Prosper Funding Hits $2.7B in 2025 Loan Originations, Expands Credit Card Securitization

TL;DR

**Prosper Funding's strong 2025 loan originations and new credit card securitization signal aggressive growth and a solid play in the evolving fintech lending market.**

AI Summary

Prosper Funding LLC (PFL) facilitated $2.7 billion in Borrower Loan originations in 2025, contributing to a total of $30.5 billion since its inception in 2006. The company operates a personal loan marketplace connecting borrowers with individual and institutional investors, offering unsecured personal loans from $2,000 to $50,000 with fixed rates and terms of 24, 36, 48, or 60 months. All Borrower Loans are originated by WebBank and then sold to PFL. In December 2021, PFL launched its Prosper Credit Card product in partnership with Coastal Community Bank, extending unsecured credit. On November 1, 2024, PFL closed its first Credit Card securitization, PMCC 2024-1, purchasing $94.7 million in Credit Card receivables and issuing $82.9 million in senior notes to third-party investors. The company maintains two reportable segments: Personal Loan and Credit Card. PFL's business model emphasizes online operations, advanced technology, and AI to reduce infrastructure costs and improve efficiency, aiming to offer better pricing than traditional lenders for borrowers and attractive risk-adjusted returns for investors.

Why It Matters

Prosper Funding's continued growth in loan originations, reaching $2.7 billion in 2025, demonstrates robust demand for its online lending platform, impacting investors seeking alternative asset classes and consumers looking for competitive loan options. The expansion into credit card securitization with PMCC 2024-1, involving $94.7 million in receivables, signifies a strategic move to diversify funding sources and manage risk, potentially increasing liquidity for future lending. This positions Prosper as a significant player in the fintech lending space, challenging traditional banks with its efficient, technology-driven model and potentially influencing broader market interest rates and credit availability.

Risk Assessment

Risk Level: medium — The company faces inherent credit risks from its Personal Loan and Credit Card products, as highlighted by the need to manage loss rates and the effectiveness of its credit rating systems. Furthermore, the filing explicitly mentions the 'potential adverse legal, reputational, and financial effects on the Company resulting from the cybersecurity incident that we reported in September 2025,' indicating a significant operational and reputational risk that could impact investor confidence and financial performance.

Analyst Insight

Investors should monitor Prosper Funding's credit performance metrics, particularly loss rates on both personal loans and the newer credit card product, to assess the effectiveness of its underwriting models. Given the recent cybersecurity incident, investors should also scrutinize the company's cybersecurity disclosures and mitigation strategies to evaluate potential long-term impacts on its operations and customer trust.

Key Numbers

• $2.7 billion — Borrower Loan originations (Facilitated during 2025, demonstrating strong annual growth.)
• $30.5 billion — Total Borrower Loan originations (Since launch, indicating significant cumulative market presence.)
• $94.7 million — Credit Card receivables purchased (Contributed to PMCC 2024-1 securitization on November 1, 2024.)
• $82.9 million — Senior notes issued (By PMCC 2024-1 to third-party investors.)
• $2,000 to $50,000 — Unsecured personal loan range (Available through the personal loan marketplace.)
• 600 — Minimum FICO 08 score (Required for Note Channel borrowers.)
• 50% — Maximum debt-to-income ratio (Required for Note Channel borrowers.)
• December 2021 — Launch date (Of the Prosper Credit Card product.)
• September 2025 — Date of cybersecurity incident (Reported by the company, posing potential adverse effects.)

