LendingClub Sees 27% Revenue Growth, Shares Slump 20%; Launches 4.15% CD
LendingClub reported 27% revenue growth in 2025, net income more than doubled to $136 million, and loan originations rose 33%, yet shares plunged 20% on growth concerns. The digital bank now offers a top 4.15% APY 8-month CD versus a 1.52% national average, potentially bolstering deposits.
1. 2025 Financial Results
LendingClub reported a 27% increase in 2025 revenue and more than doubled net income to $136 million, while loan originations rose 33%. Timothy Mayopoulos led the transition toward a hybrid digital bank during the period.
2. Share Price Reaction
Shares fell 20% after the results as investors questioned near-term growth prospects and reacted to recent accounting adjustments, reflecting market skepticism despite strong fundamentals.
3. Valuation and Analyst Views
The stock trades at 8–9 times projected 2026 earnings, with analysts targeting $22 per share. Key risks include potential economic downturns and intensifying competition in the digital banking sector.
4. CD Offering to Boost Deposits
LendingClub introduced an 8-month certificate of deposit yielding 4.15% APY, compared with a 1.52% national average for 1-year CDs, aiming to attract deposits and strengthen its funding base.