LendingTree Q2 2025 Earnings Report

LendingTree EPS Results

• Actual EPS: $1.13
• Consensus EPS: $1.09
• Beat/Miss: Beat by +$0.04
• One Year Ago EPS: N/A

LendingTree Revenue Results

• Actual Revenue: $250.10 million
• Expected Revenue: $244.03 million
• Beat/Miss: Beat by +$6.07 million
• YoY Revenue Growth: +19.00%

LendingTree Announcement Details

• Quarter: Q2 2025
• Date: 7/31/2025
• Time: After Market Closes
• Conference Call Date: Thursday, July 31, 2025
• Conference Call Time: 5:00PM ET

LendingTree (NASDAQ:TREE), through its subsidiary, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance. The Home segment offers purchase mortgage, refinance mortgage, and home equity loans and lines of credit; and real estate brokerage services. The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as debt settlement services. The Insurance segment includes information, tools, and access to insurance quote products, including home, automobile, and health and Medicare through which consumers are matched with insurance lead aggregators to obtain insurance offers and policies. In addition, the company offers QuoteWizard, a marketplace for insurance comparison; ValuePenguin, a personal finance website that offers consumers objective analysis on various financial topics from insurance to credit cards; and Stash, a consumer investing and banking platform that offers a suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back rewards program. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was incorporated in 1996 and is based in Charlotte, North Carolina.

LendingTree Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Delivered $250 million in Q2 revenue (+19% YoY) and $31.8 million in adjusted EBITDA (+35%), marking five consecutive periods of EBITDA growth.
• Positive Sentiment: Consumer segment revenue rose 12% with small business loans up 61% and personal loans up 14%, reflecting wider lender buy boxes and strategic sales-force expansion.
• Positive Sentiment: Home vertical revenue climbed 25%, driven by a 38% increase in home equity revenue and the addition of small lenders to improve network coverage.
• Positive Sentiment: Insurance revenue jumped 21% YoY as higher-quality leads and better conversion rates boosted bids and budgets, setting up a record Q3 performance.
• Positive Sentiment: Wide-scale AI adoption—including enterprise GPT for all employees and Snowflake data integration—is streamlining decision-making, enhancing marketing and product development, and expected to drive further efficiency and unit revenue gains.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to the LendingTree, Inc. Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session.

[Operator]

To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 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 & Head - IR, Corporate Development & Treasurer at LendingTree]

Thank you, Didi, and hello to everyone joining us on the call to discuss LendingTree's second quarter twenty twenty five financial results. On with us today are Doug Lebda, LendingTree's Chairman and CEO Scott Paree, COO and President of Marketplace and Jason Bengal, CFO. As a reminder to everyone, last week we pre announced a summary of our quarterly results and our initial financial outlook for the third quarter and updated our 2025 outlook. This evening, we posted a detailed letter to shareholders on our Investor Relations website. And for the purposes of today's discussion, we will assume that listeners have read that letter and we'll focus on Q and a.

[Andrew Wessel, SVP & Head - IR, Corporate Development & Treasurer at LendingTree]

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 that we make are subject to risks and uncertainties and LendingTree's actual results could differ materially from the views expressed today. Many, but not all of the risks we face are described in our periodic reports filed with the SEC. We will also discuss a variety of non GAAP measures on the call. 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. And with that, Doug, please go ahead.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Thanks, Andrew, and thank you to everyone for joining us today for our second quarter update. Overall, I am absolutely thrilled with how the company is performing. In Q2, we delivered another strong quarter marked by double digit growth across all of our three business segments. Profitability is up for the fifth consecutive period over year revenue growth for a company. In short, we are on a roll.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Revenue for the quarter came in at $250,000,000 representing 19% year over year growth. Adjusted EBITDA of $31,800,000 was up 35 from last year. What's causing LendingTree to continue its momentum this quarter is simply being operationally excellent across the board. This has been a key tenant of our 2025 strategy and it has taken shape and initiatives across the company that improved everything from how we build products to streamline decision making to building cost controls into the system. Delving into the specific segments.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

First, consumer delivered 12% revenue growth with segment profit increasing 19%. Notably, small business loan revenue grew 61% and personal loan revenue grew 14%. Personal loan lenders have shown some signs of widening their buy box, but improved execution is the larger driver there. In small business, we made a strategic investment to grow our sales force and it has paid off in more business and more efficiency. I think that small business can be a real growth driver for us.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

