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LENDINGTREE REPORTS FIRST QUARTER 2025 RESULTS

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LendingTree (NASDAQ: TREE) reported Q1 2025 results with revenue growth across all segments. Total revenue reached $239.7 million, up 43% YoY. Key segment performance includes: • Home segment: Revenue of $37.0M (+22% YoY), with Home Equity revenue up 24% • Consumer segment: Revenue of $56.0M (+9% YoY), with personal loans up 16% • Insurance segment: Revenue of $146.7M (+71% YoY) The company reported a GAAP net loss of $(12.4) million, or $(0.92) per share, impacted by a $15M litigation reserve increase. Adjusted EBITDA grew 14% YoY to $24.6 million, while adjusted net income per share reached $0.99. The company updated its FY2025 guidance, projecting revenue of $955-$995 million and adjusted EBITDA of $116-$124 million.
LendingTree (NASDAQ: TREE) ha comunicato i risultati del primo trimestre 2025 con una crescita dei ricavi in tutti i segmenti. Il fatturato totale ha raggiunto 239,7 milioni di dollari, in aumento del 43% su base annua. Le performance principali per segmento includono: • Segmento Casa: ricavi di 37,0 milioni di dollari (+22% su base annua), con i ricavi da Home Equity in crescita del 24% • Segmento Consumatori: ricavi di 56,0 milioni di dollari (+9% su base annua), con i prestiti personali in aumento del 16% • Segmento Assicurazioni: ricavi di 146,7 milioni di dollari (+71% su base annua) L'azienda ha registrato una perdita netta GAAP di 12,4 milioni di dollari, pari a 0,92 dollari per azione, influenzata da un incremento di 15 milioni di dollari nella riserva per contenziosi. L'EBITDA rettificato è cresciuto del 14% su base annua, raggiungendo 24,6 milioni di dollari, mentre l'utile netto rettificato per azione si è attestato a 0,99 dollari. La società ha aggiornato le previsioni per l'intero anno fiscale 2025, prevedendo ricavi tra 955 e 995 milioni di dollari e un EBITDA rettificato tra 116 e 124 milioni di dollari.
LendingTree (NASDAQ: TREE) reportó los resultados del primer trimestre de 2025 con crecimiento de ingresos en todos los segmentos. Los ingresos totales alcanzaron 239,7 millones de dólares, un aumento del 43% interanual. El desempeño clave por segmento incluye: • Segmento Hogar: ingresos de 37,0 millones de dólares (+22% interanual), con ingresos de Home Equity que aumentaron un 24% • Segmento Consumidor: ingresos de 56,0 millones de dólares (+9% interanual), con préstamos personales que crecieron un 16% • Segmento Seguros: ingresos de 146,7 millones de dólares (+71% interanual) La compañía reportó una pérdida neta GAAP de 12,4 millones de dólares, o 0,92 dólares por acción, afectada por un aumento de 15 millones de dólares en reservas para litigios. El EBITDA ajustado creció un 14% interanual hasta 24,6 millones de dólares, mientras que la utilidad neta ajustada por acción alcanzó 0,99 dólares. La empresa actualizó su guía para el año fiscal 2025, proyectando ingresos entre 955 y 995 millones de dólares y un EBITDA ajustado entre 116 y 124 millones de dólares.
