Core Insights - LendingClub Corp (NYSE: LC) is highlighted as a top stock pick for 2025, experiencing a significant increase of 19.7% to $15.69 following strong second-quarter earnings results [1] - The company reported earnings of 33 cents per share on revenue of $248.4 million, surpassing estimates of 15 cents per share on revenue of $228 million, prompting analysts to raise their price targets, including J.P. Morgan Securities increasing theirs from $14 to $17 [1] Stock Performance - The recent surge in LendingClub's stock has brought it to its highest levels since January, marking its largest daily percentage gain since October 2021, although the stock is still down 4.4% year-to-date [2] - The stock has been on a steady upward trend since early April, aiming for its third consecutive monthly gain [2] Options Activity and Short Interest - Options trading for LendingClub has seen a significant increase, with 7.8 times the average daily options volume recorded today, particularly in September 19 and October 19 call options [3] - Despite the stock's rally, short interest has been rising, now accounting for 4.4% of the available float, which may lead to short covering providing additional support for the stock [3]

Core Insights - LendingClub reported revenue of $248.44 million for the quarter ended June 2025, reflecting a year-over-year increase of 32.7% [1] - The company's EPS was $0.33, significantly higher than $0.13 in the same quarter last year, indicating strong earnings growth [1] - Revenue exceeded the Zacks Consensus Estimate of $225.75 million by 10.05%, and the EPS surpassed the consensus estimate of $0.15 by 120% [1] Key Performance Metrics - Net Interest Margin was reported at 6.1%, above the estimated 5.8% [4] - The net charge-off ratio was 3%, better than the average estimate of 4.8% [4] - Efficiency Ratio stood at 62.3%, lower than the estimated 65.9% [4] - Average Balance of Total interest-earning assets was $10.05 billion, slightly below the estimated $10.24 billion [4] - Total Interest Income reached $237.1 million, exceeding the average estimate of $231.29 million [4] - Net Interest Income was $154.25 million, compared to the average estimate of $147.78 million [4] - Total non-interest income was $94.19 million, surpassing the average estimate of $79.54 million [4] - Marketplace revenue contributed $89.64 million, exceeding the estimated $77.21 million [4] - Other non-interest income was $4.54 million, significantly higher than the estimated $2.32 million [4] - Interest on loans held for sale was $32.49 million, above the estimated $27.89 million [4] - Interest on securities available for sale was reported at $55.34 million, closely matching the estimate of $55.32 million [4] Stock Performance - LendingClub shares have returned +7.7% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - LendingClub reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and up from $0.13 per share a year ago, representing an earnings surprise of +120.00% [1] - The company posted revenues of $248.44 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.05%, compared to year-ago revenues of $187.24 million [2] - Over the last four quarters, LendingClub has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - LendingClub shares have declined approximately 20% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $234.85 million, and for the current fiscal year, it is $0.65 on revenues of $920.37 million [7] - The estimate revisions trend for LendingClub was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which LendingClub belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Financial Data and Key Metrics Changes - The company achieved a 32% year-on-year growth in originations and a 33% increase in revenue, generating $248 million in total revenue for the quarter [5][15] - GAAP net income was $38 million, compared to $15 million in the same quarter last year, resulting in a return on tangible common equity (ROTCE) of nearly 12% [5][25] - Non-interest income increased by 60% year-on-year to $94 million, driven by higher originations sold through the marketplace and improved loan sales pricing [19] - Net interest income reached $154 million, up 20% from the previous year, with a net interest margin of 6.1% [20] Business Line Data and Key Metrics Changes - The company originated $2.4 billion in loans during the quarter, a 32% increase year-on-year, with significant contributions from paid marketing initiatives and new product enhancements [14] - The capital-light marketplace business generated the majority of non-interest income, while net interest income from loans held on the balance sheet provided a stable revenue stream [16][18] - The company has quadrupled its balance sheet size since the bank acquisition in 2021, now totaling nearly $11 billion in assets [17] Market Data and Key Metrics Changes - The company extended its forward flow agreement with Blue Owl for up to $3.4 billion in new originations, indicating strong investor demand [6][8] - The marketplace business is expected to continue growing, with a focus on both fulfilling balance sheet growth and meeting investor demand for loans [70] Company Strategy and Development Direction - The company is focused on product innovation and marketing efficiency to drive growth, including the launch of LevelUp checking and LevelUp savings products [11][12] - The strategic goal is to enhance customer engagement and build multi-product relationships, which are expected to lead to better credit outcomes and higher lifetime value [9][10] - The company plans to increase its ROTCE target to a range of 10% to 11.5% for the third quarter, reflecting strong top-line momentum [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to compete effectively in a competitive environment, citing strong growth in originations and marketing efficiency [32][35] - The company has proactively reduced exposure to the student loan population and has not seen any negative impacts from the resumption of student loan payments [44][45] - Management expects to maintain double-digit ROTCE targets into the fourth quarter, with guidance indicating continued financial momentum [46][47] Other Important Information - The company is working on a rebranding initiative to better reflect its expanded product offerings beyond lending [108] - The mobile-first platform is designed to enhance customer experience and streamline interactions, contributing to higher customer engagement [110] Q&A Session Summary Question: What are the competitive dynamics in the market? - Management noted that despite increased competition, the company has maintained strong growth in volume and marketing efficiency, indicating confidence in its competitive positioning [32][35] Question: How should marketing efficiency be modeled going forward? - Management indicated that while marketing efficiency may not remain at current levels, they expect originations to continue to grow, which will influence marketing costs [36][38] Question: What are the trends in credit quality? - Management reported strong credit performance and a lower provision for credit losses, with no significant changes expected from the end of the student loan moratorium [41][44] Question: How does the company view its guidance philosophy? - Management explained that guidance reflects a cautious approach due to macroeconomic uncertainties, but they expect to continue growing volumes and profitability [52][56] Question: What is the outlook for the CET1 ratio and capital deployment? - Management emphasized a focus on growth while being mindful of shareholder dilution, indicating a preference for using existing capital for growth rather than raising new capital [61][63]

