LendingClub (LC) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.74
• Revenue Growth: 5.72%
• EPS Growth: 31.82%
• Country: US
• Employees: 1,002
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Credit Services
• EPS (TTM): 0.10
• Shares Outstanding: 114,199,830
• 10 Day Avg. Volume: 1,095,129
• 30 Day Avg. Volume: 1,109,850
• PEG Ratio: <0.01
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.98
• Enterprise Value/Market Cap: >-0.01
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: >-0.01
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: $14.43
• Price Target Upside: 37.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 58 Neutral
• Price Target: $11.00 ▲(5.16%Upside)

LendingClub's overall stock score reflects financial challenges, particularly in cash flow and profitability, despite strong technical indicators and fair valuation. The positive earnings call highlighted growth prospects, but economic uncertainties and credit loss provisions pose risks.

Positive Factors

Earnings

1Q25 results beat expectations on revenue and core EPS and were above the guidance range for originations and pre-provision net revenue (PPNR).

Growth Potential

Analysts maintain a Buy rating on Lending Club shares, viewing them as undervalued with significant growth potential.

Negative Factors

Guidance

LC shares are down 23% after-market following 1Q25 and 4Q25 guidance that missed origination growth expectations.

Marketing Expenses

2Q25 PPNR guidance was lower than forecast due to higher marketing expenses.

LendingClub Business Overview & Revenue Model

Company Description

LendingClub 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 Money

LendingClub makes money primarily through the origination of personal loans, where it earns revenue from origination fees charged to borrowers when a loan is issued. Additionally, the company generates income from servicing fees by managing and maintaining the loans throughout their lifecycle. LendingClub also earns interest income from loans held on its balance sheet. Furthermore, the company benefits from partnerships with institutional investors who purchase loans and invest in the lending platform. Another revenue stream is the banking services it offers, which include interest income from deposit accounts and other related financial products. Significant partnerships with financial institutions and the use of technology to streamline operations contribute to LendingClub's earnings by enhancing its reach and operational efficiency.

LendingClub Financial Statement Overview

Summary

LendingClub's financial performance is challenged by declining revenues, negative profitability margins, and significant cash flow issues. Despite a strong cash position and low debt, liquidity concerns persist due to negative operating cash flows.

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
908.40M	252.97M	864.62M	1.17B	802.42M	304.86M
	Gross Profit
560.47M	-27.03M	9.19M	1.06B	751.70M	256.52M
	EBIT
99.80M	69.76M	59.19M	153.04M	18.44M	-187.62M
	EBITDA
145.22M	123.06M	107.05M	218.43M	0.00	0.00
	Net Income Common Stockholders
50.75M	51.33M	38.94M	289.69M	18.58M	-187.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
895.51M	954.06M	2.87B	1.40B	950.66M	667.19M
	Total Assets
10.48B	10.63B	8.83B	7.98B	4.90B	1.86B
	Total Debt
0.00	28.50M	57.22M	143.42M	429.99M	989.11M
	Net Debt
-895.51M	-925.56M	-1.20B	-913.61M	-257.13M	464.15M
	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
-1.83B	-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
390.93M	607.81M	516.70M	-2.81B	-454.41M	565.77M
	Financing Cash Flow
1.27B	1.71B	789.57M	2.80B	349.64M	-842.44M

LendingClub Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.46 is above the 20-day moving average (MA) of 10.38, above the 50-day MA of 10.16, and below the 200-day MA of 12.72, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 67.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LC.

LendingClub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	78 Outperform	$4.09B	44.34	137.28%	―	91.69%	702.31%
YRD	76 Outperform	$583.41M	2.97	14.69%	3.25%	12.45%	-36.64%
SOFI	73 Outperform	$16.65B	35.41	7.51%	―	21.24%	―
OMF	68 Neutral	$6.37B	11.33	17.46%	7.83%	9.07%	―
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%
UPST	63 Neutral	$5.51B	―	-10.30%	―	34.69%	63.65%
LC	58 Neutral	$1.25B	24.72	3.86%	―	5.72%	31.82%

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.

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.