LendingTree Swings to Profit on Robust Revenue Growth

TL;DR

**LendingTree's back in the black, making it a strong buy as revenue surges and losses reverse.**

AI Summary

LendingTree, Inc. reported a significant turnaround in its financial performance for the three and nine months ended September 30, 2025. Revenue for the three months ended September 30, 2025, increased by 18.0% to $307.8 million from $260.8 million in the prior-year period. Net income for the quarter was $10.2 million, a substantial improvement from a net loss of $58.0 million in the same period of 2024. For the nine months ended September 30, 2025, revenue grew by 24.9% to $797.6 million from $638.7 million, and net income reached $6.7 million, reversing a net loss of $49.2 million in the comparable 2024 period. Key business changes include strong growth in the Insurance segment, with revenue increasing by 20.4% to $203.5 million for the quarter and 31.9% to $497.3 million for the nine months. The Home segment also saw revenue growth of 18.2% to $38.1 million for the quarter. Risks include dependence on third-party technology providers and exposure to online commerce security and fraud. Strategic outlook appears positive given the strong revenue and net income growth, particularly in the Insurance and Home segments, indicating effective marketplace matching and customer acquisition strategies.

Why It Matters

This turnaround is critical for investors, signaling a potential recovery and improved profitability for LendingTree after previous losses. The strong performance in the Insurance and Home segments suggests effective adaptation to market conditions and competitive advantages in these areas, which could attract more customers and partners. For employees, this positive financial trajectory could mean greater job security and potential for growth. Customers benefit from a more stable and competitive platform, offering diverse financial products. In the broader market, LendingTree's resurgence could intensify competition in the online lending and insurance marketplaces, potentially driving innovation and better consumer offerings.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to its dependence on third-party technology providers and exposure to online commerce security and fraud, as stated in 'Certain Risks and Concentrations'. Additionally, interest rate fluctuations may negatively impact future revenue from the Company's mortgage marketplace, posing a significant external risk.

Analyst Insight

Investors should consider initiating or increasing positions in TREE, given the strong return to profitability and significant revenue growth across key segments. Monitor interest rate trends and competitive landscape closely, but the current financial trajectory suggests a positive outlook.

Financial Highlights

debt To Equity

2.93

revenue

$307.8M

operating Margin

9.34%

total Assets

$759.9M

total Debt

$392.3M

net Income

$10.2M

eps

$0.75

gross Margin

N/A

cash Position

$68.6M

revenue Growth

+18.0%

Revenue Breakdown

Key Numbers

• $307.8M — Revenue (Q3 2025) (Increased 18.0% from $260.8M in Q3 2024)
• $10.2M — Net Income (Q3 2025) (Swung from a net loss of $58.0M in Q3 2024)
• $797.6M — Revenue (9M 2025) (Increased 24.9% from $638.7M in 9M 2024)
• $6.7M — Net Income (9M 2025) (Swung from a net loss of $49.2M in 9M 2024)
• $203.5M — Insurance Revenue (Q3 2025) (Increased 20.4% from $169.1M in Q3 2024)
• $497.3M — Insurance Revenue (9M 2025) (Increased 31.9% from $377.0M in 9M 2024)
• $38.1M — Home Revenue (Q3 2025) (Increased 18.2% from $32.2M in Q3 2024)
• $0.75 — Basic EPS (Q3 2025) (Improved from $(4.34) in Q3 2024)
• $0.49 — Basic EPS (9M 2025) (Improved from $(3.72) in 9M 2024)
• $68.6M — Cash and cash equivalents (Sept 30, 2025) (Decreased from $106.6M at Dec 31, 2024)

