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 ...

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations year-over-year, reaching $2.62 billion, exceeding guidance [4][10] - Revenue increased by 32% to $266 million, driven by higher marketplace volume and improved loan sales prices [10][14] - Diluted earnings per share nearly tripled to $0.37, with return on tangible common equity improving to 13.2% [10][18] - Pre-provision net revenue grew 58% to $104 million, reflecting the scalability of the business model [10][14] Business Line Data and Key Metrics Changes - Marketplace revenue surged by 75%, marking the highest level in three years, with structured certificate sales exceeding $1 billion [7][10] - Non-interest income rose to $108 million, benefiting from higher marketplace sales volumes and improved loan sales prices [13] - Net interest income reached an all-time high of $158 million, supported by a larger portfolio of interest-earning assets [14] Market Data and Key Metrics Changes - Total assets grew to $11.1 billion, up 3% compared to the prior quarter, indicating a strong balance sheet [16] - Total deposits ended the quarter at $9.4 billion, with a notable increase in relationship deposits [14] Company Strategy and Development Direction - The company aims to leverage its competitive advantages and innovative products to drive sustainable, profitable growth [4][10] - Plans to invest in marketing to support growth initiatives and expand the balance sheet while maintaining a disciplined approach to underwriting [15][19] - The introduction of new products like LevelUp Checking is designed to enhance member engagement and drive repeat loan issuance [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan investor demand and improving loan sales pricing, anticipating originations of $2.5 to $2.6 billion in Q4 [18][19] - The company expects to see a normalized effective tax rate of 25.5% and anticipates two interest rate cuts in Q4 [19] - Management remains cautious about potential seasonality effects on originations due to the holiday season [18] Other Important Information - The company has secured a memorandum of understanding with BlackRock for the purchase of up to $1 billion through its marketplace programs [7] - The tangible book value per share now stands at $11.95, reflecting the company's strong capital position [18] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach to held-for-investment targeting roughly $500 million, with strong demand for structured certificates and rated products [23][24] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards despite increased origination volumes across the industry [26][27] Question: Dynamics of loan reserves and fair value adjustments - The increase in loan reserves was attributed to a re-estimation of lifetime losses and growth in businesses like purchase finance [36][32] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their asset class, with a positive outlook for the fourth quarter despite broader market concerns [46][47] Question: Credit performance and delinquency trends - Management reported stable credit performance with no significant changes in delinquency trends, maintaining a restrictive approach to underwriting [52][53] Question: Updates on product roadmap and new products - Management highlighted ongoing product development, including LevelUp Checking and LevelUp Savings, with more to come [101]

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations year-over-year, reaching $2.62 billion, exceeding guidance [4][10] - Revenue increased by 32% to $266 million, driven by higher marketplace volume and improved loan sales prices [10][14] - Diluted earnings per share nearly tripled to $0.37, with return on tangible common equity improving to 13.2% [10][18] Business Line Data and Key Metrics Changes - Marketplace revenue grew by 75%, marking the highest level in three years, with structured certificate sales exceeding $1 billion [7][10] - Non-interest income rose to $108 million, benefiting from higher marketplace sales volumes and improved loan sales prices [13] - Net interest income reached an all-time high of $158 million, supported by a larger portfolio of interest-earning assets [14] Market Data and Key Metrics Changes - Total deposits ended the quarter at $9.4 billion, with a notable increase in relationship deposits [14] - The company maintained a disciplined approach to deposit pricing while providing value for customers [15] - The balance sheet grew to $11.1 billion, reflecting a 3% increase compared to the prior quarter [16] Company Strategy and Development Direction - The company aims to leverage its competitive advantages and innovative products to drive sustainable, profitable growth [4][10] - Plans to invest in marketing to support growth initiatives and expand origination channels in 2026 [19] - The introduction of new products like LevelUp Checking is designed to enhance member engagement and drive repeat loan issuance [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan investor demand and improving loan sales pricing [18] - The company anticipates a typical seasonal decline in originations during Q4 but expects year-over-year growth of 35%-41% [18] - Management noted that credit performance remains strong, with delinquency and charge-off metrics in line with expectations [15][16] Other Important Information - The company has secured a memorandum of understanding with BlackRock for up to $1 billion in purchases through 2026 [7] - The tangible book value per share is now $11.95, reflecting the company's strong capital position [18] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach to held-for-investment (HFI) targets, with a focus on maintaining demand for structured certificates and rated products [23][24] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards despite increased origination volumes across the industry [26][27] Question: Dynamics of loan reserves and fair value adjustments - The increase in loan reserves was attributed to a combination of factors, including growth in the purchase finance business and a one-time adjustment from the previous quarter [36][32] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their asset class, with a positive outlook for the fourth quarter despite broader market concerns [45][46] Question: Insights on marketing expenses and acquisition costs - Management emphasized a focus on profitable, sustainable growth, with ongoing optimization of marketing channels to improve customer acquisition costs [75][76]

