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Upstart Announces Results for Third Quarter 2025

SAN MATEO, Calif. – November 4, 2025 – Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced financial results for the quarter ended September 30, 2025. Upstart will host a conference call and webcast at 1:30 p.m. Pacific Time today. An earnings presentation and link to the webcast are available at ir.upstart.com.

“In Q3, we continued to execute on our 2025 game plan of rapid growth, profitability, and AI leadership — all anchored in exceptional credit performance. The results include 80% year-on-year growth in originations with 71% growth in revenue, and a sixfold sequential increase in GAAP net income,” said Dave Girouard, Co-founder and CEO of Upstart. “Our AI platform is performing exactly as designed, rapidly adapting to evolving macro signals while delivering strong results.”

Third Quarter 2025 Highlights
•Transaction Volume: 428,056 loans originated, up 128% year-over-year (“YoY”) reflecting a 20.6% Conversion Rate, up from 16.3% in Q3 2024. Total originations were roughly $2.9 billion, up 80% YoY.
•Total Revenue: $277 million, up 71% YoY. Revenue from fees was $259 million, up 54% YoY.
•GAAP Income (Loss) from Operations: $23.7 million, an improvement from ($45.2) million in Q3 2024.
•GAAP Net Income (Loss): $31.8 million, an improvement from ($6.8) million in Q3 2024. Diluted net income (loss) per share was $0.23 compared with ($0.07) in Q3 2024.
•Contribution Profit: $147 million, up 44% YoY. Contribution Margin was 57%, versus 61% in Q3 2024.
•Adjusted EBITDA: $71.2 million, up from $1.4 million in Q3 2024. Adjusted EBITDA Margin was 26%, up from 1% in Q3 2024.

Financial Outlook
For the fourth quarter of 2025, Upstart expects:
•Total Revenue of approximately $288 million
◦Revenue From Fees of approximately $262 million
◦Net Interest Income of approximately $26 million
•Contribution Margin of approximately 53%
•GAAP Net Income of approximately $17 million
•Adjusted Net Income of approximately $52 million
•Adjusted EBITDA of approximately $63 million
•Basic Weighted-Average Share Count of approximately 98 million shares
•Diluted Weighted-Average Share Count of approximately 111 million shares
For full-year 2025, Upstart expects:
•Total Revenue of approximately $1.035 billion
◦Revenue From Fees of approximately $946 million
◦Net Interest Income of approximately $89 million
•GAAP Net Income of approximately $50 million
•Adjusted EBITDA Margin of approximately 22%

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Conference Call and Webcast Information
•Live Conference Call and Webcast at 1:30 p.m. PT on November 4, 2025. To access the call in the United States and Canada: +1 800-330-6710, conference code 6983515. To access the call outside of the United States and Canada: +1 312-471-1353, conference code 6983515. A webcast is available at ir.upstart.com.
•Event Replay. A webcast of the event will be archived for one year at ir.upstart.com.

About Upstart
Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans. Upstart is based in San Mateo, California.

Investors    
Sonya Banerjee
ir@upstart.com

Press
Chantal Rapport
press@upstart.com

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding our outlook for the fourth quarter of 2025 and the full-year of 2025. These statements may include words such as “anticipate”, “becoming”, “believe”, “can have”, “continue”, “could”, “estimate”, “expect”, “intend”, “likely”, “look forward”, “may”, “ongoing,” “plan”, “potential”, “predict”, “project”, “should”, “target”, “will”, “would,” or the negative of these terms or other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events that do not relate strictly to historical or current facts. Forward-looking statements give our current expectations and projections relating to our financial condition; macroeconomic factors; plans; objectives; product development; growth opportunities; assumptions; risks; future performance; business; investments; and results of operations, including revenue (including revenue from fees and net interest income (loss)), contribution margin, net income (loss), non-GAAP adjusted net income (loss), Adjusted EBITDA, basic weighted-average share count, and diluted weighted-average share count. Forward-looking statements are based on information available at the time those statements are made or management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
More information about factors that could affect our results of operations and risks and uncertainties are provided in our public filings with the Securities and Exchange Commission (the “SEC”), including “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting our investor relations website at ir.upstart.com or the SEC’s website at www.sec.gov. These risks and uncertainties include, but are not limited to, our ability to manage the adverse effects of macroeconomic conditions and disruptions in the banking sector and credit markets, including inflation and related changes in interest rates and monetary policy; our ability to access sufficient loan funding, including through securitizations, committed capital
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and other co-investment arrangements, whole loan sales, and warehouse credit facilities; the effectiveness of our credit decisioning models and risk management efforts, including reflecting the impact of macroeconomic conditions on borrowers' credit risk; our ability to retain existing, and attract new, lending partners; our future growth prospects and financial performance; our ability to manage risks associated with the loans on our balance sheet; our ability to improve and expand our platform and products; and our ability to operate successfully in a highly-regulated industry. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Additional information will be available in other future reports that we file with the SEC from time to time, which could cause actual results to vary from expectations.

