Want to see HAPN full AI Analyst Report?
Top Page
Happen
(NASDAQ:HAPN)
Select Model
Select Model
Rating:67Neutral
Price Target:
$21.00
▲(16.28% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily capped by materially negative operating/free cash flow over multiple periods, despite improved profitability and a strengthened, low-debt balance sheet. Offsetting this, the latest earnings call was constructive with raised guidance and strong operating momentum, and technicals show a multi-timeframe uptrend. Valuation looks reasonable on P/E, but the lack of a stated dividend yield provides no additional support.
Positive Factors
Low leverage / strong balance sheet
Zero net debt and expanding equity materially lower financial risk and increase strategic optionality. Over the next 2–6 months this supports retaining loans, executing securitizations or opportunistic repurchases, and provides a durable buffer to absorb rate or underwriting stress without emergency capital.
Negative Factors
Persistent negative operating cash flow
Four consecutive periods of deeply negative OCF and FCF, despite reported net income, indicate poor cash conversion. Over 2–6 months this increases dependency on deposits, securitizations, or capital markets, limits reinvestment and buybacks, and raises questions about earnings quality if cash conversion doesn't recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Zero net debt and expanding equity materially lower financial risk and increase strategic optionality. Over the next 2–6 months this supports retaining loans, executing securitizations or opportunistic repurchases, and provides a durable buffer to absorb rate or underwriting stress without emergency capital.
Read all positive factors
Happen Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how different parts of the business contribute to overall sales, highlighting which areas are driving growth and which might need strategic adjustments.
Shows how different parts of the business contribute to overall sales, highlighting which areas are driving growth and which might need strategic adjustments.
Data provided by:
The Fly
The FlyHappen (HAPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21B
Dividend YieldN/A
Average Volume (3M)2.07M
Price to Earnings (P/E)11.3
Beta (1Y)1.57
Revenue Growth23.26%
EPS Growth160.37%
CountryUS
Employees1,075
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.70
Shares Outstanding115,407,460
10 Day Avg. Volume1,290,697
30 Day Avg. Volume2,073,995
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.46
Price to Sales (P/S)1.64
P/FCF Ratio-0.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$24.40Price Target Upside35.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.81
Revenue Forecast (FY)$1.08B
Happen Business Overview & Revenue Model
Company Description
Happen, Inc., operates as a bank holding company, that provides range of financial products and services in the United States. [8, 24, 33, 52, 60, 62] It offers deposit products, including savings accounts, checking accounts, and certificates of d...
How the Company Makes Money
LendingClub primarily makes money through (1) net interest income and (2) non-interest (fee and other) income tied to loan origination, loan sales, and servicing. Net interest income is earned when loans are retained on the balance sheet and funde...
Happen Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and profitability: robust origination growth (29% YoY), record pre-tax income (+40% YoY), healthy NII (+16% YoY), improving credit metrics (net charge-offs improved to 3.2% from 3.8%), product expansion (home improvement, LevelUp accounts), and meaningful AI-driven efficiency gains. Offsetting factors include accounting-driven fair value markdowns and related non-interest income dynamics, higher marketing and compensation expenses (+28% YoY), and near-term pressure on asset yields and NIM from the CECL-to-fair-value transition and benchmark rate movements. On balance, financial results, guidance raises, profitability, and product/AI progress outweigh the transitory accounting and expense headwinds.Positive Updates
Strong Origination Growth
Loan originations grew 29% year-over-year to $3.1 billion in Q2, above the high end of guidance and driving momentum toward the updated full-year origination guidance of $12.2B–$12.6B.
Negative Updates
Fair Value Markdown and Accounting Impact
Total fair value markdowns rose to $121 million in Q2 (up from $89 million in Q1) driven by higher origination volumes, growth in loans carried at fair value, and a 35 basis point upward move in benchmark rates during the quarter; the accounting switch to fair value reduced comparability and lowered reported non-interest income year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Origination Growth
Loan originations grew 29% year-over-year to $3.1 billion in Q2, above the high end of guidance and driving momentum toward the updated full-year origination guidance of $12.2B–$12.6B.
