LC Q4 Deep Dive: Strategic Expansion and Accounting Shift Shape Outlook

Digital lending platform LendingClub reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 22.7% year on year to $266.5 million. Its GAAP profit of $0.35 per share was 3.3% above analysts’ consensus estimates.

LendingClub (LC) Q4 CY2025 Highlights:

• Revenue: $266.5 million vs analyst estimates of $261.9 million (22.7% year-on-year growth, 1.8% beat)
• Pre-tax Profit: $50.03 million (18.8% margin)
• EPS (GAAP): $0.35 vs analyst estimates of $0.34 (3.3% beat)
• EPS (GAAP) guidance for the upcoming financial year 2026 is $1.73 at the midpoint, beating analyst estimates by 3.7%
• Market Capitalization: $2.40 billion

"We closed out a fantastic year with another strong quarter, delivering 40% originations growth and ROTCE approaching 12%," said Scott Sanborn, LendingClub CEO.

Company Overview

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, LendingClub’s revenue grew at an incredible 25.7% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. LendingClub’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 7.5% over the last two years was well below its five-year trend.

This quarter, LendingClub reported robust year-on-year revenue growth of 22.7%, and its $266.5 million of revenue topped Wall Street estimates by 1.8%.

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Key Takeaways from LendingClub’s Q4 Results

It was great to see LendingClub’s full-year EPS guidance top analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 5.1% to $18.55 immediately after reporting.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).

Digital lending platform LendingClub will be reporting results this Wednesday after market hours. Here’s what investors should know.

LendingClub beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $266.2 million, up 31.9% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Is LendingClub a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting LendingClub’s revenue to grow 20.6% year on year to $261.9 million, improving from the 17% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LendingClub has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.

Looking at LendingClub’s peers in the consumer finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Sallie Mae delivered year-on-year revenue growth of 16.4%, beating analysts’ expectations by 1%, and Ally Financial reported revenues up 3.7%, topping estimates by 0.9%. Sallie Mae traded up 6.2% following the results while Ally Financial was down 1%.

Read our full analysis of Sallie Mae’s results here and Ally Financial’s results here.

Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. LendingClub is up 7.7% during the same time and is heading into earnings with an average analyst price target of $23.82 (compared to the current share price of $21.13).

What Happened?

Shares of digital lending platform LendingClub jumped 4.1% in the afternoon session after an analyst at Citizens upgraded the company's stock rating from Market Perform to Market Outperform. 

The upgrade was based on LendingClub's significant loan origination growth outlook and an expected improvement in its business scale in the coming years. Adding to the positive sentiment, JPMorgan had previously maintained its Overweight rating and a $25 price target, identifying the company as a "Top Pick" despite macroeconomic uncertainties in the fintech sector.

After the initial pop the shares cooled down to $21.52, up 4.7% from previous close.

What Is The Market Telling Us

LendingClub’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 4.4% on the news that investors rotated out of tech names to capitalize on attractive relative valuations. 

Market analysts noted that while technology remained a long-term theme, the immediate growth story was shifting toward sectors that lagged the AI-driven run-up.As high-growth tech names faced profit-taking, capital flowed into banks and asset managers viewed as offering more defensible earnings multiples in the current climate. The move reflected a classic pivot, in which traders lock in gains from volatile innovators and redeploy them into the "value" side of the market to maintain exposure while reducing risk.The positive mood was supported by a Goldman Sachs forecast that projected U.S. economic growth would accelerate to 2.6 percent in 2026. This outlook was based on expectations of tax cuts, easier financial conditions, and a reduced economic drag from tariffs.

LendingClub is up 12.6% since the beginning of the year, and at $21.52 per share, has set a new 52-week high. Investors who bought $1,000 worth of LendingClub’s shares 5 years ago would now be looking at an investment worth $1,854.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Atlanticus Holdings and the best and worst performers in the personal loan industry.

Personal loan providers offer unsecured credit for various consumer needs. The sector benefits from digital application processes, increasing consumer comfort with online financial services, and opportunities in underserved credit segments. Headwinds include credit risk management in unsecured lending, regulatory oversight of lending practices, and intense competition affecting margins from both traditional and fintech lenders.

The 10 personal loan stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.3%.

Luckily, personal loan stocks have performed well with share prices up 10% on average since the latest earnings results.

Weakest Q3: Atlanticus Holdings

Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers.

Atlanticus Holdings reported revenues of $419.8 million, up 36.1% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS estimates.

