LendingTree (NASDAQ:TREE) Posts Earnings Results, Misses Expectations By $0.11 EPS

Key Points

• LendingTree reported EPS of $1.38, missing consensus by $0.11, and revenue of $319.07M (up 36.5% YoY), but delivered a strong operating quarter with Adjusted EBITDA up 71% YoY, the highest quarterly adjusted EBITDA in six years, and reduced net leverage to 2.1x with an S&P upgrade to B+.
• The insurance segment was the primary growth driver (revenue +51% YoY; segment profit +50%), while consumer revenue rose 49% but management flagged softening in personal and SMB loan demand and continued pressure in the home business from elevated mortgage rates; the company is prioritizing organic traffic and AI to improve margins.
• Shares plunged about 21.7% intraday to $38.81 on the headline EPS miss and mixed GAAP vs. adjusted messaging, even as analysts maintain mostly positive ratings (consensus "Moderate Buy" with an average target around $68.60).

LendingTree (NASDAQ:TREE - Get Free Report) released its earnings results on Thursday. The financial services provider reported $1.38 EPS for the quarter, missing analysts' consensus estimates of $1.49 by ($0.11), Zacks reports. LendingTree had a return on equity of 12.44% and a net margin of 13.55%.The business had revenue of $319.07 million during the quarter, compared to the consensus estimate of $321.33 million. During the same quarter in the previous year, the firm earned $0.99 earnings per share. The firm's revenue for the quarter was up 36.5% compared to the same quarter last year.

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

• LendingTree delivered an exceptional Q1 — Adjusted EBITDA grew 71% YoY on 37% revenue growth, posted the highest quarterly adjusted EBITDA in six years, reduced net leverage to 2.1x, and received an S&P upgrade to B+.
• The insurance segment was the primary driver, with revenue up 51% YoY and segment profit up 50% YoY, supported by stronger carrier demand, expanding carrier diversification (including health insurance), and expected continued momentum from increased competition and pricing dynamics.
• Consumer revenue grew 49% YoY (led by small business lending) but management cautioned about recent softening in personal and SMB loan demand—attributed to very low consumer sentiment, higher gas prices, and some lender tightening—and guided conservatively assuming muted seasonality.
• Home remains pressured by elevated mortgage rates and low transaction volumes; management is investing to win higher-quality traffic and expand lender relationships, viewing current results as cyclical lows with upside if rates normalize.
• Management is prioritizing a shift to organic traffic and AI adoption — noting that each 5-point increase in organic mix could add about $40 million of segment profit — and is using AI internally and in customer journeys to improve conversion and reduce costs.

LendingTree Stock Down 21.7%

LendingTree stock traded down $10.78 during trading hours on Friday, hitting $38.81. The company had a trading volume of 1,473,132 shares, compared to its average volume of 362,519. The firm has a market capitalization of $541.40 million, a P/E ratio of 3.62 and a beta of 2.13. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.67 and a quick ratio of 1.67. The firm's fifty day moving average is $42.86 and its 200-day moving average is $50.63. LendingTree has a fifty-two week low of $32.65 and a fifty-two week high of $77.35.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in TREE. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in LendingTree by 5.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,598 shares of the financial services provider's stock valued at $1,188,000 after buying an additional 1,222 shares during the period. Cetera Investment Advisers grew its position in LendingTree by 43.6% in the second quarter. Cetera Investment Advisers now owns 16,039 shares of the financial services provider's stock worth $595,000 after acquiring an additional 4,871 shares in the last quarter. Legal & General Group Plc grew its position in LendingTree by 12.7% in the second quarter. Legal & General Group Plc now owns 10,840 shares of the financial services provider's stock worth $402,000 after acquiring an additional 1,223 shares in the last quarter. Rhumbline Advisers grew its position in LendingTree by 12.6% in the second quarter. Rhumbline Advisers now owns 16,754 shares of the financial services provider's stock worth $621,000 after acquiring an additional 1,875 shares in the last quarter. Finally, American Century Companies Inc. grew its position in LendingTree by 9.3% in the second quarter. American Century Companies Inc. now owns 26,010 shares of the financial services provider's stock worth $964,000 after acquiring an additional 2,217 shares in the last quarter. Institutional investors and hedge funds own 68.26% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. JPMorgan Chase & Co. began coverage on shares of LendingTree in a report on Tuesday, April 14th. They issued an "overweight" rating and a $50.00 target price on the stock. Truist Financial set a $78.00 target price on shares of LendingTree in a research report on Friday. Needham & Company LLC reissued a "buy" rating and issued a $60.00 target price on shares of LendingTree in a research report on Friday. Wall Street Zen raised shares of LendingTree from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of LendingTree from $83.00 to $70.00 and set an "outperform" rating on the stock in a research report on Wednesday, March 4th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $68.60.

Trending Headlines about LendingTree

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Zacks reports TREE’s Q1 results beat estimates, adjusted EBITDA jumped and the company raised its full‑year 2026 outlook — a key driver of the stock’s intraday strength. LendingTree Q1 Earnings Top Estimates, Stock Up, 2026 Outlook Raised
• Positive Sentiment: Company press release: record quarterly revenue of $327.3M, GAAP net income of $17.3M ($1.22/sh), and adjusted EBITDA of $42.0M — strong top‑line growth (yr/yr) underpinning the upbeat outlook. LENDINGTREE REPORTS FIRST QUARTER 2026 RESULTS
• Positive Sentiment: Needham reaffirmed its “buy” rating and set a $60 price target, signaling analyst confidence and giving the stock notable upside potential. Benzinga
• Neutral Sentiment: The company provided Q2 revenue guidance of roughly $305M–$325M and FY2026 revenue guidance of $1.3B–$1.4B (around street estimates), so guidance is not materially out of line but leaves room for upside/downside within the range.
• Neutral Sentiment: Investors can read the full Q1 earnings call transcript for color on product performance, marketing, and margin dynamics. Earnings Call Transcript
• Negative Sentiment: Some outlets reported a headline EPS miss (MarketBeat: $1.38 vs. $1.49 consensus), reflecting differences between GAAP and adjusted figures — this mixed messaging likely contributed to selling pressure and intraday volatility. MarketBeat Earnings Summary

LendingTree Company Profile

LendingTree, Inc operates an online marketplace that connects consumers with a network of lenders and financial service providers. Through its platform, borrowers can compare loan offers for mortgages, home equity loans, personal loans, student loans, auto loans and small business financing. The company also offers tools for comparing credit cards and deposit accounts, allowing users to research rates and terms from a range of providers in one place.

Founded in 1996 by Doug Lebda, LendingTree pioneered the comparison-shopping model for consumer credit products.

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