Prosper announced their second quarter numbers today and the results are quite promising. Even though Prosper is a private company they are regulated by the SEC and have to file quarterly and annual financials just like public companies. It has been a while since we reviewed Prosper’s numbers so I thought it was time to share.
As you can see in the graphic above Prosper had a rocky 2016. They went from a quarterly origination high of over $1.1 billion in Q4 2015 to a low of $312 million in Q3 2016. Since that time they have shown some solid growth with originations in Q2 2017 coming in at $775 million up from $586 million in Q1. They still have a long way to go before they reach record levels but growth has returned to the first US marketplace lender.
More important than growth, though, is profitability. I copied some detail from the 10-Q filed today and you can see that Adjusted EBITDA was $6.7 million last quarter. While officially their net loss was over $41 million that included $39 million of a one-time charge related to warrants. The solid quarter was also demonstrated in their positive cash flow, they generated $8.6 million of cash from their operating activities in Q2. [Read more…]