Key Operating Metrics and Non-GAAP Financial Measures
We define Transaction Volume, Dollars as the total principal of loan originations (or committed amounts for HELOCs) facilitated on our marketplace during the periods presented. We define Transaction Volume, Number of Loans as the number of loan originations (or commitments issued for HELOCs) facilitated on our marketplace during the periods presented. We believe these metrics are good proxies for our overall scale and reach as a marketplace.

We define Conversion Rate as the Transaction Volume, Number of Loans in a period divided by the number of rate inquiries received that we estimate to be legitimate, which we record when a borrower requests a loan offer on our platform. We track this metric to understand the impact of improvements to the efficiency of our borrower funnel on our overall growth.

We define Percentage of Loans Fully Automated as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period.

To derive Contribution Profit, we subtract the sum of borrower acquisition costs as well as borrower verification and servicing costs from revenue from fees, net. To calculate Contribution Margin we divide Contribution Profit by revenue from fees, net.

We calculate Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense and certain payroll tax expenses, depreciation and amortization, expense on convertible notes, provision for income taxes, gain on debt extinguishment and reorganization expenses. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA and Adjusted EBITDA Margin includes interest expense from corporate debt and warehouse credit facilities which is incurred in the course of earning corresponding interest income.

We define Adjusted Net Income (Loss) as net income (loss) exclusive of stock-based compensation expense and certain payroll tax expenses as well as certain items that are not related to core business and ongoing operations, such as gain on debt extinguishment and reorganization expenses. Adjusted Net Income (Loss) Per Share is calculated by dividing Adjusted Net Income (Loss) Per Share by the weighted-average common shares outstanding.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included below. Upstart has not reconciled the forward-looking non-GAAP measures to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort.
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UPSTART HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
(Unaudited)

December 31,September 30,
20242025
Assets
Cash and cash equivalents$788,422 $489,784 
Restricted cash187,841 347,121 
Loans (at fair value)(1)
806,304 1,229,976 
Property, equipment, and software, net39,013 44,259 
Operating lease right of use assets43,455 34,646 
Beneficial interest assets (at fair value)176,848 316,199 
Non-marketable equity securities41,250 41,250 
Goodwill67,062 67,062 
Other assets (includes $107,627 and $229,214 at fair value as of December 31, 2024 and September 30, 2025, respectively)
216,763 334,551 
Total assets$2,366,958 $2,904,848 
Liabilities and Stockholders’ Equity
Liabilities:
Payable to investors$60,173 $93,400 
Borrowings1,402,168 1,855,754 
Payable to securitization note holders (at fair value)87,321 55,175 
Accrued expenses and other liabilities (includes $15,883 and $20,492 at fair value as of December 31, 2024 and September 30, 2025, respectively)
133,800 116,250 
Operating lease liabilities50,278 40,551 
Total liabilities1,733,740 2,161,130 
Stockholders’ equity:
Common stock, $0.0001 par value; 700,000,000 shares authorized; 93,469,721 and 97,275,544 shares issued and outstanding as of December 31, 2024 and September 30, 2025, respectively
9 10 
Additional paid-in capital1,044,366 1,119,900 
Accumulated deficit(411,157)(376,192)
Total stockholders’ equity633,218 743,718 
Total liabilities and stockholders’ equity$2,366,958 $2,904,848 
__________