LendingTree (NASDAQ: TREE)는 2025년 1분기 실적을 발표하며 모든 부문에서 매출 성장을 기록했습니다. 총 매출은 2억 3,970만 달러로 전년 대비 43% 증가했습니다. 주요 부문별 실적은 다음과 같습니다: • 주택 부문: 매출 3,700만 달러(+22% 전년 대비), 주택담보대출 매출 24% 증가 • 소비자 부문: 매출 5,600만 달러(+9% 전년 대비), 개인 대출 16% 증가 • 보험 부문: 매출 1억 4,670만 달러(+71% 전년 대비) 회사는 1,240만 달러(주당 0.92달러)의 GAAP 순손실을 보고했으며, 이는 1,500만 달러의 소송 준비금 증가에 영향을 받았습니다. 조정 EBITDA는 전년 대비 14% 증가한 2,460만 달러를 기록했고, 조정 주당순이익은 0.99달러에 달했습니다. 회사는 2025 회계연도 가이던스를 업데이트하여 매출 9억 5,500만~9억 9,500만 달러, 조정 EBITDA 1억 1,600만~1억 2,400만 달러를 전망했습니다.
LendingTree (NASDAQ : TREE) a publié ses résultats du premier trimestre 2025 avec une croissance du chiffre d'affaires dans tous les segments. Le chiffre d'affaires total a atteint 239,7 millions de dollars, en hausse de 43 % sur un an. Les performances clés par segment sont les suivantes : • Segment Habitat : chiffre d'affaires de 37,0 millions de dollars (+22 % sur un an), avec une hausse de 24 % des revenus Home Equity • Segment Consommateurs : chiffre d'affaires de 56,0 millions de dollars (+9 % sur un an), avec une augmentation de 16 % des prêts personnels • Segment Assurance : chiffre d'affaires de 146,7 millions de dollars (+71 % sur un an) La société a enregistré une perte nette GAAP de 12,4 millions de dollars, soit 0,92 dollar par action, impactée par une augmentation de 15 millions de dollars de la réserve pour litiges. L'EBITDA ajusté a progressé de 14 % sur un an pour atteindre 24,6 millions de dollars, tandis que le bénéfice net ajusté par action s'est établi à 0,99 dollar. L'entreprise a mis à jour ses prévisions pour l'exercice 2025, prévoyant un chiffre d'affaires compris entre 955 et 995 millions de dollars et un EBITDA ajusté entre 116 et 124 millions de dollars.
LendingTree (NASDAQ: TREE) meldete die Ergebnisse für das erste Quartal 2025 mit Umsatzwachstum in allen Segmenten. Der Gesamtumsatz erreichte 239,7 Millionen US-Dollar, ein Anstieg von 43 % gegenüber dem Vorjahr. Die wichtigsten Segmentergebnisse umfassen: • Wohnsegment: Umsatz von 37,0 Mio. USD (+22 % gegenüber Vorjahr), mit einem Anstieg der Home-Equity-Einnahmen um 24 % • Verbrauchersegment: Umsatz von 56,0 Mio. USD (+9 % gegenüber Vorjahr), mit einem Anstieg der Privatkredite um 16 % • Versicherungssegment: Umsatz von 146,7 Mio. USD (+71 % gegenüber Vorjahr) Das Unternehmen meldete einen GAAP-Nettogewinn von −12,4 Millionen US-Dollar bzw. −0,92 US-Dollar pro Aktie, was durch eine Erhöhung der Rückstellung für Rechtsstreitigkeiten um 15 Mio. USD beeinflusst wurde. Das bereinigte EBITDA stieg um 14 % gegenüber dem Vorjahr auf 24,6 Millionen US-Dollar, während der bereinigte Nettogewinn pro Aktie 0,99 US-Dollar erreichte. Das Unternehmen aktualisierte seine Prognose für das Geschäftsjahr 2025 und erwartet Umsätze zwischen 955 und 995 Millionen US-Dollar sowie ein bereinigtes EBITDA von 116 bis 124 Millionen US-Dollar.
Positive
  • Revenue growth across all three business segments, with total revenue up 43% YoY to $239.7M
  • Insurance segment revenue surged 71% YoY to $146.7M
  • Home Equity revenue increased 24% YoY
  • Adjusted EBITDA grew 14% YoY to $24.6M
  • Small business offering revenue increased 48% YoY
Negative
  • GAAP net loss of $12.4M or $(0.92) per share
  • $15M increase in litigation reserve for Mantha case settlement
  • Reduced full-year 2025 revenue guidance from $985-$1,025M to $955-$995M
  • Variable marketing margin % declined from 41% to 32% YoY

