Digital bank LendingClub (NYSE:LC) reported Q4 and full-year results yesterday, but the solid results were not sufficient to inspire investors as shares cratered following the results.
LendingClub reported that net revenue increased 23% to $266.5 million, compared with $217.2 million in the prior year, driven by higher marketplace sales and loan sale pricing, strong credit performance, and a higher net interest margin on a larger balance sheet.
Net income and diluted EPS grew more than 4X to $41.6 million and $0.35, respectively, compared with $9.7 million and $0.08 in the prior year.
Loan originations increased by 40% to $2.6 billion, compared to $1.8 billion in the prior year.
Full-year net income totaled $135.7 million, compared with $51.3 million in 2024.
LendingClub CEO Scott Sanborn said they had closed out a fantastic year:
“On a full-year basis, we grew originations 33% and more than doubled EPS. We’re entering 2026 from a position of strength, with product innovations and marketing investments taking hold while credit continues to outperform. Our entry into home improvement financing is creating new opportunities, and we also expect to leverage ongoing operating discipline and AI efficiencies to further strengthen the earnings power of the company.”
While the report was rosy and the company continues to repurchase shares, LendingClub started off the day lower from yesterday’s close and continued the trajectory, now trading at $16.62, down by over 15%.
So can LendingClub ever recapture the magic it once experienced when it was strictly an online lender (first P2P, then marketplace)? That is the question everyshareholder is asking themselves. Several analysts have the shares rated Buy, with price targets well above today’s price. Perhaps LendingClub should make its offerings more dynamic and become an “everything app,” as other platforms are pursuing? At least for now, LendingClub plans to stay in its lane and continue executing to drive top- and bottom-line revenue.
LendingClub’s IPO valuation was over $5 billion. Today, the company is worth under $2 billion.
