LendingTree posts $72.4M net loss in Q3 2026
A $98.8 million non-cash goodwill charge was cited alongside the quarterly GAAP loss as LendingTree updated its 2026 outlook.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
LendingTree, Inc. (TREE) reported third-quarter 2026 revenue of $343.6 million, up 12% from $307.8 million a year earlier. Revenue increased across all three segments: Insurance rose 15% to $234.9 million, Consumer rose 2% to $67.2 million, and Home rose 9% to $41.5 million. Home equity revenue was $34.0 million, up 20%.
The company recorded a GAAP net loss of $72.4 million, or $5.15 per diluted share, compared with net income of $10.2 million a year earlier. The loss was attributed to a $98.8 million non-cash goodwill charge. Adjusted EBITDA was $39.6 million, down 1%, while variable marketing margin was $94.9 million, up 2% year over year.
LendingTree's updated full-year 2026 outlook is revenue of $1.30 billion to $1.31 billion and adjusted EBITDA of $151 million to $153 million. CFO Jason Bengel said the company repaid $60 million of long-term debt during the quarter and intends to repurchase shares in Q4 2026, its first planned repurchases since 1Q22.
1 point · 0 major1 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue rose 12% to $343.6 million year over year in Q3 2026.
Negative
- Major pointGAAP net loss: $72.4 million, including a $98.8 million non-cash goodwill charge. 26% of market cap
Filing Explained
For holders whose share counts stayed flat, the larger share base lowers ownership percentages, absent offsetting changes.
The attached balance sheet reports
At quarter-end, LendingTree reported
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $343.6 million
GAAP net loss: $72.4 million
Goodwill impairment: $98.8 million
+4 more
7 metrics
Revenue
$343.6 million
Third quarter 2026; up 12% year over year
GAAP net loss
$72.4 million
Third quarter 2026; compared with $10.2 million net income in Q3 2025
Goodwill impairment
$98.8 million
Non-cash charge in third quarter 2026
Adjusted EBITDA
$39.6 million
Third quarter 2026; down 1% year over year
Variable marketing margin
$94.9 million
Third quarter 2026; up 2% year over year
Long-term debt repaid
$60 million
During third quarter 2026
Full-year revenue outlook
$1.30 billion to $1.31 billion
Updated full-year 2026 outlook
Key Terms
Variable marketing margin, Adjusted EBITDA, Goodwill impairment
3 terms
Variable marketing margin financial
"Variable marketing margin of $94.9 million"
Variable marketing margin is the portion of revenue left after paying the costs that change with selling a product — like commissions, promotions, discounts, or retailer allowances — expressed per unit or as a percentage. For investors, it shows how much profit is sensitive to sales volume and promotional activity: like the difference between list price and the money you actually keep after running a sale, it helps assess whether growth or heavy promotion will meaningfully boost or erode profits.
Adjusted EBITDA financial
"Adjusted EBITDA of $39.6 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Goodwill impairment financial
"Goodwill impairment"
Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.
Earnings Snapshot
Revenue: $343.6 million · Guidance included
Third quarter 2026
Revenue
$343.6 million
+12% year over year
GAAP net loss
$72.4 million loss
Compared with $10.2 million net income in Q3 2025
Adjusted EBITDA
$39.6 million
-1% year over year
Variable marketing margin
$94.9 million
+2% year over year
Guidance
Full-year 2026 outlook: revenue $1.30 billion to $1.31 billion; variable marketing margin $370 million to $375 million; adjusted EBITDA $151 million to $153 million. Fourth-quarter 2026 outlook: revenue $315 million to $325 million; variable marketing margin $88 million to $93 million; adjusted EBITDA $34 million to $36 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was LendingTree's (TREE) revenue in Q3 2026?
LendingTree reported $343.6 million of revenue for the quarter ended September 30, 2026, up 12% from $307.8 million in the same quarter of 2025. Revenue increased year over year in each of its three segments.
Why did LendingTree (TREE) report a net loss in Q3 2026?