Jeff Howard, President and Chief Executive Officer of Atlanticus stated, “This quarter, we produced significant organic growth and profitability, and completed a transformational acquisition. The acquisition of Mercury Financial substantially increases our scale, enhances our technology, adds to our origination capabilities, and brings on new team members to facilitate the continued growth of our business as we pursue our goal of Empowering Better Financial Outcomes for Everyday Americans.

Interestingly, the stock is up 12.1% since reporting and currently trades at $60.55.

Best Q3: Dave

Named after the biblical David fighting financial Goliaths, Dave is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health.

Dave reported revenues of $150.7 million, up 63% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Dave pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.3% since reporting. It currently trades at $189.

Enova

Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.

Enova reported revenues of $802.7 million, up 16.3% year on year, in line with analysts’ expectations. Still, its results were good as it locked in an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Enova delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 40.1% since the results and currently trades at $159.70.

Read our full analysis of Enova’s results here.

FirstCash

Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.

FirstCash reported revenues of $935.6 million, up 11.7% year on year. This result topped analysts’ expectations by 9.3%. It was a stunning quarter as it also put up a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 13.5% since reporting and currently trades at $168.12.

Read our full, actionable report on FirstCash here, it’s free.

LendingClub

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

LendingClub reported revenues of $266.2 million, up 31.9% year on year. This number beat analysts’ expectations by 3.9%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 20.6% since reporting and currently trades at $19.92.

Read our full, actionable report on LendingClub here, it’s free.

What Happened?

A number of stocks jumped in the afternoon session after investors rotated out of tech names to capitalize on attractive relative valuations. 

Market analysts noted that while technology remained a long-term theme, the immediate growth story was shifting toward sectors that lagged the AI-driven run-up.As high-growth tech names faced profit-taking, capital flowed into banks and asset managers viewed as offering more defensible earnings multiples in the current climate. The move reflected a classic pivot, in which traders lock in gains from volatile innovators and redeploy them into the "value" side of the market to maintain exposure while reducing risk.The positive mood was supported by a Goldman Sachs forecast that projected U.S. economic growth would accelerate to 2.6 percent in 2026. This outlook was based on expectations of tax cuts, easier financial conditions, and a reduced economic drag from tariffs.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Student Loan company Nelnet jumped 4.3%. Is now the time to buy Nelnet? Access our full analysis report here, it’s free.
• Personal Loan company LendingClub jumped 4.4%. Is now the time to buy LendingClub? Access our full analysis report here, it’s free.
• Specialty Finance company Capital Southwest jumped 3.4%. Is now the time to buy Capital Southwest? Access our full analysis report here, it’s free.
• Asset Management company Ares jumped 3.8%. Is now the time to buy Ares? Access our full analysis report here, it’s free.
• Diversified Financial Services company NCR Atleos jumped 4.9%. Is now the time to buy NCR Atleos? Access our full analysis report here, it’s free.

Zooming In On NCR Atleos (NATL)

NCR Atleos’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock gained 5.1% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. 

Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

NCR Atleos is up 8.4% since the beginning of the year, and at $40.34 per share, has set a new 52-week high. Investors who bought $1,000 worth of NCR Atleos’s shares at the IPO in October 2023 would now be looking at an investment worth $1,754.

What Happened?

Shares of digital lending platform LendingClub jumped 4.3% in the morning session after JPMorgan reaffirmed an Overweight rating on the stock and raised its price target to $25. 

The analyst, Reginald Smith, increased the price forecast from a previous $22. At the time of the report, the new target suggested a potential upside of over 19% from the stock's price. The analyst's decision to raise the price target was based on his 2026 outlook for the broader financial sector. This positive view from a major firm appeared to have bolstered investor confidence in LendingClub's potential.

After the initial pop the shares cooled down to $20.07, up 5% from previous close.

What Is The Market Telling Us

LendingClub’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 25 days ago when the stock gained 4.6% on the news that the Federal Reserve reduced its benchmark interest rate, a move that boosted the financial technology sector. 

On December 10, the central bank lowered the key interest rate by 25 basis points to a range of 3.5-3.75%. A lower interest rate environment is considered helpful for fintech companies like LendingClub. The change can positively affect technological improvements and product innovation in the sector. The market's reaction reflected optimism that lower rates would provide a favorable backdrop for the company's business operations. This rate cut marked the continuation of the Fed's policy adjustments, following previous reductions earlier in the year.

LendingClub is up 5% since the beginning of the year, and at $20.07 per share, it is trading close to its 52-week high of $20.40 from December 2025. Investors who bought $1,000 worth of LendingClub’s shares 5 years ago would now be looking at an investment worth $2,093.