LendingClub shares plunge 19% as Q4 earnings miss estimates

Published 28/01/2025, 22:40
LendingClub shares plunge 19% as Q4 earnings miss estimates

NEW YORK - LendingClub Corporation (NYSE:LC) reported fourth quarter earnings that missed analyst expectations, sending shares plunging 19% in after-hours trading on Tuesday.

The digital marketplace bank posted adjusted earnings per share of $0.08, falling short of the $0.09 consensus estimate. Revenue came in at $217.2 million, surpassing expectations of $206.43 million and growing 17% YoY.

LendingClub’s loan originations increased 13% YoY to $1.85 billion in Q4. Total (EPA:TTEF) net revenue rose 17% to $217.2 million compared to the prior year, driven by improved marketplace loan sales pricing and higher net interest income.

"We executed well in 2024, exiting the year with growth in originations, continued credit outperformance, successful new products and experiences, and more than five million members," said CEO Scott Sanborn.

For Q1 2025, LendingClub expects loan originations between $1.8 billion to $1.9 billion and pre-provision net revenue of $60 million to $70 million.

The company’s net income fell to $9.7 million from $10.2 million a year ago. LendingClub’s provision for credit losses increased to $63.2 million from $41.9 million in the prior year quarter.

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