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Lendingclub Corp. (LC)
NYSE:LC
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LendingClub
(NYSE:LC)
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Rating:61Neutral
Price Target:
$14.50
▲(2.69% Upside)
Action:ReiteratedDate:02/13/26
The score is driven primarily by mixed fundamentals: a strong balance sheet and improved profitability are offset by materially negative operating/free cash flow. Earnings-call guidance and credit momentum are constructive, but current technical signals are bearish and keep the overall score in the low-60s range.
Positive Factors
Conservative balance sheet (no debt)
Zero reported debt and a strengthened equity base provide durable financial flexibility. This capital structure lowers refinancing and interest-rate funding risk, enabling continued investment in growth initiatives, share repurchases, and deposit-led asset growth without near-term leverage constraints.
Best-in-class credit performance
Sustained superior credit outcomes materially reduce loss volatility and capital erosion versus peers. Lower net charge-offs and stable CECL expectations support more predictable net interest margin and lending economics, enabling LendingClub to underwrite profitably across cycles and sustain returns on equity.
Strong originations, revenue mix and NII momentum
Rapidly growing originations and improving net interest income reflect scalable customer acquisition and favorable pricing power. A larger, higher-yielding portfolio combined with marketplace fees diversifies revenue streams, supporting durable margin expansion and a path to the company's ROTCE targets if growth continues.
Negative Factors
Deeply negative operating and free cash flow
A multi-year cash flow deficit creates a structural funding and liquidity risk despite accounting profits. Persistent negative OCF/FCF forces reliance on deposits, asset sales, or capital markets to fund growth and repurchases, raising the probability of adverse financing terms if cash conversion doesn't improve.
Elevated operating expense from scaling investments
Sustained higher marketing, R&D, and rebrand costs increase the structural expense base, pressuring efficiency ratios until new products and cross-sell materially lift revenue. If return on these investments lags expectations, margin recovery and medium-term efficiency targets will prove difficult to achieve.
Accounting transition and legacy CECL create volatility
Moving to fair-value accounting and residual CECL legacy charges will introduce recurring P&L volatility and complicate period-to-period comparability. This increases earnings-model uncertainty and could mask underlying economic performance, complicating capital allocation and investor assessment of durable profitability.
LendingClub (LC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.63B
Dividend YieldN/A
Average Volume (3M)1.99M
Price to Earnings (P/E)16.1
Beta (1Y)1.47
Revenue Growth9.68%
EPS Growth94.85%
CountryUS
Employees1,002
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding115,180,595
10 Day Avg. Volume1,726,778
30 Day Avg. Volume1,986,860
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 Cap1.00
Enterprise Value/Revenue1.22
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda5.69
Forecast
1Y Price Target
$24.00Price Target Upside69.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.71
Revenue Forecast (FY)$1.07B
LendingClub Business Overview & Revenue Model
Company DescriptionLendingClub Corporation, operates as a bank holding company for LendingClub Bank, National Association that provides range of financial products and services through a technology-driven platform in the United States. The company provides commercial and industrial, commercial real estate, small business, and equipment loans, as well as leases equipment; and unsecured personal and auto, patient finance, and education finance loans. It also operates an online lending marketplace platform that connects borrowers and investors. LendingClub Corporation was incorporated in 2006 and is headquartered in San Francisco, California.
How the Company Makes MoneyLendingClub makes money primarily through a mix of lending-related income and fee income tied to its loan origination and marketplace activities. (1) Net interest income: As a bank, LendingClub earns interest income on loans it holds on its balance sheet and funds those assets largely with deposits and other funding sources; its profitability is influenced by the spread between interest earned on loans and interest paid on deposits/borrowings, as well as credit performance (e.g., charge-offs and provision for credit losses). (2) Loan origination and other fees: When LendingClub originates personal loans, it typically earns origination fees and may earn other servicing-related or platform-related fees depending on how loans are handled after origination. (3) Loan sales / marketplace revenue: LendingClub may sell loans (or interests in loans) to third-party investors; revenue can include gains (or losses) on sale and fees associated with facilitating these transactions, with volumes affected by investor demand and capital market conditions. (4) Servicing and ancillary income: To the extent LendingClub services loans (whether held on-balance-sheet or sold), it can earn servicing income and related ancillary fees; it may also generate other bank-related income (e.g., certain deposit-related fees), where applicable. Key factors affecting earnings include origination volume and pricing, deposit growth and funding costs, credit and delinquency trends, and the level of investor demand for purchased loans or loan interests in its marketplace channel. Specific partner names or contract terms: null.
