LendingClub: A Digital Bank Growing Again Like a FintechHappen Inc. reported second-quarter results marked by higher loan originations, record pre-tax income and continued credit outperformance, while also outlining plans to expand its product set and newly launched Happen Bank brand.
Chief Executive Officer Scott Sanborn said loan originations increased 29% from a year earlier to $3.1 billion, while pre-tax income reached a record $76 million. Return on tangible common equity rose to nearly 16%.
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Congress Beat the Market Again—Here Are the 3 Stocks They Bought“We’re growing and growing profitably despite the adverse rate environment,” Sanborn said, citing loan demand, credit performance, marketplace activity and growth in banking products.
Originations, Revenue and Profitability Chief Financial Officer Drew LaBenne said second-quarter originations exceeded the high end of the company’s guidance range. Net interest income increased 16% to a record $179 million, supported by a larger portfolio of interest-earning assets and lower funding costs. Total revenue rose 6% to $263 million.
AI-Powered Lending Stock Surges on Rate Cut HopesNon-interest income was $84 million, up 10% sequentially but down 11% from a year earlier. LaBenne said the year-over-year comparison was affected by Happen’s move to fair-value accounting in 2026. Under the new approach, origination fees are recognized immediately, while credit performance is reflected through fair-value adjustments rather than provision expense.
Origination fees rose 87% year over year to $164 million. Total fair-value markdowns were $121 million, compared with $89 million in the first quarter, reflecting higher originations, growth in loans carried at fair value and higher benchmark rates during the period.
Happen reported a pre-tax profit margin of 28.8%, pre-tax income of $76 million, and diluted earnings per share of $0.50. Diluted EPS was up 52% from a year earlier and above the company’s prior guidance range, LaBenne said. Tangible book value per share increased to $12.89.
Total expenses rose 28% year over year to $198 million, primarily due to higher marketing spending. Marketing expense increased by about $7 million sequentially, though marketing as a percentage of originations improved to 2% as the company emphasized more efficient acquisition channels.
Credit Performance and Marketplace Demand Management said credit quality remained a central differentiator. The company reported an approximately $11 million provision benefit, reflecting observed and projected performance in its portfolio under the current expected credit loss framework.
The net charge-off ratio for the held-for-investment portfolio improved to 3.2% from 3.8% a year earlier. LaBenne said charge-off ratios are expected to rise toward longer-term target levels as the portfolio matures, though the ultimate portfolio mix will also matter as lower-loss products grow.
Sanborn said Happen has continued to outperform its competitive set on credit by more than 40%, which has supported loan investor demand. Marketplace volume grew 20% year over year, with participation from existing and new investors. Loan sale prices remained stable when adjusted for changes in benchmark rates, management said.
LaBenne said investor demand exceeded the company’s current capacity to supply loans while meeting its balance-sheet objectives. Happen sells personal loans through its marketplace, while home-improvement, auto and major-purchase finance loans are being retained on the balance sheet.
New Brand, Products and AI Efforts During the quarter, the company officially introduced the Happen Bank brand. Sanborn said the rebranding is intended to reflect a broader role in consumers’ financial lives, with a focus on what the company calls the “motivated middle”: high-FICO, higher-income and digitally engaged consumers managing their finances actively.
The company highlighted growth in its LevelUp checking and savings products. New LevelUp Checking accounts opened in the second quarter were four times the prior-year level, with borrowers accounting for more than half of new accounts. Borrowers represented 20% of new LevelUp Savings accounts opened year to date, according to Sanborn.
Happen also began originating home-improvement loans during the quarter. Sanborn said the product is still in an early phase, with the company adding a second partner near the end of the quarter and expecting more partners over time. Management expects home-improvement loans, which target higher-FICO and higher-income homeowners, to generate returns similar to the personal-loan portfolio.
Management also described expanded use of artificial intelligence across the business. Sanborn said roughly 90% of employees regularly use the company’s AI infrastructure. In the call center, Happen operated with 10% fewer employees year over year despite nearly 30% loan-volume growth. Its AI member-service agent, Penny, resolved 30% more calls than the prior system, while AI servicing tools contributed to a 65% reduction in after-call work and a 10% decline in average call time, he said.
Updated Outlook For the full year, Happen raised the lower end of its originations outlook and now expects $12.2 billion to $12.6 billion in loan originations. The company increased its diluted EPS target to $1.80 to $1.90.
For the third quarter, Happen expects originations of $3.2 billion to $3.35 billion and diluted EPS of $0.43 to $0.48. LaBenne said the wider origination range accounts for the operational complexity associated with the brand transition.
The company ended the quarter with $12.5 billion in assets and $10.8 billion in deposits, up 16% and 18%, respectively, from a year earlier. Happen had $2.1 billion of notional balances in caps and interest-rate swaps at quarter-end. It also said it had used $50 million of its $100 million share-repurchase authorization to buy about 3 million shares through the second quarter.
About LendingClub (NYSE:LC)LendingClub Corporation operates an online lending marketplace that connects borrowers seeking personal and small business credit with individual and institutional investors. The platform leverages technology to streamline the loan application and underwriting process, offering unsecured personal loans, auto refinancing, and small business loans. In addition to lending products, LendingClub provides high-yield savings accounts and certificates of deposit through its banking charter, following its acquisition of Radius Bank in 2021.
Founded in 2006 by Renaud Laplanche, LendingClub pioneered peer-to-peer lending in the United States, helping to democratize access to credit and investment opportunities.
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As digital finance evolves, investors must choose between high-growth global giants and profitable marketplace veterans. Deciding between Klarna Group (KLAR +3.97%) and LendingClub (LC +0.00%) requires balancing massive scale with established digital banking profitability.
Klarna disrupted global retail with its buy-now-pay-later services, while LendingClub transformed from a peer-to-peer pioneer into a regulated digital bank. Both companies compete for the future of consumer credit, yet they offer very different risk and reward profiles for your portfolio today.
The case for KlarnaAs Klarna Group continues to evolve among financial stocks, it operates as a digital bank and flexible payments provider. It serves roughly 118 million active consumers and nearly 966,000 merchants across 26 countries. By moving beyond traditional credit, it offers a shopping ecosystem that integrates retail and digital finance.
In FY 2025, revenue reached approximately $3.5 billion, representing growth of nearly 31.6% year over year. Despite this growth, the company reported a net loss of roughly $294.0 million. This resulted in a negative net margin of approximately 8.4%, which is the percentage of revenue remaining after all expenses are subtracted.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.6x. This ratio measures total debt relative to shareholder equity, helping you see how much a company relies on creditors versus owners. The current ratio, which measures the ability to pay short-term debts with short-term assets, is nearly 1.1x. A ratio above 1.0 suggests the company has more current assets than current liabilities.
Free cash flow was approximately $1.0 billion negative. This is the actual cash a company generates after accounting for the costs of equipment and infrastructure. Without positive cash flow, a company must rely on its existing cash reserves or external financing to fund its daily operations.
The case for LendingClubLendingClub operates as a digital marketplace bank that connects individual borrowers with institutional investors. It serves over 5 million members and maintains partnerships with entities like Comenity Capital Bank and Wisetack to fund loans. The company focuses on the motivated middle consumer segment by providing personal loans and high-yield savings products.
During FY 2025, LendingClub generated nearly $1.3 billion in revenue, representing approximately 15.0% growth from the prior year. The company achieved a net income of roughly $135.7 million, yielding a net margin of close to 10.2%. This net margin indicates that for every dollar earned, about ten cents was kept as profit after accounting for all operating costs.
Based on the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.0x. This suggests the company carries virtually no debt relative to its shareholder equity. The current ratio is roughly 0.1x, which measures a company's ability to cover its short-term debts with current assets. In a banking context, a lower current ratio often reflects how customer deposits are classified on the balance sheet.
Free cash flow was approximately negative $2.9 billion. This metric represents the cash generated by the business after accounting for capital investments. A negative figure here means the company spent more on its operations and investments than it collected in cash during the period.
Risk profile comparisonKlarna faces intense competition from established players like PayPal (PYPL +1.86%) and Affirm Holdings (AFRM +7.95%). Regulatory scrutiny of the buy-now-pay-later model could lead to stricter rules on fees and credit checks. Furthermore, any downturn in global consumer spending or rising delinquency rates could impact the company's path to consistent profitability.
LendingClub operates in a complex regulatory environment, subject to oversight from the Federal Reserve and the Office of the Comptroller of the Currency. Legislative shifts regarding interest rate caps create uncertainty for its long-term business model. The company also relies heavily on institutional investors to purchase its loans, meaning any drop in investor demand from SoFi Technologies (SOFI +0.17%) could hurt revenue.
Valuation comparisonLendingClub appears significantly cheaper than Klarna, based on both future earnings estimates and revenue multiples.
MetricKlarnaLendingClubSector BenchmarkForward P/E90.5x11.0x37.6xP/S ratio2.0x1.7xn/aSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Both of these companies use technology for their consumer finance services. They have different business models, but for investors seeking exposure to the fintech space, it’s worth comparing the two companies to see which is the better investment in 2026.
Klarna has built one of the world’s largest buy now, pay later platforms. It processed $33.7 billion in gross merchandise volume in the first quarter alone, with over 119 million active consumers. And thanks to its partnership with major payment service providers, retailers, and technology platforms, it is still growing. However, its profit margins have remained thin, it has suffered credit losses, and faces increased competition.
LendingClub has transitioned into a full-service digital bank. It partners with lending institutions to connect them to individual borrowers and also provides high-yield savings accounts to consumers to fund high-margin loans of its own. It has significantly improved profitability recently and trades at a much lower valuation relative to earnings than Klarna. Investors should note that consumer lending is cyclical and tied to economic conditions such as inflation and unemployment.
Neither is a bad choice for investors, and it comes down to their personal goals and risk tolerance. Klarna is still growing, and it could deliver attractive earnings if it improves its margins. Investors who prefer lower valuation risk and an established earnings track record may find LendingClub a better fit for their portfolios.
