LendingClub (LC) Drops 16% on Accounting Shift

We recently published 10 Stock Titans With Massive Losses. LendingClub Corp. (NYSE:LC) was one of the worst performers on Thursday.

LendingClub extended its losing streak to a third consecutive day on Thursday, slashing 16 percent to finish at $16.44 apiece as investors digested the company’s shift to fair value option accounting, overshadowing announcements of strong earnings performance.

According to the company, it would start to transition to fair value accounting, which removes the upfront provision for credit losses under the previous standard, in a bid to improve the alignment of revenue and credit costs, and support higher returns on capital.

LendingClub Corp. (NYSE:LC) Chief Finance Officer Drew LaBenne said that the shift would create “a consistent accounting framework” across the company’s marketplace and bank businesses.

In other news, LendingClub Corp. (NYSE:LC) finished 2025 on a strong note, with net income soaring by 164 percent to $135.7 million from $51.3 million in 2024.

In the fourth quarter alone, net profit surged by 329 percent to $41.6 million from $9.7 million year-on-year.

Total revenues for the full year soared by 27 percent to $998.8 million from $787 million in 2024, while revenues in the fourth quarter alone jumped by 23 percent year-on-year, driven by higher marketplace sales and loan sale pricing, net interest margin, and strong credit performance.

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Disclosure: None. This article is originally published at Insider Monkey.