LendingClub 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 FlyLendingClub Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: robust originations growth (+40% Q4, +33% FY), improved revenue mix (marketplace +36%, noninterest income +38%), rising net interest income (+14%) and significantly higher ROTCE (~12%). Credit performance remains a clear strength with net charge‑offs improving ~80 bps YoY. Management is investing heavily in marketing, product expansion (home improvement, purchase finance), AI, and a rebrand, and is transitioning accounting to fair value which should improve long‑term returns but will introduce near‑term P&L volatility (Q1 fair value adjustments expected ~2x Q4). Expense increases and accounting transition effects create a temporary headwind to efficiency and short‑term comparability, but the balance of evidence — growth, profitability, strong credit, deposit and balance‑sheet traction, and clear investor communications — points to a constructive outlook. Overall, highlights outweigh lowlights.Q4-2025 Updates
Positive Updates
Strong Originations Growth
Q4 originations grew 40% year‑over‑year to $2.6B; full year 2025 originations grew 33% to nearly $10B. Guidance for 2026 originations of $11.6B–$12.6B (up 21%–31% YoY) and Q1 2026 guide of $2.55B–$2.65B (28%–33% YoY).
Revenue and Marketplace Momentum
Marketplace revenue increased 36% YoY. Noninterest income rose 38% to $103M driven by higher marketplace volumes and improved loan sale pricing.
Net Interest Income and Margin Expansion
Net interest income hit an all‑time high of $163M, up 14% YoY. Net interest margin was 6.0%, up 56 basis points versus prior year (adjusted NIM would be ~17 bps higher if cash balances were flat).
Material Profitability Improvement
Return on tangible common equity (ROTCE) more than tripled to ~12% in the quarter (11.9% reported), above guidance. Full‑year ROTCE was 10.2%. Q4 diluted EPS was $0.35; full‑year diluted EPS was $1.16; FY2026 EPS guidance $1.65–$1.80 (up ~42%–55% YoY).
Best‑in‑Class Credit Performance
Company reported 40%–50% better credit performance versus competitive set. Net charge‑off ratio improved, down ~80 bps YoY; provision for credit losses was $47M in Q4. CECL lifetime loss expectations stable or improving across vintages.
Balance Sheet and Deposit Growth
Total assets grew to $11.6B (up 9% YoY). Deposits ended the quarter at $9.8B, up 8% YoY. Held‑for‑sale extended seasoning portfolio grew to $1.8B; nearly $500M retained in held‑for‑investment.
New Products, Distribution and Partnerships
Launched a rated structured certificate for insurance capital and initiated a direct forward flow with a top US insurer (in addition to BlackRock and BlueOwl). Entering home improvement financing with acquired technology, leadership hires and first distribution partnership, on track for midyear launch.
Customer Engagement and Deposit Product Traction
LevelUp Savings and LevelUp Checking growing double‑digits. LevelUp Savings drives 20%–30% more logins vs legacy product. Personal loan borrowers are >15% of new accounts; 60% of new checking accounts are from personal loan borrowers and 84% of those say they're more likely to consider a LendingClub loan.
Capital Return & Shareholder Actions
Announced $100M repurchase & acquisition program; deployed ~ $12M in Q4 at an average price of $17.65. Company emphasizes continued deployment of excess capital.