Begins trading on Nasdaq under the ticker symbol "HAPN"
, /PRNewswire/ -- Happen, Inc. (Nasdaq: HAPN) https://www.multivu.com/lending-club/9384851-en-lendingclub-bank-happen-bank-digital-built-help-people-move-forward (formerly LendingClub Corporation) today announced the official launch of the Happen Bank™ brand, marking a significant milestone in its evolution into a digital bank for people who want to make more happen with their money.
LendingClub Officially Becomes Happen Bank, Marking a New Chapter for the Digital-First Bank. Beginning today, Happen Bank's brand comes to life at www.happen.com, its mobile app, customer communications, advertising, and more. Today also marks the first day that Happen, Inc. common stock will trade on the Nasdaq Stock Market under the HAPN ticker.
"We've reached an exciting milestone for our company and for the millions of members we serve," said Scott Sanborn, CEO of Happen Bank. "Becoming Happen Bank and now trading on Nasdaq reflects how far we've come in building a modern digital bank designed around people's real financial needs. The Happen Bank brand more clearly reflects the role we play in consumers' lives: helping people make things happen with products that are smart, transparent, and easy to use."
Happen Bank delivers:
Award-winning unsecured personal loans for debt consolidation, home improvement, and affording life's important moments Award-winning high-yield savings accounts that reward consistent saving habits Award-winning checking accounts offering cash back on essentials purchases and for on-time loan payments Lending decisions in minutes with transparent terms and no hidden fees or gotchas Mobile-first digital banking experiences designed for real-life moments Happen Bank products are aligned by design to reward members for their positive financial behaviors. For example, members who have a Happen Bank personal loan have the opportunity to get 2% of their monthly payment in cash back1 for making on-time loan payments from their LevelUp Checking account – demonstrating that Happen Bank products deliver even more value when used together. And members who contribute at least $250 to their LevelUp Savings account each month – a contribution threshold designed to fit within most of our members' budgets – earn more than 10 times the national average APY.2
"Whether it's consolidating debt, building savings, improving their credit, or planning for what's next, we clear the way for our members to make meaningful progress and we reward their positive financial behaviors along the way," said Mark Elliot, Chief Customer Officer of Happen Bank.
A Brand Built for Momentum
The name Happen Bank is intentional. It signals action, progress, and forward momentum.
The brand identity reflects this energy, with a dynamic wordmark and a modern visual system that stands apart from traditional banking conventions.
While the company's name and visual identity have changed, the foundation that customers know and trust remains unchanged. Happen Bank is still the same FDIC-insured digital bank, operated by the same company and people, serving millions of members with the same commitment to helping them improve their financial lives. Existing accounts, products, login credentials, routing information, and services are unaffected.
"This isn't just a name change – it's a recognition of who we've become," said Sanborn. "Happen Bank reflects our commitment to helping members turn intention into action and achieve meaningful financial progress."
To mark the official launch, we will be ringing the Nasdaq Opening Bell at 9:30 a.m. ET (6:30 a.m. PT) on Tuesday, June 30, 2026, at the Nasdaq MarketSite in Times Square in New York City.
To learn more about Happen Bank and its products, visit Happen.com.
About Happen Bank
Happen Bank™ (formerly LendingClub Bank) is a digital bank built for the Motivated Middle: high-FICO, high-income, digitally savvy consumers actively managing their financial lives. Our difference? We make it easy for them to access award-winning products that help them keep more of what they earn and earn more on what they save. Our products are aligned by design to reward our five million plus members when they take positive financial steps like saving regularly or making loan payments on time.
Our success is fueled by our advanced credit underwriting, a proprietary technology platform engineered for innovation, and a marketplace bank model that drives value for members, loan investors, and shareholders alike. The result is affordable credit, meaningful value, and a trusted banking relationship — delivered consistently and profitably at scale.
Happen Bank exists to clear the way for our members to make it happen.
Happen, Inc. (Nasdaq: HAPN) – formerly LendingClub Corporation – is the parent company and operator of Happen Bank, National Association, Member FDIC. For more information about Happen Bank, visit https://www.happen.com.
Safe Harbor Statement
Some of the statements in this press release, including statements regarding the benefits of our products and services, are "forward-looking statements." Words such as "plan", "expect", "anticipate" and similar expressions may identify forward-looking statements, although not all forward-looking statements may contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: macroeconomic conditions, competition, demand for our products and services, and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in its subsequent filings with the Securities and Exchange Commission. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts
For Media: [email protected]
For Investors: [email protected]
Footnotes
1 Loan payment cash back provides members the opportunity to earn 2% cash back for qualifying payments made electronically from Happen Bank LevelUp Checking accounts if they meet all eligibility criteria as described in the applicable product terms and conditions.
2 National average source: FDIC as of 5/18/2026.
Happen, formerly known as LendingClub, has announced the official launch of its digital bank.
The new Happen Bank brand is available now on the company website, mobile app and via customer communications and advertising, the lender said in a news release Monday (June 22), the same day Happen’s stock began trading on Nasdaq.
“We’ve reached an exciting milestone for our company and for the millions of members we serve,” said Scott Sanborn, CEO of Happen Bank.
“Becoming Happen Bank and now trading on Nasdaq reflects how far we’ve come in building a modern digital bank designed around people’s real financial needs. The Happen Bank brand more clearly reflects the role we play in consumers’ lives: helping people make things happen with products that are smart, transparent, and easy to use.”
The release said Happen Bank’s products are designed to reward members for “positive financial behaviors.”
For instance, members who have a personal loan from the bank can get 2% of their monthly payment in cash back for making on-time payments from their checking account with Happen.
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“Whether it’s consolidating debt, building savings, improving their credit, or planning for what’s next, we clear the way for our members to make meaningful progress and we reward their positive financial behaviors along the way,” said Mark Elliot, the bank’s chief customer officer.
The company announced its plans to rebrand in April, saying the name “Happen Bank” is meant to denote action, progress and forward momentum.
Speaking with PYMNTS CEO Karen Webster soon after, Sanborn said he has been lobbying for LendingClub to change its name for 10 years, including during a conversation with the board that would ultimately hire him as chief executive.
“True story: literally in the interview process,” Sanborn said. “I said, ‘The name is very limiting and it is very transactional.’”
He added that the company focuses on a “very, very specific customer,” a cohort Sanborn referred to as “motivated middle” consumers who have high income and credit scores, but still actively use credit and financial tools.
“They’re not the underserved bottom of the market and they’re not private banking clients,” the report said. “They’re people managing real cash flows, paying down debt, and the part Sanborn likes to highlight, building up an average of $19,000 in savings on the platform after working through their borrowing.”
LendingClub has transformed into a diversified digital banking platform, evidenced by Q1 2026 deposits reaching $10.2 billion, up 14% YoY. LC delivered a 31% YoY increase in loan originations during a tight lending environment, driving a major surge in EPS. Industry-leading credit performance enables LC to sell loans without credit enhancements or loss protection, reflecting strong underwriting standards.
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Strong Performance Across Key Metrics
Delivered Record $67.3 Million Pre-Tax Income, 13.7% ROE, and 14.5% ROTCE
Increased Originations +31% and Delivered Diluted EPS of $0.44, +340%
Rebranding to Happen Bank in Summer 2026
, /PRNewswire/ -- LendingClub Corporation (NYSE: LC) today announced financial results for the first quarter ended March 31, 2026.
"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%," said Scott Sanborn, LendingClub CEO. "At the same time, we advanced key strategic priorities, including the upcoming rebrand to Happen Bank, expanding into the $500 billion home improvement loan category, and maintaining our credit outperformance. Our focused, proven strategy is successfully attracting and retaining high-quality members as we continue generating consistent, durable returns."
First Quarter 2026 Results
Highlights:
Announced new brand, Happen Bank, launching summer 2026, reflecting both our expanded banking capabilities and our core mission: to clear the way for people going places. Began underwriting and originating home improvement loans in April, leveraging distinct advantages over incumbents and opening meaningful opportunity for growth. Achieved $2.7 billion in origination volume, up 31% compared to the prior year, driven in part by the successful execution of product and marketing initiatives. Diluted EPS of $0.44, more than quadrupled compared to the prior year. Continued credit outperformance vs. competitor set, with over 40% lower delinquencies. AI-powered automation and agent support tools led to record personal loans operations production efficiency in the first quarter and a record-high >90% automation rate for issued loans. Executed $26 million of the $100 million Stock Repurchase and Acquisition Program, with cumulative utilization through March totaling $38 million. Balance Sheet:
Total assets of $11.9 billion, up 14% year-over-year, primarily due to growth in loans and securities. Deposits of $10.2 billion, up 14% year-over-year, with 88% of deposits FDIC-insured. Robust available liquidity of $3.7 billion. Strong capital position with a consolidated Tier 1 leverage ratio of 11.9% and a CET1 capital ratio of 17.0%. Financial Performance:
Loan originations grew 31% to $2.7 billion, compared to $2.0 billion in the prior year, driven by the successful execution of product and marketing initiatives. Total net revenue increased 16% to $252.3 million, compared to $217.7 million in the prior year, driven by higher loan sales and loan sale pricing and higher net interest margin on a larger balance sheet. Net interest margin expanded to 6.28%, compared to 5.97% in the prior year, driven primarily by improved deposit funding costs. Provision for credit losses of $0.4 million, compared to $58.1 million in the prior year, due to strong credit performance and the 2026 election of fair value option (FVO) accounting for all new originations. Net charge-offs on total loans and leases held for investment improved to $42.5 million, compared to $76.1 million in the same quarter in the prior year, supported by strong credit performance. Net income and Diluted EPS more than quadrupled to $51.6 million and $0.44, respectively, compared to $11.7 million and $0.10 in the prior year, respectively. Profit margin (pre-tax) of 26.7%, compared to 7.2% in the prior year. Return on Equity (ROE) of 13.7% with a Return on Tangible Common Equity (ROTCE) of 14.5%. Summary Financial Highlights:
Three Months Ended
($ in millions, except per share amounts)
March 31,
2026
December 31,
2025
March 31,
2025
Total net revenue
$ 252.3
$ 266.5
$ 217.7
Provision for credit losses
0.4
47.2
58.1
Non-interest expense
184.5
169.3
143.9
Income before income tax expense
67.3
50.0
15.7
Income tax expense
(15.7)
(8.5)
(4.0)
Net income
$ 51.6
$ 41.6
$ 11.7
Diluted EPS
$ 0.44
$ 0.35
$ 0.10
For a calculation of Tangible Book Value Per Common Share and Return on Tangible Common Equity, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release.