Insights

Strong revenue growth across all segments, but GAAP net loss due to litigation reserves and reduced 2025 guidance signal mixed performance.

LendingTree's Q1 2025 results present a mixed financial picture with notable strengths in top-line growth counterbalanced by profitability challenges. The 43% year-over-year revenue increase to $239.7 million demonstrates robust demand across all business segments, with the Insurance segment leading at an impressive 71% growth to $146.7 million.

However, the GAAP net loss of $12.4 million ($0.92 per diluted share) reflects significant headwinds, primarily the $15 million litigation reserve increase for the Mantha case settlement. Looking at adjusted metrics tells a more positive operational story, with Adjusted EBITDA growing 14% to $24.6 million and adjusted net income per share reaching $0.99.

Concerning trends emerge in marketing efficiency, with variable marketing expenses surging 65% year-over-year while variable marketing margin grew only 12%. This compressed the variable marketing margin percentage from 41% to 32%, suggesting higher customer acquisition costs.

Segment performance shows varying profitability patterns. The Home segment demonstrated healthy growth with improving margins (32% to 35%), while the Consumer segment showed modest revenue growth with declining margin percentages. Most notably, Insurance delivered exceptional revenue growth but with significant margin compression (segment profit % declining from 39% to 26%).

Management's decision to lower full-year 2025 guidance despite strong Q1 revenue performance signals potential challenges ahead. The revised revenue projection of $955-$995 million (down from $985-$1,025 million) suggests headwinds in future quarters that warrant investor attention.

The $15M litigation reserve for the Mantha case settlement directly transformed potential profits into a quarterly loss.

The $15 million increase in LendingTree's litigation reserve represents a significant financial event that materially impacted the company's Q1 2025 performance. This provision, specifically designated for the Mantha case, was the primary factor that transformed what would have been a positive earnings report into a GAAP net loss of $12.4 million.

The timing and nature of this reserve increase are particularly noteworthy. The press release specifies this follows "a preliminary agreement on the terms of settlement... following mediation, which is not final and subject to approval by the court." This language indicates LendingTree has reached a tentative resolution that requires judicial approval before becoming binding.

From a legal risk management perspective, this development represents progress toward resolving a contingent liability. While the immediate financial impact is substantial for the quarter, the preliminary settlement could actually reduce uncertainty for LendingTree moving forward by capping potential damages and providing more predictable financial outcomes.

Looking at the broader context in the financial tables, "litigation settlements and contingencies" increased dramatically from just $36,000 in Q1 2024 to $15.2 million in Q1 2025. This indicates the Mantha case represents an exceptional legal expense rather than part of ongoing litigation patterns.

Investors should note that while this settlement impacts current earnings, the resolution of significant litigation can often remove overhanging legal uncertainty that might otherwise constrain share price performance or business operations over a longer period.

Revenue Growth Across All Segments Driving Solid Performance

  • Consolidated revenue of $239.7 million
  • GAAP net income of $(12.4) million or $(0.92) per diluted share
  • Variable marketing margin of $77.7 million
  • Adjusted EBITDA of $24.6 million
  • Adjusted net income per share of $0.99

CHARLOTTE, N.C., May 1, 2025 /PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation's leading online financial services marketplace, today announced results for the quarter ended March 31, 2025.

The company has posted a letter to shareholders on the company's website at investors.lendingtree.com.

"We are happy to report quarterly AEBITDA grew 14% YoY.  The first quarter's results, driven by YoY revenue growth in all three of our business segments, exemplifies the durability of the ongoing improvement in our financial performance," said Doug Lebda, Chairman and CEO.

Scott Peyree, President and COO, commented, "Our commitment to operational excellence is steadily delivering numerous wins across the company.  Executing on these various initiatives has helped to broaden growth across all three of our segments."

Jason Bengel, CFO, added, "The business continues to perform well, helping to fortify our balance sheet.  We remain focused on carefully managing our fixed costs while strategically investing in discrete growth initiatives.  This ongoing commitment to discipline and accountability is becoming ingrained across the company, establishing a culture of efficiency as we move forward."

First Quarter 2025 Business Highlights

  • Home segment revenue of $37.0 million increased 22% over first quarter 2024 and produced segment profit of $13.1 million, up 36% from the same period.
    • Within Home, revenue from Home Equity of $25.8 million increased 24% over prior year.
  • Consumer segment revenue of $56.0 million increased 9% from first quarter 2024.
    • Within Consumer, personal loans revenue of $23.4 million grew 16% over prior year.
    • Revenue from our small business offering increased 48% over prior year.
  • Insurance segment revenue of $146.7 million increased 71% over first quarter 2024 and translated into segment profit of $38.7 million, up 16% over the same period.
  • GAAP net income was $(12.4) million, or $(0.92) per diluted share, inclusive of a $15M increase in our litigation reserve following a preliminary agreement on the terms of settlement in the Mantha case, following mediation, which is not final and subject to approval by the court.