Negative Updates
Higher Operating Expense and Marketing Investment
Noninterest expense was $169M, up 19% YoY, driven primarily by planned higher marketing spend and some sequential increases in equipment and other costs as the company scales new channels and prepares for rebrand.
Near‑term Accounting Transition Volatility (Fair Value Move)
Transitioning 100% of new held‑for‑investment originations to the fair value option will cause Q1 2026 fair value adjustments to be roughly double Q4 2025 levels (more loans, longer duration major purchase finance, and higher average balances), creating near‑term P&L volatility and modeling complexity.
CECL Legacy Expense and Day‑One Provision Effects
Although new originations will have no day‑one CECL provision under fair value, company expects CECL expense from the remaining legacy portfolio of ~ $10M in Q1 2026; some major purchase finance loans previously carried higher day‑one provision due to longer duration.
Sequential NIM Pressure from Elevated Cash Balances
Net interest margin declined sequentially (despite YoY improvement) because the company retained higher cash balances to support accelerated 2026 growth; this places reliance on timely deployment into earning assets to restore margin run‑rate.
Temporary Efficiency Ratio Impact
Planned reinvestments (marketing R&D, rebrand, home‑improvement buildout, AI hires) will lift expenses in the near term and may push efficiency metrics higher in 2026 before medium‑term targets (55%–60% efficiency) are re‑achieved.
Competitive and Market Risks
Management noted ongoing competitive intensity (fintech entrants and cyclic direct competitors) and investor selectivity in marketplace buyers. Potential regulatory risks (e.g., proposed rate caps) were discussed as a macro risk, though management sees an organic affordability alternative today.
Limited Near‑term Buyback Deployment
Of the announced $100M repurchase program, only ~$12M was deployed in Q4, suggesting modest near‑term shareholder capital return activity to date.
Company Guidance
Management guided Q1 2026 originations of $2.55–$2.65 billion (28–33% YoY) and diluted EPS of $0.34–$0.39 (up 240–290% YoY), and full‑year 2026 originations of $11.6–$12.6 billion (up 21–31% YoY) with EPS $1.65–$1.80 (up 42–55% YoY) consistent with a near‑term ROTCE target of 13–15% (and a medium‑term goal of 18–20%); management noted Q4 2025 originations were $2.6 billion (+40% YoY) and FY2025 nearly $10 billion (+33% YoY), Q4 NII $163M (+14% YoY), noninterest income $103M (+38% YoY), NIM 6% (+56 bps YoY), deposits $9.8B (+8% YoY), total assets $11.6B (+9% YoY), noninterest expense $169M (+19% YoY), provision for credit losses $47M, held‑for‑sale inventory $1.8B, held‑for‑investment ~ $500M, Q4 ROTCE 11.9%, tangible book value per share $12.30, and management expects Q1 fair‑value adjustments to be roughly double Q4 levels, CECL expense of about $10M, continued marketing investment to scale growth, and ongoing deployment of the $100M share repurchase/acquisition program (≈$12M executed in Q4 at an average $17.65/share).LendingClub Financial Statement Overview
Summary
Profitability rebounded sharply in 2025 and the balance sheet is conservatively positioned with no debt, but multi-year deeply negative operating and free cash flow (including large 2025 outflows) is a major risk and raises questions about earnings quality and funding needs.Income Statement
Annual results show a sharp profitability rebound in 2025, with revenue up strongly (growth rate: 2.979) and materially higher operating and net margins versus 2023–2024. However, earnings quality has been volatile across the period (notably very strong profitability in 2022 followed by a steep drop in 2023–2024), which reduces confidence in durability despite the improved 2025 performance.66
Positive
Balance Sheet
The balance sheet appears conservatively positioned in the most recent annual period, with total debt at 0 and a debt-to-equity ratio of 0.0, supporting financial flexibility. Equity has grown over time, and return on equity improved to ~9.0% in 2025 from lower levels in 2023–2024, though it remains well below the 2022 peak—signaling that profitability has not yet fully stabilized at prior highs.83
