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Lendingclub Corp. (LC)
NYSE:LC
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LendingClub
(NYSE:LC)
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Rating:63Neutral
Price Target:
$17.50
▲(6.45% Upside)
The score is driven by strong balance sheet positioning and a constructive earnings outlook with robust growth and profitability guidance. Offsetting these positives are persistently large negative operating/free cash flow and weak technical momentum, while valuation appears reasonable based on the current P/E.
Positive Factors
Conservative balance sheet
No debt and a growing equity base provide durable financial flexibility to fund originations, weather credit cycles, and support strategic investments. This reduces refinancing risk and preserves optionality for repurchases, acquisitions, or capital needs over the next several quarters.
Originations and marketplace scale
Sustained high originations expand fee income, marketplace liquidity, and cross‑sell opportunities. Scale in originations supports better loan pricing, investor appetite, and distribution economics, underpinning durable revenue growth and product expansion over the medium term.
Strong credit performance
Consistently superior credit outcomes imply better underwriting and vintage performance, lowering loss provisioning and supporting sustainable margins. A structural credit advantage enhances investor confidence in loan notes and reduces capital strain across credit cycles.
Negative Factors
Negative operating and free cash flow
Deeply negative operating and free cash flows create reliance on balance sheet liquidity or external funding to sustain origination growth and deposit builds. Over several months this cash burn constrains capital deployment flexibility and increases sensitivity to funding-market conditions.
Fair‑value accounting transition risk
Moving to fair‑value accounting materially increases earnings volatility and modeling complexity over the medium term. This structural change affects comparability, introduces mark‑to‑market swings as interest rates and spreads move, and can complicate capital planning and investor assessment.
Planned higher operating expense
Elevated marketing, product and rebrand investments will pressure efficiency and margin metrics in the near to medium term. If revenue mix or yield improvements lag, sustained higher operating expense could compress ROE and delay achievement of medium‑term efficiency targets.
LendingClub (LC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.26B
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)14.2
Beta (1Y)1.36
Revenue Growth9.68%
EPS Growth94.85%
CountryUS
Employees1,002
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding115,301,440
10 Day Avg. Volume1,575,132
30 Day Avg. Volume1,502,743
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)1.35
Price to Sales (P/S)1.56
P/FCF Ratio-0.67
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit2.58
Enterprise Value/Ebitda6.89
Forecast
1Y Price Target
$23.63Price Target Upside43.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LendingClub Business Overview & Revenue Model
Company DescriptionLendingClub 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 MoneyLendingClub 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how different parts of the business contribute to overall sales, highlighting which areas are driving growth and which might need strategic adjustments.
Shows how different parts of the business contribute to overall sales, highlighting which areas are driving growth and which might need strategic adjustments.
Data provided by:
The Fly
The FlyLendingClub Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: robust originations growth (+40% Q4, +33% FY), improved revenue mix (marketplace +36%, noninterest income +38%), rising net interest income (+14%) and significantly higher ROTCE (~12%). Credit performance remains a clear strength with net charge‑offs improving ~80 bps YoY. Management is investing heavily in marketing, product expansion (home improvement, purchase finance), AI, and a rebrand, and is transitioning accounting to fair value which should improve long‑term returns but will introduce near‑term P&L volatility (Q1 fair value adjustments expected ~2x Q4). Expense increases and accounting transition effects create a temporary headwind to efficiency and short‑term comparability, but the balance of evidence — growth, profitability, strong credit, deposit and balance‑sheet traction, and clear investor communications — points to a constructive outlook. Overall, highlights outweigh lowlights.Q4-2025 Updates
Positive Updates
Strong Originations Growth
Q4 originations grew 40% year‑over‑year to $2.6B; full year 2025 originations grew 33% to nearly $10B. Guidance for 2026 originations of $11.6B–$12.6B (up 21%–31% YoY) and Q1 2026 guide of $2.55B–$2.65B (28%–33% YoY).
Revenue and Marketplace Momentum
Marketplace revenue increased 36% YoY. Noninterest income rose 38% to $103M driven by higher marketplace volumes and improved loan sale pricing.
Net Interest Income and Margin Expansion
Net interest income hit an all‑time high of $163M, up 14% YoY. Net interest margin was 6.0%, up 56 basis points versus prior year (adjusted NIM would be ~17 bps higher if cash balances were flat).
