LendingClub (LC) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.73
• Revenue Growth: 5.72%
• EPS Growth: 31.82%
• Country: US
• Employees: 1,002
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): 0.10
• Shares Outstanding: 114,199,830
• 10 Day Avg. Volume: 1,517,734
• 30 Day Avg. Volume: 1,179,690
• 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: 15.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 62 Neutral
• Price Target: $13.00 ▲(4.42%Upside)

LendingClub's overall stock score reflects a mix of financial challenges and positive market momentum. Strong loan growth and improved revenue signal potential, but negative cash flows and macroeconomic uncertainties require cautious optimism. The positive earnings call and technical momentum are significant strengths.

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

Lending Club's strong revenue ramp is expected in 2025, emphasized by guidance for significant growth in originations.

Market Position

Lending Club's refinancing of credit card debt positions it for strong growth in 2025, given the record $1.3 trillion of credit card debt outstanding.

Negative Factors

Guidance

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

Stock Performance

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

Valuation

Valuation target price is lowered to $20 from $28 due to slower near-term growth.

LendingClub Business Overview & Revenue Model

Company Description

LendingClub (LC) is a leading financial services company headquartered in the United States, operating primarily in the digital lending and banking sectors. The company offers a range of products and services, including personal loans, auto refinancing, and a high-yield savings account, all designed to provide consumers with accessible and cost-effective financial solutions. LendingClub is known for its innovative online platform that connects borrowers with investors, enabling a seamless and efficient lending process.

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
EBITDA	145.22M	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	0.00	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	-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: Positive
• Last Price: 12.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 12.45 is above the 20-day moving average (MA) of 11.23, above the 50-day MA of 10.73, and below the 200-day MA of 12.74, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 91.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LC.

LendingClub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEZL	78 Outperform	$5.58B	58.24	137.28%	―	91.69%	702.31%
YRD	73 Outperform	$531.40M	2.88	14.69%	3.58%	12.45%	-36.64%
SOFI	69 Neutral	$20.03B	43.06	7.51%	―	21.24%	―
OMF	68 Neutral	$7.05B	12.54	17.46%	7.02%	9.07%	―
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
UPST	66 Neutral	$6.48B	―	-10.30%	―	34.69%	63.65%
LC	62 Neutral	$1.40B	28.00	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.