2026 Strategic Priorities & Investments
LendingClub has made important progress on several strategic initiatives:
Corporate Rebrand: Rebranding to Happen BankTM, a bank that clears the way for people going places, providing fast and easy access to award-winning products that help them save more of what they earn and earn more on what they save. The new brand reflects LendingClub's transition from a pioneering online lender to a diversified digital-first bank that combines deposits, lending, and a capital-light marketplace bank model. The company will transition to the new brand this summer. Rebrand-related costs are included in the 2026 financial guidance.
Home Improvement Financing: Having previously acquired foundational technology and key talent, LendingClub is now underwriting and originating home improvement loans through its initial partnership with the Wisetack platform. Inbound interest from additional potential partners has been significant. Home improvement financing is a $500 billion market where LendingClub has distinct advantages over incumbents and a meaningful opportunity for growth.
AI and Operating Efficiency: The company has over 60 active AI initiatives underway across marketing, product, engineering, operations, customer experience, and compliance, with the goal of improving efficiency and supporting margin expansion over time. AI-powered automation and agent support tools have already led to record personal loans operations production efficiency and a record-high >90% automation rate for issued loans in the first quarter.
New Marketing Channel Investment: LendingClub accelerated investments in new acquisition channels, including paid social and display, ahead of normal seasonal timing in order to build attribution models and data capabilities for the full-year 2026 growth plan. Successful execution of marketing and product initiatives contributed to a 31% year-over-year increase in originations growth in the first quarter.
Transition to Fair Value Option Accounting: Starting first quarter of 2026, LendingClub has adopted FVO accounting for all new originations of loans held for investment. This change aligns the accounting treatment for loans held for investment and held for sale, creating a consistent framework across the business and removing the front-loaded CECL reserve impact that corresponds to balance sheet growth. The company expects this transition will, over time, result in higher return on invested capital.
From a financial reporting perspective, under FVO, new loans are marked to fair value at origination, with subsequent changes in fair value, reflecting both credit performance and market conditions, flowing through non-interest income each quarter rather than through a separate provision for credit losses. The company will no longer record a CECL provision on new loan originations.
Financial Outlook
Second Quarter 2026
Loan originations
$3.0B to $3.1B
Diluted EPS
$0.40 to $0.45
Full Year 2026
Loan originations
$11.6B to $12.6B
Diluted EPS
$1.65 to $1.80
About LendingClub
LendingClub Bank (soon to be Happen BankTM) is a digital bank built for the Motivated Middle: high-FICO, high-income, digitally savvy consumers actively managing their financial lives. Our difference? We make it easy for them to access award-winning products that help them keep more of what they earn and earn more on what they save. Our products are aligned by design to reward our five million plus members when they take positive financial steps, like saving regularly or making loan payments on time.
Our success is fueled by our advanced credit underwriting, a proprietary technology platform engineered for innovation, and a marketplace bank model that drives value for members, loan investors, and shareholders alike. The result is affordable credit, meaningful value, and a trusted banking relationship delivered consistently and profitably at scale.
As we look to our next chapter, we're choosing a name that reflects why we exist: to clear the way for our members to make it happen. Learn more at https://www.meethappen.com.
LendingClub Corporation (NYSE: LC) is the parent company and operator of LendingClub Bank, National Association, Member FDIC. For more information about LendingClub, visit https://www.lendingclub.com.
Conference Call and Webcast Information
The LendingClub first quarter 2026 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Monday, April 27, 2026. A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results. To listen to the call, register using this link: https://events.q4inc.com/attendee/442019885 ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. LendingClub has used, and intends to use, its investor relations website, X (formerly Twitter) handles (@LendingClub and @LendingClubIR) and Facebook page (https://www.facebook.com/LendingClubTeam) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.
Question Submissions
Prior to quarterly earnings, investors have the ability to submit and upvote questions for LendingClub's management team to consider. To participate, visit the link provided in each quarter's earnings date announcement.
Contacts
For Investors:
[email protected]
Media Contact:
[email protected]
Non-GAAP Financial Measures
To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Tangible Book Value (TBV) Per Common Share and Return on Tangible Common Equity (ROTCE). Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP.
We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies.
We believe TBV Per Common Share is an important measure used to evaluate the company's use of equity. TBV Per Common Share is a non-GAAP financial measure representing tangible common equity for the period (common equity reduced by goodwill and customer relationship intangible assets), divided by the ending number of common shares issued and outstanding.
We believe ROTCE is an important measure because it reflects the company's ability to generate income from its core assets. ROTCE is a non-GAAP financial measure calculated by dividing annualized net income by the average tangible common equity for the applicable period.
For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 11 of this release.
Safe Harbor Statement
Some of the statements above, including statements regarding our entry into home improvement financing, our rebranding initiative, and anticipated future performance and financial results, are "forward-looking statements." The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our loan performance, our ability to continue to attract and retain new and existing borrowers and marketplace investors (including retaining long-term investors through the duration of their expected partnership and achieving the anticipated level of purchases); competition; overall economic conditions; our ability to integrate acquired technology; the interest rate and/or regulatory environment; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended
% Change
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
Q/Q
Y/Y
Operating Highlights:
Net interest income
$ 176,234
$ 163,027
$ 158,439
$ 154,249
$ 149,957
8 %
18 %
Non-interest income
76,017
103,444
107,792
94,186
67,754
(27) %
12 %
Total net revenue
252,251
266,471
266,231
248,435
217,711
(5) %
16 %
Provision for credit losses
390
47,158
46,280
39,733
58,149
(99) %
(99) %
Non-interest expense
184,533
169,284
162,713
154,718
143,867
9 %
28 %
Income before income tax expense
67,328
50,029
57,238
53,984
15,695
35 %
329 %
Income tax expense
(15,725)
(8,475)
(12,964)
(15,806)
(4,024)
86 %
291 %
Net income
$ 51,603
$ 41,554
$ 44,274
$ 38,178
$ 11,671
24 %
342 %
Diluted EPS
$ 0.44
$ 0.35
$ 0.37
$ 0.33
$ 0.10
26 %
340 %
Total loan originations (in millions)(1)
$ 2,669
$ 2,637
$ 2,656
$ 2,433
$ 2,032
1 %
31 %
Current period originations sold or held
for sale
$ 1,717
$ 2,090
$ 2,027
$ 1,702
$ 1,314
(18) %
31 %
Current period originations held for
investment
$ 952
$ 547
$ 629
$ 731
$ 717
74 %
33 %
Total servicing portfolio (in millions)(2)
$ 13,854
$ 13,423
$ 12,986
$ 12,524
$ 12,241
3 %
13 %
Loans serviced for others
$ 7,750
$ 7,601
$ 7,612
$ 7,185
$ 7,130
2 %
9 %
Performance Metrics:
Net interest margin
6.28 %
5.98 %
6.18 %
6.14 %
5.97 %
Profit margin(3)
26.7 %
18.8 %
21.5 %
21.7 %
7.2 %
Return on average equity (ROE)(4)
13.7 %
11.3 %
12.4 %
11.1 %
3.5 %
Return on tangible common equity (ROTCE)(5)(6)
14.5 %
11.9 %
13.2 %
11.8 %
3.7 %
Return on average total assets (ROA)(7)
1.8 %
1.5 %
1.7 %
1.5 %
0.4 %
Marketing expense as a % of loan
originations(1)
2.08 %
1.73 %
1.53 %
1.38 %
1.44 %
Average balance - total loans and leases
held for investment
$ 4,797,639
$ 4,767,573
$ 4,890,619
$ 4,899,272
$ 5,030,204
1 %
(5) %
Net charge-offs - total loans and leases
held for investment
$ 42,493
$ 47,852
$ 41,899
$ 46,078
$ 76,128
(11) %
(44) %
Net charge-off ratio - total loans and leases
held for investment(8)
3.5 %
4.0 %
3.4 %
3.8 %
6.1 %
Capital Metrics:
Common equity Tier 1 capital ratio
17.0 %
17.4 %
18.0 %
17.5 %
17.8 %
Tier 1 leverage ratio
11.9 %
12.0 %
12.3 %
12.2 %
11.7 %
Book value per common share
$ 13.19
$ 13.01
$ 12.68
$ 12.25
$ 11.95
1 %
10 %
Tangible book value per common share(6)
$ 12.49
$ 12.30
$ 11.95
$ 11.53
$ 11.22
2 %
11 %
(1) Beginning in the first quarter of 2026, includes all loans originated during the respective periods (unsecured consumer loans, auto loans and
small business loans). Previously this included unsecured consumer loans and auto loans only. In the first quarter of 2026, this update
included $15 million of small business loan originations. Prior periods have been reclassified to conform to the current period presentation.
(2) Reflects loans serviced on our platform, which includes unsecured consumer loans and auto loans serviced for others for which servicing
rights are retained by the Company.
(3) Calculated as the ratio of income before income tax expense to total net revenue.
(4) Calculated as annualized net income divided by average equity for the period presented.
(5) Calculated as annualized net income divided by average tangible common equity for the period presented.
(6) Represents a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures."
(7) Calculated as annualized net income divided by average total assets for the period presented.
(8) Beginning in the first quarter of 2026, the net charge-off ratio is calculated as annualized net charge-offs for total loans and leases held for
investment (at amortized cost and fair value) divided by average total outstanding loans and leases held for investment during the period.
