Prosper Files 10Q, Revenues and Originations Shrink

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Prosper Marketplace

The slight delay with Prosper’s 10-Q filing is over. The company originated $311.8 million in loans in Q3 versus $445 million in the previous quarter. Revenues were $24 million, down from $28 million in Q2.

The filing delay was said to have been attributed to a recent arbitration decision. That decision and financial impact were disclosed in their report. “On November 17, 2016, Prosper and Colchis [one of their earlier loan buyers] entered into a Settlement and Release Agreement, pursuant to which Colchis has agreed to terminate the Colchis Agreement and waive all rights conferred under such agreement in exchange for a $9 million cash payment by Prosper and equity. Prosper expects to make the $9 million cash payment in the fourth quarter of 2016.”

$9 million is a lot for Prosper who reported only $31.8 million in cash on their balance sheet.

The company has run up a $70 million loss on just $108 million in revenues so far this year, compared to a $17 million loss on $140 million in revenues for the first 9 months of 2015.

Revenues in Q3 year-over-year are down by nearly 60% while originations are down by more than 70%.

Earlier this week, Prosper’s CEO, Aaron Vermut, and executive chairman, Stephan Vermut, both stepped down from their posts.

The full report can be viewed here.

Last modified: November 17, 2016

Category: Marketplace Lending

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