Tuesday's Underperforming Sectors: Credit Services & Lending, Restaurants & Eateries
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 30 2025
0mins
Should l Buy LC?
Source: NASDAQ.COM
Market Performance: Restaurant and eatery shares are down approximately 2.2%, with DraftKings and Flutter Entertainment leading the decline at 10.2% and 8.9%, respectively.
Sector Laggards: The decline in the restaurant sector is part of a broader trend affecting credit services and lending, as highlighted in a recent video segment.
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Analyst Views on LC
Wall Street analysts forecast LC stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 15.200
Low
20.00
Averages
23.00
High
26.00
Current: 15.200
Low
20.00
Averages
23.00
High
26.00
About LC
LendingClub Corporation is a bank holding company. The Company operates its business, through its subsidiary, LendingClub Bank, National Association (LC Bank). LC Bank is the digital marketplace bank in the United States where members can access a range of financial products and services designed to help them pay less when borrowing and earn more when saving. It offers a suite of deposit and loan products through a smart, simple and rewarding digital experience. LC Bank retains loans and funds those loans directly with its own capital and deposits. LC Bank’s primary loan products include unsecured personal loans, secured auto refinance loans, and patient and education finance loans. LC Bank’s commercial lending business is primarily focused on small businesses, and it participates in the United States small business administration lending programs. LC Bank’s deposit business includes sourcing deposits directly from customers and from third-party marketing channels and deposit brokers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
LendingClub vs. SoFi: Valuation Discrepancies in Fintech
- Significant Earnings Growth: LendingClub reported a diluted EPS of $0.45 in 2024, which surged by 154% to $1.15 in 2025, with management guiding for an EPS of $1.65 to $1.80 this year, indicating robust growth potential that may attract more investor interest.
- Simplified Accounting Policy: This year, LendingClub adopted the fair value option for accounting, streamlining loan processing and aligning revenue recognition with loss timing, which enhances transparency and could bolster institutional investor confidence.
- Increased Loan Origination Targets: Management has set a loan origination target of $12.1 billion for this year, with a long-term goal of ramping up to $18 billion to $22 billion, which could significantly enhance profitability and market competitiveness, driving stock price appreciation.
- Clear Valuation Advantage: LendingClub trades at less than 10 times earnings, significantly lower than SoFi's 34 times, suggesting that if market confidence in its future earnings grows, the stock price could reach $24, indicating strong upside potential.
See More
Competitive Analysis of SoFi and LendingClub in Personal Lending
- SoFi Stock Performance: SoFi Technologies has seen its stock rise over 37% in the past year, yet it trades at a high valuation of nearly 34 times earnings, which may pose risks to investor confidence moving forward.
- LendingClub Earnings Growth: LendingClub reported earnings per share of $0.45 in 2024, with a projected 154% increase to $1.15 in 2025, and further guidance of $1.65 to $1.80 for 2026, indicating strong potential for profitability.
- Accounting Policy Change: This year, LendingClub adopted the fair value option for loan accounting, simplifying its financial reporting and aligning revenue recognition with loss timing, which could enhance transparency and attract institutional investors.
- Loan Origination Goals: LendingClub aims to ramp up loan originations to between $18 billion and $22 billion by 2025, with a current run rate of $12 billion, showcasing its ambition for business expansion and market opportunities.
See More
LendingClub Stock Pulls Back Post Earnings Release
- Earnings Beat but Stock Drop: LendingClub reported Q4 revenue of $266.5 million, a 22.7% increase, and EPS surged 338% to $0.35, surpassing expectations; however, the stock fell nearly 16%, indicating market caution regarding future earnings forecasts.
- Future Growth Outlook: Management projects flat loan originations at $2.6 billion for Q1 2026, while full-year guidance of $11.6 to $12.6 billion suggests a 26% growth potential, yet investor expectations for short-term profit growth were not fully met.
- Accounting Method Transition Impact: LendingClub will adopt a new fair value accounting method starting in 2026, expected to enhance earnings performance; while initial costs may rise, the long-term benefits could attract more investor interest and improve profitability.
- Increased Marketing Investment: The company plans to ramp up marketing investments in 2025 to support future growth; although initial efficiency may be lower, the development and optimization of new channels are expected to yield higher profit growth in 2027 and beyond, further solidifying its market position.