LendingTree reported a GAAP net loss of $72.4 million, or $5.15 per diluted share, for the third quarter of 2026. It reported net income of $10.2 million a year earlier; the 2026 loss was attributed to a $98.8 million non-cash goodwill charge.
How did LendingTree's (TREE) segment profits change in Q3 2026?
For the quarter ended September 30, 2026, Insurance segment profit was $54.2 million, up 14% year over year; Home segment profit was $12.4 million, up 5%; and Consumer segment profit was $29.6 million, down 16%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2026
(Exact name of registrant as specified in charter)
| (State or other jurisdiction | (Commission | (IRS Employer | ||||||||||||
| of incorporation) | File Number) | Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (704 ) 541-5351
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 3, 2026, LendingTree, Inc. (the “Registrant”) announced financial results for the quarter ended September 30, 2026. A copy of the related press release is furnished as Exhibit 99.1.
The information contained in this Current Report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. | Exhibit Description | |||||||
| 99.1 | Press Release, dated November 3, 2026, with respect to the Registrant’s financial results for the quarter ended September 30, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| November 3, 2026 | ||||||||
| LENDINGTREE, INC. | ||||||||
| By: | /s/ Jason Bengel | |||||||
| Jason Bengel | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 99.1
LENDINGTREE REPORTS THIRD QUARTER 2026 RESULTS
Revenue Grew 12% YoY With Increases Across All Three Segments
•Consolidated revenue of $343.6 million
•GAAP net loss of $(72.4) million or $(5.15) per diluted share due to $98.8 million non-cash goodwill charge
•Variable marketing margin of $94.9 million
•Adjusted EBITDA of $39.6 million
CHARLOTTE, NC - November 3, 2026 - LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation's leading online financial services marketplace, today announced results for the quarter ended September 30, 2026.
The company has posted a letter to shareholders on the company's website at investors.lendingtree.com.
"We are pleased to report our tenth straight quarter of double-digit revenue growth, powered by continued strength in our Insurance segment along with healthy growth in Home driven by great home equity lending results," said Scott Peyree, CEO. "This quarter we rolled-out AI features and distribution improvements to our shopping experience across multiple product lines. Specifically, we have implemented voice AI services to help consumers understand and choose the best offer before talking to a lender, AI overviews on offer pages that assist customers in selecting the best offer for their situation, and controlled distribution that helps a consumer shop in stages for a product to prevent multiple carriers or lenders from contacting the customer at once. Successful expansion of these types of features should ultimately improve consumer satisfaction and drive increased monetization of our traffic."
Jason Bengel, CFO, commented, "The company is on track to grow revenue and AEBITDA this year by 17% and 14%, respectively, at the midpoint of our updated forecast. Our business benefits from the diversity of our product offering for consumers, providing one unified marketplace for all personal financial products. This diversification allows us to continue to execute on our growth plan successfully despite ongoing interest rate related headwinds impacting our Home segment. Our strong results continue to fortify our balance sheet, as we used excess cash to voluntarily repay $60 million of long-term debt during the quarter to improve free cashflow generation for shareholders going forward. Given the strength of our balance sheet and what we view as attractive valuation of our equity, we intend to repurchase shares during the the fourth quarter for the first time since 1Q22."
Third Quarter 2026 Business Results
•Insurance segment revenue of $234.9 million increased 15% over third quarter 2025 and translated into segment profit of $54.2 million, up 14% over the same period.
•Consumer segment revenue of $67.2 million increased 2% from third quarter 2025, while segment profit declined 16% over the same period.
•Home segment revenue of $41.5 million increased 9% over third quarter 2025 and produced segment profit of $12.4 million, an increase of 5% over the same period.
