LendingClub (LC) AI Stock Analysis

• Market Cap: $2.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.35
• Revenue Growth: 9.68%
• EPS Growth: 94.85%
• Country: US
• Employees: 1,002
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.37
• Shares Outstanding: 115,301,440
• 10 Day Avg. Volume: 1,776,478
• 30 Day Avg. Volume: 1,743,828
• PEG Ratio: 1.27
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 1.56
• P/FCF Ratio: -0.67
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 3.56
• 1Y Price Target: $23.00
• Price Target Upside: 17.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.14
• Revenue Forecast (FY): $994.50M

• Rating: 70 Outperform
• Price Target: $21.00 ▲(7.03% Upside)

LendingClub's overall stock score is driven by strong earnings call results and positive technical indicators. While the financial performance shows stability, cash flow issues need addressing. The stock repurchase program further enhances the outlook, though valuation remains moderate.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for LendingClub's services and effective market penetration, supporting long-term expansion.

Strategic Partnerships

Partnership with BlackRock enhances LendingClub's market reach and financial stability, fostering sustained growth and competitive advantage.

Stock Repurchase Program

The repurchase program signals confidence in future performance and commitment to shareholder value, enhancing long-term financial health.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues could hinder LendingClub's ability to invest in growth opportunities, affecting long-term financial stability.

Provision for Credit Losses

High provisions for credit losses may indicate future financial strain, impacting profitability and risk management over time.

Increase in Non-Interest Expense

Rising non-interest expenses could pressure margins, necessitating cost controls to maintain profitability and competitive positioning.

LendingClub Business Overview & Revenue Model

Company Description

LendingClub (NASDAQ: LC) is a leading online marketplace for personal loans and small business financing, operating primarily in the financial technology sector. Established in 2006, the company connects borrowers with investors through its innovative platform, enabling individuals to access loans for various purposes, including debt consolidation, home improvement, and medical expenses. LendingClub also offers small business loans, expanding its services to meet the needs of entrepreneurs. The company leverages data-driven technology to assess creditworthiness and streamline the lending process, providing a user-friendly experience for both borrowers and investors.

How the Company Makes Money

LendingClub generates revenue primarily through origination fees charged to borrowers when they take out loans. These fees are typically a percentage of the loan amount and are collected at the time of funding. Additionally, the company earns interest income on the loans it holds in its portfolio, as well as servicing fees from investors who purchase loan notes. In recent years, LendingClub has also expanded its revenue model by offering banking services, including high-yield savings accounts and certificates of deposit, contributing to its earnings. Key partnerships with financial institutions and investors further enhance its revenue streams, as they enable LendingClub to scale its operations and offer competitive products in the marketplace.

LendingClub Financial Statement Overview

Summary

LendingClub demonstrates a stable financial position with strong balance sheet metrics and improving profitability. However, cash flow challenges persist, requiring attention to ensure sustainable growth. The company shows potential for future growth with improved operational efficiency, but must address cash flow issues to enhance financial health.

Income Statement

LendingClub's income statement shows a mixed performance. The TTM gross profit margin of 41.19% is healthy, but a decline from previous years. The net profit margin improved to 5.93% TTM, indicating better cost management. However, revenue growth is modest at 4.43% TTM, suggesting limited expansion. The EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.016 TTM, indicating low leverage and financial stability. The return on equity is modest at 5.43% TTM, suggesting moderate profitability. The equity ratio of 13.05% TTM indicates a solid equity base relative to total assets, enhancing financial resilience.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows TTM. The free cash flow to net income ratio is positive at 1.07, indicating some cash generation relative to net income. However, the negative free cash flow growth rate of -6.49% TTM highlights ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.16B	1.14B	1.27B	898.63M	455.22M
Gross Profit	751.25M	608.74M	621.05M	919.89M	679.83M	301.47M
EBITDA	281.40M	118.37M	101.81M	196.87M	62.73M	-133.59M
Net Income	103.84M	51.33M	38.94M	289.69M	18.58M	-187.54M
Balance Sheet
Total Assets	11.07B	10.63B	8.83B	7.98B	4.90B	1.86B
Cash, Cash Equivalents and Short-Term Investments	3.75B	957.05M	2.87B	1.40B	950.66M	667.19M
Total Debt	0.00	28.50M	57.22M	210.19M	429.99M	989.11M
Total Liabilities	9.61B	9.29B	7.58B	6.82B	4.05B	1.14B
Stockholders Equity	1.46B	1.34B	1.25B	1.16B	850.24M	724.17M
Cash Flow
Free Cash Flow	-2.15B	-2.69B	-1.20B	306.09M	205.46M	386.88M
Operating Cash Flow	-2.01B	-2.63B	-1.14B	375.57M	239.87M	418.03M
Investing Cash Flow	1.88B	607.81M	516.70M	-2.81B	-454.41M	565.77M
Financing Cash Flow	-77.52M	1.71B	789.57M	2.80B	349.64M	-842.44M

LendingClub Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 19.62 is above the 20-day moving average (MA) of 18.34, above the 50-day MA of 17.59, and above the 200-day MA of 13.89, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 13.43 is Positive, 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
FINV	71 Outperform	$1.30B	3.50	17.76%	5.39%	9.32%	29.40%
LC	70 Outperform	$2.12B	22.08	7.40%	―	9.68%	94.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	63 Neutral	$609.32M	5.62	6.75%	―	-62.48%	1441.74%
NAVI	55 Neutral	$1.29B	-24.85	-1.95%	4.82%	-25.22%	-174.34%
LU	52 Neutral	$2.43B	-3.44	―	―	―	―
AHG	45 Neutral	$673.27M	-2.77	-79.90%	―	510.69%	-145.92%

LendingClub Corporate Events

LendingClub Announces $100 Million Stock Repurchase Program

On November 4, 2025, LendingClub announced a Stock Repurchase and Acquisition Program, approved by its Board of Directors, to buy back up to $100 million of its common stock by the end of 2026. This move reflects the company’s strong financial position and growth prospects, following its transformation into a bank holding company in 2021 and achieving record pre-tax net income in Q3 2025. The program is expected to enhance shareholder value and is aligned with LendingClub’s strategic focus on capitalizing on current stock prices and market conditions.