Key Players & Entities

• Prosper Funding LLC (company) — Registrant and wholly-owned subsidiary of PMI
• Prosper Marketplace, Inc. (company) — Parent company of Prosper Funding LLC
• WebBank (company) — Originator of all Borrower Loans
• Coastal Community Bank (company) — Partner for Prosper Credit Card product
• PMCC 2024-1 (company) — First Credit Card securitization trust
• BillGuard, Inc. (company) — Wholly-owned subsidiary of PMI
• Prosper Healthcare Lending LLC (company) — Wholly-owned subsidiary of PMI
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Cybersecurity Incident [high — operational]: The company reported a cybersecurity incident in September 2025. Such incidents can lead to data breaches, service disruptions, reputational damage, and significant financial and legal liabilities, potentially impacting customer trust and business operations.
• Regulatory Compliance and Changes [high — regulatory]: Prosper operates in a highly regulated financial services industry. Changes in laws, regulations, or interpretations, including those related to consumer lending, data privacy, and credit reporting, could increase compliance costs, restrict business activities, or impose new liabilities.
• Credit Risk and Loan Performance [high — financial]: The company's revenue and profitability are directly tied to the performance of the loans originated on its platform. Deterioration in borrower credit quality or an increase in default rates could negatively impact investor returns and PFL's business model.
• Competition and Market Saturation [medium — market]: The personal loan marketplace and credit card sectors are competitive. Increased competition from traditional financial institutions and other fintech companies could pressure pricing, reduce origination volumes, and impact market share.
• Reliance on Third-Party Technology and Partners [medium — operational]: Prosper relies on WebBank for loan origination and Coastal Community Bank for its credit card product. Disruptions or failures with these or other critical third-party service providers could materially impact operations.

Industry Context

Prosper operates in the competitive fintech lending space, specifically personal loans and credit cards. The industry is characterized by a shift towards online and AI-driven platforms, aiming to offer better pricing than traditional lenders. Key trends include increasing securitization of loan assets and evolving regulatory scrutiny.

Regulatory Implications

As a financial services provider, Prosper faces significant regulatory oversight. Compliance with consumer protection laws, data privacy regulations, and evolving credit reporting standards is paramount. The cybersecurity incident highlights the critical need for robust data security and incident response protocols.

What Investors Should Do

1. Monitor the impact of the September 2025 cybersecurity incident on customer trust and operational stability.
2. Evaluate the performance and default rates of the $2.7 billion in 2025 personal loan originations, particularly in light of economic conditions.
3. Assess the success and capital efficiency of the PMCC 2024-1 credit card securitization and potential future issuances.
4. Analyze competitive pressures and Prosper's ability to maintain pricing advantages and market share in both personal loans and credit cards.

Key Dates

• 2006-01-01: Launch of Personal Loan Product — Marks the inception of Prosper's pioneering peer-to-peer lending platform, establishing its presence in the consumer lending market.
• 2021-12-01: Launch of Prosper Credit Card — Diversification into the credit card market, expanding product offerings and customer base beyond personal loans.
• 2024-11-01: First Credit Card Securitization (PMCC 2024-1) — Demonstrates the company's ability to access capital markets for its credit card receivables, supporting growth and potentially improving funding costs.
• 2025-01-01: 2025 Fiscal Year End — The period during which $2.7 billion in Borrower Loan originations were facilitated, indicating significant business activity.
• 2025-09-01: Cybersecurity Incident — A material operational risk event that could have significant financial, legal, and reputational consequences for the company.

Glossary

Borrower Loan originations

The total value of personal loans facilitated and funded through Prosper's platform during a specific period. (Key metric indicating the scale and growth of Prosper's core personal loan business.)

WebBank

An FDIC-insured, state-chartered industrial bank that originates and funds all Borrower Loans for Prosper. (Critical partner in the loan origination process; its role is central to Prosper's business model.)

Securitization

The financial practice of pooling various types of contractual debt, such as mortgages, auto loans, or credit card debt, and selling their related cash flows to third-party investors as securities. (Key to Prosper's credit card business strategy for funding and managing risk, as demonstrated by the PMCC 2024-1 issuance.)

Prosper Rating

A credit risk score assigned by Prosper to borrowers, influencing loan terms and investor risk assessment. (Internal underwriting tool that impacts loan pricing and potential default risk.)

Note Channel

A method through which investors purchase Notes from PFL, representing interests in pools of Borrower Loans. (One of the primary ways investors participate in the personal loan marketplace.)

Year-Over-Year Comparison

The provided filing details $2.7 billion in Borrower Loan originations for 2025, a significant figure indicating substantial business activity. The launch of the Prosper Credit Card in December 2021 and the subsequent securitization in November 2024 suggest a strategic expansion and maturation of the company's product suite and funding capabilities compared to prior periods. The mention of a September 2025 cybersecurity incident introduces a new, material risk factor not present in previous filings.