In home, revenue climbed 25% driven by a 38% increase in home equity revenue. We have a strategic focus this year on adding more small lenders to the network to fill in gaps and provide better coverage for consumers and that is starting to pay off. I'm really pleased to see home doing so well despite any macro tailwinds. In insurance, the results are awesome. Since the beginning of the year, we have been focused on increasing quality and conversion rates for our clients and that is paying off in higher bids and more budget.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Be it 21% year over year, particularly against an awesome Q2 last year is great momentum for our insurance business. Now AI and its impact on our business has certainly also been top of mind. Eighteen months ago, I told our board and our company that we're going to be an AI first company. And today, effectively, all of our employees are using AI in their day jobs, including having enterprise GPT for everyone. And our multiyear investment in data and Snowflake couldn't have come at a better time.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

As we connect AI to our internal data, we expect to see a lot more efficiency at the company. In marketing, in particular, we are very focused on the future of paid search, organic search, and most importantly, LLM answers. We believe we are well positioned in whatever the future may bring and early data is very, very encouraging. We are also implementing AI in several of our key product initiatives with the aim of providing the right guidance to our customers to make smart decision. AI unlocks potential that has never existed for us before.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Since the founding of the company, we've recognized that getting a loan or an insurance policy as Scott recognized is not just a transaction. It's a highly considered purchase that usually involves conversations over as long as several months. I believe and we believe that AI will enable us to more easily guide customers through these complicated transactions, which I will which I expect will continue to will improve close rates and thus unit revenue and thus revenue and profits to the company overall. For sure, there are still risks out there. At the moment, I believe the opportunities are far greater than the risks.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

I also believe that the deep relationships and integration with our clients isn't easily disintermediated. And in a world with exploding choice, our trusted brand and history with consumers is more relevant than ever. And now operator, we're happy to take questions.

[Operator]

Thank And our first question comes from Ryan Tomasello of KBW. Your line is open.

[Ryan Tomasello, Managing Director at Keefe, Bruyette & Woods (KBW)]

Hi, everyone. Thanks for taking the questions. Quarter, alluded to experiencing some friction, I believe, with one of your carrier partners. So I was hoping you can give us an update on how that's going and if you feel comfortable maintaining historical levels of wallet share there.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Yeah, I wouldn't say friction, but we definitely had to go through a period of adjustment as we talked about. Scott, why don't you talk about that?

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

Yeah, sure. Hi, Ryan. This is Scott Brie. Yeah, as we headed into the first quarter last year, and we were dealing with the single lender consent issues, there wasn't as much friction with the carriers. We had introduced some technical errors in our system that was affecting our traffic and monetization.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

I mentioned that in the last earnings call that we were working through some of those issues. We largely solved the technical issues late Q1, early Q2 and started reinvesting into traffic and growing revenue, getting more into mid to late Q2. And so we exited Q2 with great, really high revenue levels. Q3 will be a record revenue for the insurance division. Our carriers are very happy.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

Almost all of our conversations with carriers right now are how do we drive more traffic, not the opposite. The insurance industry is in a very good spot for us.

[Ryan Tomasello, Managing Director at Keefe, Bruyette & Woods (KBW)]

Great. And then, dovetailing off the prepared remarks, Doug was hoping you can just elaborate on how the company is assessing the evolving search landscape with generative and now GenTick AI. How do you envision Tree playing a role in customer acquisition as consumer behaviors change? Do you view that as more of a risk or an opportunity? What are some of the initiatives underway there? Thanks.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Yeah. So as you can imagine, we're this is something at the top of our agenda. Scott, I know you're close to this and marketing. So why you take that one? And then I will be happy to add comments too.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

Yeah, sure. I mean, to be honest, Ryan, I would call all the Gen AI and the LLMs. Would call more of a huge opportunity than any sort of risk for us. Few big reasons I'd put there. First, as the Gen AI competitors grow in popularity and receive more consumer usage, we'll see the benefit of a new source of traffic.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

We're actually we're already seeing a tangible number of high quality consumers being referred to LendingTree from the likes of ChatGPT, for example. And they're very high quality, very high intent consumers coming through. We're being referenced in their results, and that's why we're getting the traffic. We're also seeing a significant increase in direct type in traffic to the website, which we believe one of the big drivers of that is our presence in AI interviews across the internet. Then our SEO team, obviously, as Doug said in his prepared remarks is very focused on making sure all of our content is is built in and able to be used very well in AI overviews across across the Internet as those are growing in popularity.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

And then obviously as Gen AI companies look advertising to support monetization of their platforms, we'll of course be an aggressive first mover there. Second, I would say Google themselves are a clear leader in the Gen AI space. And obviously, we have a very close relationship with Google and drive a lot of traffic from them. And as Google themselves even said, their search queries have gone up very significantly since they've been introducing more and more AI overviews. And as a reflection of that, we've seen an increase in clicks, both paid and SEO clicks coming to our site.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

And I think a benefit of that is a lot of these clicks are coming through much higher intent than they were before because I think the consumers with AI assistance with these LLMs are getting more of their early questions answered. So by the time they're coming to us they're ready to transact, which is great. Third and the final point I'd make, and this is more of a long term point, is I'm a big believer that Gen I will create more overall comparison shoppers in the marketplace. Products like insurance and financial products are, at the end of the day, complicated products. And it's hard for a lot of consumers to understand these products.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

I believe Gen AI is and will continue to do a good and better job of helping to democratize, to explain these products to consumers. And because of that, consumers are going to become more active shoppers of these products. Whereas today, have a lot of consumers that will just go to the insurance agent they know or go to their local bank branch for these products. I, you know, I I think as it's easier for them to get questions answered and understand these products better, they'll be more active shoppers of which will be a direct beneficiary of. Hopefully, that answers your question.

