LendingTree (NASDAQ:TREE) Issues Quarterly Earnings Results, Misses Estimates By $6.41 EPS

Key Points

• LendingTree reported EPS of -$5.15, missing the $1.26 consensus estimate by $6.41, while quarterly revenue of $343.59 million topped analysts’ $329.72 million forecast.
• Management said results exceeded company guidance and updated full-year outlook implies about 14% adjusted EBITDA growth, despite ongoing mortgage-market headwinds.
• Insurance remains a key growth driver, and small-business lending improved sequentially; the company also plans to pay down debt and begin share repurchases in Q4.

LendingTree (NASDAQ:TREE - Get Free Report) released its earnings results on Tuesday. The financial services provider reported ($5.15) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.26 by ($6.41), FiscalAI reports. LendingTree had a net margin of 14.33% and a return on equity of 14.57%. The company had revenue of $343.59 million during the quarter, compared to analyst estimates of $329.72 million.

Here are the key takeaways from LendingTree's conference call:

• Q3 results exceeded guidance, and updated full-year guidance implies approximately 14% adjusted EBITDA growth despite mortgage headwinds. Management also highlighted a 25% EBITDA CAGR since 2023 and continued expense discipline, with costs expected to grow roughly in line with inflation.
• The insurance business remains a major growth driver, supported by strong carrier profitability, increasing client budgets, successful integration of a new bidding platform, and potential market-share gains. Management expects favorable industry conditions to persist through 2028 and beyond barring a major shift in inflation or pricing.
• Small-business lending recovered sequentially from its Q2 trough, with September and October producing the strongest SMB concierge sales since January. Lender sentiment has improved, although merchant take rates and average loan sizes remain below the Q4 2025 and Q1 2026 peaks.
• Mortgage remains challenging because of higher long-term interest rates and depressed home-sale activity, but management reported year-over-year growth and sees home equity and HELOC products as less rate-sensitive opportunities. The company also expects additional growth from organic traffic, social channels, publishers, and logged-in users.
• LendingTree plans to expand AI-driven shopping tools, personalized recommendations, and agentic capabilities across its product categories in 2027, while arguing that its broad lender and carrier network provides a structural advantage over general-purpose LLMs. With trailing-twelve-month free cash flow of about $100 million excluding litigation, the company plans to continue paying down debt and begin buying back shares in Q4.

LendingTree Stock Performance

LendingTree stock traded up $1.79 during midday trading on Tuesday, reaching $28.87. The stock had a trading volume of 1,103,466 shares, compared to its average volume of 347,861. LendingTree has a 12 month low of $23.50 and a 12 month high of $68.93. The firm has a market capitalization of $405.33 million, a PE ratio of 2.24 and a beta of 2.04. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 1.20. The firm's 50-day moving average price is $26.42 and its 200 day moving average price is $38.16.

Wall Street Analysts Forecast Growth

TREE has been the topic of a number of recent analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of LendingTree in a research report on Monday, September 21st. Needham & Company LLC decreased their price target on LendingTree from $60.00 to $45.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Truist Financial cut their target price on shares of LendingTree from $78.00 to $70.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Wall Street Zen cut LendingTree from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. Finally, Northland Securities set a $60.00 price target on shares of LendingTree in a report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, LendingTree currently has a consensus rating of "Moderate Buy" and a consensus price target of $56.60.

About LendingTree

LendingTree, Inc operates an online marketplace that helps consumers compare financial products and services from a network of lenders, insurers and other providers. Its platform is designed to connect shoppers with potential offers based on their financial needs and preferences.

The company's marketplace includes products such as mortgages and other home loans, personal loans, business loans, auto loans, credit cards, insurance and deposit accounts. LendingTree also provides educational content, comparison tools and financial guidance intended to help consumers evaluate borrowing, insurance and saving options.

Founded in 1996 by Doug Lebda, LendingTree is headquartered in Charlotte, North Carolina, and primarily serves consumers in the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.