Material Profitability Improvement
Return on tangible common equity (ROTCE) more than tripled to ~12% in the quarter (11.9% reported), above guidance. Full‑year ROTCE was 10.2%. Q4 diluted EPS was $0.35; full‑year diluted EPS was $1.16; FY2026 EPS guidance $1.65–$1.80 (up ~42%–55% YoY).
Best‑in‑Class Credit Performance
Company reported 40%–50% better credit performance versus competitive set. Net charge‑off ratio improved, down ~80 bps YoY; provision for credit losses was $47M in Q4. CECL lifetime loss expectations stable or improving across vintages.
Balance Sheet and Deposit Growth
Total assets grew to $11.6B (up 9% YoY). Deposits ended the quarter at $9.8B, up 8% YoY. Held‑for‑sale extended seasoning portfolio grew to $1.8B; nearly $500M retained in held‑for‑investment.
New Products, Distribution and Partnerships
Launched a rated structured certificate for insurance capital and initiated a direct forward flow with a top US insurer (in addition to BlackRock and BlueOwl). Entering home improvement financing with acquired technology, leadership hires and first distribution partnership, on track for midyear launch.
Customer Engagement and Deposit Product Traction
LevelUp Savings and LevelUp Checking growing double‑digits. LevelUp Savings drives 20%–30% more logins vs legacy product. Personal loan borrowers are >15% of new accounts; 60% of new checking accounts are from personal loan borrowers and 84% of those say they're more likely to consider a LendingClub loan.
Capital Return & Shareholder Actions
Announced $100M repurchase & acquisition program; deployed ~ $12M in Q4 at an average price of $17.65. Company emphasizes continued deployment of excess capital.
Negative Updates
Higher Operating Expense and Marketing Investment
Noninterest expense was $169M, up 19% YoY, driven primarily by planned higher marketing spend and some sequential increases in equipment and other costs as the company scales new channels and prepares for rebrand.
Near‑term Accounting Transition Volatility (Fair Value Move)
Transitioning 100% of new held‑for‑investment originations to the fair value option will cause Q1 2026 fair value adjustments to be roughly double Q4 2025 levels (more loans, longer duration major purchase finance, and higher average balances), creating near‑term P&L volatility and modeling complexity.
CECL Legacy Expense and Day‑One Provision Effects
Although new originations will have no day‑one CECL provision under fair value, company expects CECL expense from the remaining legacy portfolio of ~ $10M in Q1 2026; some major purchase finance loans previously carried higher day‑one provision due to longer duration.
Sequential NIM Pressure from Elevated Cash Balances
Net interest margin declined sequentially (despite YoY improvement) because the company retained higher cash balances to support accelerated 2026 growth; this places reliance on timely deployment into earning assets to restore margin run‑rate.
Temporary Efficiency Ratio Impact
Planned reinvestments (marketing R&D, rebrand, home‑improvement buildout, AI hires) will lift expenses in the near term and may push efficiency metrics higher in 2026 before medium‑term targets (55%–60% efficiency) are re‑achieved.
Competitive and Market Risks
Management noted ongoing competitive intensity (fintech entrants and cyclic direct competitors) and investor selectivity in marketplace buyers. Potential regulatory risks (e.g., proposed rate caps) were discussed as a macro risk, though management sees an organic affordability alternative today.
Limited Near‑term Buyback Deployment
Of the announced $100M repurchase program, only ~$12M was deployed in Q4, suggesting modest near‑term shareholder capital return activity to date.
