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1. Company Snapshot

1.a. Company Description

LendingClub 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.

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1.b. Last Insights on LC

LendingClub's recent performance has been driven by strong Q3 earnings, beating estimates with $0.37 per share, a 185% year-over-year increase. A $1 billion BlackRock financing deal and higher marketing spend are expected to drive future growth. The company has also announced a $100 million share repurchase program, indicating confidence in its long-term earnings power. Management expects to double loan originations, and an upward trend in earnings estimate revisions suggests potential for near-term upside, with a consensus price target hinting at a 26.6% increase.

1.c. Company Highlights

2. LendingClub's Q4 2025 Earnings: Strong Originations and Revenue Growth

LendingClub Corporation reported a robust Q4 2025, with originations growing 40% year-over-year to $2.6 billion and 33% to $10 billion for the full year. The company's marketplace revenue increased 36% year-over-year, driven by higher marketplace volumes and loan sales pricing. The net interest income was up 14% year-over-year, driven by the growth of the loan portfolio. The earnings per share (EPS) came in at $0.35, beating the estimated $0.34. The return on tangible common equity more than tripled to almost 12%.

Publication Date: Feb -24

📋 Highlights
  • Originations Growth: Reaches $2.6B (Q4) and $10B (Full-Year 2025), up 40% and 33% YoY, driven by disciplined underwriting.
  • ROTE Surges: to ~12%, more than tripling, reflecting improved profitability and asset utilization efficiency.
  • Marketplace Revenue Rises 36% YoY: due to higher loan volumes and pricing normalization to historical levels.
  • Balance Sheet Expansion: Drives 14% YoY Net Interest Income Growth, supported by loan portfolio expansion and deposit products.

Financial Performance

The company's financial performance was strong, with revenue growth driven by the increase in originations and net interest income. The company's discipline, combined with its advanced underwriting capabilities, delivered 40 to 50% better credit performance versus its competitive set. The company's guidance for 2026 expects originations to be $11.6 billion to $12.6 billion, up 21 to 31% year-over-year, and diluted earnings per share to be $1.65 to $1.80.

Valuation Metrics

To understand what's priced in, we can look at the valuation metrics. The Price-to-Tangible Book Value (P/TBV) is not directly available, but we can consider the Price-to-Book Ratio (P/B Ratio) which is 1.13. The Net Interest Margin (NIM) is not directly available, but the company's net interest income was up 14% year-over-year. The Dividend Yield is 0.0%. As Drew LaBenne mentioned, "we're assuming a stable environment as we go through the year," which indicates a stable outlook for the company's financial performance.

Growth Prospects

The company's growth prospects are driven by its investments in marketing, product innovation, and efficiency. The company expects to continue investing in these areas, with a focus on ramping marketing channels, improving capabilities, and modeling to help 2026 performance. The company's initiatives in AI are also expected to drive growth, with over 60 initiatives underway across the company.

Conclusion on Valuation

3. NewsRoom

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Wall Street Analysts Believe LendingClub (LC) Could Rally 39.35%: Here's is How to Trade

Feb -27

Source: zacks.com

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PGY vs. LC: Better to Choose Profitable Digital Bank or Fintech Play?

Feb -26

Source: zacks.com

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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.

Feb -15

Source: fool.com

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Down 24% in 4 Weeks, Here's Why LendingClub (LC) Looks Ripe for a Turnaround

Feb -06

Source: zacks.com

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New Strong Buy Stocks for February 3rd

Feb -03

Source: zacks.com

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Why This Fintech Stock's Pullback Makes It one of the Best Buys in the Market

Feb -01

Source: fool.com

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LendingClub Q4 Earnings Call Highlights

Jan -30

Source: defenseworld.net

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LendingClub: Irrational Earnings Sell Off

Jan -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.88%)

6. Segments

Online Lending Marketplace Platform

Expected Growth: 10.88%

LendingClub's 10.88% growth in online lending marketplace platform is driven by increasing demand for digital lending, rising adoption of fintech solutions, expansion into new markets, strategic partnerships, and improved credit scoring models. Additionally, the platform's ability to provide competitive interest rates, faster loan processing, and enhanced customer experience also contribute to its growth.

7. Detailed Products

Personal Loans

Unsecured personal loans for debt consolidation, weddings, moving, and other major expenses

Business Loans

Term loans and lines of credit for small businesses to manage cash flow, expand operations, or refinance debt

Auto Refinancing

Refinance existing auto loans to lower monthly payments, reduce interest rates, or tap into equity

Patient Financing

Financing options for medical procedures, dental care, and other healthcare expenses

Investment Products

Investment opportunities in consumer and small business loans, offering returns through interest payments

8. LendingClub Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

LendingClub Corporation operates in a niche market, providing a platform for borrowers and investors. While there are some substitutes, such as traditional banks and credit unions, LendingClub's unique model and technology provide a competitive advantage, reducing the threat of substitutes.

Bargaining Power Of Customers

LendingClub's customers, both borrowers and investors, have limited bargaining power due to the company's dominant market position and lack of direct competition. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

LendingClub's suppliers, primarily consisting of data providers and technology vendors, have limited bargaining power due to the company's scale and negotiating power. This reduces the bargaining power of suppliers.

Threat Of New Entrants

While there are barriers to entry in the peer-to-peer lending market, new entrants can still pose a threat to LendingClub. However, the company's established brand, technology, and regulatory compliance provide a competitive advantage, reducing the threat of new entrants.

Intensity Of Rivalry

The peer-to-peer lending market is highly competitive, with several established players competing for market share. LendingClub faces intense competition from companies like Prosper, Upstart, and Funding Circle, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.83%
Debt Cost 12.83%
Equity Weight 98.17%
Equity Cost 13.99%
WACC 13.97%
Leverage 1.86%

11. Quality Control: LendingClub Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NerdWallet

A-Score: 4.8/10

Value: 5.4

Growth: 7.1

Quality: 7.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
LendingClub

A-Score: 4.4/10

Value: 6.5

Growth: 3.9

Quality: 6.3

Yield: 0.0

Momentum: 6.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Mill City Ventures III

A-Score: 4.2/10

Value: 1.7

Growth: 5.3

Quality: 7.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Consumer Portfolio Services

A-Score: 4.0/10

Value: 7.3

Growth: 5.0

Quality: 5.0

Yield: 0.0

Momentum: 3.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
CPI Card Group

A-Score: 3.8/10

Value: 9.0

Growth: 6.4

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Nicholas Financial

A-Score: 3.3/10

Value: 8.5

Growth: 0.3

Quality: 3.2

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.98$

Current Price

13.98$

Potential

-0.00%

Expected Cash-Flows