Key Financial Figures

• $0.01 — sper Marketplace, Inc. (a) 78,299,355 ($0.01 par value) Prosper Funding LLC (a)(b)
• $2.7 billion — personal loan marketplace facilit ated $2.7 billion in Borrower Loan originations during 20
• $30.5 billion — rower Loan originations during 2025 and $30.5 billion in Bor rower Loan originations since la
• $2,000 — , unsecured personal loans ranging from $2,000 to $50,000 with no prepayment penalty.
• $50,000 — d personal loans ranging from $2,000 to $50,000 with no prepayment penalty. Loan term s
• $94.7 million — les with an unpaid principal balance of $94.7 million from the Prosper Allocations, and contr
• $82.9 million — estors with a stated aggregate value of $82.9 million. This transaction is described more ful
• $0 — (3) have an annual income greater than $0, (4) have a debt-to-income ratio of no

Filing Documents

• prosper-20251231.htm (10-K) — 4305KB
• exhibit101-10k2025.htm (EX-10.1) — 173KB
• exhibit1026-10k2025.htm (EX-10.26) — 41KB
• exhibit104410k2025.htm (EX-10.44) — 234KB
• exhibit1056-10k2025.htm (EX-10.56) — 39KB
• exhibit1058-10k2025.htm (EX-10.58) — 795KB
• exhibit21110k2025.htm (EX-21.1) — 6KB
• exhibit231-10k2025.htm (EX-23.1) — 3KB
• exhibit311-10k2025.htm (EX-31.1) — 10KB
• exhibit312-10k2025.htm (EX-31.2) — 10KB
• exhibit313-10k2025.htm (EX-31.3) — 10KB
• exhibit314-10k2025.htm (EX-31.4) — 10KB
• exhibit321-10k2025.htm (EX-32.1) — 6KB
• exhibit322-10k2025.htm (EX-32.2) — 7KB
• prosper-20251231_g1.jpg (GRAPHIC) — 127KB
• 0001416265-26-000012.txt ( ) — 21979KB
• prosper-20251231.xsd (EX-101.SCH) — 117KB
• prosper-20251231_cal.xml (EX-101.CAL) — 137KB
• prosper-20251231_def.xml (EX-101.DEF) — 839KB
• prosper-20251231_lab.xml (EX-101.LAB) — 1216KB
• prosper-20251231_pre.xml (EX-101.PRE) — 1079KB
• prosper-20251231_htm.xml (XML) — 3668KB

Risk Factors

ITEM 1A Risk Factors 16

Unresolved Staff Comments

ITEM 1B Unresolved Staff Comments 41

Cybersecurity

ITEM 1C Cybersecurity 42

Properties

ITEM 2 Properties 44

Legal Proceedings

ITEM 3 Legal Proceedings 44

Mine Safety Disclosures

ITEM 4 Mine Safety Disclosures 44 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

ITEM 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44

[Reserved]

ITEM 6 [Reserved] 45

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 46

Quantitative and Qualitative Disclosures About Market Risk

ITEM 7A Quantitative and Qualitative Disclosures About Market Risk 70

Financial Statements and Supplementary Data

ITEM 8 Financial Statements and Supplementary Data 71

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

ITEM 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 71

Controls and Procedures

ITEM 9A Controls and Procedures 71

Other Information

ITEM 9B Other Information 72

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 72 PART III

Directors, Executive Officers and Corporate Governance

ITEM 10 Directors, Executive Officers and Corporate Governance 73

Executive Compensation

ITEM 11 Executive Compensation 78

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ITEM 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 89

Certain Relationships and Related Transactions, and Director Independence

ITEM 13 Certain Relationships and Related Transactions, and Director Independence 92