(1)Includes $102.9 million and $64.1 million of loans, at fair value, contributed as collateral for the consolidated securitization as of December 31, 2024 and September 30, 2025, respectively.
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UPSTART HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Revenue:
Revenue from fees, net(1)
$167,590 $258,539 $436,190 $684,791 
Interest income, interest expense, and fair value adjustments, net:
Interest income(2)
40,845 57,203 144,899 143,394 
Interest expense(2)
(10,818)(8,794)(33,002)(23,586)
Fair value and other adjustments(2)(3)
(35,477)(29,843)(130,523)(56,832)
Total interest income, interest expense, and fair value adjustments, net(5,450)18,566 (18,626)62,976 
Total revenue162,140 277,105 417,564 747,767 
Operating expenses:
Sales and marketing43,229 78,844 111,337 210,919 
Customer operations39,302 49,790 117,394 136,537 
Engineering and product development64,887 64,026 186,431 190,689 
General, administrative, and other59,874 60,779 170,508 185,910 
Total operating expenses207,292 253,439 585,670 724,055 
Income (loss) from operations
(45,152)23,666 (168,106)23,712 
Other income, net5,078 1,017 8,993 4,209 
Gain on debt extinguishment
33,361 7,246 33,361 7,246 
Net income (loss) before income taxes(6,713)31,929 (125,752)35,167 
Provision for income taxes45 124 74 202 
Net income (loss)$(6,758)$31,805 $(125,826)$34,965 
Net income (loss) per share, basic$(0.07)$0.33 $(1.42)$0.37 
Net income (loss) per share, diluted$(0.07)$0.23 $(1.42)$0.28 
Weighted-average number of shares outstanding used in computing net income (loss) per share, basic90,119,481 96,682,774 88,534,495 95,503,380 
Weighted-average number of shares outstanding used in computing net income (loss) per share, diluted90,119,481 109,724,669 88,534,495 105,921,585 
__________

(1)The following table presents revenue from fees disaggregated by type of service for the periods presented as follows:

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Revenue from fees, net:
Platform and referral fees, net$134,199 $216,882 $336,653 $570,702 
Servicing and other fees, net33,391 41,657 99,537 114,089 
Total revenue from fees, net$167,590 $258,539 $436,190 $684,791 
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UPSTART HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
(In Thousands, Except Share and Per Share Data)
(Unaudited)


(2)The following table presents interest income, interest expense and unrealized loss on loans, loan charge-offs, and other fair value adjustments, net related to the consolidated securitization as follows:


Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Interest income, interest expense, and fair value adjustments, net related to consolidated securitization:
Interest income$6,748 $3,876 $23,086 $13,453 
Interest expense(2,272)(1,489)(7,546)(5,006)
Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net(5,726)(1,970)(25,643)(8,988)
Total interest income, interest expense, and fair value adjustments, net$(1,250)$417 $(10,103)$(541)

(3)The following table presents components of fair value adjustments, net for the periods presented as follows:

