Prosper Marketplace recorded a big jump in loan originations during the third quarter, but the San Francisco-based online lender still racked up $26.9 million in losses.

The privately held firm has lost $210 million since the start of 2016, in spite of various cost-cutting measures. In July, Prosper announced plans to discontinue a personal finance app that it acquired in 2015.

Other online lenders have also been struggling to become profitable.

David Kimball, CEO of Prosper.
David Kimball is Prosper's chief executive.

LendingClub, which competes with Prosper in consumer lending, has posted more than $200 million in losses over the last six quarters. OnDeck Capital, which specializes in small-business loans, has reported losses in eight consecutive quarters.

Prosper would have earned a narrow profit in the third quarter if not for $28.1 million in charges related to warrants to purchase stock that were issued in connection with a settlement agreement.

The company originated $821.8 million in loans during the quarter. That figure was up from $311.8 million in the same period a year earlier, and also up from $774.7 million during the second quarter of 2017.

“We continued to see growth during the third quarter as people turned to Prosper’s personal loan product to refinance high-interest debt, pay for medical expenses, and finance home improvement projects,” Prosper CEO David Kimball said in a press release.

Last month, Prosper raised $50 million in capital, which the firm plans to use to make strategic investments in its platform and products. That deal reportedly valued Prosper at $550 million, down from a $1.9 billion valuation in 2015.

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