Prior to the first quarter of 2026, this was calculated based on loans and leases held for investment at amortized cost only. Prior period
amounts have been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
OPERATING HIGHLIGHTS (Continued)
(In thousands, except percentages or as noted)
(Unaudited)
As of the period ended
% Change
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
Q/Q
Y/Y
Balance Sheet Data:
Securities available for sale
$ 3,867,576
$ 3,706,709
$ 3,742,304
$ 3,527,142
$ 3,426,571
4 %
13 %
Loans held for sale
$ 1,836,121
$ 1,762,396
$ 1,213,140
$ 1,008,168
$ 703,378
4 %
161 %
Loans and leases held for investment
$ 4,700,990
$ 4,470,383
$ 4,573,425
$ 4,765,068
$ 4,790,138
5 %
(2) %
Total loans and leases
$ 6,537,111
$ 6,232,779
$ 5,786,565
$ 5,773,236
$ 5,493,516
5 %
19 %
Total assets
$ 11,939,839
$ 11,567,816
$ 11,072,515
$ 10,775,333
$ 10,483,096
3 %
14 %
Total deposits
$ 10,189,511
$ 9,833,870
$ 9,388,233
$ 9,136,124
$ 8,905,902
4 %
14 %
Total liabilities
$ 10,416,311
$ 10,067,388
$ 9,610,302
$ 9,369,298
$ 9,118,579
3 %
14 %
Total equity
$ 1,523,528
$ 1,500,428
$ 1,462,213
$ 1,406,035
$ 1,364,517
2 %
12 %
LENDINGCLUB CORPORATION
LOANS AND LEASES HELD FOR INVESTMENT BY DELINQUENCY STATUS
(In thousands)
(Unaudited)
The following tables present loans and leases held for investment (at amortized cost and fair value) by delinquency status(1):
March 31, 2026
Current
30-59
Days
60-89
Days
90 or More
Days
Total
Guaranteed
Amount (2)
Unsecured consumer (3)
$ 3,703,293
$ 22,006
$ 18,305
$ 16,826
$ 3,760,430
$ —
Residential mortgages
147,730
1,719
—
25
149,474
—
Secured consumer
341,829
3,012
545
237
345,623
—
Total consumer loans held for investment
4,192,852
26,737
18,850
17,088
4,255,527
—
Equipment finance (4)
32,824
—
—
3,623
36,447
—
Commercial real estate (5)
480,877
—
399
10,295
491,571
38,372
Commercial and industrial
129,103
3,662
1,417
20,122
154,304
107,816
Total commercial loans and leases held for
investment
642,804
$ 3,662
$ 1,816
$ 34,040
$ 682,322
$ 146,188
Total loans and leases held for investment
$ 4,835,656
$ 30,399
$ 20,666
$ 51,128
$ 4,937,849
$ 146,188
December 31, 2025
Current
30-59
Days
60-89
Days
90 or More
Days
Total
Guaranteed
Amount (2)
Unsecured consumer (3)
$ 3,600,434
$ 24,075
$ 19,685
$ 18,929
$ 3,663,123
$ —
Residential mortgages
150,099
—
888
86
151,073
—
Secured consumer
257,063
3,015
596
395
261,069
—
Total consumer loans held for investment
4,007,596
27,090
21,169
19,410
4,075,265
—
Equipment finance (4)
35,973
696
—
3,088
39,757
—
Commercial real estate (5)
461,307
—
—
11,182
472,489
39,507
Commercial and industrial
133,526
1,540
1,878
20,074
157,018
108,826
Total commercial loans and leases held for
investment
630,806
2,236
1,878
34,344
669,264
148,333
Total loans and leases held for investment
$ 4,638,402
$ 29,326
$ 23,047
$ 53,754
$ 4,744,529
$ 148,333
(1) Beginning in the first quarter of 2026, amounts include loans and leases held for investment measured at both
amortized cost and fair value. Prior to the first quarter of 2026, amounts included loans and leases held for
investment at amortized cost only.
(2) Represents loan balances guaranteed by the Small Business Association (SBA).
(3) Excludes basis adjustment for loans previously designated in fair value hedges under the portfolio layer
method of $0.8 million and $1.6 million as of March 31, 2026 and December 31, 2025, respectively.
(4) Comprised of sales-type leases for equipment.
(5) Includes $307.0 million and $286.8 million in loans originated through the SBA as of March 31, 2026 and
December 31, 2025, respectively.
LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
Change (%)
March 31,
2026
December 31,
2025
March 31,
2025
Q1 2026
vs
Q4 2025
Q1 2026
vs
Q1 2025
Interest income:
Interest on loans (1)
$ 199,897
$ 185,814
$ 166,173
8 %
20 %
Interest on securities available for sale
54,411
55,948
56,280
(3) %
(3) %
Other interest income
6,899
8,824
9,606
(22) %
(28) %
Total interest income
$ 261,207
$ 250,586
$ 232,059
4 %
13 %
Interest expense:
Interest on deposits
84,971
87,558
82,100
(3) %
3 %
Other interest expense
2
1
2
100 %
— %
Total interest expense
84,973
87,559
82,102
(3) %
3 %
Net interest income
176,234
163,027
149,957
8 %
18 %
Non-interest income:
Origination fees (2)
130,088
109,562
69,944
19 %
86 %
Servicing fees (2)
13,113
12,845
12,748
2 %
3 %
Gain on sales of loans (2)
16,269
15,546
12,202
5 %
33 %
Net fair value adjustments (2)
(88,925)
(39,451)
(29,251)
(125) %
(204) %
Other non-interest income
5,472
4,942
2,111
11 %
159 %
Total non-interest income
76,017
103,444
67,754
(27) %
12 %
Total net revenue
252,251
266,471
217,711
(5) %
16 %
Provision for credit losses
390
47,158
58,149
(99) %
(99) %
Non-interest expense:
Compensation and benefits
65,514
60,638
58,389
8 %
12 %
Marketing
55,415
45,680
29,239
21 %
90 %
Equipment and software
15,293
14,410
14,644
6 %
4 %
Depreciation and amortization
15,819
16,641
13,909
(5) %
14 %
Professional services
11,767
11,353
9,764
4 %
21 %
Occupancy
6,391
5,457
4,345
17 %
47 %
Other non-interest expense
14,334
15,105
13,577
(5) %
6 %
Total non-interest expense
184,533
169,284
143,867
9 %
28 %
Income before income tax expense
67,328
50,029
15,695
35 %
329 %
Income tax expense
(15,725)
(8,475)
(4,024)
86 %
291 %
Net income
$ 51,603
$ 41,554
$ 11,671
24 %
342 %
Net income per share:
Basic EPS
$ 0.45
$ 0.36
$ 0.10
25 %
350 %
Diluted EPS
$ 0.44
$ 0.35
$ 0.10
26 %
340 %
Weighted-average common shares – Basic
115,400,564
115,334,621
113,693,399
— %
2 %
Weighted-average common shares – Diluted
117,333,435
118,855,315
116,176,898
(1) %
1 %
(1) Beginning in the first quarter of 2026, we combined "Interest on loans held for sale," "Interest and fees on loans and leases held for
investment," and "Interest on loans held for investment at fair value," into a single line item called "Interest on loans." Prior period
amounts have been reclassified to conform to the current period presentation.
(2) Beginning in the first quarter of 2026, these components previously aggregated under "Marketplace revenue" on the Income Statement,
are now presented as separate line items. Prior period amounts have been reclassified to conform to the current period presentation.
LENDINGCLUB CORPORATION
NET INTEREST INCOME
(In thousands, except percentages or as noted)
(Unaudited)
, /PRNewswire/ -- LendingClub Corporation (NYSE: LC) today announced it has started underwriting and originating home improvement loans through its inaugural partnership with Wisetack, a platform embedded with over 40,000 contractors and growing.
LendingClub brings its expertise, proprietary credit models, and bank balance sheet directly to the point of sale for consumers seeking convenient and affordable financing for home improvement projects.
"We're excited to begin originating loans within the $500 billion home improvement market, where we have distinct advantages over incumbents and a meaningful opportunity for growth," said Steve Mattics, Chief Lending Officer at LendingClub. "This space is distinctly on brand for us. By combining our advanced underwriting and credit decisioning with Wisetack's embedded platform, we're able to clear the way for people to make meaningful home improvement projects happen while also helping contractors grow their own businesses. It's the type of win-win we're always striving for."
Through the Wisetack platform, loans up to $65,000 are originated by LendingClub and offered seamlessly within contractor and merchant workflows. LendingClub's underwriting system, which is informed by more than 150 billion cells of proprietary data, enables real-time credit decisions and supports access to larger loan amounts with transparent terms. The benefits of the partnership are clear:
Homeowners get instant offers and real-time approvals that allow them to make their projects happen, and Contractors get immediate funding and better close rates, especially on larger projects. "LendingClub's move to originate loans strengthens the financing experience across our platform, helping more contractors offer flexible payment options that enable homeowners to move forward with larger projects," said Bobby Tzekin, Founder and CEO of Wisetack.
Reinforced by LendingClub's investment in Wisetack, both companies plan to continue scaling the partnership, expanding the range of LendingClub-originated financing solutions available across the platform.
"We've been really impressed with Wisetack's team and platform," said Scott Sanborn, LendingClub CEO, "so impressed that we have also made an investment in the company to help accelerate our future together."
The U.S. home improvement market represents an estimated $500 billion in annual spending, driven by aging housing inventory and a continued preference among homeowners to renovate rather than relocate. LendingClub's expansion into the home improvement financing vertical is a natural extension of its point-of-sale financing expertise. This represents a powerful new opportunity to attract, delight, and engage consumers in moments that matter – and represents a perfect example of how LendingClub's members use credit responsibly to make it happen.
About LendingClub
LendingClub Bank (soon to be Happen Bank) is a digital bank built for the Motivated Middle: high-FICO, high-income, digitally savvy consumers actively managing their financial lives. Our difference? We make it easy for them to access award-winning products that help them keep more of what they earn and earn more on what they save. Our products are aligned by design to reward our five million members when they take positive financial steps, like saving regularly or making loan payments on time.
Our success is fueled by our advanced credit underwriting, a proprietary technology platform engineered for innovation, and a marketplace bank model that drives value for members, loan investors, and shareholders alike. The result is affordable credit, meaningful value, and a trusted banking relationship delivered consistently and profitably at scale.
As we look to our next chapter, we're choosing a name that reflects why we exist: to clear the way for our members to make it happen. Learn more at https://www.meethappen.com.
LendingClub Corporation (NYSE: LC) is the parent company and operator of LendingClub Bank, National Association, Member FDIC. Loans originated pursuant to the partnership with Wisetack are underwritten and originated by LendingClub Bank. For more information about LendingClub, visit https://www.lendingclub.com.