◦Within Home, revenue from Home Equity of $34.0 million increased 20% over prior year.
| Page 2 | |||||||
| LendingTree Summary Financial Metrics | |||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Y/Y | Three Months Ended June 30, | Q/Q | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | % Change | |||||||||||||||||||||||||||||||
| Total revenue | $ | 343.6 | $ | 307.8 | 12 | % | $ | 313.4 | 10 | % | |||||||||||||||||||||||||
| (Loss) income before income taxes | $ | (78.4) | $ | 11.6 | (776) | % | $ | 14.1 | (656) | % | |||||||||||||||||||||||||
| Income tax benefit (expense) | $ | 6.0 | $ | (1.4) | (529) | % | $ | (4.5) | (233) | % | |||||||||||||||||||||||||
| Net (loss) income | $ | (72.4) | $ | 10.2 | (810) | % | $ | 9.6 | (854) | % | |||||||||||||||||||||||||
| Net (loss) income % of revenue | (21) | % | 3 | % | 3 | % | |||||||||||||||||||||||||||||
| Income per share | |||||||||||||||||||||||||||||||||||
| Basic | $ | (5.15) | $ | 0.75 | $ | 0.69 | |||||||||||||||||||||||||||||
| Diluted | $ | (5.15) | $ | 0.73 | $ | 0.68 | |||||||||||||||||||||||||||||
| Variable marketing margin | |||||||||||||||||||||||||||||||||||
| Total revenue | $ | 343.6 | $ | 307.8 | 12 | % | $ | 313.4 | 10 | % | |||||||||||||||||||||||||
Variable marketing expense (1) (2) | $ | (248.7) | $ | (214.6) | 16 | % | $ | (226.1) | 10 | % | |||||||||||||||||||||||||
Variable marketing margin (2) | $ | 94.9 | $ | 93.2 | 2 | % | $ | 87.3 | 9 | % | |||||||||||||||||||||||||
Variable marketing margin % of revenue (2) | 28 | % | 30 | % | 28 | % | |||||||||||||||||||||||||||||
Adjusted EBITDA (2) | $ | 39.6 | $ | 39.8 | (1) | % | $ | 35.2 | 13 | % | |||||||||||||||||||||||||
| Adjusted EBITDA % of variable marketing margin (2) | 42 | % | 43 | % | 40 | % | |||||||||||||||||||||||||||||
| (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, and adjusted EBITDA % of variable marketing margin 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. | ||||
| Page 3 | |||||||
| LendingTree Segment Results | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Y/Y | Three Months Ended June 30, | Q/Q | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | % Change | |||||||||||||||||||||||||||||||
Home (1) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 41.5 | $ | 38.1 | 9 | % | $ | 43.9 | (5) | % | |||||||||||||||||||||||||
| Segment profit | $ | 12.4 | $ | 11.8 | 5 | % | $ | 11.3 | 10 | % | |||||||||||||||||||||||||
| Segment profit % of revenue | 30 | % | 31 | % | 26 | % | |||||||||||||||||||||||||||||
Consumer (2) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 67.2 | $ | 66.2 | 2 | % | $ | 60.3 | 11 | % | |||||||||||||||||||||||||
| Segment profit | $ | 29.6 | $ | 35.2 | (16) | % | $ | 27.6 | 7 | % | |||||||||||||||||||||||||
| Segment profit % of revenue | 44 | % | 53 | % | 46 | % | |||||||||||||||||||||||||||||
Insurance (3) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 234.9 | $ | 203.5 | 15 | % | $ | 209.3 | 12 | % | |||||||||||||||||||||||||
| Segment profit | $ | 54.2 | $ | 47.6 | 14 | % | $ | 50.0 | 8 | % | |||||||||||||||||||||||||
| Segment profit % of revenue | 23 | % | 23 | % | 24 | % | |||||||||||||||||||||||||||||
Other (4) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | — | $ | — | — | % | $ | — | — | % | |||||||||||||||||||||||||
| (Loss) | $ | (0.1) | $ | (0.1) | — | % | $ | (0.1) | — | % | |||||||||||||||||||||||||
| Total revenue | $ | 343.6 | $ | 307.8 | 12 | % | $ | 313.4 | 10 | % | |||||||||||||||||||||||||
| Total segment profit | $ | 96.1 | $ | 94.6 | 2 | % | $ | 88.8 | 8 | % | |||||||||||||||||||||||||
Brand marketing expense (5) | $ | (1.2) | $ | (1.4) | (14) | % | $ | (1.5) | (20) | % | |||||||||||||||||||||||||
| Variable marketing margin | $ | 94.9 | $ | 93.2 | 2 | % | $ | 87.3 | 9 | % | |||||||||||||||||||||||||
| Variable marketing margin % of revenue | 28 | % | 30 | % | 28 | % | |||||||||||||||||||||||||||||
| (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. | ||||
| (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. | ||||
| Page 4 | |||||||
Financial Outlook*
Today we update our full-year 2026 outlook, and include the implied outlook for Q4:
Full-year 2026:*
▪Revenue of $1.30 to $1.31 billion
▪Variable Marketing Margin of $370 - $375 million
▪Adjusted EBITDA of $151 - $153 million
Fourth-quarter 2026:*
▪Revenue: $315 - $325 million
▪Variable Marketing Margin: $88 - $93 million
▪Adjusted EBITDA: $34 - $36 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 third quarter 2026 financial results will be webcast live today, November 3, 2026 at 4:30 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.
