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Brendan Coffey, The Motley Fool
Wed, June 17, 2026 astatine 10:35 AM CDT 5 min read
Should you prioritize the dependable returns of an established lender oregon the high-growth imaginable of an AI disruptor? Comparing OneMain (NYSE:OMF) and Upstart (NASDAQ:UPST) helps find which fits your idiosyncratic goals.
OneMain focuses connected idiosyncratic loans for nonprime borrowers done a monolithic web of carnal branches and integer tools. Upstart operates arsenic a exertion level that uses artificial quality to assistance banks and recognition unions terms hazard much accurately. Both companies facilitate user recognition but utilize radically antithetic concern models to scope their people markets.
The lawsuit for OneMain
OneMain provides idiosyncratic loans and recognition products to nonprime consumers done its extended web of 1,300 branches and online platforms. The institution operates successful the user recognition marketplace and is simply a notable subordinate among financial stocks. By focusing connected personalized work and a section presence, it reaches borrowers who whitethorn person constricted options done accepted banking channels.
For FY 2025, gross reached astir $6.2 billion, representing an summation of astir 9.1% implicit the erstwhile year. The institution reported nett income of astir $783 million, resulting successful a nett borderline of astir 12.5%. This show reflects a dependable betterment successful net compared to the anterior 2 fiscal years.
As of its December 2025 equilibrium sheet, the debt-to-equity ratio was astir 6.7x. This metric indicates that the company's full indebtedness is astir 6.7 times its shareholders' equity. Free currency flow, which represents currency from operations minus superior expenditures, reached astir $3.1 cardinal successful FY 2025.
The lawsuit for Upstart
Upstart operates an AI-driven marketplace that connects consumers with much than 100 banks and recognition unions to facilitate assorted indebtedness products. The institution relies heavy connected a tiny radical of partners, with 3 entities originating astir 83% of its loans and contributing astir 61% of full revenue. Customer attraction similar this adds a furniture of hazard to the business.
In FY 2025, gross surged by astir 59% to scope astir $1.1 billion. This maturation allowed the institution to instrumentality to profitability, reporting nett income of astir $53.6 million. This resulted successful a nett borderline of adjacent to 5.0%, a important betterment implicit the nett losses recorded successful the erstwhile 2 years.
As of December 2025, the institution maintained a debt-to-equity ratio of astir 2.3x. Its existent ratio, which measures the quality to screen short-term liabilities with short-term assets, was astir 3.0x. For the fiscal year, Upstart reported antagonistic escaped currency travel of astir -$166.1 million.
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