Principal Accounting Fees and Services

ITEM 14 Principal Accounting Fees and Services 95 PART IV

Exhibits, Financial Statement Schedules

ITEM 15 Exhibits, Financial Statement Schedules 96

SIGNATURES

SIGNATURES EXHIBIT INDEX XBRL Content 3 Except as the context requires otherwise, as used herein, "Registrants" refers to Prosper Marketplace, Inc. ("PMI"), a Delaware corporation, and its wholly owned subsidiary, Prosper Funding LLC ("PFL"), a Delaware limited liability company; "we," "us," "our," "Prosper," and the "Company" refers to (i) PMI, (ii) its wholly owned subsidiaries, PFL, BillGuard, Inc. ("BillGuard"), a Delaware corporation and Prosper Healthcare Lending LLC ("PHL"), a Delaware limited liability company, and (iii) its variable interest entities, Prosper Warehouse I Trust ("PWIT," terminated March 28, 2024), a Delaware statutory trust; Prosper Warehouse II Trust ("PWIIT," terminated September 25, 2023), a Delaware statutory trust; Prosper Marketplace Issuance Trust, Series 2023-1 ("PMIT 2023-1"), a Delaware statutory trust; Prosper Marketplace Issuance Trust, Series 2024-1 ("PMIT 2024-1"), a Delaware statutory trust; Prosper Credit Card Issuer LLC ("PMCC 2024-1"), a Delaware limited liability company and Prosper Grantor Trust ("PGT"), a Delaware statutory trust, on a consolidated basis; and "Prosper Funding" refers to PFL and its wholly owned subsidiary, Prosper Depositor LLC, a Delaware limited liability company, on a consolidated basis. In addition, the unsecured personal loans originated through our marketplace are referred to as "Borrower Loans," and the borrower payment dependent notes issued through our marketplace, whether issued by PMI or PFL, are referred to as "Notes." Investors currently invest in Borrower Loans through two channels: (i) the "Note Channel," which allows investors to purchase Notes from PFL, the payments of which are dependent on the payments made on the corresponding Borrower Loan; and (ii) the "Whole Loan Channel," which allows accredited and institutional investors to purchase Borrower Loans in their entirety directly from PFL. The Notes available to Note Channel investors are distinguishable from notes held by cer

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may," "believe," "expect," "project," "estimate," "intend," "anticipate," "plan," "continue" or similar expressions. These statements may appear throughout this Annual Report on Form 10-K, including the sections titled "Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, PFL or PMI expresses an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of their respective managements, expressed in good faith, and is believed to have a reasonable basis. Nevertheless, there can be no assurance that the expectation or belief will result or be achieved or accomplished. The following include some, but not all, of the factors that could cause actual results or events to differ materially from those anticipated: the performance of the Notes, which, in addition to being speculative investments, are special, limited obligations that are not guaranteed or insured; PFL's ability to make payments on the Notes, including in the event that borrowers fail to make payments on the corresponding Borrower Loans; our ability to attract potential borrowers and investors to our personal loan marketplace and borrowers to our unsecured credit card ("Credit Card") product; the reliability of the info

BUSINESS

ITEM 1. BUSINESS Overview Our vision is to transform lives by providing affordable financial solutions through the simplest and most trusted platform. We currently offer access to consumer lending products which support our vision: (i) unsecured personal loans through a personal loan marketplace which connects eligible consumer borrowers with individual and institutional investors, and (ii) a Credit Card product available to eligible borrowers. Personal Loan We are a pioneer of peer-to-peer lending in the U.S. and first launched our personal loan lending product in 2006. Our personal loan marketplace facilit ated $2.7 billion in Borrower Loan originations during 2025 and $30.5 billion in Bor rower Loan originations since launch. We believe our personal loan business model has key advantages relative to traditional banks, including (i) an innovative marketplace model that efficiently connects qualified supply and demand of capital, (ii) online operations that substantially reduce the need for physical infrastructure and improve convenience, and (iii) use of advanced technology and artificial intelligence to deliver simple, fast, personalized, and transparent solutions that can improve consumers' financial health as they move across the credit spectrum. We do not operate physical branches or incur expenses related to infrastructure like traditional banks or consumer finance institutions. As part of operating our marketplace, we verify the identity of borrowers and assess borrowers' credit risk profile using a combination of public and proprietary data. Our proprietary technology automates several loan origination and servicing functions, including the borrower application process, data gathering, underwriting, credit scoring, loan funding, investing and servicing, regulatory compliance and fraud detection. To consumer borrowers, we believe that we offer generally better pricing, on average, than the pricing those loan borrowers would pay on outstanding credit ca

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