| Page 5 | |||||||
LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||
| Revenue | $ | 343,588 | $ | 307,792 | $ | 984,277 | $ | 797,636 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) | 11,670 | 11,017 | 34,635 | 30,954 | |||||||||||||||||||
Selling and marketing expense (1) | 260,508 | 225,051 | 735,529 | 574,555 | |||||||||||||||||||
General and administrative expense (1) | 26,437 | 26,229 | 80,137 | 81,923 | |||||||||||||||||||
Product development (1) | 10,243 | 11,297 | 31,742 | 34,674 | |||||||||||||||||||
| Depreciation | 4,147 | 3,995 | 12,609 | 12,533 | |||||||||||||||||||
| Amortization of intangibles | 1,258 | 1,288 | 3,834 | 3,902 | |||||||||||||||||||
| Goodwill impairment | 98,823 | — | 98,823 | — | |||||||||||||||||||
Restructuring and severance (1) | 519 | 80 | 3,297 | 1,235 | |||||||||||||||||||
| Litigation settlements and contingencies | 260 | 69 | 1,036 | 15,279 | |||||||||||||||||||
| Total costs and expenses | 413,865 | 279,026 | 1,001,642 | 755,055 | |||||||||||||||||||
| Operating (loss) income | (70,277) | 28,766 | (17,365) | 42,581 | |||||||||||||||||||
| Other income (expense), net: | |||||||||||||||||||||||
| Interest expense, net | (9,129) | (17,907) | (26,178) | (37,393) | |||||||||||||||||||
| Other income | 1,009 | 732 | 2,210 | 2,368 | |||||||||||||||||||
| (Loss) income before income taxes | (78,397) | 11,591 | (41,333) | 7,556 | |||||||||||||||||||
| Income tax benefit (expense) | 6,033 | (1,426) | (4,191) | (904) | |||||||||||||||||||
| Net (loss) income and comprehensive (loss) income | $ | (72,364) | $ | 10,165 | $ | (45,524) | $ | 6,652 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 14,040 | 13,623 | 13,944 | 13,538 | |||||||||||||||||||
| Diluted | 14,040 | 13,988 | 13,944 | 13,843 | |||||||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||
| Basic | $ | (5.15) | $ | 0.75 | $ | (3.26) | $ | 0.49 | |||||||||||||||
| Diluted | $ | (5.15) | $ | 0.73 | $ | (3.26) | $ | 0.48 | |||||||||||||||
(1) Amounts include non-cash compensation, as follows: | |||||||||||||||||||||||
| Cost of revenue | $ | 141 | $ | 73 | $ | 415 | $ | 101 | |||||||||||||||
| Selling and marketing expense | 1,012 | 652 | 2,538 | 1,987 | |||||||||||||||||||
| General and administrative expense | 3,098 | 3,647 | 9,101 | 15,510 | |||||||||||||||||||
| Product development | 645 | 630 | 2,106 | 2,238 | |||||||||||||||||||
| Restructuring and severance | — | — | 1,012 | 255 | |||||||||||||||||||
| Page 6 | |||||||
LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| (in thousands, except par value and share amounts) | |||||||||||
| ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 82,709 | $ | 81,073 | |||||||
| Accounts receivable, net | 165,004 | 110,582 | |||||||||
| Prepaid and other current assets | 37,662 | 38,053 | |||||||||
| Total current assets | 285,375 | 229,708 | |||||||||
| Property and equipment, net | 29,194 | 32,834 | |||||||||
| Operating lease right-of-use assets | 29,709 | 31,655 | |||||||||
| Goodwill | 282,716 | 381,539 | |||||||||
| Intangible assets, net | 34,258 | 38,092 | |||||||||
| Deferred income tax assets | 120,939 | 124,867 | |||||||||
| Other non-current assets | 22,050 | 16,997 | |||||||||
| Total assets | $ | 804,241 | $ | 855,692 | |||||||
| LIABILITIES: | |||||||||||
| Current portion of long-term debt | $ | 3,936 | $ | 3,926 | |||||||
| Accounts payable, trade | 69,433 | 6,735 | |||||||||
| Accrued expenses and other current liabilities | 108,801 | 126,803 | |||||||||
| Total current liabilities | 182,170 | 137,464 | |||||||||
| Long-term debt | 326,659 | 387,694 | |||||||||