About Wisetack
Wisetack is the leading embedded platform for consumer financing for home services and home improvement, with presence in other verticals such as elective medical and car repair. Wisetack partners with software companies to embed consumer financing options into their customer-facing applications through simple APIs. Wisetack's extensive network of merchants rely on Wisetack to offer their customers affordable pay-over-time options at point of sale.
Founded in 2018 in San Francisco by an experienced team of leaders in the financial technology industry, Wisetack is backed by leading VCs such as Greylock Partners, Quadrille Capital, Insight Partners, and Bain Capital Ventures. Payment options through Wisetack are provided by its lending partners and subject to credit approval. Terms may vary.
Safe Harbor Statement
Some of the statements in this press release, including statements regarding the growth and benefits of our partnership with Wisetack, are "forward-looking statements." Words such as "plan", "delivers" and similar expressions may identify forward-looking statements, although not all forward-looking statements may contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our ability to develop and operate a compelling offering in the home improvement lending space, macroeconomic conditions, loan demand and performance, and those factors set forth in the section titled "Risk Factors" in LendingClub Corporation's most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in its subsequent filings with the Securities and Exchange Commission. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACTS:
LendingClub
Media Contact: [email protected]
For Investors: [email protected]
LendingClub (LC - Free Report) reported $252.25 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 15.9%. EPS of $0.44 for the same period compares to $0.10 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $252.98 million, representing a surprise of -0.29%. The company delivered an EPS surprise of +16.56%, with the consensus EPS estimate being $0.38.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how LendingClub performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Interest Margin: 6.3% versus the three-analyst average estimate of 6.1%.Net charge-off ratio: 3.5% compared to the 4.5% average estimate based on three analysts.Average Balance - Total interest-earning assets: $11.22 billion versus the three-analyst average estimate of $11.22 billion.Net Interest Income: $176.23 million versus $167.79 million estimated by four analysts on average.Total non-interest income: $76.02 million versus $85.21 million estimated by four analysts on average.Total Interest Income: $261.21 million compared to the $252.51 million average estimate based on three analysts.View all Key Company Metrics for LendingClub here>>>
Shares of LendingClub have returned +26% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
LendingClub saw growth across its business in the first quarter as it prepares to rebrand to Happen Bank and continues to expand its offerings into areas such as home improvement.
“All of our consumer businesses showed strong growth, supported by the compelling experience and value we deliver,” LendingClub Chief Financial Officer Drew LaBenne said Monday (April 27) during the company’s first quarter earnings call.
During the first quarter, LendingClub achieved 31% year-over-year growth in origination volume, which reached $2.7 billion, and 14% year-over-year growth in deposits, which hit $10.2 billion, according to a Monday earnings release.
The company attributed the originations growth to strong borrower demand and its marketing and product initiatives, according to a presentation release Monday.
LendingClub CEO Scott Sanborn said during the earnings call that the company’s offerings are appealing to the “motivated middle” of consumers who have high FICO scores, high income, and a focus on making progress.
“Our strong funding and proven ability to underwrite loans through a seamless experience is extensible to other categories where the motivated middle is able to make responsible use of credit through our major purchase finance business,” Sanborn said. “We’re increasingly present with them at the point of decision, whether they’re getting braces for their kids or trying to start a family with fertility treatments.”
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LendingClub’s LevelUp Savings account has grown to 80,000 accounts since its launch in August 2024, driven in part by a competitive base APY and a higher rate for members who deposit at least $250 per month. Seventy percent of account holders are meeting that threshold, according to the presentation.
The company’s LevelUp Checking product has outperformed the product it replaced in June, with a sixfold increase in account openings, per the presentation.
Sanborn said during the call that “our lending and banking products work together in a system aligned by design to deliver more value for both members and our business.”
LendingClub announced in a Monday press release that it has begun underwriting and originating loans in the $500 billion-per-year home improvement market through a partnership with Wisetack, an embedded platform used by more than 40,000 contractors.
Because LendingClub’s underwriting system enables real-time credit decisions, homeowners can get instant offers and real-time approvals, while contractors can get immediate funding and better close rates, per the release.
“Home improvement represents a powerful new opportunity to attract and engage the motivated middle in moments that matter and allows our members to use credit responsibly to add value to their home,” Sanborn said during the call. “Beyond Wisetack, we’re seeing strong interest from additional partners, which gives us confidence in the category’s growth over time.”
LendingClub announced April 22 that it will mark its multiyear transition from online lender to diversified full-service bank by rebranding as Happen Bank this summer.
The new name signals action, progress and forward momentum, reflecting its offering of lending and banking products, decisions in minutes and transparent terms, the company said when announcing the change.
“Our new brand better reflects what we have become and why we exist: to clear the way for people going places,” Sanborn said during the call.
LendingClub remains a compelling "Buy," bolstered by strong Q1 results and resilient credit metrics despite broader market fears. LC is delivering over 30% originations growth, supporting robust non-interest fee income and reinforcing its growth profile. Deposit growth, high-yield savings, and the rebrand to Happen Bank are reducing the cost of capital and enhancing net interest margins.
Scott Sanborn has been telling people LendingClub needed a different name for 10 years. The first audience was the board that ended up hiring him as CEO.
“True story: literally in the interview process,” Sanborn told PYMNTS’ Karen Webster, “I said, ‘The name is very limiting and it is very transactional.’”
One might have filed the comment away as inside baseball. The company had bigger things to prove than the elasticity of its brand. But the observation didn’t go away. It just had to wait for the rest of the business to catch up to it.
This summer, when LendingClub officially becomes Happen Bank, it finally will.
A Business That Outgrew Its Name Anyone who has followed LendingClub since the early days remembers the original pitch. Cut out the bank, let individual investors fund the loans, route everything through a marketplace. It was elegant on a slide. In practice, it had a ceiling.
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“That initial model saying, ‘Hey, let’s have individuals fund the loans,’ it isn’t that that model didn’t work,” Sanborn said. “It’s that it was not very scalable.”
The constraints were structural. Operating as a registered marketplace meant every routine business decision became a public event.
“We were required to make a public filing anytime we changed the price, anytime we changed the credit policy,” he said.
Imagine running a consumer lender where every tweak to the risk model gets posted for your competitors to read. That was LendingClub’s daily reality. Each adjustment took longer than it should have and gave away more than it should have.
The 2021 acquisition of digital bank Radius let LendingClub start solving for both problems at once. Deposits came in. A mobile interface tied lending and saving together. The company began operating as a bank in everything but signage.
“We needed a name that evidenced that we’re more than lending,” Sanborn said.
The mismatch had become a real-world headache. Customers didn’t always realize they were dealing with a bank. Some, Sanborn noted with a wry edge, kept confusing them with LendingTree.
Why ‘Happen’ — and Why Now The rebrand goes live this summer, and the thinking behind it is less about a fresh coat of paint than about how the products fit together. The whole point of buying Radius and building out the deposit side was to stop treating each customer interaction as a one-off transaction.
“Ours do actually work together,” he said.
The conversation came on the heels of the company’s Q1 earnings, released the same day as the interview, Monday, April 27. The numbers tell the story Sanborn has been building toward. More more than 5 million members, north of $100 billion in lifetime originations, and a deposit base that keeps growing alongside engagement metrics that suggest customers are actually using the platform, not just opening it.
When Bank Charters Multiply Like Rabbits There was a time when a FinTech going after a bank charter was a man-bites-dog story. That moment has clearly passed.
“There’s been more applications for bank charter in the first quarter of this year than in the last several years combined,” Sanborn said.
Sort of like rabbits in the spring, Webster remarked. The FinTech world is recalibrating. Access to deposits and clean regulatory standing have become table stakes for any company that wants to scale, and a lot of operators have apparently decided to stop pretending otherwise.
The ‘Motivated Middle’ For all that has changed, what Sanborn says about the opportunity in retail banking has stayed remarkably consistent. Data is still underused. Customer experiences are still uneven. Products are still designed around the bank’s org chart rather than around how people actually run their financial lives. LendingClub’s answer is to narrow the aperture, hard.
“The really big unlock for us is we focus on a very, very specific customer,” he told Webster.
Sanborn calls them the “motivated middle” — high income, high FICO, but still active users of credit and financial tools. They’re not the underserved bottom of the market and they’re not private banking clients. They’re people managing real cash flows, paying down debt, and the part Sanborn likes to highlight, building up an average of $19,000 in savings on the platform after working through their borrowing.
Sanborn said that customers participating in LevelUp Savings generate 20% to 30% more monthly logins than their legacy savings product. And 6 in 10 new LevelUp Checking accounts come from personal loan borrowers, and 84% of those borrowers said they are now more likely to consider a LendingClub loan in the future. Borrowers who have paid off their loans are accumulating average balances of over $19,000.
That last data point is important, Sanborn emphasized. It suggests former borrowers are using LendingClub as a primary savings vehicle.
The strategy of bringing lending and deposits together is built for that customer. More than half of new loan originations now come from existing customers. That creates the flywheel that keeps the customer engaged, sticky and growing with the business.
Same Kernel, Bigger Surface Area Webster asked Sanborn whether the rebrand felt like a departure from the original LendingClub mission of rewiring retail banking. He pushed back on the framing.
“The kernel of what we set out to do is still there,” he said. “It now spans everything we touch.”
In other words: same idea, more of it. Ten years on, the name is the last thing to change.
LendingClub delivered a strong Q1'26, beating financial targets but maintaining full-year guidance. The digital banks EPS surged to $0.44, driven by a shift to fair value accounting, though underlying credit costs remain steady. The company targets $12.1B in 2026 loan originations and sees a path to double originations over time, starting with entering the $500B home improvement market in Q2.
Shares of LendingClub (LC - Free Report) have gained 11.9% over the past four weeks to close the last trading session at $16.69, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $22.15 indicates a potential upside of 32.7%.
The mean estimate comprises 10 short-term price targets with a standard deviation of $1.8. While the lowest estimate of $20.00 indicates a 19.8% increase from the current price level, the most optimistic analyst expects the stock to surge 49.8% to reach $25.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in LC. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in LCThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 5.1%.
Moreover, LC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much LC could gain, the direction of price movement it implies does appear to be a good guide.
