📊 LC Key Takeaways
Is LendingClub Corp (LC) a Good Investment?
LendingClub exhibits unsustainable negative operating cash flow of -$2.7B despite reporting 164% net income growth, indicating profitability is disconnected from cash generation. Revenue declining 3.7% year-over-year combined with severe cash burn threatens long-term viability, even with a clean balance sheet and $930.4M cash position that provides limited runway.
Profitability has improved materially with double‑digit operating and net margins and strong YoY EPS growth, supported by a sizable cash position and no long‑term debt. However, revenue is contracting and cash generation is deeply negative, while very low interest coverage indicates pressure from funding costs. Maintain a neutral stance until cash flow stabilizes and interest expense is better covered.
Why Buy LendingClub Corp Stock? LC Key Strengths
- Zero long-term debt with clean balance sheet provides financial flexibility
- Strong net income growth of 164% YoY and EPS growth of 158% YoY demonstrates operational profitability
- Solid operating margin of 18.4% and net margin of 14.1% show reasonable cost control
- Significant YoY net income and EPS growth
- Healthy profitability (18.4% operating margin; 14.1% net margin)
- Solid liquidity profile with $930M cash and no long‑term debt
LC Stock Risks: LendingClub Corp Investment Risks
- Catastrophic negative operating cash flow of -$2.7B makes current business model unsustainable without external funding
- Free cash flow of -$2.9B combined with declining revenue indicates deteriorating business fundamentals
- Interest coverage ratio of 0.5x signals insufficient operating income relative to interest obligations despite low debt burden
- Profitability growth appears disconnected from cash generation, raising questions about accounting quality and sustainability
- Top‑line decline (-3.7% YoY revenue)
- Very weak cash flow (large negative OCF and FCF)
- Low interest coverage (0.5x) indicates sensitivity to funding costs
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative OCF is temporary or structural
- Revenue momentum - must stabilize decline to support long-term viability
- Cash depletion rate given current burn - with $930.4M cash and -$2.7B annual OCF, runway is critically short
- Interest coverage
- Operating cash flow
LendingClub Corp (LC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LC Profit Margin, ROE & Profitability Analysis
LC vs Finance Sector: How LendingClub Corp Compares
How LendingClub Corp compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LendingClub Corp Stock Overvalued? LC Valuation Analysis 2026
Based on fundamental analysis, LendingClub Corp has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LendingClub Corp Balance Sheet: LC Debt, Cash & Liquidity
LC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: LendingClub Corp's revenue has grown significantly by 51% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.36 reflects profitable operations.
LC Revenue Growth, EPS Growth & YoY Performance
LC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2020 | $74.7M | -$383.0K | N/A |
| Q2 2020 | $43.9M | -$9.6M | N/A |
| Q1 2020 | $120.2M | -$19.9M | N/A |
| Q3 2019 | $184.6M | -$383.0K | $0.00 |
| Q2 2019 | $177.0M | -$9.6M | $-0.12 |
| Q1 2019 | $151.7M | -$19.9M | $-0.05 |
| Q3 2018 | $138.9M | -$6.5M | $-0.02 |
| Q2 2018 | $136.9M | -$25.4M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LendingClub Corp Dividends, Buybacks & Capital Allocation
LC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for LendingClub Corp (CIK: 0001409970)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LC
What is the AI rating for LC?
LendingClub Corp (LC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LC's key strengths?
Claude: Zero long-term debt with clean balance sheet provides financial flexibility. Strong net income growth of 164% YoY and EPS growth of 158% YoY demonstrates operational profitability. ChatGPT: Significant YoY net income and EPS growth. Healthy profitability (18.4% operating margin; 14.1% net margin).
What are the risks of investing in LC?
Claude: Catastrophic negative operating cash flow of -$2.7B makes current business model unsustainable without external funding. Free cash flow of -$2.9B combined with declining revenue indicates deteriorating business fundamentals. ChatGPT: Top‑line decline (-3.7% YoY revenue). Very weak cash flow (large negative OCF and FCF).
What is LC's revenue and growth?
LendingClub Corp reported revenue of $961.5M.
Does LC pay dividends?
LendingClub Corp does not currently pay dividends.
Where can I find LC SEC filings?
Official SEC filings for LendingClub Corp (CIK: 0001409970) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LC's EPS?
LendingClub Corp has a diluted EPS of $1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LendingClub Corp has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LC stock overvalued or undervalued?
Valuation metrics for LC: ROE of 9.0% (sector avg: 12%), net margin of 14.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy LC stock in 2026?
Our dual AI analysis gives LendingClub Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LC's free cash flow?
LendingClub Corp's operating cash flow is $-2.7B, with capital expenditures of $140.3M. FCF margin is -298.2%.
How does LC compare to other Finance stocks?
Vs Finance sector averages: Net margin 14.1% (avg: 25%), ROE 9.0% (avg: 12%), current ratio N/A (avg: 1.2).