| Operating lease liabilities | 42,107 | 43,597 | |||||||||
| Other non-current liabilities | 146 | 140 | |||||||||
| Total liabilities | 551,082 | 568,895 | |||||||||
Commitments and contingencies | |||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
Preferred stock $0.01 par value; 5,000,000 shares authorized; none issued or outstanding | — | — | |||||||||
Common stock $0.01 par value; 50,000,000 shares authorized; 17,397,550 and 17,124,837 shares issued, respectively, and 14,042,084 and 13,769,371 shares outstanding, respectively | 174 | 171 | |||||||||
| Additional paid-in capital | 1,292,786 | 1,280,903 | |||||||||
| Accumulated deficit | (773,623) | (728,099) | |||||||||
Treasury stock; 3,355,466 and 3,355,466 shares, respectively | (266,178) | (266,178) | |||||||||
| Total shareholders' equity | 253,159 | 286,797 | |||||||||
| Total liabilities and shareholders' equity | $ | 804,241 | $ | 855,692 | |||||||
| Page 7 | |||||||
LENDINGTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||
| Net cash provided by operating activities | 76,448 | 56,575 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (8,877) | (9,423) | |||||||||
| Proceeds from sale of fixed assets | — | 2,497 | |||||||||
| Other investing activities | 52 | — | |||||||||
| Net cash used in investing activities | (8,825) | (6,926) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from term loan | — | 450,000 | |||||||||
| Repayment of term loan | (62,700) | (409,375) | |||||||||
| Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options | (3,287) | (2,756) | |||||||||
Repayment and repurchase of 0.50% Convertible Senior Notes | — | (115,007) | |||||||||
| Payment of revolver issuance costs | — | (1,432) | |||||||||
| Payment of debt issuance costs | — | (5,095) | |||||||||
| Payment of original issue discount | — | (4,000) | |||||||||
| Net cash (used in) provided by financing activities | (65,987) | (87,665) | |||||||||
| Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 1,636 | (38,016) | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 81,073 | 106,594 | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 82,709 | $ | 68,578 | |||||||
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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 | |||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||
| (in thousands) | |||||||||||
| Selling and marketing expense | $ | 260,508 | $ | 236,453 | $ | 225,051 | |||||
Non-variable selling and marketing expense (1) | (11,868) | (10,370) | (10,483) | ||||||||
| Variable marketing expense | $ | 248,640 | $ | 226,083 | $ | 214,568 | |||||
| (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. | ||||
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LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Variable Marketing Margin
Below is a reconciliation of net (loss) income, the most directly comparable 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 | |||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||
| (in thousands, except percentages) | |||||||||||
| Net (loss) income | $ | (72,364) | $ | 9,574 | $ | 10,165 | |||||
| Net (loss) income % of revenue | (21)% | 3% | 3% | ||||||||
| Adjustments to reconcile to variable marketing margin: | |||||||||||
| Cost of revenue | 11,670 | 11,269 | 11,017 | ||||||||
Non-variable selling and marketing expense (1) | 11,868 | 10,370 | 10,483 | ||||||||
| General and administrative expense | 26,437 | 25,710 | 26,229 | ||||||||
| Product development | 10,243 | 10,032 | 11,297 | ||||||||
| Depreciation | 4,147 | 4,277 | 3,995 | ||||||||
