Happen, Inc. (NASDAQ: HAPN), the digital bank formerly known as LendingClub, announced on October 28, 2026 third quarter diluted earnings per share of $0.50, up 35% from a year earlier. Loan originations rose 26% to $3.3 billion, and the company raised its full-year 2026 EPS outlook.

Third Quarter Results

Happen reported record pre-tax income of $76.8 million, and net income rose to $59.3 million from $44.3 million in the prior-year quarter. Total net revenue was $263.2 million, roughly flat compared with $266.2 million a year earlier. However, risk-adjusted revenue, which nets out credit costs, grew 27% to $279.1 million.

Credit was a major driver of the quarter. The company recorded a $15.9 million provision benefit, compared with a $46.3 million provision expense a year ago, and its net charge-off ratio improved to 3.1% from 3.4%. According to Happen, its delinquencies are about 40% lower than those of its competitor set.

As a result, profitability improved across the board. The pre-tax margin widened to 29.2% from 21.5%, return on tangible common equity reached 15.8%, and tangible book value per share rose to $13.11 from $11.95.

Raised Guidance

Happen now expects 2026 diluted EPS of $1.87 to $1.92, up from a prior range of $1.80 to $1.90. At the same time, it narrowed its full-year originations outlook to $12.3 billion to $12.4 billion from $12.2 billion to $12.6 billion.

For the fourth quarter, the company expects originations of $3.1 billion to $3.2 billion and diluted EPS of $0.43 to $0.48. Notably, the outlook assumes a stable consumer and interest rate environment, along with a 25 basis point increase in the federal funds rate in December.

“We had another great quarter, effectively navigating the dynamic rate environment,” said Scott Sanborn, Chief Executive Officer of Happen. He added that the company is “starting to scale into the $500 billion home improvement market,” where it has added distribution partners.

New Name, Growing Balance Sheet

The quarter was the first full reporting period under the new brand. In June, the company announced its rebrand from LendingClub to Happen and moved its stock listing from the NYSE to the NASDAQ Global Select Market, where it began trading as HAPN on June 22. “Our move to NASDAQ better reflects the technology and innovation that has always been part of our DNA,” Sanborn said at the time.

Meanwhile, the balance sheet kept growing. Total assets rose 20% to $13.3 billion, and deposits increased 22% to $11.5 billion, with 89% FDIC-insured. In addition, the company reported a CET1 capital ratio of 15.7% and $4.2 billion in available liquidity.

Happen also continued to return capital. Through September, it had used $59 million under its Stock Repurchase and Acquisition Program. Furthermore, loans sold through its structured certificates programs have now passed $10 billion.

Strategic Investment Summary

• Earnings Growth: Happen, Inc. (NASDAQ: HAPN) reported third quarter 2026 diluted EPS of $0.50 on October 28, 2026, up 35% year over year.
• Originations: Loan originations rose 26% to $3.3 billion, and the company expects $3.1 billion to $3.2 billion in the fourth quarter.
• Guidance Raised: Full-year 2026 EPS guidance rose to $1.87 to $1.92 from $1.80 to $1.90.
• Credit Quality: The net charge-off ratio improved to 3.1% from 3.4%, and the company recorded a $15.9 million provision benefit.
• Returns: Return on tangible common equity reached 15.8%, and tangible book value per share rose to $13.11.
• Balance Sheet: Deposits grew 22% to $11.5 billion, total assets reached $13.3 billion and the CET1 ratio stood at 15.7%.

Find out more about the latest corporate developments and financial reports at the Happen investor portal.

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