[Ryan Tomasello, Managing Director at Keefe, Bruyette & Woods (KBW)]

Got it. Thanks, guys. Appreciate the color.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Scott, that The only thing I'd add to that, which Scott, excellent answer is because we don't today have versus our competitors such a dependence on SEO, traditional Google based SEO. It enables us to take to do more testing and opportune and find more opportunities in the early early days of LLMs. And at the same time, because we have enough content enough history and our brands and our reputation, particularly including the acquisitions that we made. We've got a lot of domain authority, and so we're finding ourselves showing up more than more than we would have expected compared to traditional SEO in MLM results.

[Operator]

Thank you. And our next question comes from Jed Kelly of Oppenheimer and Company. Your line is open.

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

Hey, great. Two if I may, then I have a follow-up. Just on the personal loans, can you discuss what's driving the strength there? And what happens if we potentially get an interest rate cut? And then just on the AI topic, can you talk about what it can do to your expense base?

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

And is there ability to sort of reduce that $200,000,000 in expenses lower?

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Scott, why don't you take the first and Jason you take the second and I'll add on.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

All right, sounds good. Jed on personal loans, it's a combination of things. I would start with saying our an absolutely excellent job of executing over the past year plus. With a lot of growth, we've really broadened the network of where we're getting consumers shopping. So we've just we've been we've done a really good job of increasing the number of consumer shopping for personal loans through our network.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

It remains a very popular product out there. And I think we've got a lot of growth opportunities in the future. Mean, is a lot of green shoots we're seeing in different areas where we feel like we can continue significant growth for the foreseeable future. And then secondly, I'd say on the industry standpoint, more and more optimism coming from the lenders. One quick anecdote for you is we track internally the number of actions our lenders take to expand the swath of demographics they're willing to offer loans to versus contracting.

[Scott Peyree, COO & President - Marketplace Businesses at LendingTree]

And in Q2, there was 37 expansions compared to four contractions and opening up the number of loans that are willing to offer to people. So I think that just shows you like in general the industry is they have a strong desire to write more quantities of loans, more total value of loans, and they're starting to be willing to accept more risk while they're writing those loans. And that's happening outside of interest rates dropping. So if interest rates drop, would only accelerate that.

[Jason Bengel, CFO at LendingTree]

Spencer, Jade. Yeah, Jess, I can comment on the expense point. I'm personally really excited about AI. As you know, the expense base and using zero based budgeting break it apart and make sure we're happy with all the pieces of it has been a big priority. I think this is going to take all the work to another level.

[Jason Bengel, CFO at LendingTree]

And so we are getting, like Doug said, we're getting everyone in the company will have a chat GDC license. And it's pretty amazing what you can do. When you think about a custom GPT, what you're able to do with it, it's almost like having your own personal developer. And so when you think about the work that can be automated, it's pretty extensive and it's pretty exciting. And so I think we're really excited internally to point ourselves at goal of just becoming a more productive in our expense base.

[Jason Bengel, CFO at LendingTree]

And so we're trying to work through the details of all that. The goal here is really to get everyone trained on it, so they know how to use it. We may even have like a competition for the best use case to really drive adoption. And then we're going to set ourselves a goal internally to make sure we become more productive with all the work that's happening today, sort of upscale people to stop doing lower skill labor. Let's automate that.

[Jason Bengel, CFO at LendingTree]

And let's free up people to work on sort of the higher skill labor that they'd like to do, but they don't have time to. It's going add a whole lot more value to that.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Yeah. And the way I'd add on is to say, if we expected our business to be the same size, AI could probably, you know, have us run the business with a whole lot fewer people and a whole lot less expense. And it can also enable us to do with the same expense base and or drifting and or coming down as it has, to do 10 times more work and run 50 times more tests and get products in market much faster and know what works much faster and be able to develop stuff at much lower costs. And, you know, it's it's just it the the speed at which I've seen us move just even product development over the last few months and how it's just accelerated since we started on this journey has just has just been incredible. So we wanna keep our employees motivated on just increasing productivity and anything you can automate, you know, automate.

