Upstart Holdings, Inc.(NASDAQ:UPST) shares plunged more than 18% pre-market following the company’s announced preliminary Q2 results, with significantly reduced revenue guidance of $228 million (vs. $295-$305 million prior).

The company expects the contribution margin to be approximately 47% (vs. 45% prior), and net income (loss) to be in the range of ($31)-($27) million (vs. ($4)-$0 million prior).

The shortfall is due to (1) funding constraints as appetite has waned from credit buyers and the ABS market, and (2) losses related to selling loans at a discount to par to convert on-balance sheet loans into cash. According to the company, these two factors driving the revenue shortfall were split roughly evenly.