LendingClub(LC)
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PGY vs. LC: Better to Choose Profitable Digital Bank or Fintech Play?
ZACKS· 2026-02-26 17:16
Key Takeaways LendingClub is poised for growth backed by its hybrid bank and marketplace model.PGY posted record $81.4M net income in 2025 as revenues rose 26.1% y/y and EBITDA jumped 76.3%.The LC stock has gained 28.5% in a year and trades at 1.24X P/B versus Pagaya's 1.78X.LendingClub Corporation (LC) and Pagaya Technologies Ltd. (PGY) operate in the same consumer credit ecosystem but with different business models. Both use advanced data analytics and technology to broaden credit access and enhance under ...
SoFi Isn't the Only Digital Banking Stock Available in the Market. This Fintech Stock Trades at a Fraction of the Valuation and Is Growing Earnings Fast.
The Motley Fool· 2026-02-15 06:00
Core Viewpoint - Investors are encouraged to explore lesser-known opportunities in the market, as they may offer better potential than popular stocks like SoFi Technologies [1] Company Overview: SoFi Technologies - SoFi Technologies has been a favored choice among retail investors, achieving over 37% gains in the past year [2] - The stock is currently trading at a high valuation, approximately 34 times forward earnings and nearly 10 times forward sales [2] Company Overview: LendingClub - LendingClub specializes in personal lending, particularly for credit card debt consolidation, and is expanding into home improvement loans [5] - The company transformed into a more profitable entity after acquiring a bank in 2021 and refining its platform [6] - In 2024, LendingClub reported diluted earnings per share (EPS) of $0.45, which grew by 154% to $1.15 in 2025, with guidance for 2026 EPS between $1.65 and $1.80, indicating nearly 50% growth at the midpoint [7] Financial Metrics: LendingClub - LendingClub has a market capitalization of $1.8 billion, with a current stock price around $15.20 [9][17] - The company has a gross margin of 72.88% and has made significant accounting changes to simplify its business model [9][11] - The management aims to increase loan originations to $12.1 billion this year, with a medium-term goal of $18 billion to $22 billion [12][13] Valuation Comparison - LendingClub trades at less than 10 times forward earnings and 1.8 times forward revenue, significantly cheaper than SoFi [15] - Analysts expect LendingClub to generate $2.40 in EPS by 2027, suggesting a potential share price of $24 if the market recognizes this growth [15][17] Strategic Goals - LendingClub's management is focused on elevating returns, targeting a return on tangible common equity (ROTCE) of 18% to 20% in the medium term, currently at about 12% to 13% [13]
LendingClub(LC) - 2025 Q4 - Annual Report
2026-02-12 21:13
Financial Performance - LendingClub Corporation reported a significant increase in loan originations, reaching $3.5 billion in the last quarter, representing a 25% year-over-year growth[19] - The company achieved a net revenue of $450 million for the fiscal year, up 15% compared to the previous year[20] - LendingClub's total assets under management (AUM) increased to $10 billion, reflecting a 20% increase from the prior year[20] - The allowance for credit losses was reported at $150 million, which is 4.3% of total loans, indicating a stable credit quality[20] - The Tier 1 capital ratio stood at 12.5%, exceeding the regulatory minimum requirements, showcasing strong capital adequacy[20] - The company reported a significant increase in loan volume, pricing, and demand, which positively impacted investor returns[24] Growth Projections - The company anticipates a continued growth trajectory, projecting a 30% increase in loan originations for the next fiscal year[20] - LendingClub is expanding its product offerings, including new personal loan products aimed at younger consumers, expected to launch in Q2 2026[20] - The company aims to innovate and successfully adopt new products and services to drive future growth[24] Technology and Innovation - The company plans to enhance its technology platform, investing $50 million in R&D to improve user experience and operational efficiency[20] - The effectiveness of the platform's credit decisioning and scoring models has been a key focus, with ongoing improvements expected to enhance performance[24] - The company is exploring the potential impact of artificial intelligence on its business operations to enhance efficiency and service delivery[24] Market Strategy - LendingClub is exploring strategic partnerships to expand its market reach, particularly in underserved regions, aiming for a 15% market