See More
LendingClub Reports Strong Q4 Earnings but Shares Drop 13%
- Strong Performance: LendingClub reported Q4 2025 diluted EPS of $0.35 and total revenue of nearly $267 million, driven by approximately $2.6 billion in loan originations, all significantly higher year-over-year and exceeding market expectations.
- Optimistic Guidance: The company guided for $2.6 billion in loan originations and diluted EPS of $0.365 for Q1 2026, with full-year guidance of $12.1 billion in originations and EPS of $1.725, reflecting 48% and 26% year-over-year growth, indicating robust growth potential.
- Accounting Change Impact: LendingClub plans to mark all loans as held-for-sale (HFS), shifting from previously accounting for some loans as held-for-investment (HFI), which may lead investors to misinterpret future guidance, impacting stock performance.
- Cautious Market Reaction: Despite strong earnings, shares dropped nearly 13%, trading at about 10 times forward earnings, suggesting that the market needs time to digest the new accounting policy, presenting a potential entry point for investors.
See More
LendingClub Reports Record Growth in Q4 2025 Earnings Call
- Significant Performance Growth: LendingClub reported a 40% year-over-year increase in loan originations to $2.6 billion in Q4 2025, reflecting strong market demand and product innovation, which is expected to drive future revenue growth.
- New Product Launch: The company introduced a structured certificate product aimed at insurance capital and initiated a direct forward flow agreement with a top U.S. insurance company, further expanding its market share and product offerings.
- Increase in Net Interest Income: Net interest income rose 14% year-over-year to $163 million, with a net interest margin of 6%, indicating the company's strong profitability in the current interest rate environment.
- Optimistic Future Outlook: LendingClub expects Q1 2026 loan originations to range between $2.55 billion and $2.65 billion, representing a year-over-year growth of 28% to 33%, with plans to increase marketing investments to support ongoing growth.
See More
LendingClub Issues Soft Q1 2026 Earnings Guidance Amid Strong Q4 Results
- Soft Earnings Guidance: LendingClub projects Q1 2026 GAAP EPS between $0.34 and $0.39, trailing the $0.30 average analyst estimate, leading to an 8.3% drop in after-hours trading, indicating market concerns over future profitability.
- Strong Q4 Performance: Q4 EPS of $0.35 exceeded Wall Street's $0.33 expectation but fell from $0.37 in the prior quarter, reflecting challenges in sustaining profit growth, while Q4 net revenue reached $266.5 million, slightly above the $262 million forecast.
- Stable Loan Originations: Q4 loan originations held steady at $2.6 billion, showing a 40% year-over-year increase, indicating robust market demand despite the pressure from the earnings guidance, which underscores the company's operational resilience.
- Positive Future Outlook: CEO Scott Sanborn emphasized entering 2026 from a position of strength, with plans to leverage product innovations and marketing investments to enhance earnings power, particularly through new opportunities in home improvement financing, reflecting confidence in future growth.
See More
LendingClub vs. SoFi: Valuation Discrepancies in Fintech
- Significant Earnings Growth: LendingClub reported a diluted EPS of $0.45 in 2024, which surged by 154% to $1.15 in 2025, with management guiding for an EPS of $1.65 to $1.80 this year, indicating robust growth potential that may attract more investor interest.
- Simplified Accounting Policy: This year, LendingClub adopted the fair value option for accounting, streamlining loan processing and aligning revenue recognition with loss timing, which enhances transparency and could bolster institutional investor confidence.
- Increased Loan Origination Targets: Management has set a loan origination target of $12.1 billion for this year, with a long-term goal of ramping up to $18 billion to $22 billion, which could significantly enhance profitability and market competitiveness, driving stock price appreciation.
- Clear Valuation Advantage: LendingClub trades at less than 10 times earnings, significantly lower than SoFi's 34 times, suggesting that if market confidence in its future earnings grows, the stock price could reach $24, indicating strong upside potential.
See More
Competitive Analysis of SoFi and LendingClub in Personal Lending
- SoFi Stock Performance: SoFi Technologies has seen its stock rise over 37% in the past year, yet it trades at a high valuation of nearly 34 times earnings, which may pose risks to investor confidence moving forward.
- LendingClub Earnings Growth: LendingClub reported earnings per share of $0.45 in 2024, with a projected 154% increase to $1.15 in 2025, and further guidance of $1.65 to $1.80 for 2026, indicating strong potential for profitability.
