LendingTree Q1 2025 Earnings Report

LendingTree EPS Results

• Actual EPS: $0.99
• Consensus EPS: $0.74
• Beat/Miss: Beat by +$0.25
• One Year Ago EPS: N/A

LendingTree Revenue Results

• Actual Revenue: $239.70 million
• Expected Revenue: $244.93 million
• Beat/Miss: Missed by -$5.23 million
• YoY Revenue Growth: +42.80%

LendingTree Announcement Details

• Quarter: Q1 2025
• Date: 5/1/2025
• Time: After Market Closes
• Conference Call Date: Thursday, May 1, 2025
• Conference Call Time: 5:00PM ET

LendingTree (NASDAQ:TREE) operates an online marketplace that helps consumers compare financial products and connect with banks, lenders, insurers and other service providers. The company generally acts as a marketing and comparison platform rather than as a direct lender, enabling users to review offers based on information they provide.

Its marketplace includes products such as mortgages and home equity financing, personal loans, auto loans, credit cards, small-business financing, insurance and deposit accounts. LendingTree also provides educational content, tools and comparison resources intended to help consumers evaluate borrowing, insurance and other personal-finance options.

Founded by Doug Lebda in 1996, LendingTree initially focused on helping consumers compare mortgage offers and later expanded into a broader financial-services marketplace. The company primarily serves consumers and businesses in the United States. Doug Lebda has been associated with LendingTree since its founding and has served in senior leadership and board roles; the company’s executive leadership has evolved over time.

LendingTree Q1 2025 Earnings Call Transcript

Key Takeaways

• In Q1, all three business segments delivered solid revenue growth but adjusted EBITDA fell just below forecast due to temporary insurance regulatory headwinds and one-time benefits and legal expenses.
• Insurance revenue grew 71% year-over-year despite FCC one-to-one consent rule disruptions and a marketing correction, with recovery taking longer than anticipated.
• The small business lending segment achieved higher conversion rates and lender bonus revenue through its Concierge sales team and is on track to generate record revenue for 2025.
• Strong demand for home equity loans is driving robust margin expansion in the home segment, offsetting weak purchase and refinance activity amid high mortgage rates.
• LendingTree recorded a $19 million liability in Q1 for the QuoteWizard TCPA settlement, payable in three installments through Q2 2026, fully covering the related 2019 claims.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the LendingTree First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Wessel, Senior Vice President of Investor Relations and Corporate Development. Please go ahead.

[Andrew Wessel, SVP at Investor Relations and Corporate Development at LendingTree]

Thank you, DeeDee. Hello to everyone joining us on the call to discuss our First Quarter 2025 Financial Results. On with us today are Doug Lebda, LendingTree's Chairman and CEO, Scott Peyree, COO and President of our Marketplace businesses, and Jason Bengel, CFO. As a reminder to everyone, we posted a detailed letter to shareholders on our Investor Relations website before the start of this call. For the purposes of today's discussion, we will assume that listeners have read that letter and will focus on Q&A. Before I hand the call over to Doug for his remarks, I remind everyone that during this call, we may discuss LendingTree's expectations for future performance. Any forward-looking statements we make are subject to risks and uncertainties, and LendingTree's actual results could differ materially from the views expressed today.

[Andrew Wessel, SVP at Investor Relations and Corporate Development at LendingTree]

Many but not all of the risks we face are described in our periodic reports filed with the SEC. We'll also discuss a variety of non-GAAP measures on the call, and I refer you to today's press release and shareholder letter, both available on our website for the comparable GAAP definitions and full reconciliations of non-GAAP measures to GAAP. With that, Doug, please go ahead.

[Doug Lebda, Chairman and CEO at LendingTree]

Thank you, Andrew. Thank you all for joining us today for our first quarter update. All three of our business segments generated solid revenue growth in the first quarter. Adjusted EBITDA, however, came in just below our forecast, driven by temporary regulatory headwinds in our insurance business and one-time expenses related to benefits and legal fees. We are now one month into the second quarter, and we are seeing improvements in those areas. As a result, we are still forecasting strong adjusted EBITDA growth at 15% at the midpoint of our annual outlook that we updated today. As we discussed last quarter, our insurance segment was impacted by the FCC's pending one-to-one consent rule. An appeals court rescinded that rule, and subsequent rulings have eliminated the possibility that it will be resurrected in the future.

