Shares of LendingClub (LC) tumbled 5.99% in intraday trading on Wednesday following the release of the company's first quarter 2025 financial results. The significant drop came as the online lending platform's earnings fell short of analyst expectations, despite beating revenue estimates.
LendingClub reported earnings per share (EPS) of $0.10 for the quarter, missing the consensus estimate of $0.11 by 9.09%. This also represented a decrease from the $0.11 EPS reported in the same quarter last year. On a more positive note, the company's revenue came in at $217.71 million, surpassing analyst projections of $214.30 million and marking a 20.49% increase from the previous year.
Investors seemed particularly concerned about the sharp rise in LendingClub's provision for credit losses, which jumped to $58.1 million from $31.9 million in the year-ago quarter. This significant increase suggests the company is preparing for potential loan defaults in a challenging economic environment. Additionally, net income for the quarter declined to $11.67 million from $12.25 million year-over-year, further dampening investor sentiment. The market's negative reaction to these mixed results underscores the challenges facing LendingClub as it navigates an uncertain lending landscape and heightened credit risk concerns.