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Lendingclub Corp. (LC)
NYSE:LC
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LendingClub (LC) AI Stock Analysis

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LC

LendingClub

(NYSE:LC)

Rating:69Neutral
Price Target:
$17.50
▲(12.76% Upside)
LendingClub's strong technical momentum and positive earnings call sentiment are major strengths, contributing to a favorable stock outlook. However, financial challenges and a moderate valuation temper the overall score. The company's strategic moves and new product launches position it well for future growth, though liquidity concerns remain a risk.
Positive Factors
Business Partnerships
Lending Club announced new loan partnerships, including a $1B partnership with BlackRock and a $3.4B extension with Blue Owl, reflecting strong business momentum.
Financial Performance
The company's 2Q25 results exceeded expectations for revenue and earnings per share, leading management to describe it as an 'inflection point.'
Negative Factors
Marketing Expenses
2Q25 PPNR guidance was lower than forecast due to higher marketing expenses.
Revenue Estimates
Lower 2025 revenue estimate partly based on 4% lower average earning assets.

LendingClub (LC) vs. SPDR S&P 500 ETF (SPY)

LendingClub Business Overview & Revenue Model

Company DescriptionLendingClub (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 MoneyLendingClub 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 Key Performance Indicators (KPIs)

Any
Any
Loan Origination by Type
Loan Origination by Type
Tracks the volume and type of loans issued, indicating demand trends and the company’s focus on specific lending markets or customer segments.
Chart InsightsLendingClub's loan origination trends reveal a strategic shift. Marketplace originations have stabilized after a volatile period, while loans held for investment show a recent uptick, suggesting a focus on portfolio growth. The latest earnings call highlights robust loan volume growth and improved loan sales pricing, despite increased provisions for credit losses due to economic uncertainties. This indicates a cautious yet optimistic approach, balancing growth with risk management. The company's achievement of an investment-grade rating and strong credit performance further underscores its resilience in a challenging economic environment.
Data provided by:Main Street Data

LendingClub Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: 18.38%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
LendingClub's Q2 2025 earnings call reflected strong growth in originations, revenue, and credit performance, driven by successful new product launches and strategic partnerships. Despite increased marketing expenses and a modest rise in provisions for credit losses, the company's positive financial trajectory and favorable guidance for the upcoming quarters contribute to an overall positive sentiment.
Q2-2025 Updates
Positive Updates
Record Growth in Originations and Revenue
LendingClub reported a 32% year-on-year growth in originations and a 33% growth in revenue for Q2 2025, with GAAP net income increasing from $15 million to $38 million over the same period.
Strong Credit Performance
The company sustained a 40% improvement in prime credit performance versus competitors, and the net charge-off ratio for the held-for-investment loan portfolio improved to 3% from 6.2% last year.
Successful New Product Launches
LendingClub introduced LevelUp Checking, offering cash back rewards for on-time loan payments, and LevelUp Savings, which reached $2.7 billion in deposits.
Strategic Funding Partnerships
The company extended its forward flow agreement with Blue Owl for up to $3.4 billion in new originations and closed a $100 million transaction with BlackRock.
Positive Guidance for Future Quarters
For the third quarter, LendingClub anticipates growing originations to $2.5 billion to $2.6 billion and expects PPNR to be in the range of $90 million to $100 million.
Negative Updates
Higher Marketing Expenses
Noninterest expense was up 17% compared to the prior year, driven primarily by a 26% increase in marketing spend.
Provision for Credit Losses Increase
Provision for credit losses increased modestly to $40 million from $36 million in the prior year, despite better-than-expected credit performance.
Company Guidance
During the LendingClub Q2 2025 earnings call, the company reported a 32% year-over-year growth in originations and a 33% increase in revenue, with $38 million in GAAP net income, more than double from the previous year. LendingClub achieved an ROTCE of nearly 12%, surpassing their initial target of 8% for the year. Key strategic moves included extending a forward flow agreement with Blue Owl for up to $3.4 billion in new originations and completing a $100 million transaction with BlackRock. The company also launched innovative products like LevelUp Checking, which provides cash back rewards for on-time loan payments. LendingClub experienced a 60% increase in noninterest income due to higher origination sales and improved loan sales pricing. They set a PPNR guidance of $90 million to $100 million for Q3, with expectations of maintaining double-digit ROTCE. Furthermore, their CET1 ratio stood at 17.5%, positioning them strongly for future growth.

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
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.01B252.97M864.62M1.17B802.42M304.86M
Gross Profit497.23M-27.03M9.19M1.06B751.70M256.52M
EBITDA201.89M123.06M107.05M218.43M0.000.00
Net Income50.75M51.33M38.94M289.69M18.58M-187.54M
Balance Sheet
Total Assets10.48B10.63B8.83B7.98B4.90B1.86B
Cash, Cash Equivalents and Short-Term Investments895.51M954.06M2.87B1.40B950.66M667.19M
Total Debt25.57M28.50M57.22M143.42M429.99M989.11M
Total Liabilities9.12B9.29B7.58B6.82B4.05B1.14B
Stockholders Equity1.36B1.34B1.25B1.16B850.24M724.17M
Cash Flow
Free Cash Flow-2.18B-2.69B-1.20B306.09M205.46M386.88M
Operating Cash Flow-2.13B-2.63B-1.14B375.57M239.87M418.03M
Investing Cash Flow841.39M607.81M516.70M-2.81B-454.41M565.77M
Financing Cash Flow1.10B1.71B789.57M2.80B349.64M-842.44M

LendingClub Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.52
Price Trends
50DMA
12.83
Positive
100DMA
11.51
Positive
200DMA
13.06
Positive
Market Momentum
MACD
0.83
Positive
RSI
64.58
Neutral
STOCH
53.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LC, the sentiment is Positive. The current price of 15.52 is above the 20-day moving average (MA) of 14.54, above the 50-day MA of 12.83, and above the 200-day MA of 13.06, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 53.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LC.

LendingClub Risk Analysis

LendingClub disclosed 54 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$504.61M2.7414.69%6.61%12.45%-36.64%
73
Outperform
$6.80B10.3420.47%7.11%9.41%13.98%
69
Neutral
$1.78B24.225.50%7.54%70.26%
68
Neutral
$28.03B48.028.80%22.60%
68
Neutral
$17.51B11.6510.43%3.82%9.93%1.68%
63
Neutral
$3.03B31.63115.73%92.95%151.46%
50
Neutral
$6.14B-0.96%60.62%96.91%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LC
LendingClub
15.52
4.61
42.25%
OMF
OneMain Holdings
58.49
15.36
35.61%
YRD
Yiren Digital
5.90
1.37
30.24%
UPST
Upstart Holdings
63.83
27.02
73.40%
SOFI
SoFi
23.29
16.29
232.71%
SEZL
Sezzle Inc.
91.47
70.83
343.17%

LendingClub Corporate Events

Executive/Board ChangesShareholder Meetings
LendingClub Stockholders Meeting Approves Key Proposals
Neutral
Jun 5, 2025

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.

The most recent analyst rating on (LC) stock is a Buy with a $28.00 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.Date of analysis: Jul 31, 2025