LendingClub (LC) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.51
• Revenue Growth: 7.54%
• EPS Growth: 70.26%
• Country: US
• Employees: 1,002
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.33
• Shares Outstanding: 114,740,150
• 10 Day Avg. Volume: 1,364,820
• 30 Day Avg. Volume: 1,418,609
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 3.47
• 1Y Price Target: $17.33
• Price Target Upside: 4.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $18.50 ▲(11.18% Upside)

LendingClub's overall stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting robust growth and strategic initiatives. However, financial performance challenges and moderate valuation temper the score. The company must address liquidity issues and maintain operational efficiency to sustain its growth trajectory.

Positive Factors

Revenue Growth

The significant increase in loan originations and revenue demonstrates strong market demand and effective business execution, supporting long-term growth.

New Product Launches

The introduction of new financial products enhances customer engagement and diversifies revenue streams, strengthening the company's competitive position.

Partnerships and Funding

Strategic partnerships and funding agreements expand LendingClub's capacity for loan origination, supporting sustained growth and market expansion.

Negative Factors

Liquidity Concerns

Negative operating cash flows indicate challenges in cash generation, which could constrain the company's ability to invest in growth and innovation.

Profitability Challenges

Negative profitability margins highlight operational inefficiencies, which may hinder the company's ability to sustain long-term financial health.

Increased Marketing Expenses

Rising marketing expenses could impact future profitability, necessitating improved cost management to maintain operational efficiency.

LendingClub Business Overview & Revenue Model

Company Description

LendingClub (LC) is a leading online marketplace that connects borrowers with investors, allowing individuals and small businesses to obtain personal loans, business loans, and auto refinancing. Founded in 2006, LendingClub operates primarily in the fintech sector, leveraging technology to streamline the lending process and reduce costs for consumers. The platform offers a range of financial products, including peer-to-peer loans, which enable investors to fund loans for borrowers, thus creating a unique ecosystem that benefits both parties.

How the Company Makes Money

LendingClub generates revenue through several key streams: origination fees charged to borrowers upon loan approval, which are typically a percentage of the total loan amount; servicing fees collected from investors for managing the loans on their behalf; and interest income from the loans it originates. Additionally, the company earns income from selling loans to institutional investors and through its investment platform, which allows investors to diversify their portfolios by purchasing fractional shares of loans. Strategic partnerships with financial institutions and other fintech companies also contribute to its revenue, as they can enhance LendingClub's product offerings and market reach.

LendingClub Financial Statement Overview

Summary

LendingClub faces financial challenges with declining revenues and negative profitability margins. While the balance sheet is stable with low debt levels, liquidity is a concern due to negative operating cash flows. Improvement in operational efficiencies and cash flow generation is needed for financial stability.

Income Statement

LendingClub's revenue has shown significant volatility, with a steep decline from 2022 to 2024. The gross profit margin turned negative in 2024, reflecting increased cost pressures. Despite a positive net income in 2023 and 2024, the net profit margin remains low, highlighting profitability challenges. EBIT margin turned negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a strong cash position relative to debt. The debt-to-equity ratio is favorable, with zero debt reported in 2024, indicating low financial leverage. However, the equity ratio suggests moderate utilization of equity financing. Return on equity has fluctuated, reflecting inconsistent profitability.

Cash Flow

LendingClub's cash flow analysis reveals a significant negative operating cash flow in recent years, indicating liquidity concerns. The free cash flow has deteriorated significantly, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, suggesting inefficiencies in cash generation relative to income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	252.97M	864.62M	1.17B	802.42M	304.86M
Gross Profit	497.23M	-27.03M	9.19M	1.06B	751.70M	256.52M
EBITDA	201.89M	123.06M	107.05M	218.43M	0.00	0.00
Net Income	50.75M	51.33M	38.94M	289.69M	18.58M	-187.54M
Balance Sheet
Total Assets	10.48B	10.63B	8.83B	7.98B	4.90B	1.86B
Cash, Cash Equivalents and Short-Term Investments	895.51M	954.06M	2.87B	1.40B	950.66M	667.19M
Total Debt	25.57M	28.50M	57.22M	143.42M	429.99M	989.11M
Total Liabilities	9.12B	9.29B	7.58B	6.82B	4.05B	1.14B
Stockholders Equity	1.36B	1.34B	1.25B	1.16B	850.24M	724.17M
Cash Flow
Free Cash Flow	-2.18B	-2.69B	-1.20B	306.09M	205.46M	386.88M
Operating Cash Flow	-2.13B	-2.63B	-1.14B	375.57M	239.87M	418.03M
Investing Cash Flow	841.39M	607.81M	516.70M	-2.81B	-454.41M	565.77M
Financing Cash Flow	1.10B	1.71B	789.57M	2.80B	349.64M	-842.44M

LendingClub Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LC, the sentiment is Neutral. The current price of 16.64 is below the 20-day moving average (MA) of 16.91, above the 50-day MA of 15.71, and above the 200-day MA of 13.26, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LC.

LendingClub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	77 Outperform	514.12M	2.90	16.58%	6.50%	12.69%	-35.36%
OMF	76 Outperform	7.15B	10.87	19.93%	7.08%	9.41%	13.98%
SOFI	75 Outperform	33.71B	56.72	8.19%	―	22.60%	―
LC	67 Neutral	$2.03B	26.73	5.50%	―	7.54%	70.26%
SEZL	63 Neutral	2.94B	28.92	80.20%	―	92.95%	151.46%
UPST	45 Neutral	5.83B	-746.13	-0.88%	―	60.62%	96.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

LendingClub Corporate Events

LendingClub Stockholders Meeting Approves Key Proposals

On June 3, 2025, LendingClub Corporation held its annual meeting of stockholders, where several key proposals were voted on. The election of Class II directors was successful, and the advisory vote on executive compensation was approved. However, proposals to amend the company’s certificate of incorporation to phase in board declassification and remove supermajority voting requirements were not approved. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm was ratified.