 

LendingTree Summary Financial Metrics

(In millions, except per share amounts)














Three Months Ended

March 31,


Y/Y



Three Months Ended
December 31,


Q/Q



2025


2024


% Change



2024


% Change














Total revenue

$    239.7


$    167.8


43 %



$                     261.5


(8) %














(Loss) income before income taxes

$     (14.8)


$        1.6


(1025) %



$                         9.1


(263) %


Income tax benefit (expense)

$        2.4


$       (0.6)


(500) %



$                        (1.6)


(250) %


Net (loss) income

$     (12.4)


$        1.0


(1340) %



$                         7.5


(265) %


Net (loss) income % of revenue

(5) %


1 %





3 %
















(Loss) income per share












Basic

$     (0.92)


$      0.08





$                       0.56




Diluted

$     (0.92)


$      0.08





$                       0.55
















Variable marketing margin












Total revenue

$     239.7


$    167.8


43 %



$                     261.5


(8) %


Variable marketing expense (1) (2)

$    (162.0)


$    (98.4)


65 %



$                    (174.8)


(7) %


Variable marketing margin (2)

$       77.7


$      69.4


12 %



$                       86.7


(10) %


Variable marketing margin % of revenue (2)

32 %


41 %





33 %
















Adjusted EBITDA (2)

$       24.6


$      21.6


14 %



$                       32.2


(24) %


Adjusted EBITDA % of revenue (2)

10 %


13 %





12 %
















Adjusted net income (2)

$       13.5


$        9.2


47 %



$                       15.8


(15) %














Adjusted net income per share (2)

$       0.99


$      0.70


41 %



$                       1.16


(15) %
















(1)

Represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses.  Excludes overhead, fixed costs and personnel-related expenses. 

(2)

Variable marketing expense, variable marketing margin, variable marketing margin % of revenue, adjusted EBITDA, adjusted EBITDA % of revenue, adjusted net income and adjusted net income per share are non-GAAP measures. Please see "LendingTree's Reconciliation of Non-GAAP Measures to GAAP" and "LendingTree's Principles of Financial Reporting" below for more information.

 

LendingTree Segment Results

(In millions)














Three Months Ended

March 31,


Y/Y



Three Months Ended
December 31,


Q/Q



2025


2024


% Change



2024


% Change


Home (1)












Revenue

$       37.0


$      30.4


22 %



$                       34.0


9 %


Segment profit

$       13.1


$        9.6


36 %



$                       11.7


12 %


Segment profit % of revenue

35 %


32 %





34 %
















Consumer (2)












Revenue

$       56.0


$      51.5


9 %



$                       55.6


1 %


Segment profit

$       27.1


$      27.4


(1) %



$                       28.2


(4) %


Segment profit % of revenue

48 %


53 %





51 %
















Insurance (3)












Revenue

$     146.7


$      85.9


71 %



$                     171.7


(15) %


Segment profit

$       38.7


$      33.4


16 %



$                       48.0


(19) %


Segment profit % of revenue

26 %


39 %





28 %
















Other (4)












Revenue

$          —


$          —


— %



$                         0.2


(100) %


Profit (loss)

$          —


$          —


— %



$                           —


— %














Total revenue

$     239.7


$    167.8


43 %



$                     261.5


(8) %














Total segment profit

$       79.0


$      70.5


12 %



$                       87.9


(10) %


     Brand marketing expense (5)

$        (1.3)


$       (1.1)


18 %



$                        (1.2)


8 %


Variable marketing margin

$       77.7


$      69.4


12 %



$                       86.7


(10) %


Variable marketing margin % of revenue

32 %


41 %





33 %


















(1)

The Home segment includes the following products: purchase mortgage, refinance mortgage, and home equity loans.

(2)

The Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and debt settlement. We ceased offering the student loan product in Q1 2025.

(3)

The Insurance segment consists of insurance quote products and sales of insurance policies.

(4)

The Other category primarily includes marketing revenue and related expenses not allocated to a specific segment.

(5)

Brand marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses that are not assignable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses.

Financial Outlook*

Today we are updating our full-year 2025 outlook and introducing our outlook for the second-quarter.

Full-year 2025:

  • Revenue of $955 - $995 million compared to the prior range of $985 - $1,025 million
  • Variable Marketing Margin of $319 - $332 million compared to $319 - $336 million previously
  • Adjusted EBITDA of $116 - $124 million versus the $116 - $126 million prior range

Second-quarter 2025:

  • Revenue: $241 - $248 million
  • Variable Marketing Margin: $80 - $84 million
  • Adjusted EBITDA: $29 - $31 million

*LendingTree is not able to provide a reconciliation of projected variable marketing margin or adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters and tax considerations. Expenses associated with legal matters and tax considerations have in the past, and may in the future, significantly affect GAAP results in a particular period.   

