LendingClub shares plummet 12% on bottom-line miss in Q1

Published 29/04/2025, 21:58
LendingClub shares plummet 12% on bottom-line miss in Q1

SAN FRANCISCO - LendingClub Corporation (NYSE:LC) reported first quarter earnings that fell short of analyst expectations, sending shares down nearly 11.8% in after-hours trading on Tuesday.

The digital marketplace bank posted adjusted earnings per share of $0.10, missing the consensus estimate of $0.11. Revenue came in at $217.7 million, surpassing expectations of $213.46 million and growing 20% YoY.

LendingClub originated $2.0 billion in loans during Q1, up 21% from the prior year period. The company saw strong growth in its marketplace loan sales and held-for-investment portfolio.

"We’re off to a great start for 2025, growing total net revenue and originations more than 20% year over year to cross $100 billion in lifetime originations," said CEO Scott Sanborn.

For the second quarter, LendingClub expects loan originations between $2.1 billion and $2.3 billion. The company forecasts pre-provision net revenue of $70 million to $80 million.

Despite the revenue beat, investors appeared focused on the earnings miss and guidance. LendingClub shares fell 11.9% following the release, suggesting the market was looking for stronger profitability and outlook.

The company ended the quarter with $10.5 billion in total assets, up 13% YoY. Deposits grew 18% to $8.9 billion compared to the prior year period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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