LendingClub Corp
Q2 2025 Earnings
Market Reaction
Did LC Beat Earnings? Q2 2025 Results
LendingClub delivered a blowout second quarter, posting earnings per share of $0.33 against a consensus estimate of $0.15, a beat of 116.68%, while revenue of $248.44 million topped expectations by 9.23%, even as total revenue declined 10.8% from a year ago. The standout driver was a powerful combination of surging loan originations and sharply improved credit quality, with total originations climbing 32% year-over-year to $2.39 billion and net charge-offs dropping to a 3.0% ratio from 6.2% in the prior-year period. Net interest margin expanded to 6.14% from 5.75%, and pre-provision net revenue jumped 70% to $93.72 million, reflecting both pricing gains and lower deposit funding costs. The company also closed a new structured certificates transaction with BlackRock, broadening its institutional investor base. At least one analyst raised their price target to $16.50 following the results, citing consistent outperformance against guidance. Looking ahead, management guided Q3 originations of $2.50 billion to $2.60 billion and ROTCE of 10% to 11.5%.
- Loan originations grew 32% YoY to $2.4 billion driven by product and marketing initiatives
- Credit outperformance of +40% versus competitor set
- Net interest margin expanded to 6.14% from 5.75% YoY
- Lower deposit funding costs
- Higher marketplace sales and improved loan pricing
- Net charge-off ratio improved to 3.0% from 6.2% YoY
- Efficiency ratio improved to 62.3% from 70.6% YoY
“We had an exceptional quarter with year-over-year originations and revenue growth of 32% and 33%, respectively. Strong revenue growth combined with credit outperformance resulted in $38 million of net income, delivering double digit ROTCE in excess of our target and ahead of schedule.”
LendingClub CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, LendingClub guided loan originations of $2.5 billion to $2.6 billion, pre-provision net revenue (PPNR) of $90 million to $100 million, and return on tangible common equity (ROTCE) of 10% to 11.5%.
LC YoY Financials
LC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.