• LendingClub Corporation recently reported fourth-quarter 2025 net income of US$41.55 million and full-year net income of US$135.68 million, alongside 2026 diluted EPS guidance of US$0.34–US$0.39 for the first quarter and US$1.65–US$1.80 for the full year.
• The company paired this earnings and guidance update with lower quarterly net charge-offs, a completed US$11.9 million buyback, leadership transitions, and a shift toward fair value accounting that changes how its growing loan book is reflected in reported results.
• Next, we’ll examine how LendingClub’s move to fair value accounting for its loans reshapes the company’s investment narrative.

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What Is LendingClub's Investment Narrative?

To own LendingClub today, you have to believe in its hybrid bank‑plus‑marketplace model, where earnings growth can come less from rapid revenue expansion and more from mix, credit discipline and capital efficiency. The latest quarter supports that story: higher net income, lower net charge‑offs, a completed US$11.9 million buyback and EPS guidance that, at least on company numbers, backs up the current earnings power. The twist is the shift to fair value accounting for loans, which helps align reported profits with credit costs but has clearly unsettled the market, given the recent double‑digit share price decline. In the near term, that accounting change is likely a more important catalyst than underlying fundamentals, while leadership turnover in the chair and risk roles adds another layer of uncertainty around how consistently this model will be executed.

But there is one accounting‑driven risk here that investors really should not gloss over. Despite retreating, LendingClub's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span roughly US$23.82 to US$45.26, underlining how differently people see LendingClub’s potential. When you set that spread against the recent selloff tied to its fair value accounting shift, it highlights how much perceptions of reported earnings quality could shape the company’s path from here. You might want to weigh several of these viewpoints before deciding where you stand.

Explore 2 other fair value estimates on LendingClub - why the stock might be worth just $23.82!

Build Your Own LendingClub Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your LendingClub research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free LendingClub research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LendingClub's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.