LENDINGTREE REPORTS SECOND QUARTER 2025 RESULTS
LendingTree (NASDAQ: TREE) reported strong Q2 2025 financial results with revenue of $250.1 million, up 19% year-over-year. The company achieved GAAP net income of $8.9 million ($0.65 per diluted share) and Adjusted EBITDA of $31.8 million, up 35% YoY.
All three business segments showed double-digit growth: Insurance revenue grew 21% to $147.2 million, Consumer segment increased 12% to $62.5 million, and Home segment rose 25% to $40.4 million. The company's net leverage improved to 3x from 5x year-over-year.
For Q3 2025, LendingTree expects revenue of $273-281 million and Adjusted EBITDA of $34-36 million. Full-year 2025 guidance projects revenue of $1.0-1.05 billion with Adjusted EBITDA of $119-126 million.
LendingTree (NASDAQ: TREE) ha riportato solidi risultati finanziari nel secondo trimestre 2025 con ricavi pari a 250,1 milioni di dollari, in crescita del 19% rispetto all'anno precedente. La società ha realizzato un utile netto GAAP di 8,9 milioni di dollari (0,65 dollari per azione diluita) e un EBITDA rettificato di 31,8 milioni di dollari, in aumento del 35% su base annua.
Tutti e tre i segmenti di business hanno registrato una crescita a doppia cifra: i ricavi del settore assicurativo sono cresciuti del 21% raggiungendo 147,2 milioni di dollari, il segmento consumer è aumentato del 12% arrivando a 62,5 milioni di dollari e il segmento casa è salito del 25% a 40,4 milioni di dollari. La leva finanziaria netta dell'azienda è migliorata passando da 5x a 3x anno su anno.
Per il terzo trimestre 2025, LendingTree prevede ricavi compresi tra 273 e 281 milioni di dollari e un EBITDA rettificato tra 34 e 36 milioni di dollari. Le previsioni per l'intero anno 2025 stimano ricavi tra 1,0 e 1,05 miliardi di dollari con un EBITDA rettificato tra 119 e 126 milioni di dollari.
LendingTree (NASDAQ: TREE) reportó sólidos resultados financieros en el segundo trimestre de 2025 con ingresos de
Los tres segmentos de negocio mostraron un crecimiento de dos dígitos: los ingresos del sector seguros crecieron un 21% hasta 147.2 millones de dólares, el segmento de consumidores aumentó un 12% hasta 62.5 millones de dólares y el segmento de vivienda subió un 25% hasta 40.4 millones de dólares. El apalancamiento neto de la empresa mejoró de 5x a 3x año tras año.
Para el tercer trimestre de 2025, LendingTree espera ingresos entre 273 y 281 millones de dólares y un EBITDA ajustado de 34 a 36 millones de dólares. La guía para todo el año 2025 proyecta ingresos entre 1.0 y 1.05 mil millones de dólares con un EBITDA ajustado de 119 a 126 millones de dólares.
LendingTree (NASDAQ: TREE)는 2025년 2분기 강력한 재무 실적을 발표했습니다. 매출은 2억 5,010만 달러로 전년 대비 19% 증가했습니다. 회사는 GAAP 순이익 890만 달러(희석 주당 0.65달러)와 조정 EBITDA 3,180만 달러를 기록하며 전년 대비 35% 상승했습니다.
세 개의 사업 부문 모두 두 자릿수 성장을 보였습니다: 보험 부문 매출은 21% 증가한 1억 4,720만 달러, 소비자 부문은 12% 증가한 6,250만 달러, 주택 부문은 25% 증가한 4,040만 달러를 기록했습니다. 회사의 순 부채 비율은 전년 5배에서 3배로 개선되었습니다.
2025년 3분기 LendingTree는 매출을 2억 7,300만~2억 8,100만 달러, 조정 EBITDA를 3,400만~3,600만 달러로 예상합니다. 2025년 전체 가이던스는 매출 10억~10억 5천만 달러, 조정 EBITDA 1억 1,900만~1억 2,600만 달러를 전망합니다.
LendingTree (NASDAQ : TREE) a publié de solides résultats financiers pour le deuxième trimestre 2025 avec un chiffre d'affaires de 250,1 millions de dollars, en hausse de 19 % en glissement annuel. La société a réalisé un bénéfice net GAAP de 8,9 millions de dollars (0,65 dollar par action diluée) et un EBITDA ajusté de 31,8 millions de dollars, en hausse de 35 % sur un an.
Tous les trois segments d’activité ont affiché une croissance à deux chiffres : les revenus de l’assurance ont augmenté de 21 % pour atteindre 147,2 millions de dollars, le segment des consommateurs a progressé de 12 % pour atteindre 62,5 millions de dollars et le segment immobilier a augmenté de 25 % pour atteindre 40,4 millions de dollars. L’effet de levier net de l’entreprise s’est amélioré, passant de 5x à 3x en un an.