Company Guidance
Management guided Q1 2026 originations of $2.55–$2.65 billion (28–33% YoY) and diluted EPS of $0.34–$0.39 (up 240–290% YoY), and full‑year 2026 originations of $11.6–$12.6 billion (up 21–31% YoY) with EPS $1.65–$1.80 (up 42–55% YoY) consistent with a near‑term ROTCE target of 13–15% (and a medium‑term goal of 18–20%); management noted Q4 2025 originations were $2.6 billion (+40% YoY) and FY2025 nearly $10 billion (+33% YoY), Q4 NII $163M (+14% YoY), noninterest income $103M (+38% YoY), NIM 6% (+56 bps YoY), deposits $9.8B (+8% YoY), total assets $11.6B (+9% YoY), noninterest expense $169M (+19% YoY), provision for credit losses $47M, held‑for‑sale inventory $1.8B, held‑for‑investment ~ $500M, Q4 ROTCE 11.9%, tangible book value per share $12.30, and management expects Q1 fair‑value adjustments to be roughly double Q4 levels, CECL expense of about $10M, continued marketing investment to scale growth, and ongoing deployment of the $100M share repurchase/acquisition program (≈$12M executed in Q4 at an average $17.65/share).LendingClub Financial Statement Overview
Summary
Balance sheet strength is a major positive (no debt, expanding equity base), and profitability improved in the TTM (higher net and EBIT margins). However, cash flow quality is a significant risk: operating and free cash flow remain deeply negative in 2023–TTM, creating a meaningful disconnect versus reported earnings.Income Statement
Revenue has stabilized and modestly improved in TTM (Trailing-Twelve-Months) (+3.8%) after a decline in 2023, and profitability has strengthened meaningfully versus 2023–2024 (TTM net margin ~9.8% vs. ~4–5% in 2023–2024). Operating profitability is solid in TTM (EBIT margin ~22%), showing better cost discipline. Key weakness is volatility across the cycle (large loss in 2020 and unusually strong profitability in 2022), suggesting earnings can swing with credit conditions and business mix.72
Positive
Balance Sheet
Balance sheet leverage is very conservative: TTM shows no debt and equity has grown over time (stockholders’ equity up from ~$724M in 2020 to ~$1.46B in TTM), which improves financial flexibility. Returns on equity have normalized to mid-single digits in TTM (~7.5%) after a peak in 2022 and weaker levels in 2023–2024, indicating profitability is positive but not yet consistently strong. Overall strength is low leverage and expanding equity base; the main drawback is the step-down in returns versus 2022.83
Very Positive
Cash Flow
Cash generation is the primary concern: operating cash flow and free cash flow are deeply negative in 2023–2024 and remain negative in TTM (Trailing-Twelve-Months) (operating cash flow about -$2.0B; free cash flow about -$2.15B), a sharp reversal from positive cash flow in 2020–2022. This creates reliance on balance sheet liquidity and/or funding markets despite reported profitability. While free cash flow growth is listed as improving in TTM, the absolute level is still materially negative, which limits the score.32
Negative
| 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 | 68.80M | 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
Negative
16.44
Price Trends
19.15
Negative
17.98
Negative
15.21
Positive
Market Momentum
0.04
Positive
31.43
Neutral
22.82
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 16.44 is below the 20-day moving average (MA) of 20.07, below the 50-day MA of 19.15, and above the 200-day MA of 15.21, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 31.43 is Neutral, neither overbought nor oversold. The STOCH value of 22.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.32B | 3.55 | 17.73% | 5.20% | 9.32% | 29.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $2.26B | 14.23 | 9.55% | ― | 9.68% | 94.85% | |
52 Neutral | $2.34B | -3.56 | ― | ― | ― | ― | |
47 Neutral | $956.54M | -12.07 | -1.95% | 4.95% | -25.22% | -174.34% | |
45 Neutral | $783.64M | -2.95 | -79.90% | ― | 510.69% | -145.92% |
* Financial Sector Average
LC
LendingClub
16.44
2.95
21.87%
NAVI
Navient
9.88
-3.15
-24.17%
AHG
Akso Health Group Sponsored ADR
1.40
0.11
8.98%
FINV
FinVolution Group
5.15
-2.23
-30.22%
LU
Lufax Holding
2.71
0.40
17.32%
LendingClub Corporate Events
Executive/Board Changes
LendingClub announces key board and risk leadership transitions
Neutral
Jan 27, 2026
On January 22, 2026, LendingClub announced that John C. (Hans) Morris, who has served on its Board of Directors for nearly thirteen years and as independent Chairman, intends to resign from the Board, his chairmanship, and all committee roles effective March 31, 2026; the company credited him with playing a key role in transforming its business and financial profile and noted his departure was not due to any disagreement. In connection with his exit, the Board appointed long-serving director Timothy J. Mayopoulos as independent Chairman effective April 1, 2026, and separately disclosed that Chief Risk Officer Annie Armstrong would step down from her executive role on March 1, 2026, remaining in a non-executive position through March 31, 2026, after having led major enhancements to the risk function that underpinned LendingClub’s bank-charter initiative, signaling a significant but orderly leadership transition across governance and risk oversight functions.
The most recent analyst rating on (LC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on LendingClub stock, see the LC Stock Forecast page.
Business Operations and StrategyStock Buyback
LendingClub Announces $100 Million Stock Repurchase Program
Positive
Nov 5, 2025
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.
The most recent analyst rating on (LC) stock is a Hold with a $19.50 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.