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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 Q3 2025 Earnings: A Strong Performance

LendingClub Corporation reported a robust Q3 2025, with revenue growth of 32% and a near tripling of diluted earnings per share to $0.37, beating analyst estimates of $0.3. The company's financial performance was driven by a 37% growth in originations, which came in above the top end of guidance at $2.62 billion. The asset yield remained strong, and the borrower base performed well, with a 40% outperformance on credit versus competitors. Net interest income, a recurring revenue stream, reached an all-time high of $158 million.

Publication Date: Nov -24

📋 Highlights
  • Originations Growth:: Loan originations surged to $2.62 billion, 37% year-over-year, surpassing guidance and driven by increased consumer demand and marketing efforts.
  • Revenue & Earnings Surge:: Revenue rose 32%, while diluted earnings per share nearly tripled to $0.37, with return on tangible common equity at 13.2%.
  • Marketplace Expansion:: Marketplace revenue grew 75%, and structured certificate sales hit a record $1 billion, supported by a $1 billion MoU with BlackRock for 2026 investments.
  • Customer Engagement Boost:: LevelUp checking saw a 7x increase in account openings, with 84% of survey respondents more likely to consider LendingClub loans due to 2% cash-back incentives.
  • Future Performance Targets:: Q4 originations guidance of $2.5-$2.6 billion (35-41% YoY growth) and ROTCE of 10-11.5% (triple YoY) highlight strong forward-looking momentum.

Drivers of Growth

The company's loan marketplace is thriving, with a 75% growth in marketplace revenue and a best-ever quarter for structured certificate sales, totaling over $1 billion. The memorandum of understanding with BlackRock for up to $1 billion in investments through LendingClub's marketplace programs through 2026 is expected to further boost revenue. New rated products designed to attract insurance capital are also gaining traction, which could improve loan sales prices and revenue. As Drew LaBenne highlighted, the company's financial performance was characterized by improved results across originations, revenue, profitability, and returns.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.28, the stock appears reasonably valued. The company's Return on Tangible Common Equity (ROTCE) of 13.2% is also a positive indicator. For Q4, LendingClub expects to deliver originations of $2.5 to $2.6 billion, up 35% to 41% year over year, and an ROTCE in the range of 10% to 11.5%, more than triple year over year. Analysts estimate next year's revenue growth at 16.4%, which suggests a positive outlook for the company.

Operational Highlights

Member engagement and behavior are also encouraging, with a 7x increase in account openings for LevelUp checking and 84% of respondents in a recent survey saying they were more likely to consider a LendingClub loan given the offer of 2% cash back for on-time payments through LevelUp checking. The company's focus on profitable and sustainable originations growth is evident in its strong credit performance, with restrictive underwriting, particularly in the lower credit area.

3. NewsRoom

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Capital Fund Management S.A. Increases Stock Position in LendingClub Corporation $LC

Dec -04

Source: defenseworld.net

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LendingClub's Sanborn on the State of Consumer Credit

Dec -03

Source: youtube.com

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LendingClub: Marketplace Revenue Is Surging, But The Market Isn't Paying Attention

Dec -01

Source: seekingalpha.com

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LendingClub's Investor Day Shows Why The Stock is Still A Screaming Bargain

Nov -24

Source: fool.com

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LendingClub: Taking The Next Step On Its Growth Journey

Nov -21

Source: seekingalpha.com

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Does LendingClub (LC) Have the Potential to Rally 26.57% as Wall Street Analysts Expect?

Nov -17

Source: zacks.com

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LendingClub Corporation (LC) Analyst/Investor Day Transcript

Nov -11

Source: seekingalpha.com

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LendingClub (NYSE:LC) to Buyback $100.00 million in Outstanding Shares

Nov -06

Source: defenseworld.net

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: 4.5/10

Value: 5.2

Growth: 7.1

Quality: 7.6

Yield: 0.0

Momentum: 3.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
LendingClub

A-Score: 4.4/10

Value: 6.6

Growth: 3.9

Quality: 6.6

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: 1.6

Growth: 5.4

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
CPI Card Group

A-Score: 3.8/10

Value: 8.4

Growth: 6.4

Quality: 4.7

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Consumer Portfolio Services

A-Score: 3.8/10

Value: 7.3

Growth: 5.0

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Nicholas Financial

A-Score: 3.3/10

Value: 8.2

Growth: 0.3

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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

19.42$

Current Price

19.43$

Potential

-0.00%

Expected Cash-Flows