quarter, with revenue increasing by 20% to $162 million, far exceeding analyst estimates. CEO David Girouard highlighted the company’s positive outlook during the earnings call, stating, “We’re in growth mode.” The strong results and optimistic forecast fueled the stock’s rally, which capped a broader positive week on Wall Street.
Toast, while still below its pandemic highs from 2021, has now more than doubled in value this year. The company’s earnings forecast for the current quarter, projected between $90 million and $100 million, easily surpassed market expectations. The upbeat outlook contributed to a surge in Toast shares, bolstering investor confidence.
The broader market saw a strong rally this week, following Donald Trump’s election victory on Tuesday night. All three major U.S. stock indexes closed at record highs, with the Nasdaq gaining 5.7%, marking its second-best week of the year. Within fintech, companies tied to cryptocurrency were among the top performers, driven by election wins from crypto-backed candidates.
Coinbase shares surged 48% for the week, their best performance since January 2023. Coinbase was a major corporate donor during the election cycle, contributing over $75 million to pro-crypto political action committees (PACs) like Fairshake. The company recently pledged an additional $25 million to support pro-crypto initiatives in the upcoming 2026 midterm elections. Trump’s pledge to replace SEC Chair Gary Gensler is seen as a positive development for Coinbase, which is currently battling the regulator in court over alleged securities violations.
Robinhood, another fintech with exposure to digital currencies, rose 27% for the week. The online brokerage has faced scrutiny from the SEC, receiving a Wells Notice in May, a potential precursor to formal charges. However, strong performance in the crypto market bolstered Robinhood’s stock.
Bitcoin reached a new intraday high of $77,300, ending the week up 11%. Altcoins like ether, solana, and dogecoin outpaced bitcoin’s gains, contributing to the broader rally in the crypto sector.
Not all fintechs shared in the success. Block, the parent company of Square, reported third-quarter revenue that missed Wall Street estimates, resulting in a modest 3.3% increase in stock price for the week, trailing the broader tech market. Affirm, a buy now, pay later provider, beat earnings expectations but still saw its stock decline by 4.7% on Friday, leaving it slightly ahead of the Nasdaq for the week.
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