| Amortization of intangibles | 1,258 | 1,288 | 1,288 | ||||||||
| Goodwill impairment | 98,823 | — | — | ||||||||
| Restructuring and severance | 519 | 1,839 | 80 | ||||||||
| Litigation settlements and contingencies | 260 | 756 | 69 | ||||||||
| Interest expense, net | 9,129 | 8,483 | 17,907 | ||||||||
| Other income | (1,009) | (832) | (732) | ||||||||
| Income tax (benefit) expense | (6,033) | 4,573 | 1,426 | ||||||||
| Variable marketing margin | $ | 94,948 | $ | 87,339 | $ | 93,224 | |||||
| Variable marketing margin % of revenue | 28% | 28% | 30% | ||||||||
| (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. | ||||
| Page 10 | |||||||
LENDINGTREE'S RECONCILIATION OF NON-GAAP MEASURES TO GAAP
Adjusted EBITDA
Below is a reconciliation of net (loss) income, the most directly comparable 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 | |||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||
| (in thousands, except percentages) | |||||||||||
| Net (loss) income | $ | (72,364) | $ | 9,574 | $ | 10,165 | |||||
| Net (loss) income % of revenue | (21)% | 3% | 3% | ||||||||
| Adjustments to reconcile to adjusted EBITDA: | |||||||||||
| Amortization of intangibles | 1,258 | 1,288 | 1,288 | ||||||||
| Depreciation | 4,147 | 4,277 | 3,995 | ||||||||
| Restructuring and severance | 519 | 1,839 | 80 | ||||||||
| Loss (gain) on impairments and disposal of assets | 3 | — | 593 | ||||||||
| Goodwill impairment | 98,823 | — | — | ||||||||
| Non-cash compensation | 4,896 | 5,204 | 5,002 | ||||||||
| Litigation settlements and contingencies | 260 | 756 | 69 | ||||||||
| Interest expense, net | 9,129 | 8,483 | 17,907 | ||||||||
| Dividend income | (1,008) | (832) | (730) | ||||||||
| Income tax (benefit) expense | (6,033) | 4,573 | 1,426 | ||||||||
| Adjusted EBITDA | $ | 39,630 | $ | 35,162 | $ | 39,795 | |||||
| Adjusted EBITDA % of revenue | 12% | 11% | 13% | ||||||||
| Page 11 | |||||||
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 EBITDA % of variable marketing margin
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, adjusted EBITDA % of revenue, and adjusted EBITDA % of variable marketing margin 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.
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.
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.
| Page 12 | |||||||
One-Time Items
Adjusted EBITDA is 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
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.
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.
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; our ability to compete effectively and adapt to competitive pressures in each of our businesses, including from disintermediation as well as technological change, digital disruption and other types of innovation such as artificial intelligence; 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; effects of changing laws, rules or regulations on our business model; uncertainties relating to our illegal monopolization claims against Google, including the timing, amount and likelihood of recovery and the outcome of Google’s appeal of the ruling by the United States District Court for the District of Columbia in the government’s antitrust case against Google; 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, 2025, in our Quarterly Report on Form 10-Q for the period ended June 30, 2026, 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.
| Page 13 | |||||||
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 770 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