Very Positive
Cash Flow
Cash generation is the key weakness: operating cash flow and free cash flow are deeply negative in 2023–2025 (including -$2.73B operating cash flow and -$2.87B free cash flow in 2025). While free cash flow growth is positive in 2025, the absolute level remains meaningfully negative, creating a mismatch versus positive net income and elevating funding and liquidity risk if the trend persists.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.33B | 1.16B | 1.14B | 1.27B | 898.63M |
| Gross Profit | 863.75M | 608.74M | 621.05M | 919.89M | 679.83M |
| EBITDA | 369.90M | 118.37M | 101.81M | 196.87M | 62.73M |
| Net Income | 135.68M | 51.33M | 38.94M | 289.69M | 18.58M |
Balance Sheet | |||||
| Total Assets | 11.57B | 10.63B | 8.83B | 7.98B | 4.90B |
| Cash, Cash Equivalents and Short-Term Investments | 3.72B | 957.05M | 2.87B | 1.40B | 950.66M |
| Total Debt | 15.83M | 28.50M | 57.22M | 210.19M | 429.99M |
| Total Liabilities | 10.07B | 9.29B | 7.58B | 6.82B | 4.05B |
| Stockholders Equity | 1.50B | 1.34B | 1.25B | 1.16B | 850.24M |
Cash Flow | |||||
| Free Cash Flow | -2.87B | -2.69B | -1.20B | 306.09M | 205.46M |
| Operating Cash Flow | -2.73B | -2.63B | -1.14B | 375.57M | 239.87M |
| Investing Cash Flow | 1.93B | 607.81M | 516.70M | -2.81B | -454.41M |
| Financing Cash Flow | 747.82M | 1.71B | 789.57M | 2.80B | 349.64M |
LendingClub Technical Analysis
Negative
14.12
Price Trends
17.32
Negative
17.80
Negative
16.04
Negative
Market Momentum
-0.85
Positive
36.24
Neutral
4.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LC, the sentiment is Negative. The current price of 14.12 is below the 20-day moving average (MA) of 15.16, below the 50-day MA of 17.32, and below the 200-day MA of 16.04, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 4.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LC.
LendingClub Risk Analysis
LendingClub disclosed 55 risk factors in its most recent earnings report. LendingClub 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
LendingClub Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.57B | 0.74 | 17.81% | 5.20% | 9.32% | 29.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $1.63B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
52 Neutral | $2.33B | -2.93 | 0.96% | ― | ― | ― | |
49 Neutral | $781.64M | -54.17 | -1.95% | 4.95% | -25.22% | -174.34% | |
45 Neutral | $1.97B | ― | -67.59% | ― | 510.69% | -145.92% |
* Financial Sector Average
LC
LendingClub
14.12
3.37
31.35%
NAVI
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8.22
-4.28
-34.23%
AHG
Akso Health Group Sponsored ADR
2.31
1.09
89.34%
FINV
FinVolution Group
6.18
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-40.35%
LU
Lufax Holding
2.28
-0.93
-28.97%
LendingClub Corporate Events
Executive/Board Changes
LendingClub announces key board and risk leadership transitions
Neutral
Jan 27, 2026
On January 22, 2026, LendingClub announced that John C. (Hans) Morris, who has served on its Board of Directors for nearly thirteen years and as independent Chairman, intends to resign from the Board, his chairmanship, and all committee roles effective March 31, 2026; the company credited him with playing a key role in transforming its business and financial profile and noted his departure was not due to any disagreement. In connection with his exit, the Board appointed long-serving director Timothy J. Mayopoulos as independent Chairman effective April 1, 2026, and separately disclosed that Chief Risk Officer Annie Armstrong would step down from her executive role on March 1, 2026, remaining in a non-executive position through March 31, 2026, after having led major enhancements to the risk function that underpinned LendingClub’s bank-charter initiative, signaling a significant but orderly leadership transition across governance and risk oversight functions.
The most recent analyst rating on (LC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on LendingClub stock, see the LC Stock Forecast page.
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.