Quarterly Conference Call

A conference call to discuss LendingTree's first quarter 2025 financial results will be webcast live today, May 1, 2025, at 5:00 PM Eastern Time (ET). The live audiocast is open to the public and will be available on LendingTree's investor relations website at investors.lendingtree.com.  Following completion of the call, a recorded replay of the webcast will be available on the website.

LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Variable Marketing Expense

Below is a reconciliation of selling and marketing expense, the most directly comparable GAAP measure, to variable marketing expense. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of this non-GAAP measure.


Three Months Ended


March 31,
2025

December 31,
2024

March 31,
2024


(in thousands)

Selling and marketing expense

$      172,751

$      185,858

$      108,176

Non-variable selling and marketing expense (1)

(10,750)

(11,084)

(9,855)

Variable marketing expense

$      162,001

$      174,774

$        98,321



(1)

Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.

LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Variable Marketing Margin

Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to variable marketing margin and net (loss) income % of revenue to variable marketing margin % of revenue. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.


Three Months Ended


March 31,
2025

December 31,
2024

March 31,
2024


(in thousands, except percentages)

Net (loss) income

$     (12,375)

$          7,506

$          1,016

Net (loss) income % of revenue

(5) %

3 %

1 %





Adjustments to reconcile to variable marketing margin:




Cost of revenue

9,908

9,744

8,545

Non-variable selling and marketing expense (1)

10,750

11,084

9,855

General and administrative expense

30,660

29,111

25,796

Product development

11,904

12,937

11,857

Depreciation

4,297

4,448

4,667

Amortization of intangibles

1,307

1,467

1,489

Restructuring and severance

798

10

23

Litigation settlements and contingencies

15,212

6

36

Interest expense, net

9,084

9,950

6,638

Other income

(1,388)

(1,143)

(1,034)

Income tax (benefit) expense

(2,430)

1,628

559

Variable marketing margin

$        77,727

$        86,748

$        69,447

Variable marketing margin % of revenue

32 %

33 %

41 %



(1)

Represents the portion of selling and marketing expense not attributable to variable costs paid for advertising, direct marketing and related expenses. Includes overhead, fixed costs and personnel-related expenses.

LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Adjusted EBITDA

Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to adjusted EBITDA and net (loss) income % of revenue to adjusted EBITDA % of revenue. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.


Three Months Ended


March 31,
2025

December 31,
2024

March 31,
2024


(in thousands, except percentages)

Net (loss) income

$     (12,375)

$          7,506

$          1,016

Net (loss) income % of revenue

(5) %

3 %

1 %

Adjustments to reconcile to adjusted EBITDA:




Amortization of intangibles

1,307

1,467

1,489

Depreciation

4,297

4,448

4,667

Restructuring and severance

798

10

23

Loss on impairments and disposal of assets

254

1,797

368

Non-cash compensation

9,867

6,494

7,789

Litigation settlements and contingencies

15,212

6

36

Interest expense, net

9,084

9,950

6,638

Dividend income

(1,388)

(1,144)

(1,034)

Income tax (benefit) expense

(2,430)

1,628

559

Adjusted EBITDA

$        24,626

$        32,162

$        21,551

Adjusted EBITDA % of revenue

10 %

12 %

13 %

LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP

Adjusted Net Income

Below is a reconciliation of net (loss) income, the most directly comparable table GAAP measure, to adjusted net income and net (loss) income per diluted share to adjusted net income per share. See "LendingTree's Principles of Financial Reporting" for further discussion of the Company's use of these non-GAAP measures.


Three Months Ended


March 31,
2025

December 31,
2024

March 31,
2024


(in thousands, except per share amounts)

Net (loss) income

$     (12,375)

$          7,506

$          1,016

Adjustments to reconcile to adjusted net income:




Restructuring and severance

798

10

23

Loss on impairments and disposal of assets

254

1,797

368

Non-cash compensation

9,867

6,494

7,789

Litigation settlements and contingencies

15,212

6

36

Gain on extinguishment of debt

(266)

Adjusted net income

$      13,490

$        15,813

$          9,232





Net (loss) income per diluted share

$         (0.92)

$            0.55

$            0.08

Adjustments to reconcile net (loss) income to adjusted net income

1.92

0.61

0.62

Adjustments to reconcile effect of dilutive securities

(0.01)

