Prosper Marketplace
Pioneer peer-to-peer personal loan and credit card marketplace since 2005.
The call
Prosper still moves real loan volume after twenty years, but its valuation is frozen, it is missing from AI loan-search results, and faster rivals are pulling ahead.
Prosper lets ordinary people lend money to borrowers online, taking a cut of the interest. It has been profitable for years and grew sales 21 percent in early 2025, but bigger banks like SoFi and Chase can offer loans more easily, and newer AI-powered lenders like Figure and Upstart are winning customers faster by using smart computer algorithms to say yes or no instantly. The company faces a serious problem: hackers stole data on 17.6 million customers in September 2025, and multiple lawsuits could force Prosper to pay out large settlements that would hurt its finances right when it needs cash to compete.
Why
01
AI pressure: Upstart. Upstart's AI-underwriting brand owns most AI-chatbot 'best personal loan' citations; Prosper is absent from that discovery channel. Could AI do the core job? Yes, likely.
02
Bigger players: Figure Technologies. Figure's marketplace volume grew 110% year over year to $2.9B, pulling loan flow that once might have gone to Prosper. Could a giant copy it? Yes, easily.
03
What protects it. Twenty years of loan-performance data and an established investor base still fund originations despite a frozen valuation.
What would change this call
Figure Technologies reports Q2 2026 volume vs its $3.8-4.1B guidance. shows whether the volume gap to Prosper keeps widening.
Outcome of the Sept 2025 breach class-action docket before Judge Breyer, N.D. Cal. a large settlement could strain Prosper's balance sheet.
Whether Prosper appears in the next AI-citation-share study for 'best personal loan'. shows if Prosper regains visibility in AI-driven loan discovery.
Outcome of the Sept 2025 breach class-action docket before Judge Breyer, N.D. Cal. a large settlement could strain Prosper's balance sheet.
Whether Prosper appears in the next AI-citation-share study for 'best personal loan'. shows if Prosper regains visibility in AI-driven loan discovery.
Key numbers
- $168.8M Q1 2025 revenue, up 21% YoY
- $550M valuation frozen since 2017, down 70% from peak
- 460 employees, down 18% from 2023 peak
Named risks
- 10+ consolidated class actions over Sept 2025 data breach affecting up to 17.6M accounts.
- Valuation frozen near $550M since 2017 with no disclosed exit or reset.
- Absent from AI-chatbot discovery channels driving loan originations to rivals.
- Headcount decline from 562 (2023) to 460 (2025) amid benefit pauses.
- Unsettled CFPB algorithmic fair-lending rulemaking under litigation as of mid-2026.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Figure Technologies | gaining on | Figure's Q1 2026 marketplace volume grew 110% YoY to $2.9B vs Prosper's ~21% revenue growth (2026-05-12) |
| Upstart | losing to | Upstart owns AI-underwriting brand positioning; Prosper absent from AI citation cluster as of June 2026 |
| SoFi | losing to | SoFi dominates prime-borrower AI-chatbot answers per June 2026 citation-share study |
| LendingClub | contesting | Original P2P rival now an FDIC-chartered bank, part of top-cited lending cluster as of June 2026 |
Questions people ask
- Is Prosper Marketplace profitable in 2026?
- Prosper reported Q1 2025 operating revenues of $168.8M, up ~21% YoY from $139.2M in Q1 2024 per its own 10-Q filed 2025-05-14. No profitability figure is disclosed, and its valuation has stayed frozen near $550M since a September 2017 Series G round.
- Could AI replace Prosper's loan underwriting?
- Underwriting, matching, and support are AI-exposed workflows; Upstart brands itself on AI-underwriting and, per a June 2026 citation-share study, Prosper was absent from top AI-chatbot answers for 'best personal loan' while SoFi, Upstart and LendingClub held ~52.8% share.
- Who owns Prosper Marketplace?
- Prosper is privately held, VC/PE-backed, with no IPO or acquisition. Its last disclosed raise was a $75M Series H from GP Strategic Capital on 2022-11-18, and its valuation has sat around $550M since a 2017-09-25 Series G, down about 70% from its 2015 peak of $1.87B.
- Who is Prosper Marketplace's biggest competitor?
- Figure Technologies is outgrowing Prosper sharply: Figure's Q1 2026 earnings call (2026-05-12) reported consumer marketplace volume of $2.9B, up 110% YoY, versus Prosper's roughly 21% YoY revenue growth reported in its Q1 2025 10-Q.
- Did Prosper Marketplace have a data breach?
- Yes. Prosper detected a breach around September 1, 2025 and reported it to the SEC on 2025-09-17; one report cites 17.6 million accounts compromised. As of early 2026 the case involved 10+ consolidated federal class actions before Judge Charles Breyer in N.D. Cal.
- Is Prosper Marketplace still relevant after pioneering P2P lending?
- Prosper, incorporated 2005-03-22, marked its 20th anniversary in April 2025 having helped over 2 million customers access nearly $30 billion in cumulative funding, but its valuation has been frozen near $550M since 2017 and it is absent from 2026 AI-chatbot loan-discovery rankings.
Timeline
- 2026-06-11AI citation study finds Prosper absent from 'best personal loan' chatbot answers; SoFi, Upstart, LendingClub hold ~52.8% share
- 2026-06-05CFPB sued over new rule critics say weakens fair-lending scrutiny of algorithmic credit models
- 2026-05-12Figure Technologies reports Q1 2026 marketplace volume of $2.9B, up 110% YoY, guides $3.8-4.1B for Q2 2026
- 2026-05-05CFPB issues Circular 2026-03 on machine-learning underwriting liability under ECOA/Reg B
- 2025-09-17Prosper reports data breach to SEC; report cites 17.6 million accounts compromised
- 2025-07-02Prosper launches first brand refresh in nearly a decade tied to 20th anniversary
- 2025-05-14Prosper Q1 2025 10-Q shows operating revenue of $168.8M, up ~21% YoY
- 2025-04-23Prosper marks 20th anniversary, citing nearly $30B in cumulative loans to over 2 million customers
- 2022-11-18Prosper closes $75M Series H funding from GP Strategic Capital
- 2017-09-25Prosper Series G round values company at ~$550M, down ~70% from 2015 peak
Revision history
22 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Q1 2025 10-Q (2025-05-14)
- Unicorn Alert: Prosper Marketplace Valued at $1.87B (2015-04-09)
- P2P lender Prosper's valuation stands at $550m with new funding (2017-09-25)
- Prosper - 424b3 (Dec 2025) (2026-01-15)
- How does Prosper make money?
- Personal Loans & Other Online Financial Solutions (2026-02-12)
- Prosper Celebrates 20 Years (2025-04-23)
- Prosper Marketplace Number of Employees 2026 (2026-06-29)
- Prosper.com Reviews (2026-04-26)
- Prosper Launches Brand Refresh (2025-07-02)
- Prosper Stock Price, Funding, Valuation, Revenue & Financial Statements (2022-11-17)
- Figure (FIGR) Q1 2026 Earnings Call Transcript (2026-05-12)