[Doug Lebda, Chairman and CEO at LendingTree]

We expected a sharp recovery once we reverted back to our previous customer experience, but it has taken longer than anticipated. This disruption, combined with a marketing correction in the quarter from one specific carrier, led to a somewhat softer insurance performance than we had forecasted. Despite the challenges, insurance still grew revenue 71% year over year in the first quarter, and we continue to forecast annual revenue and VMD growth for the segment. In lending, the consumer segment again benefited from growth in our small business and personal loan products. Our investment in the concierge sales team for small business has delivered significant benefits to our unit economics. Conversion rates have increased, and we have captured higher levels of renewal and lender bonus revenue as a result. We expect small business will generate record revenue for us in 2025.

[Doug Lebda, Chairman and CEO at LendingTree]

Thanks to success in home equity lending, our home segment continues to produce great results in a difficult environment. Increased demand for home equity loans from both consumers and lenders is driving home segment performance. Prevailing high mortgage rates continue to suppress demand for new home buyers and refinancing. However, slower growth of home prices and an increase in inventory of homes for sale should be helpful for the housing market going forward. As I mentioned at the beginning of my remarks, we had some one-time items and operating expenses in the first quarter. Going forward, we have offset those unexpected costs with savings identified in the zero-based budgeting process from last year. We remain committed to carefully managing our operating expenses while maintaining the ability to invest in specific growth initiatives, enabling us to produce positive operating leverage on future revenue growth.

[Doug Lebda, Chairman and CEO at LendingTree]

I know tariffs are on everyone's mind, so I want to address that here quickly. Obviously, we are a fully domestic company, and we do not expect tariffs to have any direct impact on our business. Obviously, there could be secondary effects with interest rates or significant inflation that may impact our business, but we stayed very close to our insurance and lending clients, and we do not have any immediate concerns. Operator, we are happy to answer any questions.

[Operator]

Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Ryan Tomasello of KBW. Your line is open.

[Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW]

Hi everyone. Thanks for taking the questions. Doug, I wanted to start on that last point you made. If you could just elaborate generally what you're hearing from your carrier partners on potential headwinds to profitability from tariffs. Obviously, I think the concern here is how that might impact demand for customer acquisition. Just given all that uncertainty, how you're thinking about the guidance here, what you're baking in, especially for the back half of the year. Thanks.

[Doug Lebda, Chairman and CEO at LendingTree]

Yeah, I'm going to let Scott handle that. He's in Seattle, and I know he's closer to the insurance clients. Scott, take it away.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Yeah, sure, Ryan, to answer your question there. We've been staying pretty close and having conversations with our major clients on the insurance side. There's definitely concern around tariffs and what they might do, but I would say generally all feel pretty good about where they're at today from a profitability perspective. All of the work they've done over the past few years to get their rates in a good spot from the inflation work is they're probably in a better profitability position today than they've been in the past three to five years. They are kind of starting at a good point. They're monitoring closely. I think what you'll see out there is where a number of carriers might have started reducing rates for a lot of consumers this year. That's probably not going to happen as they take a more cautious approach.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

I feel like a lot of the carriers have told us they feel like they can get out in front of any potential inflationary impacts from tariffs to maintain a good spot. I'd say the general response from carriers has been they feel like they're going to be able to deal with the impacts of tariffs within enough time that it won't really affect their marketing strategies.

[Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW]

Great. I guess maybe just digging deeper into that and maybe expanding broadly, what you're kind of baking into the revised guidance here. You're haircutting the top line by about 3 points. It looks like that's being offset by stronger variable margins. Just unpacking the moving pieces there, what you're baking in from a macro standpoint, just across the different pieces of the guidance. Thanks.

[Jason Bengel, CFO at LendingTree]

Yeah, it's Jason. I can take that one. First of all, on the macro point, we're not baking in anything one way or the other from a macro standpoint. That's just something that we're going to have to monitor. We're going to have to monitor delinquencies, combined ratios on the carrier side, consumer spending to make sure shopping remains stable. Like Scott said and Doug said, we don't have any indications today that there is tightening happening. As far as the guide goes, that's just going to have to be something that we continue to monitor. I can talk through each segment a little bit to give some more color around the guide. Just starting with home, we expect strong continued home equity growth to continue that we've seen. On the rate side, rates have been moving around quite a bit.