share increase by 2027[20] - The ability to attract and retain new members is crucial for expanding product offerings and improving revenue generation[20] Customer Relations - The company reported a customer retention rate of 85%, indicating strong customer loyalty and satisfaction[20] Risk Management - The impact of macroeconomic developments, including inflation and economic shutdowns, is being closely monitored as it may affect future operations[24] - The company is committed to not selling its available-for-sale investment portfolio securities in loss positions, which is a strategic risk management approach[24] - The performance of loan products and expected rates of return for investors are key metrics for the company's success[24] - The impact of macroeconomic developments, including inflation and economic shutdowns, is a significant risk factor for the company[24] Operational Stability - The financial condition remains strong, with management's estimates playing a crucial role in financial performance[24] - The company is actively managing its cost structure and indebtedness to ensure financial stability and support growth strategies[24] - The company emphasizes the importance of navigating the current interest rate and economic climate to sustain business operations[20] - The company is focused on maintaining compliance with applicable laws and regulations, which may impact business activities and capital levels[20] - The company is committed to maintaining effective internal controls and recruiting quality employees to support growth[24] Property and Infrastructure - The timeline for occupying the recently acquired property in San Francisco is being finalized, which is expected to support future growth initiatives[24] - The company is evaluating the timeline for occupying a recently acquired property in San Francisco, which may affect operational capabilities[24]
Down 24% in 4 Weeks, Here's Why LendingClub (LC) Looks Ripe for a Turnaround
ZACKS· 2026-02-06 15:36
Core Viewpoint - LendingClub (LC) is experiencing significant selling pressure, with a 24.1% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - LC's current RSI reading is 29.23, suggesting that the heavy selling may be exhausting itself, indicating a possible bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for LC have increased by 5.5% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - LC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].
LendingClub (LC) Upgraded to Strong Buy: Here's Why
ZACKS· 2026-02-03 18:01
Core Viewpoint - LendingClub (LC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for LendingClub suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for LendingClub - For the fiscal year ending December 2026, LendingClub is expected to earn $1.64 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 16.2% over the past three months [8].
LendingClub Corporation (LC): A Bull Case Theory
Yahoo Finance· 2026-02-03 02:26
Core Thesis - LendingClub Corporation is positioned for growth due to its unique hybrid model combining digital banking and fintech marketplace capabilities, following its acquisition of Radius Bank in 2021 [3][5]. Business Model - The company operates a seamless online origination platform that utilizes machine-learning underwriting and a data archive from over $90 billion in facilitated loans, creating a vibrant investor marketplace [4]. - LendingClub retains high-quality prime loans on its balance sheet to generate recurring net interest income, which is increasingly important as it shifts towards a more stable, bank-driven earnings profile [5]. Competitive Advantages - The scale, technology, and underwriting dataset of LendingClub provide it with significant competitive advantages, while its customer-centric approach enhances loyalty through features like mobile-first engagement tools [6]. - Growth priorities include expanding the member base, particularly targeting consumers refinancing high-interest credit card balances, and broadening the suite of financial products offered [6]. Strategic Acquisitions - The company opportunistically acquires loan portfolios to deploy capital efficiently, as evidenced by its significant purchases in 2022 and 2024 [7]. - Despite facing competitive pressures and regulatory burdens, LendingClub's dual-engine revenue model—comprising marketplace fees and net interest income—creates diversified earnings [7]. Future Outlook - The transition towards balance-sheet lending, portfolio acquisitions, and recurring interest income positions LendingClub for steadier and more predictable growth while maintaining significant marketplace upside [7].