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

And then you go do the higher level work that only you could do. And let's do let's use this as an opportunity to do a lot more work and do a lot more business and make us a lot smarter.

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

Thank you. And then just as a follow-up real quick, I think there was a local competitor that lost a contract. It was like, call it 10%, 15% of their EBITDA. Are you having that same impact? Or that just your competitor's issue? Thank you.

[Jason Bengel, CFO at LendingTree]

Yeah, it's Jason. I can take that one too. We're familiar with the situation. As you know, a value that we provide is on demand customer acquisition. So we don't really have longer term contracts or any longer term committed spend.

[Jason Bengel, CFO at LendingTree]

That's not really our business model. So whatever the specific issue is, it's not affecting us. And I think you can see in the results how well we're performing and how strong our guidance. So it's definitely not an issue for us.

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

Thank you.

[Operator]

Thank you. Our next question comes from Luke Horton of Northland. Your line is open.

[Luke Horton, VP & Senior Research Analyst at Northland Capital Markets]

Yeah. Hey, guys. This is Luke on for Mike Grundahl. Congrats on the quarter.

[Jason Bengel, CFO at LendingTree]

Hi, Luke.

[Luke Horton, VP & Senior Research Analyst at Northland Capital Markets]

Just wanted to touch here on the kind of raised guidance sort of puts and takes either from a macro standpoint, kind of the assumptions baked in here and any sort of trends to call out across the business here in the month of July?

[Jason Bengel, CFO at LendingTree]

It's Jason. I can take that one too. Yeah, I'm happy to take that one. I can kind of go segment by segment like I usually do. Hopefully that's helpful.

[Jason Bengel, CFO at LendingTree]

The big question is rates and are they going to decrease? We're not assuming any change in rates in the current guide. So we're assuming basically continued strength in home equity, which looks like we've talked about performing very, very well. Margin may normalize a little bit upward from where it was in Q2, but generally where we are in Q2 forward. We do expect a seasonal decline in Q4 in the guide.

[Jason Bengel, CFO at LendingTree]

This is a little bit of a departure from Q4 last year, where we had home equity ramp up to the current levels in Q4 last year. So we do expect a little bit of a decline in Q4 this year, whereas last year in Q4, you can see it actually increased. We don't expect that to repeat. Consumer, Scott talked about PL. It's pretty exciting what we're seeing where lenders are growing all this year within their credit boxes, they've been growing originations double digits.

[Jason Bengel, CFO at LendingTree]

Now, we're starting to see them sort of creep out of their credit boxes. That's very encouraging. If credit can start to open, that would be fantastic for the consumer segment. We're not contemplating that in the guide. We're assuming generally current performance forward with a normal seasonal decrease.

[Jason Bengel, CFO at LendingTree]

But I think those macro indications are very encouraging there, would say. Insurance is one area where, as Scott mentioned, we do expect a significant step up. And we're seeing that in July. And this is the July actuals, we'll run ratings significantly higher than where we were in Q2. And this is based on the quality investment that Scott outlined.

[Jason Bengel, CFO at LendingTree]

And we're seeing real results coming through in July. So we do expect a step change in Q3. Margin may be slightly less than where it was in Q2 as it is a competitive environment. Like Scott said, carriers intent on acquiring customers. So it is a pretty hot market and we expect it to continue to be hot.

[Jason Bengel, CFO at LendingTree]

But we do expect strength going forward and significantly higher than Q2. Expenses generally kind of see in the guide is generally where we are Q2 forward. So hopefully that outlines things for you.

[Luke Horton, VP & Senior Research Analyst at Northland Capital Markets]

Yeah, definitely. Was awesome. Really appreciate it and congrats again on the quarter.

[Operator]

Thank you.

[Operator]

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

[Douglas Lebda, Founder, Chairman & CEO at LendingTree]

Thank you all so much. In closing, I am just really proud of our second quarter results and thrilled that they reflect the strength of our business model and the consistency of our execution and the strategic investments we've made to position LendingTree for long term growth. We're delivering measurable value to our partners, we're expanding share across core verticals, driving innovation through thoughtful integration of AI. As we look to the second half of the year, we forecast the strong momentum and our financial results will continue. Thank you again for your continued support and partnership, and I look forward to talking to you again in three months.

[Operator]

This concludes today's conference call. Thank you for participating, and you may now disconnect.

Participants

Executives

• Andrew Wessel, SVP & Head - IR, Corporate Development & Treasurer
• Douglas Lebda, Founder, Chairman & CEO
• Scott Peyree, COO & President - Marketplace Businesses
• Jason Bengel, CFO

Analysts

• Ryan Tomasello, Managing Director at Keefe, Bruyette & Woods (KBW)
• Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.
• Luke Horton, VP & Senior Research Analyst at Northland Capital Markets