Financial Data and Key Metrics Changes - The company reported a 37% growth in originations year-over-year, reaching $2.62 billion, exceeding guidance [4][10] - Revenue increased by 32% to $266 million, driven by higher marketplace volume and improved loan sales prices [10][12] - Diluted earnings per share nearly tripled to $0.37, with return on tangible common equity improving to 13.2% [10][18] - Pre-provision net revenue grew 58% to $104 million, reflecting the scalability of the business model [10][12] Business Line Data and Key Metrics Changes - Marketplace revenue surged by 75%, marking the highest level in three years, with structured certificate sales exceeding $1 billion [6][10] - Non-interest income rose to $108 million, benefiting from higher marketplace sales volumes and improved loan sales prices [12][13] - Net interest income reached an all-time high of $158 million, supported by a larger portfolio of interest-earning assets [13] Market Data and Key Metrics Changes - Total deposits ended the quarter at $9.4 billion, with a slight decrease attributed to a drop in broker deposits [13][14] - The company maintained a disciplined approach to deposit pricing while providing value to customers [14] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth, leveraging its digital marketplace bank model [10][19] - Plans to invest in marketing to support growth initiatives and expand origination channels in 2026 [19] - The introduction of innovative products like LevelUp Checking is aimed at enhancing member engagement and driving new product adoption [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong loan investor demand and improving loan sales pricing, anticipating continued growth [18][19] - The company expects originations in Q4 to be between $2.5 billion and $2.6 billion, reflecting a year-over-year increase of 35% to 41% [18] - Management noted that the competitive landscape remains stable, with no significant pressure on underwriting standards [26][27] Other Important Information - The company has secured a memorandum of understanding with BlackRock for up to $1 billion in purchases through 2026 [6] - The balance sheet remains strong, with total assets growing to $11.1 billion, allowing for recurring revenue generation [16][17] Q&A Session Summary Question: Future disposition plans between various channels - Management indicated a steady approach to held-for-investment targets, with a focus on maintaining a balanced mix across channels [21][22][23] Question: Competitive state of the market and underwriting standards - Management confirmed that they have not seen pressure on underwriting standards, maintaining discipline in their approach [25][26][27] Question: Dynamics of loan reserves and fair value adjustments - Management explained that the increase in reserves was due to growth in certain businesses and a re-estimation of lifetime losses [36][37] Question: Demand for marketplace loans and investor appetite - Management noted strong demand for their loans and highlighted their established track record as a competitive advantage [44][45] Question: Credit performance and delinquency trends - Management reported stable credit performance, with no significant changes in application quality despite broader economic concerns [51][52] Question: Updates on product roadmap and new products - Management confirmed ongoing product development, including LevelUp Checking and LevelUp Savings, with more to come [99]

Financial Performance - LendingClub's total originations reached $2.6 billion in Q3 2025, a 37% year-over-year increase[25] - Pre-Provision Net Revenue (PPNR) was $103.5 million, up 58% year-over-year[25] - Net Interest Income increased by 13% year-over-year[38] - Non-Interest Income increased by 75% year-over-year[38] - Diluted EPS increased by 185% year-over-year to $0.37[53] Balance Sheet and Efficiency - Net Interest Margin expanded to 6.18%[40] - Efficiency Ratio improved to 45.8%[43] - Book Value Per Common Share increased to $12.68[53] - Tangible Book Value Per Common Share increased to $11.95[53] Consumer and Market Position - LendingClub has over 5 million members and has originated over $100 billion in loans[8] - The total addressable market (TAM) for revolving consumer credit is $1.3 trillion[14]

Group 1 - BlackRock has entered into a partnership with LendingClub, allowing up to $1 billion in investments through LendingClub's marketplace programs over the next year [2][3] - The collaboration follows BlackRock's initial transaction of $100 million under LendingClub's LENDR program, which offers multiple tranches with credit ratings from Fitch [3][4] - LendingClub has successfully sold nearly $6 billion in loans through its structured certificates programs since their launch in 2023 [4] Group 2 - LendingClub's LevelUp Checking service rewards customers with 2% cash back for on-time loan payments and 1% cash back for qualifying debit card purchases [5] - The target demographic for LevelUp Checking includes high-income individuals with a FICO score around 725 and an income range of $125,000 to $130,000 [6] - Since the launch of LevelUp Checking in June, there has been a six-fold increase in the number of checking accounts opened daily [7]

Group 1: Market Performance - The Connected Economy 100 index experienced a decline of 4.2%, with significant drops in companies like Xero, iRobot, and United Healthcare, while the "eat" pillar remained stable [1] - The index's performance over different time frames shows a year-to-date increase of 10.04% and a one-year increase of 30.85% [3] Group 2: LendingClub Performance - LendingClub's stock rose by 21% due to strong earnings, with personal-loan originations increasing by 32% year-on-year to $2.4 billion [2] - The net charge-off ratio for loans decreased to 3%, about half of the previous year's level, indicating improved credit trends [2] - Total revenue increased by 33% to $248 million, with GAAP profit reaching $38 million [2] Group 3: Cognex Performance - Cognex reported a 19% increase in stock value, with second-quarter revenue rising 4% to $249 million, marking its fourth consecutive quarter of organic growth [5] - The adjusted EBITDA margin improved to 20.7%, the highest in two years, driven by broad-based demand across various sectors [5][6] - Free cash flow reached $40 million, with management projecting up to 9% sales growth in the current quarter [5] Group 4: CyberArk Acquisition - CyberArk's stock surged following the announcement of its acquisition by Palo Alto Networks in a deal valued at approximately $25 billion [7] - Shareholders will receive $45 in cash and 2.2005 shares of Palo Alto for each share of CyberArk, representing a 26% premium to the stock's 10-day average [7] - The acquisition is positioned as a strategic move to enhance Palo Alto's identity protection capabilities in the AI-driven market [8]