Upstart Outperforms Palantir on Rule of 40 Metric Despite Stock Decline
Palantir's celebrated Rule of 40 score of 94—combining 48% revenue growth with 46% adjusted operating margin—has been eclipsed by Upstart's 123 score. The AI lending platform posted 102% revenue growth and 21% adjusted EBITDA margin, yet its shares fell post-earnings while Palantir rallied.
Upstart's Model 18 screening system continues driving explosive growth, contrasting with Palantir's enterprise-focused AI deployments. The divergence highlights how software investors increasingly prioritize profitability benchmarks, even as market reactions remain unpredictable.