Second Quarter 2025 Results July 29, 2025 Disclaimer Some of the statements in this presentation, including statements regarding our competitive advantages, loan and financial performance, business outlook, and demand for our loan programs, are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statemen ...

EXHIBIT 99.1 LendingClub Reports Second Quarter 2025 Results Grew Originations +32%, Revenue +33%, and Net Income +156% Compared to Prior Year Revenue growth combined with expense discipline delivers 11% ROE and 12% ROTCE Announced up to $3.4 billion loan funding partnership extension with Blue Owl SAN FRANCISCO – July 29, 2025 – LendingClub Corporation (NYSE: LC) today announced financial results for the second quarter ended June 30, 2025. "We had an exceptional quarter with year-over-year originations and ...

Core Insights - LendingClub Corporation reported a strong second quarter for 2025, with year-over-year originations and revenue growth of 32% and 33%, respectively, resulting in a net income of $38 million and a ROTCE of 11.8% [2][10][19]. Financial Performance - Total net revenue for Q2 2025 was $248.4 million, up from $187.2 million in Q2 2024, reflecting a 33% increase [4][10]. - Non-interest expense increased to $154.7 million from $132.3 million year-over-year, marking a 17% rise [4][19]. - Pre-provision net revenue (PPNR) rose 70% to $93.7 million compared to $55 million in the prior year [4][19]. - Net interest margin improved to 6.14% from 5.75% year-over-year [10][19]. Balance Sheet Highlights - Total assets increased by 12% to $10.8 billion from $9.6 billion in the previous year, driven by the success of the Structured Certificates program and loan growth [10][19]. - Total deposits grew by 13% to $9.1 billion compared to $8.1 billion in the prior year [10][19]. - The company maintained a strong capital position with a Tier 1 leverage ratio of 12.2% and a CET1 capital ratio of 17.5% [10][19]. Loan Originations - Loan originations reached $2.4 billion, a 32% increase from $1.8 billion in the prior year [10][19]. - Marketplace loans accounted for $1.7 billion of the total originations, up 30% year-over-year [10][19]. New Products and Partnerships - The company announced an extension of its loan funding partnership with Blue Owl, totaling up to $3.4 billion over two years [1][10]. - A new product, LevelUp Checking, was launched, which offers cash back for on-time loan payments [2][10]. Future Outlook - For Q3 2025, LendingClub expects loan originations between $2.5 billion and $2.6 billion and PPNR of $90 million to $100 million [6][10].

Core Insights - LendingClub Corporation (NYSE: LC) has undergone significant evolution from its initial fintech focus, impacting its position both as an individual company and within the broader market landscape [1] Company Evolution - The transformation of LendingClub reflects changes in its operational strategy and market approach, indicating a shift from a pure fintech model to a more diversified business structure [1]

Company Overview - LendingClub Corporation (NYSE: LC) operates as America's leading digital marketplace bank, providing a wide range of financial products and services to help members save on borrowing and earn more on savings [5]. Earnings Announcement - The company will report its second quarter 2025 earnings after the market closes on July 29, 2025, and will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to discuss the results [1]. Conference Call Participation - Analysts can submit questions via email before 12:00 p.m. Pacific Time (3:00 p.m. Eastern Time) on July 28, 2025, for consideration during the conference call [2]. - A live webcast of the call will be available on the company's investor relations website, and participants can register or join via a provided phone number [3]. Replay Information - An audio archive of the conference call will be accessible on the company's website, with a replay available one hour after the call until 11:59 p.m. Eastern Time on August 5, 2025 [4].

Core Viewpoint - LendingClub (LC) shares have increased by 14.5% in the past four weeks, closing at $12.25, with a mean price target of $15.35 indicating a potential upside of 25.3% [1] Price Targets and Analyst Estimates - The mean estimate consists of 10 short-term price targets with a standard deviation of $2.75, where the lowest estimate is $12.00 (indicating a 2% decline) and the highest is $19.50 (indicating a 59.2% increase) [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement [2][9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about LC's earnings prospects, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] - The Zacks Consensus Estimate for the current year has risen by 2.8% over the past month, with no negative revisions [12] - LC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While consensus price targets may not be reliable for predicting exact stock gains, they can provide a directional guide for potential price movements [14]