[Jason Bengel, CFO at LendingTree]

We're not expecting any change to the rate environment from where it is today in the home segment. Consumer, from where it is to Q1, Q2, and Q3 tend to be stronger seasonal quarters for consumers. We do expect some improvement from Q1 moving into Q2 and Q3 in consumer. Again, we're not expecting any—we're not contemplating any macro change on the consumer side. That is something that we're going to watch. On the insurance side, we do expect incremental improvement from where we are today. We're not expecting any impact from tariffs, like Scott said, but we do expect to improve better, perform better from where we are. We've had a lot of positive conversations with the carriers, and we're pretty optimistic that budgets are going to increase from where we are.

[Jason Bengel, CFO at LendingTree]

The second half of the year should perform better than the first half of the year for insurance in particular. Expenses were a little bit high in Q1. We do expect them to modestly come down in Q2 and the rest of the year going forward. That will provide a little bit more help in the back half as well.

[Doug Lebda, Chairman and CEO at LendingTree]

Generally speaking, the business model is very resilient with the two-sided marketplace. If there is a change in lender or carrier demand, there are marketing offsets to that, both up and down, as you guys know. We can weather volatility. At the same time, unless there is a shock to the system where either lenders are not lending or carriers are not writing policies, the company is generally in good shape. If anything, some of this stuff could cause interest rates to move around. If they go up, then they will go down. If they go down, that is even better. That will certainly help the business. Even weakening in the economy obviously helps rates. There are lots of different offsets, but unless there is a big shock, we can adjust pretty easily.

[Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW]

Okay. Appreciate all the color. Thanks, guys.

[Operator]

Thank you. Our next question comes from John Campbell of Stephens. Your line is open.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Hey, guys. Good afternoon.

[Doug Lebda, Chairman and CEO at LendingTree]

Good afternoon, Sergeant.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Hey. I just want to touch, I guess, starting here on S&B. If my math is right, I think you guys got to about $20 million or so in the quarter. You mentioned in the shareholder letter you expect the record S&B rep for the year. If I annualize that, I think it's going to be well above your record. Just remind us again, I guess, on the seasonality of that business and maybe just more direct if you feel like you can hold near that quarterly level for the balance of the year.

[Doug Lebda, Chairman and CEO at LendingTree]

I'm seeing puzzled looks here on the faces of our finance geniuses. Let's see who's—oh, I heard it.

[Doug Lebda, Chairman and CEO at LendingTree]

You hit it generally while we make sure you have the numbers right.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Yeah. Jason can maybe hit on the specifics as far as our revenue projections this year compared to our previous all-time highs. Hitting on the seasonality, there is definitely seasonality throughout the year on small business as you kind of go into—for example, heading into the holidays, you will have a lot of small businesses looking for inventory loans and whatnot. I would say in general, there are so many different types of small businesses looking for loans for different types of reasons. It will smooth out in general throughout the year. I would say just our growth, we have seen growing our direct sales staff has been very successful. As Doug mentioned at the top of the meeting, the unit economics are much better when we write the business directly. We have, at the same time, been able to grow our consumer lead flow quite a bit.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

There are lots of small businesses out there. There are a lot more today coming through our network than we had a year ago, and we plan on that continuing to grow over time. We are adding more lenders onto the network, so that should provide us more options to provide loans to the merchants and businesses as time goes on. I mean, I think we have a lot of tailwinds in the small business world. There is a little bit of concern around all of the political stuff going on as far as do small businesses kind of get a little bit more conservative. We are not seeing that at a real macro level as of yet. Maybe the average loan size is slightly less than we would historically expect over the past 30-45 days, but the data is a little bit thin there.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

It's nothing significant enough that we would change any expectations going forward. I think I would say in general, we're very happy with where we're at and where we're projecting the small business category to be over the next year plus.

[Doug Lebda, Chairman and CEO at LendingTree]

Yeah. My take on it would be we're still very small. We're growing. If you grow the lender network, you're going to grow your unit economics, which means you can go market more. We're growing off such a small base. This is the most probably complicated, most complicated and opaque underwriting of all the loan products that there are, which means it's kind of the last to come online. It's kind of fun to have a small grower again that's getting big. To the $20 million a quarter, you guys want to talk about that, his numbers?