Pour le troisième trimestre 2025, LendingTree prévoit un chiffre d’affaires compris entre 273 et 281 millions de dollars et un EBITDA ajusté entre 34 et 36 millions de dollars. Les prévisions pour l’ensemble de l’année 2025 tablent sur un chiffre d’affaires compris entre 1,0 et 1,05 milliard de dollars avec un EBITDA ajusté entre 119 et 126 millions de dollars.
LendingTree (NASDAQ: TREE) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von 250,1 Millionen US-Dollar, was einem Anstieg von 19 % im Jahresvergleich entspricht. Das Unternehmen erzielte einen GAAP-Nettogewinn von 8,9 Millionen US-Dollar (0,65 US-Dollar je verwässerter Aktie) sowie ein bereinigtes EBITDA von 31,8 Millionen US-Dollar, was einem Zuwachs von 35 % gegenüber dem Vorjahr entspricht.
Alle drei Geschäftsbereiche verzeichneten zweistelliges Wachstum: Die Einnahmen im Versicherungsbereich stiegen um 21 % auf 147,2 Millionen US-Dollar, der Verbraucherbereich wuchs um 12 % auf 62,5 Millionen US-Dollar und der Wohnsegment legte um 25 % auf 40,4 Millionen US-Dollar zu. Die Nettoverschuldung des Unternehmens verbesserte sich von 5x auf 3x im Jahresvergleich.
Für das dritte Quartal 2025 erwartet LendingTree Umsätze zwischen 273 und 281 Millionen US-Dollar sowie ein bereinigtes EBITDA von 34 bis 36 Millionen US-Dollar. Die Prognose für das Gesamtjahr 2025 sieht Umsätze von 1,0 bis 1,05 Milliarden US-Dollar und ein bereinigtes EBITDA von 119 bis 126 Millionen US-Dollar vor.
- All business segments achieved double-digit YoY revenue growth
- Adjusted EBITDA increased 35% YoY to $31.8 million
- Net leverage improved significantly from 5x to 3x year-over-year
- Insurance segment revenue grew 21% YoY to $147.2 million
- Home segment profit increased 41% YoY to $13.1 million
- Adjusted net income more than doubled YoY to $15.4 million
- Variable marketing margin % slightly decreased to 33% from 34% YoY
- Insurance segment profit margin declined to 27% from 30% YoY
Insights
LendingTree posted strong Q2 2025 results with growth across all segments, improving margins, and reduced leverage, signaling operational strength despite market headwinds.
LendingTree delivered impressive Q2 2025 results with
The Insurance segment remains the primary growth driver, generating
The Consumer segment showed solid performance with
The Home segment posted
Profitability metrics showed substantial improvement, with Adjusted EBITDA of
The company's balance sheet has strengthened considerably, with net leverage declining to 3x from 5x a year ago. This improved capital position provides greater financial flexibility while management maintains a disciplined approach to expenses.
For Q3 2025, LendingTree projects revenue of
This marks LendingTree's fifth consecutive quarter of YoY revenue growth, demonstrating the resilience of their marketplace model and effective execution across multiple product verticals despite challenging macroeconomic conditions.
Double-Digit YoY Revenue Growth In All Business Segments Powers Strong Performance
- Consolidated revenue of
$250.1 million - GAAP net income of
$8.9 million $0.65 - Variable marketing margin of
$83.6 million - Adjusted EBITDA of
$31.8 million - Adjusted net income per share of
$1.13
The company has posted a letter to shareholders on the company's website at investors.lendingtree.com.
"Our company continues to generate impressive financial results, with Adjusted EBITDA up
Scott Peyree, President and COO, commented, "This quarter represents the fifth consecutive period of YoY revenue growth for the company, and our outlook is for this trend to continue. The Insurance business had a great quarter with revenue up
Jason Bengel, CFO, added, "Our capital position has improved rapidly over the last year, with net leverage declining to 3x from 5x. Strong AEBITDA growth assisted by positive operating leverage from focused expense discipline provides us a healthy financial position to execute our growth strategy. We are committed to lowering our net leverage position further to create future flexibility and improve the efficiency of our capital structure, while also investing prudently in our core business to accelerate returns for shareholders."
Second Quarter 2025 Business Results
- Insurance segment revenue of
$147.2 million 21% over second quarter 2024 and translated into segment profit of$40.0 million 10% over the same period. - Consumer segment revenue of
$62.5 million 12% over second quarter 2024, and grew12% sequentially.- Within Consumer, personal loans revenue of
$30.6 million 14% over prior year. - Revenue from our small business offering increased
61% over prior year.
- Within Consumer, personal loans revenue of
- Home segment revenue of
$40.4 million 25% over second quarter 2024 and produced segment profit of$13.1 million 41% over the same period.- Within Home, revenue from Home Equity of
$30.3 million 38% over prior year.