Adjusted net income per share

$          0.99

$            1.16

$            0.70





Adjusted weighted average diluted shares outstanding

13,686

13,591

13,276

Effect of dilutive securities

245

Weighted average diluted shares outstanding

13,441

13,591

13,276

Effect of dilutive securities

224

176

Weighted average basic shares outstanding

13,441

13,367

13,100

LENDINGTREE'S PRINCIPLES OF FINANCIAL REPORTING

LendingTree reports the following non-GAAP measures as supplemental to GAAP:

  • Variable marketing expense
  • Variable marketing margin
  • Variable marketing margin % of revenue
  • Earnings Before Interest, Taxes, Depreciation and Amortization, as adjusted for certain items discussed below ("Adjusted EBITDA")
  • Adjusted EBITDA % of revenue
  • Adjusted net income
  • Adjusted net income per share

Variable marketing expense, variable marketing margin and variable marketing margin % of revenue are related measures of the effectiveness of the Company's marketing efforts. Variable marketing expense represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing, and related expenses, and excludes overhead, fixed costs, and personnel-related expenses. Variable marketing margin is a measure of the efficiency of the Company's operating model, measuring revenue after subtracting variable marketing expense. The Company's operating model is highly sensitive to the amount and efficiency of variable marketing expenditures, and the Company's proprietary systems are able to make rapidly changing decisions concerning the deployment of variable marketing expenditures (primarily but not exclusively online and mobile advertising placement) based on proprietary and sophisticated analytics.

Adjusted EBITDA and adjusted EBITDA % of revenue are primary metrics by which LendingTree evaluates the operating performance of its businesses, on which its marketing expenditures and internal budgets are based and, in the case of adjusted EBITDA, by which management and many employees are compensated in most years.

Adjusted net income and adjusted net income per share supplement GAAP net income and GAAP net income per diluted share by enabling investors to make period to period comparisons of those components of the most directly comparable GAAP measures that management believes better reflect the underlying financial performance of the Company's business operations during particular financial reporting periods. Adjusted net income and adjusted net income per share exclude certain amounts, such as non-cash compensation, non-cash asset impairment charges, gain/loss on disposal of assets, gain/loss on investments, restructuring and severance, litigation settlements and contingencies, acquisition and disposition income or expenses including with respect to changes in fair value of contingent consideration, gain/loss on extinguishment of debt, contributions to the LendingTree Foundation, one-time items which are recognized and recorded under GAAP in particular periods but which might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded, the effects to income taxes of the aforementioned adjustments, any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and income tax (benefit) expense from a full valuation allowance. LendingTree believes that adjusted net income and adjusted net income per share are useful financial indicators that provide a different view of the financial performance of the Company than adjusted EBITDA (the primary metric by which LendingTree evaluates the operating performance of its businesses) and the GAAP measures of net income and GAAP net income per diluted share.

These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. LendingTree provides and encourages investors to examine the reconciling adjustments between the GAAP and non-GAAP measures set forth above.

Definition of LendingTree's Non-GAAP Measures

Variable marketing margin is defined as revenue less variable marketing expense. Variable marketing expense is defined as the expense attributable to variable costs paid for advertising, direct marketing and related expenses, and excluding overhead, fixed costs and personnel-related expenses. The majority of these variable advertising costs are expressly intended to drive traffic to our websites and these variable advertising costs are included in selling and marketing expense on the Company's consolidated statements of operations and consolidated income.

EBITDA is defined as net income excluding interest, income taxes, amortization of intangibles and depreciation.

Adjusted EBITDA is defined as EBITDA excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) contributions to the LendingTree Foundation (9) dividend income, and (10) one-time items.

Adjusted net income is defined as net (loss) income excluding (1) non-cash compensation expense, (2) non-cash impairment charges, (3) gain/loss on disposal of assets, (4) gain/loss on investments, (5) restructuring and severance expenses, (6) litigation settlements and contingencies, (7) acquisitions and dispositions income or expense (including with respect to changes in fair value of contingent consideration), (8) gain/loss on extinguishment of debt, (9) contributions to the LendingTree Foundation, (10) one-time items, (11) the effects to income taxes of the aforementioned adjustments, (12) any excess tax benefit or expense associated with stock-based compensation recorded in net income in conjunction with FASB pronouncement ASU 2016-09, and (13) income tax (benefit) expense from a full valuation allowance.