For millions of Labor Economy workers, the road to financial wellness, or thriving rather than surviving, is about more than simply having a job.
It is increasingly about whether they can keep cash flowing smoothly enough between paychecks to meet long-term goals.
PYMNTS Intelligence’s Wage to Wallet research with Ingo Payments and WorkWhile paints a picture of a Labor Economy under mounting liquidity pressure, where confidence is weakening even as employment remains relatively stable. The growing strain of managing bills, spending and savings is exacerbated in an economy where timing gaps increasingly carry financial penalties.
That backdrop is creating an opportunity for FinTech platforms that position themselves not merely as payment apps or lenders, but as financial management ecosystems built around cash flow visibility, liquidity access and financial wellness.
Confidence Splits Along Liquidity Lines The December Wage to Wallet Index described what PYMNTS Intelligence called a “Mirror Image” economy, where salaried workers increasingly feel optimistic while hourly Labor Economy workers remain stuck in pessimistic territory.
Roughly 41% of Non-Labor Economy workers said they felt financially better off than the national economy, while only 17.7% of Labor Economy workers said the same. Meanwhile, 40.4% of hourly workers reported feeling worse off than the broader economy.
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More recently, the April Wage to Wallet Index showed that pessimism intensified further in as Labor Economy workers grew more concerned about personal finances, savings capacity and job security.
Coming into the end of last year, nearly half of Labor Economy workers delayed or missed a bill payment because their paycheck had not yet cleared. The December report said timing friction, rather than outright insolvency, increasingly drives financial distress.
At the same time, only 11% of Labor Economy workers said in the April report that they would primarily rely on savings during financial stress, underscoring how thin many households’ financial cushions remain.
The result is what the December report described as a “liquidity tax,” where overdraft fees, late fees and payment penalties consume a disproportionate share of hourly workers’ income.
Nearly one-third of both hourly and salaried workers incur late fees or overdrafts monthly, but the burden lands harder on low-income households because the costs are effectively fixed, the December report found.
For Labor Economy workers, the average monthly liquidity tax represented roughly 3.4% of income versus 1.2% for higher earners, per the December report.
Cash Flow Management Becomes the Product Amid those pressures, there has been a reshaping of how digital financial platforms position themselves.
Firms are competing around tools that help workers manage cash timing, avoid fees, track credit health and smooth spending volatility before small disruptions become larger financial problems.
SoFi CEO Anthony Noto framed the company’s strategy around helping members manage their money holistically rather than offering isolated products.
“Our critical success factor is helping people spend less than they make and invest the rest,” Noto said during the company’s earnings call.
He added that consumers increasingly need financial guidance “for all the days in between,” not only major financial decisions.
SoFi has expanded offerings tied to financial planning, budgeting, investing and credit monitoring as part of its broader ecosystem strategy. The company also highlighted tools designed to deepen engagement around financial wellness and long-term planning rather than purely transactional banking relationships.
Block is taking a similar approach inside Cash App.
During the company’s earnings call, executives described efforts to integrate borrowing, payments, savings and spending management tools more tightly across the platform. Block also has also begun rolling out Cash App Score, which executives described as helping users gain more actionable visibility into their financial standing.
Block CEO Jack Dorsey said the company increasingly sees artificial intelligence-powered financial tools functioning as systems that can help users identify problems earlier.
LendingClub executives similarly emphasized the growing importance of financial management tools that help consumers use credit strategically rather than reactively. The company is embarking on a rebranding to Happen Bank.
During the company’s earnings call, CEO Scott Sanborn described the firm’s “motivated middle” customers as consumers focused on “making progress” through responsible use of credit and savings products. The company highlighted offerings including cash back rewards tied to on-time loan payments and savings products designed to encourage long-term financial stability. Executives said borrowers using LendingClub checking accounts increasingly routed loan payments directly through the platform.
Loyalty and Financial Stability The PYMNTS research suggests that the next competitive battleground for consumer-facing FinTechs may revolve around who best helps workers stabilize their financial lives during periods of uncertainty. That makes financial wellness less of a branding exercise and more of a retention strategy.
As workers grow more cautious about spending and increasingly focused on preserving housing, transportation and basic stability, platforms that help consumers avoid late fees, smooth liquidity gaps and maintain financial visibility could gain stronger long-term loyalty.
LendingClub (LC 0.42%) has decided to rebrand; soon, this incumbent fintech leader will change its name to Happen Bank.
Investors may be skeptical that a mere name change can turn a stock's fortunes around. But when a company's fundamentals steadily improve amid massive undervaluation, well, a name change to reflect a better business model could be just the catalyst for a higher stock price.
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Why the rebrand? LendingClub began in 2006 as a peer-to-peer lending platform, enabling retail investors to buy high-yield loans from unsecured personal loan borrowers, underwritten by LendingClub's tech-enabled risk models.
Fast-forward to today, and LendingClub has transformed into an institutionally focused, technology-forward bank. Its loan buyers are no longer retail investors, but some of the largest loan buyers in the world, including major banks, private credit asset managers, and insurance companies. As such, LendingClub is not really a "club" anymore, but an institution with 20 years of staying power.
How did LendingClub make this transformation? The old-fashioned way: by proving itself over a long period of better underwriting versus peers, especially through tumultuous times.
The "motivated middle" happens LendingClub has managed very well through highly difficult economic environments over the past decade. This period includes the COVID-19 downturn, the post-COVID inflation shock, and the regional banking crisis in 2023, during which many loan buyers paused purchases. Yet since the beginning of the pandemic, LendingClub's loans have experienced roughly 50% lower delinquencies than its competitive set.
Those good underwriting results actually accelerated last quarter; net charge-offs fell from 6.1% a year ago to 3.5%. Provision for credit losses fell to practically zero, at just $390,000. That zero provision was thanks to older vintages performing much better than expected, allowing the company to release prior reserves, which were enough to bring current provisions down to pretty much zero.
As the "oldest" tech platform for unsecured personal loans, LendingClub has leveraged its longer history and data advantage to out-underwrite peers. The company has also done a great job of targeting a particular customer segment it calls the "motivated middle." These are high-income, high-FICO-score consumers who use debt to fund progress in their lives, such as large purchases, home improvements, fertility treatments, and other use cases.
LendingClub has also designed its deposit franchise to attract financially savvy customers and incentivize good habits. For instance, LendingClub's checking account offers 2% cash back to borrowers who make on-time payments, and its savings account offers higher rates to those who save regularly.
Image source: Getty Images.
AI happens I had the pleasure of speaking with CEO Scott Sanborn after the earnings release. Traditionally a skeptic of new trends, Sanborn shared his excitement about artificial intelligence (AI) for LendingClub's business going forward, saying, "I am not a skeptic on this trend."
On the conference call with analysts, Sanborn noted tangible AI-enabled improvements, including 90% of loan issuance now fully automated, a 60% reduction in the time needed for consumers to complete an application, and record-low costs for loan origination.
In our post-earnings conversation, Sanborn also gave an example of how AI is revolutionizing LendingClub's business. For example, LendingClub used to sample call center interactions and rate them on a scale. But now, with AI agents, an agent can analyze every single call in detail, then summarize key points that might have gone undiscovered before. For instance, AI recently revealed that LendingClub's call centers had received hundreds of calls about a particular marketing email. That enabled LendingClub to tweak that email's language, which might not have been discovered before.
LendingClub has always been a technology- and data-driven company, which it has used to outpace rivals. Management is now taking that technology and data advantage into the age of AI.
Home improvement and equity loans are happening As it transitions to become Happen Bank, LendingClub is making an aggressive move into a new market: home loans.
The company recently partnered with home improvement finance software company Wisetack, whose platform helps about 40,000 contractors of all types secure loans for customers to pay for home improvements and other large purchases.
On the call, Sanborn said that LendingClub had already begun underwriting loans this quarter, as it looks to aggressively penetrate the $500 billion home improvement market. Sanborn explained that the market for contractors, aggregators, and contractor-oriented software solutions remains fragmented, with between 4,000 and 6,000 purchase finance partners. LendingClub thinks it has the technological skills to integrate with these vendors while bringing the balance sheet of a large bank to this market need.
If the home improvement product goes well, LendingClub also sees an opportunity to expand with these customers into home equity lines of credit next year, and, potentially, even mortgages.
Home improvement fits with LendingClub's "motivated middle" target consumer. The new vertical should be an important part of the company's medium-term goal of reaching $20 billion in assets on its balance sheet, up from $11.9 billion today.
Will a valuation rerating happen? In the first quarter, LendingClub grew originations 31% year over year, well ahead of guidance and expectations, with total revenue up 16% and diluted earnings per share (EPS) rising 340% to $0.44.
These were excellent results, and Sanborn noted, "We remain oversubscribed with an ability to sell more loans than we are generating."
Despite the high growth, low charge-offs, and new share repurchase program, LendingClub trades at a meager $16.57 per share as of this writing. That's just 1.25 times book value and less than 10 times this year's earnings guidance, which LendingClub has forecast at $1.65 to $1.80 in earnings per share.
That's a valuation more in line with, or even cheaper than, a traditional, low-growth bank today. And it's certainly a massive discount compared to its younger, higher-growth fintech peers.
LC Price to Book Value data by YCharts
Will things start to happen? On the call, Sanborn noted the rebrand to Happen Bank "speaks not only to our broad ambitions but also to our promise."
Will the rebrand to Happen Bank also lift LendingClub's valuation to a level more in sync with its financial results? While one can never be sure, it may be the right time for investors to buy this up-and-coming financial stock at a discount, before the name change occurs.
Upstart (UPST 4.62%) and LendingClub (LC 0.42%) are fighting for dominance in the digital lending space. Both companies leverage technology to streamline personal loans, but their business models and risk profiles vary significantly.
Upstart operates as an artificial intelligence marketplace that connects borrowers with various banking partners. LendingClub functions as a digital marketplace bank, holding more loans on its own balance sheet after acquiring a banking charter. This difference in how they fund and hold loans defines their financial health and market perception.
The case for UpstartUpstart uses proprietary models to evaluate credit-worthiness for personal, auto, and home equity loans. It primarily acts as a middleman, selling its technology services to more than 100 bank and credit union partners. Customer concentration like this adds a layer of risk to the business, as fees from its top three lending partners accounted for 61% of total revenue in 2025.