- Within Home, revenue from Home Equity of
LendingTree Summary Financial Metrics | |||||||||||
(In millions, except per share amounts) | |||||||||||
Three Months Ended June 30, | Y/Y | Three Months Ended | Q/Q | ||||||||
2025 | 2024 | % Change | 2025 | % Change | |||||||
Total revenue | $ 250.1 | $ 210.1 | 19 % | $ 239.7 | 4 % | ||||||
Income (loss) before income taxes | $ 10.8 | $ 9.4 | 15 % | $ (14.8) | 173 % | ||||||
Income tax (expense) benefit | $ (1.9) | $ (1.6) | (19) % | $ 2.4 | (179) % | ||||||
Net income (loss) | $ 8.9 | $ 7.8 | 14 % | $ (12.4) | 172 % | ||||||
Net income (loss) % of revenue | 4 % | 4 % | (5) % | ||||||||
Income (loss) per share | |||||||||||
Basic | $ 0.65 | $ 0.58 | $ (0.92) | ||||||||
Diluted | $ 0.65 | $ 0.58 | $ (0.92) | ||||||||
Variable marketing margin | |||||||||||
Total revenue | $ 250.1 | $ 210.1 | 19 % | $ 239.7 | 4 % | ||||||
Variable marketing expense (1) (2) | $ (166.5) | $ (139.2) | 20 % | $ (162.0) | 3 % | ||||||
Variable marketing margin (2) | $ 83.6 | $ 70.9 | 18 % | $ 77.7 | 8 % | ||||||
Variable marketing margin % of revenue (2) | 33 % | 34 % | 32 % | ||||||||
Adjusted EBITDA (2) | $ 31.8 | $ 23.5 | 35 % | $ 24.6 | 29 % | ||||||
Adjusted EBITDA % of revenue (2) | 13 % | 11 % | 10 % | ||||||||
Adjusted net income (2) | $ 15.4 | $ 7.2 | 114 % | $ 13.5 | 14 % | ||||||
Adjusted net income per share (2) | $ 1.13 | $ 0.54 | 109 % | $ 0.99 | 14 % | ||||||
(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 June 30, | Y/Y | Three Months Ended | Q/Q | ||||||||
2025 | 2024 | % Change | 2025 | % Change | |||||||
Home (1) | |||||||||||
Revenue | $ 40.4 | $ 32.2 | 25 % | $ 37.0 | 9 % | ||||||
Segment profit | $ 13.1 | $ 9.3 | 41 % | $ 13.1 | — % | ||||||
Segment profit % of revenue | 32 % | 29 % | 35 % | ||||||||
Consumer (2) | |||||||||||
Revenue | $ 62.5 | $ 55.9 | 12 % | $ 56.0 | 12 % | ||||||
Segment profit | $ 32.1 | $ 26.9 | 19 % | $ 27.1 | 18 % | ||||||
Segment profit % of revenue | 51 % | 48 % | 48 % | ||||||||
Insurance (3) | |||||||||||
Revenue | $ 147.2 | $ 122.1 | 21 % | $ 146.7 | — % | ||||||
Segment profit | $ 40.0 | $ 36.4 | 10 % | $ 38.7 | 3 % | ||||||
Segment profit % of revenue | 27 % | 30 % | 26 % | ||||||||
Other (4) | |||||||||||
Revenue | $ — | $ — | — % | $ — | — % | ||||||
(Loss) | $ — | $ (0.1) | 100 % | $ — | — % | ||||||
Total revenue | $ 250.1 | $ 210.1 | 19 % | $ 239.7 | 4 % | ||||||
Total segment profit | $ 85.1 | $ 72.5 | 17 % | $ 79.0 | 8 % | ||||||
Brand marketing expense (5) | $ (1.5) | $ (1.6) | (6) % | $ (1.3) | 15 % | ||||||
Variable marketing margin | $ 83.6 | $ 70.9 | 18 % | $ 77.7 | 8 % | ||||||
Variable marketing margin % of revenue | 33 % | 34 % | 32 % | ||||||||
(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, auto loans, deposit accounts and debt settlement. |
(3) | The Insurance segment consists of insurance quote products and sales of insurance policies. We closed the insurance agency business and ceased the sale of insurance policies in the second quarter of 2025. |
(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 reiterate our recently updated outlook for the third quarter and full-year 2025:
Third-quarter 2025:*
- Revenue:
$273 $281 million - Variable Marketing Margin:
$86 $89 million - Adjusted EBITDA:
$34 $36 million
Full-year 2025:*
- Revenue of
$1.0 $1.05 billion - Variable Marketing Margin of
$329 $336 million - Adjusted EBITDA of
$119 $126 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 second quarter 2025 financial results will be webcast live today, July 31, 2025 at 5:00 PM Eastern Time (ET). The live webcast 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 | |||
June 30, | March 31, | June 30, | |
(in thousands) | |||
Selling and marketing expense | $ 176,753 | $ 172,751 | $ 148,387 |
Non-variable selling and marketing expense (1) | (10,285) | (10,750) | (9,140) |
Variable marketing expense | $ 166,468 | $ 162,001 | $ 139,247 |
(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 income (loss), the most directly comparable GAAP measure, to variable marketing margin and net income (loss) % 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 | |||
