Senior Product Analyst

US stocks fell after January's Producer Price Index showed wholesale inflation rose 0.5%, significantly above the 0.3% consensus forecast. Year-over-year, the index increased 2.9%. The unexpectedly high reading suggests persistent inflationary pressures and has dampened investor optimism for near-term Federal Reserve interest rate cuts. The central bank is less likely to lower borrowing costs whilst inflation remains elevated. Financial services stocks were particularly impacted. Jefferies fell 10.4%, Interactive Brokers dropped 6.1%, and Evercore declined 6.5%. LendingClub tumbled 11.1%, whilst PROG fell 5.7%. The shift in expectations for monetary policy triggered a broad market sell-off as traders adjusted to the possibility of interest rates remaining higher for longer.

Pagaya Technologies, an AI-powered fintech platform, reached profitability in 2025, posting net income of $81.4 million compared with a $401.4 million loss in 2024. Revenue grew 26.1% year over year, whilst adjusted EBITDA rose 76.3%. The company's capital-light model connects banks and fintech firms through its AI network, spreading risk across personal loans, auto loans and point-of-sale financing. However, Pagaya's management guidance signals slower near-term expansion due to tighter underwriting standards. Despite improving fundamentals, analysts favour LendingClub over Pagaya, citing LC's hybrid bank-backed lending model, which delivers steadier earnings and stronger cash flow visibility at a lower valuation. LendingClub reported 33% growth in loan originations and 23% revenue growth in 2025.

Borrower spotlight: Nayosha Hospitality and the Quality Inn - Streetsboro. | borrower spotlight: Nayosha Hospitality and the Quality Inn - Streetsboro | / |. Published February 18, 2026 Ownership transitions can open the door to new growth when structured strategically. Nayosha Hospitality LLC provides a strong example of how the right financing solution can support long-term stability and operational efficiency. About Nayosha Hospitality. Nayosha Hospitality LLC owns and operates the Quality Inn in Streetsboro, Ohio, located in Portage County. The 8,000 square foot hotel sits on two acres and includes 54 rooms. Originally acquired by three partners in September 2021, the ownership group later executed a purchase agreement allowing one owner to acquire 100 percent ownership. The hotel was fully renovated in 2017, with additional repairs and improvements completed in 2022 under current ownership. Today, the property is in like-new condition and benefits from strong regional demand. Demand generators include: * Kent State University * Blossom Music Center * Akron-Canton Airport * Cleveland Hopkins International Airport * Aurora Outlets Supporting a partner buyout with SBA 504 financing. OSDC partnered with LendingClub Bank to secure an SBA 504 loan that enabled the partner buyout and transition to full ownership. This financing structure allowed the business to: * Complete a smooth ownership transition * Increase operational efficiency * Retain all existing jobs * Create two new jobs By supporting the ownership transition, the SBA 504 structure helped position Nayosha Hospitality for continued growth in a competitive hospitality market. Strengthening local business through strategic financing. Partner buyouts require careful structuring to protect business stability. This project demonstrates how collaboration between borrower, lender, and OSDC can help facilitate smooth transitions while preserving jobs and strengthening the local economy. Ohio Statewide Development Corporation is proud to have partnered with LendingClub Bank and Nayosha Hospitality to support this next chapter of growth.