In FY 2025, revenue reached approximately $1.1 billion, representing a significant revenue growth rate of nearly 58.9% over the previous year. The company reported a net income of close to $53.6 million, marking a return to profitability after substantial net losses in 2024. This recovery followed a challenging period of rising interest rates that temporarily slowed lending activity across the fintech sector.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 2.3x, meaning the company uses more borrowed funds than its own capital. The current ratio, which measures the ability to pay short-term debts with current assets, stood at a strong 3.0x. Free cash flow, defined as cash from operations minus capital spending, was approximately negative $166.1 million for FY 2025.
The case for LendingClubLendingClub operates a mobile-first platform that provides personal loans and deposit products to more than 5 million members. Unlike its pure-tech competitors, it uses its own bank charter to fund a portion of its loans using low-cost member deposits. This marketplace model carries concentration risk, as some large investors have previously reduced their participation during periods of rising interest rates.
For FY 2025, the company generated revenue of nearly $1.3 billion, a growth rate of approximately 15.0% compared to 2024. LendingClub reported a net income of roughly $135.7 million, yielding a net margin of about 10.2%. This net margin, which shows the percentage of revenue remaining as profit after all expenses, reflects its ability to manage interest costs effectively.
The company reported a debt-to-equity ratio of approximately 0.0x as of its December 2025 balance sheet. Its current ratio was close to 0.1x, which is typical for a banking institution where customer deposits are classified as short-term liabilities. Free cash flow, which is cash from operations minus capital expenditures, was roughly negative $2.9 billion for FY 2025.
Risk profile comparisonUpstart faces risks from fluctuating economic conditions that can reduce borrower demand and loan funding from its partners. If its AI models fail to accurately predict defaults during a recession, lending partners might pull back, as seen with certain underperforming loan vintages from early 2024. It also competes for traffic with large aggregators like Alphabet, which could change its search algorithms at any time.
LendingClub is sensitive to interest rate volatility, which can increase the cost of its deposits and lower demand from marketplace investors. Regulatory changes are a constant threat, including potential interest rate caps that could limit the profitability of its core personal loan products. The company also faces intense competition from traditional banking giants like JPMorgan Chase, which have much larger marketing budgets and deeper capital reserves.
Valuation comparisonLendingClub trades at lower multiples based on future earnings estimates, or projected profits, while Upstart trades at a premium relative to its sales following significant revenue acceleration.
MetricUpstartLendingClubSector BenchmarkForward P/E12.5x9.1x16.6xP/S ratio2.6x1.4xSector benchmark uses the SPDR XLF sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Upstart and LendingClub are both fintechs, but they operate in different ways. Upstart, which is using AI to improve credit underwriting, presents higher risk but higher upside. If interest rates fall and loan demand rises, Upstart could see significant growth. But the company is sensitive to customers’ demand for loans and credit markets in general. This has made it volatile over the past few years.
On the other hand, LendingClub is more traditional and has become more of a digital bank with a deposit base and recurring interest income. This provides it with steadier earnings than Upstart currently has. Its recent results show strong business fundamentals, including profitability and returns on equity, despite a challenging rate environment and competition from larger institutions.
So, investors who are willing to accept higher risk for greater potential reward, Upstart may be an exciting option. But those who are seeking lower volatility may prefer an investment in LendingClub. Personally, I would choose Upstart. That's not because I'm adventurous, but because I believe AI-driven underwriting could become a significant influence on how lenders evaluate borrowers. In that regard, Upstart has a first-mover advantage.
Andrew LaBenne, Chief Financial Officer of LendingClub Corporation (LC 0.42%), sold 20,000 shares of common stock for a total of ~$340,000 on May 28, 2026, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)20,000Transaction value~$340,000Post-transaction shares (direct)234,955Post-transaction value (direct ownership)~$4.00 millionTransaction and post-transaction values based on SEC Form 4 reported price ($17.00).
Key questionsHow does this sale compare to Andrew LaBenne's historical trading activity?
This transaction is consistent with LaBenne's established pattern of periodic open-market sales, with three such disposals totaling 58,858 shares since July 2025; the size of the current sale (~20,000 shares) aligns closely with the prior two events (17,955 and 20,903 shares).What is the impact of this transaction on LaBenne's overall equity exposure?
The sale reduced LaBenne's direct ownership by 7.84%, but he retains 234,955 directly-held shares, maintaining a meaningful economic stake in LendingClub Corporation.What liquidity or plan context is relevant to interpreting this transaction?
This sale was executed under a pre-established Rule 10b5-1 trading plan, supporting the interpretation of this activity as routine portfolio management rather than discretionary selling.How does the transaction relate to LendingClub's recent share price performance?
The sale occurred as the stock closed at $17.03 on May 28, 2026, with a one-year total return of 77.97% as of that date, suggesting the timing may reflect a strategy of harvesting gains in a rising equity environment.Company overviewMetricValueRevenue (TTM)$1.03 billionNet income (TTM)$175.61 millionEmployees1,0021-year price change77.97%* 1-year price change calculated as of May 28, 2026.
Company snapshotLendingClub offers a technology-driven platform providing unsecured personal loans, auto loans, commercial and industrial loans, equipment leases, and operates an online lending marketplace.It generates revenue primarily through interest income on loans, origination and servicing fees, and marketplace transaction fees by connecting borrowers and investors.The company targets individual consumers and small to mid-sized businesses across the United States seeking credit solutions and investment opportunities.LendingClub Corporation is a leading digital financial services provider specializing in credit solutions through an integrated online platform. The company leverages technology to streamline lending, enhance customer experience, and efficiently match borrowers with investors.
What this transaction means for investorsThe May 28 sale of LendingClub stock by the company’s CFO, Drew LaBenne, is not a cause for investor concern. The transaction was implemented as part of a Rule 10b5-1 trading plan. Such pre-arranged trading plans are often implemented by insiders to avoid accusations of making trades based on insider information.
Moreover, LaBenne maintained a sizable equity stake of more than 200,000 shares after the sale, suggesting he is not rushing to dispose of his holdings. The transaction came at a time when the stock was edging up after falling in the first quarter.
LendingClub delivered solid Q1 performance with loan originations rising 31% year over year to $2.7 billion, and revenue increasing 16% to $252.3 million. The company also announced it had started underwriting and originating home improvement loans, which opens up a new revenue stream, and that it was changing its name to Happen Bank later this year, since it had grown beyond its LendingClub roots.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways Agilent beat Q2 estimates as revenues rose 10% to $1.83B and non-GAAP EPS hit $1.49.Agilent raised FY26 guidance to $7.39B-$7.49B revenue and $6.00-$6.10 non-GAAP EPS.Agilent said strategic pricing added ~200 bps, while Ignite boosts execution and margins. Agilent Technologies, Inc. (A - Free Report) used its second-quarter fiscal 2026 earnings call to make a broader point than a simple beat-and-raise. Management framed the quarter as evidence that the company’s Ignite operating system is now producing more durable benefits across pricing, execution, and margins.
That mattered because Agilent paired better-than-expected quarterly results with a higher full-year outlook while arguing that replacement cycles, innovation, and operational discipline can keep supporting growth even as comparisons get tougher.
A Leans on Execution, Not Just DemandCEO Padraig McDonnell said the company delivered broad-based strength across major end markets, but he spent as much time on operating discipline as on demand. He said Ignite is becoming structurally embedded in the business and is helping Agilent convert healthy conditions into stronger financial performance.
That message was backed by the quarter’s numbers. Revenue rose 10% to $1.84 billion, or 6.3% on a core basis, while adjusted EPS reached $1.49. EPS topped the Zacks Consensus Estimate of $1.40 by 6.21%, and revenues beat the $1.8 billion estimate by 2.12%.
Management’s tone suggested the bigger takeaway was the quality of growth. McDonnell said Agilent hit or exceeded its long-term plan on revenue growth, margin expansion, and EPS growth in the quarter.
Agilent Sees Multiple Growth EnginesMcDonnell highlighted pharma, chemicals and advanced materials, diagnostics, and forensics as the main sources of strength. Pharma grew 6%, chemicals and advanced materials rose 8%, and diagnostics and clinical increased 11%, while forensics posted growth of more than 50%.
He also pointed to continued instrument momentum. Agilent reported high single-digit instrument growth, including low double-digit growth in LC, LC/MS, and GC, supported by replacement demand and market share gains.
The segment view in the press release reinforced that breadth. Life Sciences and Diagnostics Markets revenue rose 12% on a reported basis, CrossLab increased 6%, and Applied Markets climbed 14%.
A Pushes Innovation and PricingManagement tied that demand backdrop to a busy product cycle. McDonnell previewed launches at ASMS, including the new 9500 triple quadrupole ICP-MS platform and upgraded flagship gas chromatography systems, while also highlighting traction in columns and OpenLab software.
Pricing was another major theme. McDonnell said strategic pricing contributed about 200 basis points in the quarter, putting Agilent on track to surpass its initial full-year pricing goal.
He also said the tariff task force had fully mitigated the incremental tariffs that began in late spring. That let management present pricing as part of a broader operating playbook rather than a short-term offset.
Agilent Raises the Fiscal 2026 ViewCFO Adam Elinoff raised full-year revenue guidance to $7.39 billion to $7.49 billion and lifted non-GAAP EPS guidance to $6.00 to $6.10. The company also increased its expected operating margin expansion to 85 basis points at the midpoint.
For the third quarter, Agilent expects revenue of $1.83 billion to $1.85 billion and non-GAAP EPS of $1.48 to $1.50. Management said the guide assumes tougher comparisons in the second half but still reflects similar core growth to the first half.
Elinoff said the company’s confidence rests on four factors: execution, market momentum, structural improvements from Ignite, and innovation.
A Faces Questions on China and MarketsAnalyst questions focused on whether the strongest areas are durable. Evercore ISI and Jefferies pressed management on chemicals, advanced materials, and semiconductor demand, and McDonnell responded that funnels remain strong across regions, with semiconductor demand still a sweet spot for the company.