June 30, | March 31, | June 30, | |
(in thousands, except percentages) | |||
Net income (loss) | $ 8,862 | $ (12,375) | $ 7,752 |
Net income (loss) % of revenue | 4 % | (5) % | 4 % |
Adjustments to reconcile to variable marketing margin: | |||
Cost of revenue | 10,029 | 9,908 | 8,411 |
Non-variable selling and marketing expense (1) | 10,285 | 10,750 | 9,140 |
General and administrative expense | 25,034 | 30,660 | 27,118 |
Product development | 11,473 | 11,904 | 10,374 |
Depreciation | 4,241 | 4,297 | 4,601 |
Amortization of intangibles | 1,307 | 1,307 | 1,467 |
Restructuring and severance | 357 | 798 | 202 |
Litigation settlements and contingencies | (2) | 15,212 | (7) |
Interest expense, net | 10,402 | 9,084 | 1,201 |
Other income | (248) | (1,388) | (1,052) |
Income tax expense (benefit) | 1,908 | (2,430) | 1,686 |
Variable marketing margin | $ 83,648 | $ 77,727 | $ 70,893 |
Variable marketing margin % of revenue | 33 % | 32 % | 34 % |
(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 income (loss), the most directly comparable GAAP measure, to adjusted EBITDA and net income (loss) % 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 | |||
June 30, | March 31, | June 30, | |
(in thousands, except percentages) | |||
Net income (loss) | $ 8,862 | $ (12,375) | $ 7,752 |
Net income (loss) % of revenue | 4 % | (5) % | 4 % |
Adjustments to reconcile to adjusted EBITDA: | |||
Amortization of intangibles | 1,307 | 1,307 | 1,467 |
Depreciation | 4,241 | 4,297 | 4,601 |
Restructuring and severance | 357 | 798 | 202 |
Loss on impairments and disposal of assets | — | 254 | 413 |
Loss on impairment of equity investments | 1,225 | — | — |
Non-cash compensation | 4,967 | 9,867 | 7,437 |
Litigation settlements and contingencies | (2) | 15,212 | (7) |
Interest expense, net | 10,402 | 9,084 | 1,201 |
Dividend income | (1,474) | (1,388) | (1,225) |
Income tax expense (benefit) | 1,908 | (2,430) | 1,686 |
Adjusted EBITDA | $ 31,793 | $ 24,626 | $ 23,527 |
Adjusted EBITDA % of revenue | 13 % | 10 % | 11 % |
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Adjusted Net Income
Below is a reconciliation of net income (loss), the most directly comparable GAAP measure, to adjusted net income and net income (loss) 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 | |||
June 30, | March 31, | June 30, | |
(in thousands, except per share amounts) | |||
Net income (loss) | $ 8,862 | $ (12,375) | $ 7,752 |
Adjustments to reconcile to adjusted net income: | |||
Restructuring and severance | 357 | 798 | 202 |
Loss on impairments and disposal of assets | — | 254 | 413 |
Loss on impairment of equity investments | 1,225 | — | — |
Non-cash compensation | 4,967 | 9,867 | 7,437 |
Litigation settlements and contingencies | (2) | 15,212 | (7) |
Gain on extinguishment of debt | — | (266) | (8,619) |
Adjusted net income | $ 15,409 | $ 13,490 | $ 7,178 |
Net income (loss) per diluted share | $ 0.65 | $ (0.92) | $ 0.58 |
Adjustments to reconcile net income (loss) to adjusted net income | 0.48 | 1.92 | (0.04) |
Adjustments to reconcile effect of dilutive securities | — | (0.01) | — |
Adjusted net income per share | $ 1.13 | $ 0.99 | $ 0.54 |
Adjusted weighted average diluted shares outstanding | 13,650 | 13,686 | 13,407 |
Effect of dilutive securities | — | 245 | — |
Weighted average diluted shares outstanding | 13,650 | 13,441 | 13,407 |
Effect of dilutive securities | 101 | — | 150 |
Weighted average basic shares outstanding | 13,549 | 13,441 | 13,257 |
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 income (loss) 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, in our Quarterly Report on Form 10-Q for the period ended March 31, 2025, 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 approximately 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
Investor Relations Contact:
investors@lendingtree.com
Media Contact:
press@lendingtree.com
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SOURCE LendingTree, Inc.
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