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Lendingclub Corp. (LC)
:LC
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LendingClub
(NYSE:LC)
Rating:67Neutral
Price Target:
$18.50
▲(10.84% Upside)
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.
Earnings Performance
The company's 2Q25 results exceeded expectations for revenue and earnings per share, leading management to describe it as an 'inflection point.'
Growth Expectations
Lending Club's core business of refinancing credit card debt is expected to experience strong growth, given the record levels of outstanding credit card debt.
Negative Factors
Marketing Expenses
2Q25 PPNR guidance was lower than forecast due to higher marketing expenses.
Revenue Estimate
Lower 2025 revenue estimate partly based on 4% lower average earning assets.
LendingClub (LC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.92B
Dividend YieldN/A
Average Volume (3M)2.16M
Price to Earnings (P/E)26.0
Beta (1Y)1.51
Revenue Growth7.54%
EPS Growth70.26%
CountryUS
Employees1,002
SectorFinancial
Sector Strength77
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.33
Shares Outstanding114,740,150
10 Day Avg. Volume1,575,333
30 Day Avg. Volume2,159,991
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.37
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda3.47
Forecast
1Y Price Target
$17.19Price Target Upside3.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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
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.
Tracks the volume and type of loans issued, indicating demand trends and the company’s focus on specific lending markets or customer segments.
Data provided by:
Main Street Data
Main Street DataLendingClub Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
LendingClub exhibited strong financial and operational performance with significant growth in originations and revenue, successful new product launches, and impressive credit performance. Despite increased marketing expenses and a higher tax rate impacting profitability, the positive aspects significantly outweigh the negatives.Q2-2025 Updates
Positive Updates
Strong Financial Performance
LendingClub delivered 32% year-on-year growth in originations and 33% growth in revenue. GAAP net income more than doubled to $38 million compared to $15 million last year. ROTCE reached nearly 12%, exceeding the 8% target set at the beginning of the year.
Successful Product Launches
Launched LevelUp Checking and LevelUp Savings, contributing to significant engagement with 6x more checking accounts opened daily and $2.7 billion in LevelUp Savings deposits.
Partnership and Funding Agreements
Extended forward flow agreement with Blue Owl for up to $3.4 billion of new originations and completed a $100 million transaction with BlackRock through the Fitch rated structured certificate program.
Improved Credit Performance
Sustained 40% credit improvement versus competitors and maintained strong credit performance, leading to a $9 million provision benefit.
Negative Updates
Increased Marketing Expenses
Marketing expenses increased by 26% compared to the prior year to support growth, which may impact future efficiency.
Higher Tax Rate Impact
Effective tax rate increased to 29% due to a change in California tax law, which reduced deferred tax assets by $2.3 million.
Company Guidance
During the LendingClub Q2 2025 earnings call, the company reported impressive financial performance, with a 32% year-on-year increase in loan originations totaling $2.4 billion and a 33% rise in revenue to $248 million. GAAP net income more than doubled to $38 million, resulting in a return on tangible common equity (ROTCE) of nearly 12%, surpassing the 8% target set earlier in the year. The company achieved a net interest margin of 6.1% and a net charge-off ratio that improved to 3%. LendingClub also announced an extension of its forward flow agreement with Blue Owl for up to $3.4 billion in new originations and closed a significant $100 million transaction with BlackRock. Additionally, LendingClub introduced new products like LevelUp Checking, which offers financial incentives such as 1% cash back on everyday purchases and 2% cash back for on-time loan payments. The company plans to continue its growth trajectory by focusing on marketing and product innovation, with expected Q3 originations between $2.5 billion and $2.6 billion, and a PPNR range of $90 million to $100 million.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.45
Neutral
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.60
Neutral
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.50
Neutral
| 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
Positive
16.69
Price Trends
14.33
Positive
12.37
Positive
13.18
Positive
Market Momentum
0.71
Positive
62.47
Neutral
64.23
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 16.69 is above the 20-day moving average (MA) of 15.97, above the 50-day MA of 14.33, and above the 200-day MA of 13.18, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.23 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $500.29M | 2.87 | 13.64% | 6.74% | 12.69% | -35.36% | |
76 Outperform | $7.26B | 11.05 | 20.47% | 6.64% | 9.41% | 13.98% | |
72 Outperform | $30.09B | 51.19 | 8.80% | ― | 22.60% | ― | |
68 Neutral | $18.05B | 11.73 | 10.24% | 3.73% | 9.66% | 1.70% | |
67 Neutral | $1.92B | 26.05 | 5.50% | ― | 7.54% | 70.26% | |
63 Neutral | $3.08B | 30.21 | 115.73% | ― | 92.95% | 151.46% | |
50 Neutral | $6.34B | ― | -0.96% | ― | 60.62% | 96.91% |
* Financial Sector Average
Performance Comparison
LC
LendingClub
16.69
5.74
52.42%
OMF
OneMain Holdings
62.61
21.49
52.26%
YRD
Yiren Digital
5.79
1.57
37.20%
UPST
Upstart Holdings
65.87
31.47
91.48%
SOFI
SoFi
25.38
18.37
262.05%
SEZL
Sezzle Inc.
84.89
63.78
302.13%
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.
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.