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Fair value and other adjustments, net:
Unrealized loss on loans, loan charge-offs, and other fair value adjustments, net$(31,579)$(15,545)$(92,800)$(55,749)
Realized gain (loss) on sale of loans, net(2,950)(313)(14,565)1,525 
Fair value adjustments and realized losses on beneficial interests, net(948)(13,985)(23,158)(2,608)
Total fair value and other adjustments, net$(35,477)$(29,843)$(130,523)$(56,832)
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UPSTART HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended September 30,
20242025
Cash flows from operating activities
Net income (loss)$(125,826)$34,965 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Change in fair value of loans167,545 (83,448)
Change in fair value of servicing assets12,838 12,795 
Change in fair value of servicing liabilities(877)(1,009)
Change in fair value of beneficial interest assets(35,825)(16,205)
Change in fair value of beneficial interest liabilities12,633 18,813 
Change in fair value of other financial instruments8,263 (5,529)
Stock-based compensation103,604 99,497 
Gain on loan servicing rights, net(11,448)(20,376)
Gain on debt extinguishment(33,361)(7,246)
Depreciation and amortization15,850 18,374 
Loan premium amortization(10,874)(33,560)
Non-cash interest expense and other2,156 5,219 
Net changes in operating assets and liabilities:
Purchases of loans held-for-sale(2,626,246)(6,410,254)
Proceeds from sale of loans held-for-sale2,613,039 5,994,691 
Principal payments received for loans held-for-sale157,010 138,545 
Principal payments received for loans held by consolidated securitization36,532 29,772 
Settlements of beneficial interest liabilities(3,692)(15,716)
Proceeds from beneficial interest assets (derivatives)— 4,096 
Settlements of beneficial interest assets (derivatives)— (1,659)
Other assets(2,110)3,825 
Operating lease liability and right-of-use asset(600)(918)
Accrued expenses and other liabilities18,646 (20,949)
Net cash provided by (used in) operating activities297,257 (256,277)
Cash flows from investing activities
Purchases and originations of loans held-for-investment$(196,580)$(666,049)
Proceeds from sale of loans held-for-investment— 51,195 
Principal payments received for loans held-for-investment99,768 221,996 
Principal payments received for notes receivable and repayments of residual certificates4,004 12,895 
Acquisition and settlements of beneficial interest assets (hybrid instruments)(63,246)(1,608)
Proceeds from beneficial interest assets (hybrid instruments)2,808 94,229 
Issuance of line of credit receivable— (7,862)
Repayments of line of credit receivable— 783 
Purchases of property and equipment(837)(190)
Capitalized software costs(5,734)(14,298)
Net cash used in investing activities(159,817)(308,909)
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UPSTART HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended September 30,
20242025
Cash flows from financing activities
Proceeds from borrowings$297,587 $212,848 
Proceeds from convertible notes issuance, net of debt issuance costs paid to lender423,002 678,270 
Payment of debt issuance costs to third parties(1,455)(3,144)
Repayments of borrowings(293,179)(207,494)
Payments for repurchases of convertible notes(325,344)(224,154)
Purchase of capped calls(40,883)(55,200)
Settlement of capped calls580 564 
Principal payments made on securitization notes(42,705)(32,023)
Payable to investors
12,990 33,227 
Proceeds from issuance of common stock under employee stock purchase plan7,685 8,449 
Proceeds from exercise of stock options12,281 14,494 
Taxes paid related to net share settlement of equity awards(19)(9)
Net cash provided by financing activities50,540 425,828 
Change in cash, cash equivalents and restricted cash187,980 (139,358)
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period467,787 976,263 
Cash, cash equivalents and restricted cash at end of period$655,767 $836,905 
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UPSTART HOLDINGS, INC.
KEY OPERATING AND NON-GAAP FINANCIAL METRICS
(In Thousands, Except Per Share Data and Ratios, or as Noted)
(Unaudited)


Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Transaction Volume, Dollars$1,582,317$2,854,296$3,822,847$7,808,302
Transaction Volume, Number of Loans(1)
188,149428,056451,4291,041,361
Conversion Rate(2)
16.3%20.6%15.3%21.2%
Percentage of Loans Fully Automated91%91%91%91%
Contribution Profit
$102,376$147,406$259,635$390,321
Contribution Margin
61%57%60%57%
Adjusted EBITDA
$1,413$71,162$(28,182)$166,792
Adjusted EBITDA Margin
1%26%(7)%22%
Adjusted Net Income (Loss)
$(5,325)$59,963$(47,770)$133,400
Adjusted Net Income (Loss) Per Share:
Basic
$(0.06)$0.62$(0.54)$1.40
Diluted
$(0.06)$0.52$(0.54)$1.22
__________

(1)Transaction Volume, Number of Loans is shown in ones for the periods presented.
(2)Prior to the third quarter of 2025, home loans were included in “Transaction Volume, Number of Loans” but excluded from the rate inquiries used to calculate Conversion Rate. Beginning in the third quarter of 2025, they are included in rate inquiries. Earlier periods have not been adjusted, as the impact is immaterial and would have reduced the Conversion Rate by less than 0.5 percentage point.
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UPSTART HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In Thousands, Except Share and Per Share Data)
(Unaudited)



Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Revenue from fees, net$167,590 $258,539 $436,190 $684,791 
Income (loss) from operations
(45,152)23,666 (168,106)23,712 
Operating Margin(27)%9 %(39)%3 %
Sales and marketing, net of borrower acquisition costs(1)
$10,480 $11,582 $30,552 $34,160 
Customer operations, net of borrower verification and servicing costs(2)
6,837 5,919 21,624 18,826 
Engineering and product development64,887 64,026 186,431 190,689 
General, administrative, and other59,874 60,779 170,508 185,910 
Interest income, interest expense, and fair value adjustments, net
5,450 (18,566)18,626 (62,976)
Contribution Profit$102,376 $147,406 $259,635 $390,321 
Contribution Margin61 %57 %60 %57 %
__________

(1)Borrower acquisition costs were $32.7 million and $67.3 million for the three months ended September 30, 2024 and 2025, respectively, and were $80.8 million and $176.8 million for the nine months ended September 30, 2024 and 2025, respectively. Borrower acquisition costs consist of our sales and marketing expenses adjusted to exclude costs not directly attributable to attracting a new borrower, such as payroll-related expenses for our business development and marketing teams, as well as other operational, brand awareness and marketing activities. These costs do not include reorganization expenses.
(2)Borrower verification and servicing costs were $32.5 million and $43.9 million for the three months ended September 30, 2024 and 2025, respectively, and were $95.8 million and $117.7 million for the nine months ended September 30, 2024 and 2025, respectively. Borrower verification and servicing costs consist of payroll and other personnel-related expenses for personnel engaged in loan onboarding, verification and servicing, as well as servicing system costs. It excludes payroll and personnel-related expenses and stock-based compensation for certain members of our customer operations team whose work is not directly attributable to onboarding and servicing loans. These costs do not include reorganization expenses.
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UPSTART HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In Thousands, Except Share and Per Share Data)
(Unaudited)



Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Total revenue$162,140 $277,105 $417,564 $747,767 
Net income (loss)(6,758)31,805 (125,826)34,965 
Net Income (Loss) Margin(4)%11 %(30)%5 %
Adjusted to exclude the following:
Stock-based compensation and certain payroll tax expenses(1)
$34,794 $35,404 $107,639 $105,681 
Depreciation and amortization5,390 6,131 15,850 18,374 
Reorganization expenses— — 3,778 — 
Expense on convertible notes1,303 4,944 3,664 14,816 
Gain on debt extinguishment(33,361)(7,246)(33,361)(7,246)
Provision for income taxes45 124 74 202 
Adjusted EBITDA$1,413 $71,162 $(28,182)$166,792 
Adjusted EBITDA Margin1 %26 %(7)%22 %
__________

(1)Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.
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UPSTART HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In Thousands, Except Share and Per Share Data)
(Unaudited)


Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202520242025
Net income (loss)$(6,758)$31,805 $(125,826)$34,965 
Adjusted to exclude the following:
Stock-based compensation and certain payroll tax expenses(1)
34,794 35,404 107,639 105,681 
Reorganization expenses— — 3,778 — 
Gain on debt extinguishment(33,361)(7,246)(33,361)(7,246)
Adjusted Net Income (Loss)
$(5,325)$59,963 $(47,770)$133,400 
Net income (loss) per share:
Basic$(0.07)$0.33 $(1.42)$0.37 
Diluted$(0.07)$0.23 $(1.42)$0.28 
Adjusted Net Income (Loss) Per Share:
Adjusted Net Income (Loss) Per Share, basic $(0.06)$0.62 $(0.54)$1.40 
Adjusted Net Income (Loss) Per Share, diluted$(0.06)$0.52 $(0.54)$1.22 
Weighted-average common shares outstanding:
Basic 90,119,481 96,682,774 88,534,495 95,503,380 
Diluted90,119,481 124,605,395 88,534,495 119,894,056 
__________

(1)Payroll tax expenses include the employer payroll tax-related expense on employee stock transactions, as the amount is dependent on our stock price and other factors that are beyond our control and do not correlate to the operation of our business.

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