LendingClub announced a new common‑stock repurchase program that will allow the company to buy up to $100 million of its shares through December 31, 2026. The program can be executed through open‑market purchases or by holding back a portion of restricted‑stock‑unit awards granted to employees, giving the company flexibility to adjust the pace of repurchases in response to market conditions and the company’s capital needs.
The decision follows a strong third‑quarter 2025 earnings report in which the company posted a record pre‑tax net income of $14.5 million and diluted earnings per share of $0.37, a 23.3% beat over the consensus estimate of $0.30. Revenue rose to $266.2 million, exceeding the $256.3 million forecast by $9.9 million, driven by a 37% year‑over‑year increase in loan originations that reached $2.62 billion. The company’s return on tangible common equity climbed to 13.2%, reflecting disciplined cost management amid growing loan volumes.
CEO Scott Sanborn said the program reflects the strength of LendingClub’s balance sheet and confidence in its long‑term earnings power. "The repurchase program is a disciplined approach to capital allocation that underscores our confidence in the company’s financial profile and future growth opportunities," Sanborn said. He added that the company’s transformation into a bank holding company in 2021 and the recent earnings beat provide a solid foundation for returning capital to shareholders.
The repurchase program is designed to support the share price and provide a flexible alternative to dividends. By limiting the total amount to $100 million, LendingClub preserves liquidity for strategic investments and potential market‑timed opportunities while signaling to investors that the stock is undervalued relative to the company’s earnings trajectory.
The announcement was well received by investors, who viewed the move as a positive signal of management’s confidence in the firm’s financial health and future prospects. The program’s flexibility allows LendingClub to adjust the pace of buybacks as market conditions evolve, aligning capital deployment with shareholder interests and the company’s broader strategic objectives.
Looking ahead, LendingClub will continue to monitor its earnings guidance, which for the fourth quarter of 2025 projects pre‑provision net revenue of $90 million to $100 million. The company’s focus on loan origination growth and cost discipline positions it to sustain earnings momentum while maintaining the capacity to deploy capital in a disciplined manner.
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