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]

LendingClub (NYSE:LC) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Company ParticipantsArtem Nalivayko - VP, Head of FPandA, and Investor RelationsDavid Scharf - Managing DirectorDrew LaBenne - CFOGiuliano Bologna - Managing DirectorJohn Hecht - Managing DirectorKyle Joseph - Managing Director and Senior Equity ResearchScott Sanborn - CEOVincent Caintic - Managing DirectorConference Call ParticipantsTimothy Switzer - VP and Senior Equity Research AnalystOperatorLadies and gentlemen, thank you for join ...

LendingClub (NYSE:LC) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Speaker6Ladies and gentlemen, thank you for joining us, and welcome to the LendingClub Q4 2025 Earnings Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. I will now hand the conference over to Artem Nalyvailo, Head of Investor Rela ...

Fourth Quarter 2025 Results JANUARY 28, 2026 Disclaimer Some of the statements in this presentation, including statements regarding our competitive advantages, loan and financial performance, business outlook, implications of the Fair Value Option accounting methodology, 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 forw ...