Why Shares of LendingClub Are Surging Today
Key Points
Both earnings and revenue beat Wall Street estimates.
The company provided strong guidance for the fourth quarter of the year.
Management continues to execute on its strategic road map.
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Shares of digital bank LendingClub (NYSE: LC) traded roughly 8% higher as of 11:16 a.m. ET today, after the company reported strong earnings results for the third quarter of 2025.
Continued execution
LendingClub, which is primarily in the business of refinancing credit card debt for prime consumers, generated diluted earnings per share of $0.37 on total revenue of over $266 million, beating Wall Street analyst estimates on both fronts. EPS has now more than tripled over the past year, while revenue climbed 32%.
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The quarter was driven by strong originations of slightly over $2.6 billion, as the fintech company continues to see a strong appetite for its consumer loans from a variety of channels, including banks, private credit, and insurance companies.
For the final quarter of the year, LendingClub is once again guiding for $2.6 billion of originations at the top end of its range, despite the fourth quarter being seasonally weak for the company. The company is also guiding for $100 million of pre-provision net revenue (PPNR) at the top end of its range, and a return on tangible common equity as high as 11.5%.
Earlier this morning, J.P. Morgan analyst Reggie Smith upgraded the company from neutral to overweight, and raised his price target from $17 per share to $22, saying that the company can keep growing originations and earnings into 2026 and beyond.
Company is well positioned
I continue to view LendingClub as a buy. Not only is the company executing well and flush with capital, but I also believe the fintech lender is prudently growing originations and developing distribution channels that will make it more sustainable through the cycle.
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Bram Berkowitz has positions in LendingClub. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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