We recently published 10 Stock Titans With Massive Losses. LendingClub Corp. (NYSE:LC) was one of the worst performers on Thursday. LendingClub extended its losing streak to a third consecutive day on Thursday, slashing 16 percent to finish at $16.44 apiece as investors digested the company’s shift to fair value option accounting, overshadowing announcements of strong earnings performance. According to the company, it would start to transition to fair value accounting, which removes the upfront provision ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end January, consider joining Out Fox The Street .LendingClub ( LC ) headed into the Q4'25 earnings report trading at multi-year highs above $20, so the pre- and post-earnings dip needs to be taken into perspective. The fintech remains relatively conservative with growth prospects, preferring to throw off a lot of cash vs. ramping upStone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA ...

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 ...

Core Insights - LendingClub's shares fell nearly 13% following the release of its fourth-quarter 2025 earnings report, despite reporting strong financial results [1] Financial Performance - The company reported diluted earnings per share (EPS) of $0.35 and total revenue of nearly $267 million, driven by approximately $2.6 billion in loan originations, with both EPS and revenue significantly higher year-over-year and exceeding consensus estimates [2] - For the first quarter of 2026, LendingClub guided for $2.6 billion in loan originations and diluted EPS of $0.365, while for the full year, it projected $12.1 billion in loan originations and diluted EPS of $1.725, representing 48% year-over-year growth in diluted EPS and 26% growth in originations [3] Guidance and Accounting Changes - The guidance for both the current quarter and the full year of 2026 exceeded Wall Street consensus estimates, indicating strong future performance expectations [4] - The company is implementing a significant accounting change, marking all loans as held-for-sale (HFS), which will affect how loans are valued and reported [5] Market Valuation - LendingClub's stock is currently trading at about 10 times forward earnings, which is considered an attractive entry point given the company's strong growth prospects [6]

The 2026 market is looking to be an incredibly tricky one to invest in, and the Q4 earnings season is likely to make volatility spike even further. Amid a choppy market and the potential for waning enthusiasm for large-cap tech stocks, I continueWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regu ...

Group 1 - The 2026 market is expected to be challenging for investors, with increased volatility anticipated during the Q4 earnings season [1] - There is a potential decline in enthusiasm for large-cap tech stocks, which may impact investment strategies [1] - Gary Alexander has extensive experience in the technology sector, having worked on Wall Street and in Silicon Valley, and advises seed-round startups [1]

Core Insights - LendingClub reported a revenue of $266.47 million for Q4 2025, marking a year-over-year increase of 22.7% and exceeding the Zacks Consensus Estimate of $262.33 million by 1.58% [1] - The company's EPS for the quarter was $0.35, up from $0.11 a year ago, and also surpassed the consensus estimate of $0.34 by 2.94% [1] Financial Performance Metrics - Efficiency Ratio stood at 63.5%, slightly above the estimated 63.1% [4] - Average Balance of Total interest-earning assets was $10.9 billion, exceeding the estimate of $10.49 billion [4] - Net charge-off ratio was reported at 3.7%, better than the estimated 4.1% [4] - Net Interest Margin was 6%, slightly below the estimated 6.1% [4] - Total Interest Income reached $250.59 million, surpassing the average estimate of $243.26 million [4] - Total non-interest income was $103.44 million, exceeding the average estimate of $100.25 million [4] - Non-Interest Income from Other non-interest income was $4.94 million, below the estimate of $5.32 million [4] - Net Interest Income was reported at $163.03 million, above the estimate of $160.4 million [4] - Non-Interest Income from Marketplace revenue was $98.5 million, exceeding the estimate of $94.92 million [4] Stock Performance - Shares of LendingClub have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - LendingClub experienced a significant increase in lending activity, with loan originations rising 40% year over year to $2.6 billion, driven by product changes, marketing expansion, and improved pricing [2][3] - The company's LevelUp products, which include savings and checking offerings, are becoming a key driver of engagement and growth, with double-digit growth rates reported [4][5] Lending Activity - Loan originations reached $2.6 billion, a 40% increase year over year, with contributions from all product lines [2] - Marketplace revenue increased by 36% from the previous year, supported by higher volumes and improved loan sale pricing [3] LevelUp Product Performance - LevelUp savings is growing at double-digit rates, generating 20% to 30% more monthly logins compared to legacy products [4] - Personal loan borrowers accounted for over 15% of new deposit accounts, with average savings balances exceeding $15,000 for those who repaid loans [4] Financial Metrics - Total deposits reached $9.8 billion, an 8% increase year over year, providing funding for loan growth [5] - Net interest margin rose to 6%, up 56 basis points from the prior year, indicating improved profitability [6] Credit Performance - Provision for credit losses totaled $47 million, with net charge-offs declining by 80 basis points year over year [7] - Delinquency and charge-off metrics remained below competitors, attributed to strong underwriting discipline [7] Future Outlook - For Q1 2026, LendingClub expects loan originations between $2.55 billion and $2.65 billion, representing 28% to 33% growth [8] - Full-year guidance anticipates originations of $11.6 billion to $12.6 billion, reflecting a 21% to 31% increase [8] - Despite growth expectations, shares declined by 7% post-earnings, possibly due to concerns over margin dynamics and increased marketing costs [8][9]