China drew another line of scrutiny after a 9% decline in the quarter. McDonnell described the market as stable overall, said first-half performance was roughly flat, and kept the full-year view intact while pointing to delayed stimulus revenue.
A JPMorgan analyst also asked about the TSA contract in forensics. Management disclosed that Agilent recognized $5 million from the contract in the quarter and said the win could support additional aviation security tenders.
Agilent Ends the Call With ConfidenceThe closing tone was notably firm. McDonnell said Agilent’s mix of services scale, installed-base exposure, innovation cadence, and operational discipline positions it to keep outperforming peers.
The call left investors with a company emphasizing controllable factors. Demand still matters, but management’s central argument was that pricing, productivity, supply chain execution, and sharper commercial focus are now doing more of the heavy lifting.
What Zacks Signals Say on AA carries a Zacks Rank #3 (Hold), which typically points to more balanced near-term expectations than a stronger Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). Its Style Scores are less supportive, with Value and Growth each at D, Momentum at C, and a VGM Score of F. You can see the complete list of today’s Zacks #1 Rank stocks here.
That mix suggests the stock does not screen as especially attractive on value, growth, or combined style factors right now. The Style Score framework is most favorable when paired with a Zacks Rank #1 or #2 and grades of A or B, while a Rank #3 can still be held when the score profile is stronger. As always, the Zacks Rank can change after earnings as analysts revise estimates.
Stocks trading under $30 often get dismissed as too small, too speculative, or too obscure to bother with. That overlooks a real opportunity: profitable small-cap banks whose earnings power has quietly compounded while the share price stalled. With the credit cycle showing clear signs of normalization in 2026, a few of these names look mispriced relative to the operating leverage building inside them.
With that in mind, here is one micro-cap trading well under $30 that has the fundamentals, analyst support, and structural story to back up an aggressive growth thesis.
LendingClub (NYSE: LC) LendingClub (NYSE:LC) is a digital marketplace bank that funds high-yield personal loans with low-cost deposits, and is now expanding into home improvement financing through Wisetack while rebranding to Happen Bank in summer 2026.
Shares currently trade in the $17-18 raneg, leaving plenty of headroom under the $30 ceiling and giving retail investors a clean entry into a profitable, sub-$3 billion bank. The stock has run 76.21% over the past year but sits below its 52-week high of $21.67, which is what makes the current setup interesting.
The fundamentals are doing the heavy lifting. Q1 2026 EPS came in at $0.44, beating the $0.3556 consensus and meeting management’s top-of-range guidance. Loan originations grew 31% year over year to $2.67 billion, net income jumped 342% to $51.6 million, and net interest margin expanded to 6.28%. The stock trades at a trailing P/E of 12 and a forward P/E of 10, with analysts holding 5 Strong Buy and 5 Buy ratings, no Holds or Sells, and a consensus price target of $23.05.
The bull case writes itself. Ever since the bank charter acquisition, LendingClub has been able to fund its high-yield personal loans with cheap deposits, and that structural advantage is finally meeting a normalizing credit environment. Net charge-offs improved to 3.5% from 6.1%, and CEO Scott Sanborn says credit performance is running “more than 40% credit outperformance relative to our competition for more than 5 years.” Layer on the entry into the $500 billion home improvement market via Wisetack, a $100 million buyback ($38 million already deployed), over 60 AI initiatives driving a 90%+ loan automation rate, and full-year EPS guidance of $1.65 to $1.80. Sanborn called it “exceptional momentum”, and the numbers support him.
The key risk: new fair value option accounting introduces real earnings volatility, and Q1 already absorbed net fair value adjustments of -$88.9 million. Marketing expense also nearly doubled year over year to $55.4 million, and non-interest expense rose 28%, so investors need to tolerate quarter-to-quarter noise and watch how the Happen Bank rebrand execution lands. None of that derails the structural story: a profitable digital bank with double-digit ROTCE, accelerating originations, and a clear path to $20 billion in annual originations over the medium term. For a buyer looking at sub-$30 names with real earnings, LC stands out.
Share price alone is a weak thesis. A $17 stock can be expensive and a $300 stock can be cheap, depending on what sits behind it. LendingClub looks compelling at current levels, but readers should review the filings, weigh the accounting volatility against the growth, and decide whether the risk-reward fits their own portfolio before acting.
Expected First Day of Trading on the Nasdaq Stock Exchange on Monday, June 22, 2026 Company to Ring the Nasdaq Opening Bell on Tuesday, June 30, 2026
, /PRNewswire/ -- LendingClub Corporation (NYSE: LC) today announced that it will transfer the listing of its common stock to the Nasdaq Stock Market ("Nasdaq") from the New York Stock Exchange ("NYSE").
The company's common stock is expected to begin trading on the Nasdaq Global Select Market on June 22, 2026, under the new ticker symbol – HAPN – to reflect the rebranding of LendingClub Bank to Happen Bank.
The transfer to Nasdaq reflects the company's position as a growth-oriented, digital bank and strengthens its alignment with investors focused on companies using technology and innovation to drive long-term shareholder value.
"We were founded on the belief that technology could make lending better – and it worked," said Scott Sanborn, LendingClub CEO. "We've since evolved beyond lending into a diversified digital-first bank combining deposits, lending, and a capital-light marketplace model. Just as the Happen Bank brand better reflects everything we do for our members, our move to Nasdaq better reflects the technology and innovation that has always been part of our DNA."
"Nasdaq is proud to welcome LendingClub as it begins this exciting new chapter," said J.R. Mastroianni, Head of Exchange Transfers, Listings Services at Nasdaq. "The company's focus on using technology to make it easy to make smart financial decisions aligns closely with our community of innovation-driven companies, and we look forward to supporting its continued growth."
No action is required by existing shareholders with respect to the transfer of the listing or the ticker symbol change. LendingClub's common stock is expected to continue to be listed under the NYSE ticker symbol "LC" through market close on June 18, 2026.
The company plans to commemorate its new listing by participating in the Nasdaq Opening Bell Ceremony on Tuesday, June 30, 2026, at the Nasdaq MarketSite in New York City.
About LendingClub
LendingClub Bank — soon to be Happen Bank — is a digital bank built for the Motivated Middle: high-FICO, high-income, digitally savvy consumers actively managing their financial lives. Our difference? We make it easy for them to access award-winning products that help them keep more of what they earn and earn more on what they save. Our products are aligned by design to reward our five million plus members when they take positive financial steps like saving regularly or making loan payments on time.
Our success is fueled by our advanced credit underwriting, a proprietary technology platform engineered for innovation, and a marketplace bank model that drives value for members, loan investors, and shareholders alike. The result is affordable credit, meaningful value, and a trusted banking relationship — delivered consistently and profitably at scale.
As we look to our next chapter, we're choosing a name that reflects why we exist: to clear the way for our members to make it happen. Learn more at: https://www.meethappen.com/.
LendingClub Corporation (NYSE: LC) — soon to be Happen, Inc. — is the parent company and operator of LendingClub Bank, National Association, Member FDIC. For more information about LendingClub, visit https://www.lendingclub.com.
Safe Harbor Statement
Some of the statements in this press release, including statements regarding the timing and impact of our listing on Nasdaq and rebranding initiative, are "forward-looking statements." Words such as "plan", "expect", "anticipate" and similar expressions may identify forward-looking statements, although not all forward-looking statements may contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: macroeconomic conditions, completing onboarding with Nasdaq, and those factors set forth in the section titled "Risk Factors" in LendingClub Corporation's most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in its subsequent filings with the Securities and Exchange Commission. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts
For Media: [email protected]
For Investors: [email protected]
LendingClub is moving its stock market listing as it prepares for a banking rebrand.
The online-lender-turned-full-service bank announced Tuesday (June 2) that it would switch its listing from the New York Stock Exchange (NYSE) to the Nasdaq as it rebrands from LendingClub to Happen Bank.
“We were founded on the belief that technology could make lending better — and it worked,” Scott Sanborn, LendingClub’s CEO, said in a news release.
“We’ve since evolved beyond lending into a diversified digital-first bank combining deposits, lending and a capital-light marketplace model. Just as the Happen Bank brand better reflects everything we do for our members, our move to Nasdaq better reflects the technology and innovation that has always been part of our DNA.”
The release added that the company will begin trading on the Nasdaq on June 22 under the new ticker symbol HAPN.
The company announced the rebrand in April, saying the name “Happen Bank” is designed to signify action, progress and forward momentum.
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LendingClub began as a peer-to-peer lending platform in 2006 before acquiring Radius Bank in 2020. Speaking with PYMNTS CEO Karen Webster last year, Sanborn said that the bank acquisition was a critical strategic move to help consumers make what he called “smart financial decisions” and turn the company’s operations into a comprehensive financial ecosystem.
In a more recent conversation with Webster in April, Sanborn said he has been lobbying for LendingClub to change its name for 10 years, including when speaking to the board that wound up hiring him as chief executive.
“True story: literally in the interview process,” Sanborn said. “I said, ‘The name is very limiting and it is very transactional.’”
He added that the company focuses on a “very, very specific customer,” a group Sanborn calls the “motivated middle,” consumers with high income and credit scores, but still active users of credit and financial tools.
“They’re not the underserved bottom of the market and they’re not private banking clients,” the report said. “They’re people managing real cash flows, paying down debt, and the part Sanborn likes to highlight, building up an average of $19,000 in savings on the platform after working through their borrowing.”
Webster asked Sanborn whether the rebrand marked a departure from the company’s initial mission of reconfiguring retail banking.
“The kernel of what we set out to do is still there,” he said. “It now spans everything we touch.”
See More In: B2B, B2B Payments, Branding, Digital Banking, digital banks, FinTech, Happen Bank, LendingClub, News, PYMNTS News, stock market, What's Hot, What's Hot In B2B
LendingClub (LC - Free Report) closed the last trading session at $17.22, gaining 12.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $22.35 indicates a 29.8% upside potential.
The average comprises 10 short-term price targets ranging from a low of $20.00 to a high of $25.00, with a standard deviation of $1.76. While the lowest estimate indicates an increase of 16.1% from the current price level, the most optimistic estimate points to a 45.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for LC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in LCThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.8%.
Moreover, LC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much LC could gain, the direction of price movement it implies does appear to be a good guide.