Read all positive updates
Company Guidance
Management raised full‑year originations guidance to $12.2–$12.6 billion and increased full‑year diluted EPS guidance to $1.80–$1.90; for Q3 they expect originations of $3.20–$3.35 billion and diluted EPS of $0.43–$0.48. They said they’re tracking to the high end of their annual return on tangible common equity goal (Q2 ROTCE was 15.9%) despite absorbing about 75 basis points of rate pressure year‑to‑date, and they expect another provision benefit in Q3 (smaller than Q2’s ≈$11 million benefit) with Q4 provision roughly neutral. Guidance assumes current benchmark levels (quarter‑to‑date benchmark moves ~15–20 bps), anticipates net interest margin to move toward ~6% in the back half, and sits against a balance sheet of $12.5 billion in assets, $10.8 billion in deposits, $2.1 billion of hedge notional and $50 million of repurchases (~3 million shares) executed to date.Happen Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.32B | 1.33B | 1.16B | 1.14B | 1.27B | 898.63M |
| Gross Profit | 936.43M | 863.75M | 608.74M | 621.05M | 919.89M | 679.83M |
| EBITDA | 307.14M | 369.90M | 118.37M | 101.81M | 196.87M | 62.73M |
| Net Income | 195.58M | 135.68M | 51.33M | 38.94M | 289.69M | 18.58M |
Balance Sheet | ||||||
| Total Assets | 12.55B | 11.57B | 10.63B | 8.83B | 7.98B | 4.90B |
| Cash, Cash Equivalents and Short-Term Investments | 4.06B | 917.65M | 4.41B | 2.87B | 1.40B | 950.66M |
| Total Debt | 0.00 | 15.83M | 28.50M | 57.22M | 210.19M | 429.99M |
| Total Liabilities | 10.98B | 10.07B | 9.29B | 7.58B | 6.82B | 4.05B |
| Stockholders Equity | 1.57B | 1.50B | 1.34B | 1.25B | 1.16B | 850.24M |
Cash Flow | ||||||
| Free Cash Flow | -2.96B | -2.87B | -2.69B | -1.20B | 306.09M | 205.46M |
| Operating Cash Flow | -2.87B | -2.73B | -2.63B | -1.14B | 375.57M | 239.87M |
| Investing Cash Flow | 1.44B | 1.93B | 607.81M | 516.70M | -2.81B | -454.41M |
| Financing Cash Flow | 1.59B | 747.82M | 1.71B | 789.57M | 2.80B | 349.64M |
Happen Technical Analysis
Positive
18.06
Price Trends
18.99
Positive
17.37
Positive
17.59
Positive
Market Momentum
0.23
Negative
50.23
Neutral
54.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAPN, the sentiment is Positive. The current price of 18.06 is below the 20-day moving average (MA) of 19.36, below the 50-day MA of 18.99, and above the 200-day MA of 17.59, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 54.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAPN.
Happen Risk Analysis
Happen disclosed 55 risk factors in its most recent earnings report. Happen reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Happen Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.21B | 11.26 | 12.92% | ― | 23.26% | 160.37% | |
53 Neutral | $788.57M | -13.75 | -2.04% | 7.78% | -20.89% | -217.55% | |
| ― | $1.35B | -7.72 | -9999.00% | ― | -6.20% | 95.22% | |
75 Outperform | $1.18B | 3.72 | 5.33% | 6.44% | 0.84% | -12.02% | |
52 Neutral | $2.33B | -3.42 | -1.66% | ― | ― | ― |
* Financial Sector Average
HAPN
Happen
19.37
4.51
30.35%
NAVI
Navient
9.08
-2.62
-22.41%
AHG
Akso Health Group Sponsored ADR
1.35
-0.38
-21.97%
FINV
FinVolution Group
4.86
-3.60
-42.55%
LU
Lufax Holding
1.50
-1.29
-46.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.