Eleven years after it was founded, Lending Club is not profitable, although unlike the second quarter last year, it did record positive earnings before interest, tax, depreciation and amortisation. Analysts estimate it will finally reach positive net income in 2019. One of the big impediments is stock-based pay, which seems calibrated for a much bigger business. Lending Club forecasts it will be $75m this year out of net revenues of less than $600m. That is about double the percentage of OnDeck, another online lender. With the shares rising 7 per cent after Monday night’s results, well-compensated employees and ordinary investors can celebrate. Is there sufficient funding for more sustainable growth? Don’t bank on it.

https://www.ft.com/content/9ad0645c-7bc9-11e7-9108-edda0bcbc928