LendingClub Corp
Q1 2026 Earnings
Market Reaction
Did LC Beat Earnings? Q1 2026 Results
LendingClub delivered a standout first quarter for fiscal 2026, posting earnings per share of $0.44 against a consensus estimate of $0.36, a beat of 23.73%, while revenue of $252.25 million edged past the $249.08 million estimate by 1.27%, even as total revenue fell 15.9% year over year. The headline driver was a near-complete collapse in credit loss provisions, which dropped 99% to just $390,000 from $58.15 million a year ago, reflecting both improved credit performance and the company's adoption of fair value option accounting for all new loan originations beginning this year. Net income surged to $51.60 million from $11.67 million in the prior-year period, underpinned by 31% growth in loan originations to $2.67 billion and net interest margin expansion to 6.28%. Analysts have noted that the stock may still be undervalued relative to its improving fundamentals, adding context to an otherwise confident management outlook; the company guides Q2 EPS of $0.40 to $0.45 and full-year diluted EPS of $1.65 to $1.80.
- Loan originations grew 31% YoY to $2.7 billion driven by product and marketing initiatives
- Net interest margin expanded to 6.28% from 5.97% YoY due to improved deposit funding costs
- Provision for credit losses dropped 99% YoY to $0.4 million due to strong credit performance and FVO accounting election
- Net charge-offs improved to $42.5 million from $76.1 million YoY, with NCO ratio declining to 3.5% from 6.1%
- Over 40% lower delinquencies versus competitor set
- Origination fees surged 86% YoY to $130.1 million
“We're starting 2026 with exceptional momentum, delivering 31% year-over-year growth in originations while achieving record pre-tax earnings of $67 million and ROTCE of 14.5%.”
LendingClub CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, LendingClub guides loan originations of $3.0B to $3.1B and diluted EPS of $0.40 to $0.45. For full year 2026, the company guides loan originations of $11.6B to $12.6B and diluted EPS of $1.65 to $1.80. Rebrand-related costs for the Happen Bank transition are included in the 2026 financial guidance. The company expects the transition to fair value option accounting will, over time, result in higher return on invested capital.
LC YoY Financials
LC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.