[Jason Bengel, CFO at LendingTree]

Yeah. I mean, in general, your math is right. We do expect continued strength in this. We are leaning in. Like Scott said, we're hiring concierge reps as those unit economics work out. I think the other thing to point out is that this is a very profitable vertical of ours. As it continues to grow, it should provide more and more margin support for us. Yeah, I mean, I think we're optimistic about the rest of the year performance around small business.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Okay. That's helpful. On the mortgage marketplace, I mean, obviously, that used to be the core business for you guys. It's been largely dormant. Obviously, the macro has been incredibly tough. A couple of years ago, I think you guys had $376 million in that business. Last year was $40 million. It feels like that is a growth driver one of these days. I'm just curious about what you guys are thinking about as far as a level of mortgage rates where you feel like that could start to unlock some values, maybe unlock a little bit of growth for you guys.

[Doug Lebda, Chairman and CEO at LendingTree]

I don't have a specific number, but you're definitely right. It should be a huge growth driver and is largely, in many ways, stuck from a refinance standpoint. That is why home equity is a great substitution product for lenders and consumers in this type of an environment. You really need to look at it in total. I don't know what the amount is. Scott, I don't know if any of you guys have a specific number, but it's going to happen. It's going to happen someday. The good news is this time around, I think technology will enable more loans to go through the pipes, which will mean that you won't have lenders shutting down as much as they had to last time. I think the mortgage process has become much less manual. Scott?

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Yeah. I just added, yeah, you are 100% correct when you say the combination of refinance, cash-out refinance, new purchase is a massive business for us in the good times that has been dormant over the past few years. Home equity is really the driver of the growth we're seeing right now. Even though our purchase and refinance business is growing, but it's coming off of, as you said, pretty low levels last year. A lot of what I hear in the industry is if you get interest rates to a five handle, if your 30 years starts with a five, you're probably going to see a seismic shift in the industry with dramatic growth returning. In the meantime, we're growing and doing what we can and working hard with our clients and making sure we have a good distribution network.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

I mean, the demand for our product is very high. It's more just about the number of consumers that are looking for those products right now.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Okay. Thanks, guys.

[Operator]

Thank you.

[Doug Lebda, Chairman and CEO at LendingTree]

Thank you.

[Operator]

Our next question comes from Jed Kelly of Oppenheimer & Company. Your line is open.

[Jed Kelly, Managing Director and Senior Analyst at Oppenheimer & Company]

Hey, great. Thanks for taking my questions. Just back on insurance, can you kind of give us a sense how we should think about the VMM margin as revenue starts to normalize in that segment? And then just again on insurance, how should we view the home segment? I know auto is still the main portion, but it seems like home is an attractive market as well. Thanks.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Yes. Jed, starting on the VMM side, and I'll say today what I've said the past couple of earnings calls is I think as things normalize over time, low to mid-30s is where we want to be on the VMM side. We had some good improvements in Q4. I think some of the points that Doug talked about at the top of the call as far as the SLC had wins, we had some carrier budget shifts, some new technology bugs that happened in our system. We had a little bit of a setback in Q1, those were one-time events that we were working through and solving. We are going back to optimizing that. Low to mid-30s is where we would expect to be long-term at a normalized rate. I think we'll be there sooner rather than later.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Just answering the question on home insurance, yes, that's absolutely. That's a very popular product. It's a growing product for us. I even feel like the first quarter, there was even more growth there than we expected as the carriers are getting more and more interested in driving growth via home insurance. Yes, that's correct. That's a good industry right now.

[Jed Kelly, Managing Director and Senior Analyst at Oppenheimer & Company]

Thank you.

[Jason Bengel, CFO at LendingTree]

Thanks, Jed. Maybe just to touch on the guide, we do expect, like we said, insurance to improve from where it is today. We do expect margin to improve from where it is today, not yet in the more normalized levels that Scott mentioned, but we do expect continued improvement.

[Jed Kelly, Managing Director and Senior Analyst at Oppenheimer & Company]

Thank you.

[Operator]

Thank you. Our next question comes from Melissa Wedel of JPMorgan. Your line is open.

[Melissa Wedel, VP of Equities Research at JPMorgan]

Good afternoon. Thanks for taking my questions. Wanted to start on the home segment margin. It came in a little bit stronger than we were expecting. I guess the question would be, is there any reason to think that that would inflect lower, or is this sort of the run rate, particularly with home equity demand right now?