分组1 - LendingClub reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and showing a significant increase from $0.11 per share a year ago, resulting in an earnings surprise of +2.94% [1] - The company achieved revenues of $266.47 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.58% and increasing from $217.2 million year-over-year [2] - LendingClub has outperformed the S&P 500, with shares rising about 9.9% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $263.14 million, and for the current fiscal year, it is $1.56 on revenues of $1.13 billion [7] - The Financial - Miscellaneous Services industry, to which LendingClub belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company reported a 40% year-on-year growth in loan originations, reaching $2.6 billion in Q4 2025, and a 33% increase for the full year to nearly $10 billion [4][13] - Return on tangible common equity (ROTCE) tripled to almost 12% in Q4, with a full-year ROTCE of 10.2% [4][21] - Non-interest income grew by 38% to $103 million, while net interest income increased by 14% to $163 million, marking an all-time high [15][16] - The net interest margin was reported at 6%, up 56 basis points year-over-year [16] Business Line Data and Key Metrics Changes - Marketplace revenue increased by 36% year-on-year, driven by higher loan sales pricing and volumes [6] - The held-for-sale extended seasoning portfolio grew to $1.8 billion, consistent with the strategy to expand the balance sheet [15] - The LevelUp Savings product is growing by double digits, driving 20%-30% more logins compared to legacy products [7][8] Market Data and Key Metrics Changes - The company is seeing stable performance and consistency in borrower behavior, with delinquency and charge-off metrics well below competitors [17][72] - The balance sheet grew to $11.6 billion, up 9% year-over-year, indicating strong liquidity and capital position [19] Company Strategy and Development Direction - The company plans to enter the $500 billion home improvement financing market, leveraging its competitive strengths in funding reliability and underwriting [9][10] - A new brand launch is expected later in the year to reflect the company's ambitions [11] - The transition to fair value accounting is aimed at simplifying financials and aligning revenue recognition with losses [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, assuming a healthy economy with stable macroeconomic conditions [21][27] - The company anticipates continued strong credit performance and plans to ramp up marketing investments to fuel growth in 2026 [11][27] - Management noted that the competitive landscape remains challenging but believes in the company's ability to compete effectively [71][72] Other Important Information - The company announced a $100 million share repurchase program, deploying approximately $12 million in Q4 [20] - The effective tax rate for the quarter was 16.9%, with expectations for a normalized rate of approximately 24% going forward [21] Q&A Session Summary Question: Expense trajectory and marketing investments - Management indicated that the increase in marketing expenses is part of planned investments to drive future growth, with expectations for continued spending in Q1 [33][34] Question: Efficiency ratio outlook - Management confirmed that the efficiency ratio may rise in 2026 due to the transition to fair value accounting but expects it to normalize afterward [42][43] Question: Fair value adjustments and discount rates - Management clarified that the discount rate for new products will depend on the mix of loans, with expectations for stable annual loss rates [50][88] Question: Competitive environment and credit dynamics - Management noted a healthy marketplace with ample capital, while maintaining a disciplined approach to credit [70][72] Question: Macroeconomic outlook and tax refunds - Management acknowledged the potential impact of larger-than-normal tax refunds on payment rates and loan demand but remains confident in their guidance [79][85]