- Accounting Policy Change: This year, LendingClub adopted the fair value option for loan accounting, simplifying its financial reporting and aligning revenue recognition with loss timing, which could enhance transparency and attract institutional investors.
- Loan Origination Goals: LendingClub aims to ramp up loan originations to between $18 billion and $22 billion by 2025, with a current run rate of $12 billion, showcasing its ambition for business expansion and market opportunities.
See More
LendingClub Stock Pulls Back Post Earnings Release
- Earnings Beat but Stock Drop: LendingClub reported Q4 revenue of $266.5 million, a 22.7% increase, and EPS surged 338% to $0.35, surpassing expectations; however, the stock fell nearly 16%, indicating market caution regarding future earnings forecasts.
- Future Growth Outlook: Management projects flat loan originations at $2.6 billion for Q1 2026, while full-year guidance of $11.6 to $12.6 billion suggests a 26% growth potential, yet investor expectations for short-term profit growth were not fully met.
- Accounting Method Transition Impact: LendingClub will adopt a new fair value accounting method starting in 2026, expected to enhance earnings performance; while initial costs may rise, the long-term benefits could attract more investor interest and improve profitability.
- Increased Marketing Investment: The company plans to ramp up marketing investments in 2025 to support future growth; although initial efficiency may be lower, the development and optimization of new channels are expected to yield higher profit growth in 2027 and beyond, further solidifying its market position.
See More
LendingClub Reports Strong Q4 Earnings but Shares Drop 13%
- Strong Performance: LendingClub reported Q4 2025 diluted EPS of $0.35 and total revenue of nearly $267 million, driven by approximately $2.6 billion in loan originations, all significantly higher year-over-year and exceeding market expectations.
- Optimistic Guidance: The company guided for $2.6 billion in loan originations and diluted EPS of $0.365 for Q1 2026, with full-year guidance of $12.1 billion in originations and EPS of $1.725, reflecting 48% and 26% year-over-year growth, indicating robust growth potential.
- Accounting Change Impact: LendingClub plans to mark all loans as held-for-sale (HFS), shifting from previously accounting for some loans as held-for-investment (HFI), which may lead investors to misinterpret future guidance, impacting stock performance.
- Cautious Market Reaction: Despite strong earnings, shares dropped nearly 13%, trading at about 10 times forward earnings, suggesting that the market needs time to digest the new accounting policy, presenting a potential entry point for investors.
See More
LendingClub Reports Record Growth in Q4 2025 Earnings Call
- Significant Performance Growth: LendingClub reported a 40% year-over-year increase in loan originations to $2.6 billion in Q4 2025, reflecting strong market demand and product innovation, which is expected to drive future revenue growth.
- New Product Launch: The company introduced a structured certificate product aimed at insurance capital and initiated a direct forward flow agreement with a top U.S. insurance company, further expanding its market share and product offerings.
- Increase in Net Interest Income: Net interest income rose 14% year-over-year to $163 million, with a net interest margin of 6%, indicating the company's strong profitability in the current interest rate environment.
- Optimistic Future Outlook: LendingClub expects Q1 2026 loan originations to range between $2.55 billion and $2.65 billion, representing a year-over-year growth of 28% to 33%, with plans to increase marketing investments to support ongoing growth.
See More
LendingClub Issues Soft Q1 2026 Earnings Guidance Amid Strong Q4 Results
- Soft Earnings Guidance: LendingClub projects Q1 2026 GAAP EPS between $0.34 and $0.39, trailing the $0.30 average analyst estimate, leading to an 8.3% drop in after-hours trading, indicating market concerns over future profitability.
- Strong Q4 Performance: Q4 EPS of $0.35 exceeded Wall Street's $0.33 expectation but fell from $0.37 in the prior quarter, reflecting challenges in sustaining profit growth, while Q4 net revenue reached $266.5 million, slightly above the $262 million forecast.
- Stable Loan Originations: Q4 loan originations held steady at $2.6 billion, showing a 40% year-over-year increase, indicating robust market demand despite the pressure from the earnings guidance, which underscores the company's operational resilience.
- Positive Future Outlook: CEO Scott Sanborn emphasized entering 2026 from a position of strength, with plans to leverage product innovations and marketing investments to enhance earnings power, particularly through new opportunities in home improvement financing, reflecting confidence in future growth.
See More
