LendingClub announced a strategic expansion into the $500 billion home‑improvement financing market, partnering with Wisetack—a platform that serves roughly 40,000 contractor merchants and delivers embedded financing through multiple SaaS integrations. The deal gives LendingClub real‑time approval capabilities, transparent terms, and API‑based payouts to homeowners and contractors, while the company’s acquisition of Mosaic’s core lending technology and talent strengthens its underwriting engine for larger loans.
In its most recent quarter, LendingClub reported a revenue of $266.2 million, up 32% year‑over‑year, and a diluted EPS of $0.37, beating the consensus estimate of $0.30 by $0.07 (23%). The earnings beat was driven by a 37% jump in loan originations to $2.62 billion, higher pricing in its marketplace segment, and credit outperformance that offset modest increases in operating expenses. Lower deposit‑funding costs and a record net interest income of $158 million also contributed to the stronger bottom line.
Segment analysis shows that loan originations grew 32% to $2.4 billion in Q2 2025 and 37% to $2.62 billion in Q3 2025, reflecting robust demand for consumer loans. Net income nearly tripled from the prior year, and the efficiency ratio improved from 68% to 61%, indicating tighter cost control. The net interest margin rose from 5.75% to 6.14% year‑over‑year, underscoring the company’s ability to capture higher yields in a low‑rate environment.
CEO Scott Sanborn highlighted the company’s “exceptional” quarter, noting that strong revenue growth and credit outperformance drove a $38 million net income and a double‑digit return on tangible common equity. Chief Lending Officer Steve Mattics emphasized that the home‑improvement partnership is a natural extension of LendingClub’s underwriting and customer‑experience strengths, positioning the firm to serve a market ripe for innovation and to deepen member engagement.
The partnership with Wisetack provides immediate access to a vast merchant network, while Mosaic’s technology enables LendingClub to underwrite larger loans in its second rollout phase. By launching in two stages—first purchasing participation certificates in early 2026 and then underwriting larger loans in mid‑2026—the company can manage risk exposure while scaling its product line. The move is expected to generate new fee and interest revenue streams, enhance long‑term profitability, and reinforce LendingClub’s member‑centric strategy.
For Q4 2025, LendingClub guided for loan originations between $2.5 billion and $2.6 billion, a 35%–41% year‑over‑year increase, and pre‑provision net revenue of $90 million to $100 million. The guidance reflects confidence in sustained demand and the company’s ability to maintain profitability through cost discipline and strategic investments.
The announcement was accompanied by a $100 million stock repurchase program, signaling management’s confidence in the firm’s financial health and commitment to returning value to shareholders.
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