[Jason Bengel, CFO at LendingTree]

Yeah. I mean, we are generally expecting that to be sustainable going forward. Home equity monetization is just really strong. That is a function of this is a product that works really well for consumers, and it works really well for lenders. On the lender side, true home equity, the loan amounts are lower. That is a negative for lender unit economics. The close rates are just so much higher that the lender unit economics really work because that is a product that works for the consumer. A lot of this margin improvement is just a function of the unit economics that we have attained building out that network. We do expect them generally to be in that range going forward.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Yeah. I would just add on. There's been no intentional effort to expand margins there. As Jason said, we're within a range where we're comfortable with, works for us, works for our clients.

[Doug Lebda, Chairman and CEO at LendingTree]

Yeah. If demand for volume shot up tomorrow so much and we had to step on the marketing gas, you'd see percentages decrease. Other than that, we feel good.

[Melissa Wedel, VP of Equities Research at JPMorgan]

Okay. Appreciate that. We've touched on this a little bit about the volatility that we've seen post-quarter end, but it's been more from the perspective of where you're hearing from network partners. I'm curious if you're seeing anything different in terms of changes in consumer behavior and search on your platform in the last month. Any conclusions you can draw from that? Thanks.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

I would say consumer demand across most of our products has remained pleasantly strong. We have not seen a significant reduction in demand as a byproduct of consumer sentiment, I would say. The one category that we probably have seen a little bit less demand is, again, getting back to the mortgage, the purchase and refinance traffic. That's a major product for consumers to purchase. I think there is a little bit of a cautionary approach that has affected the amount of consumers searching for those products over recent history. As I was talking about earlier, that's already kind of at a low dormant point. It is one of our lower consumer traffic areas right now. All of our other product lines right now, I would say the consumer volume is coming right in where we would expect it to be in normal times.

[Doug Lebda, Chairman and CEO at LendingTree]

Yeah. It is broad-based. It is all loan types. Our marketing is working well in all channels. Our content strategy is working well. People are engaging with our content. We are appearing well in emerging AI results. Yeah, we feel good about where we are with the consumer.

[Melissa Wedel, VP of Equities Research at JPMorgan]

Thank you.

[Operator]

Thank you. As a reminder, if you have a question, please press star one one. We have a follow-up from Ryan Tomasello of KBW.

[Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW]

Hi everyone. Thanks again. I guess just entertaining more of the downside risk on macro, you guys have done a good job historically of managing to the bottom line by pulling some expense levers. I guess maybe you could just help us understand how much of those levers still remain to help protect earnings power to the extent macro does move against us here. Thanks.

[Doug Lebda, Chairman and CEO at LendingTree]

Yeah. I'll start, and then Jason can put a finer point on it. We made it with everything possibly going against us and costs high. I think our worst year was $198. That was our truck, give or take. So that was its worst. As I think about the puts and takes, the insurance inflation, and when the insurance companies could on the lending side, I don't know what could significantly change there that would make that business change in size downside dramatically. On the insurance side, we had that in the issue of insurance companies chasing inflation. I mean, you'd have to have really rampant long-term inflation again to be doing that. Hopefully, we'd see it coming. On the cost side, yes, there are always costs you can do because we're always investing.

[Doug Lebda, Chairman and CEO at LendingTree]

Right now, we're spending, everybody here is working on things that are positive VMD projects to keep the company going, but at lower unit economics. If your insurance is unit economics bust or your home bust, then you do not do those projects and you pull back on those. There are more levers. Jason, you could put a finer point on it if you wanted to. By the way, we do not think we have to. We feel like right now we have a workforce that the fixed costs are fixed and the variable ones can float, and we know where the fixed costs are and we know where everybody is working on. The zero-based budgeting really, really helped with that. Anything incremental from here is really going to be tracked. Jason.

[Jason Bengel, CFO at LendingTree]

Yeah. I mean, yeah, like Doug said, I think we've invested in zero-based budgeting, I mean, across the whole management team. Through that process, we've identified the core of the business that we absolutely need to generate VMD and satisfy legal and regulatory obligations. We are then able to see very clearly above that, where are we spending money? Are we happy with what we're getting in return for spending that money? Should push come to shove, I think we have a pretty detailed understanding of our cost base, and we should be able to react. The name of the game is being quick, especially in a business like this.