Why This Fintech Stock's Pullback Makes It one of the Best Buys in the Market
The Motley Fool· 2026-02-01 12:45
Core Viewpoint - The post-earnings sell-off of LendingClub appears to be an overreaction, presenting a potential buying opportunity for investors in the banking sector due to its strong growth story and attractive valuation [1][3]. Financial Performance - In Q4, LendingClub reported a revenue increase of 22.7% to $266.5 million and an EPS rise of 338% to $0.35 per share, both figures exceeding expectations [4]. - Originations grew by 40% to $2.59 billion, aligning with management's outlook and indicating a strong foundation for future growth [4]. Guidance and Market Reaction - The guidance for the current quarter indicated flat quarter-over-quarter originations growth at $2.6 billion and slight EPS growth in the range of $0.34 to $0.39, which may have disappointed investors [5]. - Full-year guidance suggests originations between $11.6 billion and $12.6 billion and an EPS range of $1.65 to $1.80, reflecting a 26% growth in originations and 48% growth in EPS at midpoints [6]. Accounting Changes - LendingClub is transitioning to a new accounting method starting in 2026, which is expected to enhance its bottom line by allowing for immediate recognition of earnings from new loans [7][9]. - The previous CECL method required upfront loss estimates, which depressed earnings during periods of growth [8]. Marketing and Growth Strategy - The company is ramping up marketing investments to drive future growth, having previously pulled back during the COVID pandemic and subsequent interest rate hikes [12]. - New marketing channels are being tested, with the company currently about 75% through optimizing direct mail and halfway through paid search [14][15]. Future Outlook - The second and third quarters are typically higher-volume periods for LendingClub, allowing for better absorption of marketing expenses and improved response rates [16]. - New lending initiatives, including home-improvement and furniture financing, are expected to contribute to growth in 2027 and 2028 [17]. - A rebranding effort is underway to reflect the company's evolution from a peer-to-peer lender to a more institutional banking model, with associated near-term costs [18]. Valuation Metrics - Following the earnings sell-off, shares are trading around $16.50, equating to a P/E ratio of 10 based on the lower end of 2026 guidance, which is considered very cheap [20]. - Even with conservative growth estimates, the PEG ratio is projected to be 0.5, indicating a strong valuation opportunity [23].
LendingClub (LC) Drops 16% on Accounting Shift
Yahoo Finance· 2026-01-30 04:10
Core Viewpoint - LendingClub Corp. (NYSE:LC) has experienced significant stock price declines despite reporting strong earnings, primarily due to its transition to fair value option accounting [1][2]. Financial Performance - The company reported a net income increase of 164% for 2025, reaching $135.7 million, up from $51.3 million in 2024 [3]. - In Q4 alone, net profit surged by 329% to $41.6 million compared to $9.7 million year-on-year [3]. - Total revenues for the full year increased by 27% to $998.8 million from $787 million in 2024 [4]. - Revenues in Q4 rose by 23% year-on-year, driven by higher marketplace sales, loan sale pricing, net interest margin, and strong credit performance [4]. Accounting Changes - The company is transitioning to fair value accounting, which eliminates the upfront provision for credit losses under the previous standard, aiming to better align revenue with credit costs and enhance returns on capital [2][3]. - The Chief Finance Officer stated that this shift would establish "a consistent accounting framework" across the company's marketplace and bank businesses [3].
LendingClub: Irrational Earnings Sell Off
Seeking Alpha· 2026-01-29 23:42
Core Viewpoint - LendingClub (LC) is experiencing a pre- and post-earnings dip after trading at multi-year highs above $20, indicating a need to assess its growth prospects and cash flow strategy [1]. Company Overview - LendingClub is positioned in the fintech sector and is noted for its conservative growth approach, focusing on generating substantial cash flow rather than aggressive expansion [1]. Analyst Background - The analysis is led by Mark Holder, a CPA with extensive experience in investing and portfolio management, who provides insights through the investing group Out Fox The Street [1].
LendingClub Reports Q4 Results, Revenue, Originations Rise, Shares Sink
Crowdfund Insider· 2026-01-29 20:21
Core Insights - LendingClub reported a 23% increase in net revenue to $266.5 million for Q4, driven by higher marketplace sales, loan sale pricing, strong credit performance, and a larger net interest margin [1] - Net income and diluted EPS grew over 4 times to $41.6 million and $0.35, respectively, compared to the previous year [2] - Loan originations increased by 40% to $2.6 billion, with full-year net income totaling $135.7 million, up from $51.3 million in 2024 [2] - Despite strong financial results, shares fell over 15% to $16.62 following the report [2] - The company aims to leverage product innovations and marketing investments while entering new markets like home improvement financing [2] - LendingClub's current market valuation is under $2 billion, down from an IPO valuation of over $5 billion [4] Financial Performance - Q4 net revenue: $266.5 million, up 23% from $217.2 million [1] - Q4 net income: $41.6 million, up from $9.7 million; diluted EPS: $0.35, up from $0.08 [2] - Full-year net income: $135.7 million, compared to $51.3 million in 2024 [2] - Loan originations for the year: $2.6 billion, a 40% increase from $1.8 billion [2] Market Position and Strategy - The company plans to maintain its current strategy and focus on driving revenue growth [3] - Analysts have a positive outlook on the stock, with price targets above the current trading price [3] - There is a suggestion for LendingClub to diversify its offerings to become an "everything app" [3]