Adjusted net income per share is defined as adjusted net income divided by the adjusted weighted average diluted shares outstanding. For periods which the Company reports GAAP loss, the effects of potentially dilutive securities are excluded from the calculation of net loss per diluted share because their inclusion would have been anti-dilutive. In periods where the Company reports GAAP loss but reports positive non-GAAP adjusted net income, the effects of potentially dilutive securities are included in the denominator for calculating adjusted net income per share if their inclusion would be dilutive.

LendingTree endeavors to compensate for the limitations of these non-GAAP measures by also providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

One-Time Items

Adjusted EBITDA and adjusted net income are adjusted for one-time items, if applicable. Items are considered one-time in nature if they are non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. For the periods presented in this report, there are no adjustments for one-time items.

Non-Cash Expenses That Are Excluded From LendingTree's Adjusted EBITDA and Adjusted Net Income

Non-cash compensation expense consists principally of expense associated with the grants of restricted stock, restricted stock units and stock options. These expenses are not paid in cash and LendingTree includes the related shares in its calculations of fully diluted shares outstanding. Upon settlement of restricted stock units, exercise of certain stock options or vesting of restricted stock awards, the awards may be settled on a net basis, with LendingTree remitting the required tax withholding amounts from its current funds. Cash expenditures for employer payroll taxes on non-cash compensation are included within adjusted EBITDA and adjusted net income.

Amortization of intangibles are non-cash expenses relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as purchase agreements, technology and customer relationships, are valued and amortized over their estimated lives.  Amortization of intangibles are only excluded from adjusted EBITDA.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The matters contained in the discussion above may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations or anticipations of LendingTree and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: adverse conditions in the primary and secondary mortgage markets and in the economy, particularly interest rates and inflation; default rates on loans, particularly unsecured loans; demand by investors for unsecured personal loans; the effect of such demand on interest rates for personal loans and consumer demand for personal loans; seasonality of results; potential liabilities to secondary market purchasers; changes in the Company's relationships with network partners, including dependence on certain key network partners; breaches of network security or the misappropriation or misuse of personal consumer information; failure to provide competitive service; failure to maintain brand recognition; ability to attract and retain consumers in a cost-effective manner; the effects of potential acquisitions of other businesses, including the ability to integrate them successfully with LendingTree's existing operations; accounting rules related to excess tax benefits or expenses on stock-based compensation that could materially affect earnings in future periods; ability to develop new products and services and enhance existing ones; competition; effects of changing laws, rules or regulations on our business model; allegations of failure to comply with existing or changing laws, rules or regulations, or to obtain and maintain required licenses; failure of network partners or other affiliated parties to comply with regulatory requirements; failure to maintain the integrity of systems and infrastructure; liabilities as a result of privacy regulations; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; and changes in management. These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the period ended December 31, 2024, and in our other filings with the Securities and Exchange Commission. LendingTree undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.

About LendingTree, Inc.

LendingTree, Inc. is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, "LendingTree" or the "Company").

LendingTree is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially.  LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of over 430 financial partners.  Since its founding, LendingTree has helped millions of customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins.

LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com.

Investor Relations Contact:
investors@lendingtree.com

Media Contact:
press@lendingtree.com

 

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SOURCE LendingTree, Inc.

FAQ

What were LendingTree's (TREE) key financial results for Q1 2025?

LendingTree reported Q1 2025 revenue of $239.7M (+43% YoY), a net loss of $12.4M, and adjusted EBITDA of $24.6M (+14% YoY). Adjusted net income per share was $0.99.

Why did LendingTree (TREE) report a net loss in Q1 2025?

The $12.4M net loss was primarily due to a $15M increase in litigation reserve following a preliminary settlement agreement in the Mantha case.

How did LendingTree's (TREE) different segments perform in Q1 2025?

Home segment revenue grew 22% to $37M, Consumer segment increased 9% to $56M, and Insurance segment surged 71% to $146.7M YoY.

What is LendingTree's (TREE) updated guidance for 2025?

LendingTree revised its FY2025 guidance to revenue of $955-$995M, Variable Marketing Margin of $319-$332M, and Adjusted EBITDA of $116-$124M.

How much did LendingTree's (TREE) Insurance segment grow in Q1 2025?

The Insurance segment revenue grew 71% YoY to $146.7M, with segment profit increasing 16% to $38.7M.
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