[Jason Bengel, CFO at LendingTree]

To the extent that we see an opportunity out there to lean into a marketing channel or lean into more concierge reps and small business, we will do that very quickly and monitor it very closely. If it does not work out, then we'll react to that. Should things turn down, I think we should be able to respond well with expense savings. Also, there is a significant part of our variable compensation in the cost base that'll naturally decrease with decreasing top line. Overall, I think we feel pretty good about our understanding and ability to execute any savings that we might need.

[Doug Lebda, Chairman and CEO at LendingTree]

Obviously, the ultimate lever, if you do not have demand in one of your products, is marketing spend. You are pulling back marketing spend as your unit economics go down. You can even go farther than that. You could not do any paid marketing if you had to for a period of time and live off your organic and name recognition and SEO. There are a lot of options in a horrible scenario. We have been able to navigate those before. Each of these individual products can be cyclical, but the two sides of the marketplace you always need to keep in mind. There is always the marketing, and they generally work together.

[Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW]

One more for me. Regarding the Quote Wizard litigation, can you say just how much you have fully reserved for that after the $15 million you took this past quarter and how confident you are that you're fully covered for the potential outcomes there? Thanks.

[Jason Bengel, CFO at LendingTree]

Yeah. It's Jason. I'll take that one. We've talked about this previously on other calls, and this is related to demand. Quote Wizard has reached a settlement in principle in the Manta versus Quote Wizard matter, which involves class TCPA claims related to activity from 2019. The details of the settlement will be made public in the near term when the appropriate filings are made with the court. To answer your question directly, we have a liability on the balance sheet of $19 million in this quarter. It's important to note that this $19 million is payable in three equal installments, the first being in Q4 of this year, the second in Q1 of 2026, and the final in Q2 of 2026. We have reached a settlement with regard to this. It has to be confirmed with court, but we have reached a settlement with it.

[Jason Bengel, CFO at LendingTree]

The payments are due after we are due to repay the convert in July, which I think is important to call out.

[Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW]

Great. Thanks for the detail.

[Operator]

Thank you. We have a follow-up from John Campbell of Stephens. Your line is open.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Hey, guys. Thanks. Just one more from me. I’d noticed in the annual filing some commentary about the student loan business that you guys are potentially looking at options there. Maybe if we can get an update on that.

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

Yeah. I mean, we've largely gotten out of the student loan business. That's been a declining business for the past few years. We are not doing any more direct marketing into that business just based off of client demand.

[Doug Lebda, Chairman and CEO at LendingTree]

Obviously, that could change if the—yeah, if the student loan refund market comes back, that's easy to start marketing again and doing it. Right now, we're not seeing low demand for it.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Okay. On hold for now. Any rough sense for revenue impact year over year, what you guys put up last year?

[Scott Peyree, COO and President of Marketplace Businesses at LendingTree]

It was very small last year, so. I don't know. Jason, do you have any details on the revenue there?

[Jason Bengel, CFO at LendingTree]

Definitely not material.

[Doug Lebda, Chairman and CEO at LendingTree]

Yeah. I would say in the twinkle in my eye is that with the changes in the administration and people paying back their student loans, that that business someday returns. It's not like we're not—we can't have our student loan form and turn on the lenders. It's just that we're not actively marketing it.

[John Campbell, Managing Director and Equity Research Analyst at Stephens]

Okay. Makes sense. Thanks, guys.

[Operator]

Thank you. I'm showing no further questions at this time. I'd like to turn it back to Doug Lebda for closing remarks.

[Doug Lebda, Chairman and CEO at LendingTree]

Thank you. We are definitely pleased that all three of our segments returned to annual growth in the first quarter. Over the past five years, unexpected economic impacts from the pandemic and inflation have been significant with the company. Yet, we've been able to suppress them thanks to our diversified business model. We remain optimistic for the remainder of 2025 and look forward to updating you on our second quarter call. Thank you for joining us today.

[Operator]

This concludes Today's Conference Call. Thank you for participating, and you may now disconnect.

Participants

Executives

• Jason Bengel, CFO
• Scott Peyree, COO and President of Marketplace Businesses
• Doug Lebda, Chairman and CEO
• Andrew Wessel, SVP at Investor Relations and Corporate Development

Analysts

• Melissa Wedel, VP of Equities Research at JPMorgan
• John Campbell, Managing Director and Equity Research Analyst at Stephens
• Jed Kelly, Managing Director and Senior Analyst at Oppenheimer & Company
• Ryan Tomasello, Managing Director and Senior Equity Analyst at KBW