Key Players & Entities

• LendingTree, Inc. (company) — parent company and registrant
• LT Intermediate Company, LLC (company) — subsidiary of LendingTree, Inc.
• LendingTree, LLC (company) — subsidiary holding several companies
• FASB (regulator) — Financial Accounting Standards Board
• SEC (regulator) — U.S. Securities and Exchange Commission
• $307,792 (dollar_amount) — revenue for three months ended September 30, 2025
• $260,789 (dollar_amount) — revenue for three months ended September 30, 2024
• $10,165 (dollar_amount) — net income for three months ended September 30, 2025
• $57,978 (dollar_amount) — net loss for three months ended September 30, 2024
• $797,636 (dollar_amount) — revenue for nine months ended September 30, 2025

FAQ

Risk Factors

• Dependence on Third-Party Technology [medium — operational]: The company relies on third-party technology providers, which could lead to service disruptions or increased costs if these providers experience issues or change their terms. This dependence is a critical operational risk.
• Online Commerce Security and Fraud [medium — operational]: Exposure to online commerce security breaches and fraud poses a risk to customer trust and operational integrity. Protecting sensitive consumer data is paramount.
• Interest Rate Fluctuations [medium — market]: The mortgage lending industry, a key segment for LendingTree, is sensitive to interest rate changes, which can negatively impact future revenue from its marketplace. This is a significant market risk.
• Competition from Network Partners [medium — market]: Lenders and lead purchasers on the platform can also offer products directly to consumers through various channels, potentially bypassing LendingTree's services and limiting revenue generation. The lack of exclusive relationships exacerbates this risk.
• Geographic Concentration [low — market]: Operations are primarily concentrated in the United States, making the company highly dependent on the economic conditions of this single market. An economic downturn in the U.S. could significantly impact performance.

Industry Context

LendingTree operates in the highly competitive online financial services marketplace, connecting consumers with providers for loans, credit cards, and insurance. The industry is characterized by rapid technological advancements, evolving consumer preferences, and significant regulatory oversight. Key trends include the increasing demand for digital financial solutions, the importance of data analytics for effective customer acquisition, and the ongoing consolidation among financial institutions and lead generators.

Regulatory Implications

As a platform facilitating financial transactions, LendingTree is subject to various regulations concerning consumer protection, data privacy, and fair lending practices. Changes in regulations, such as those related to data security or advertising of financial products, could impact its operations and compliance costs. The company must continuously monitor and adapt to the evolving regulatory landscape in the U.S.

What Investors Should Do

1. Monitor Insurance Segment Growth
2. Analyze Operating Expense Management
3. Evaluate Cash Burn Rate
4. Assess Debt Levels

Key Dates

• 2025-09-30: End of Q3 2025 — Reported significant revenue and net income growth, demonstrating a strong turnaround.
• 2025-09-30: Consolidated Balance Sheet Date — Reflects a decrease in cash and cash equivalents to $68.6M from $106.6M at year-end 2024.
• 2024-12-31: End of Fiscal Year 2024 — Previous period for comparison, showing a net loss for the nine months ended September 30, 2024.

Glossary

Match fees

Fees earned by LendingTree when it successfully connects consumers with financial service providers on its platform. (A primary source of revenue for LendingTree, directly tied to its core business model of marketplace matching.)

Closing fees

Fees earned when a consumer finalizes a loan or credit card product through a provider found on LendingTree's platform. (Represents revenue recognized upon the successful funding or approval of a financial product, indicating the completion of a transaction.)

Accumulated deficit

The cumulative net losses of a company since its inception, offset by any net profits. (Indicates the company's historical profitability; a reduction in accumulated deficit (as seen here) signifies a move towards overall profitability.)

Operating lease right-of-use assets

An asset representing the right to use a leased asset over the lease term, recognized under ASC 842. (Reflects the company's long-term lease obligations, impacting its balance sheet and operational costs.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net assets. (Represents the value of acquired businesses that is not attributable to specific identifiable assets, indicating past acquisitions and potential future impairment risks.)

Year-Over-Year Comparison

LendingTree has demonstrated a significant financial recovery compared to the prior year. Revenue for the nine months ended September 30, 2025, increased by 24.9% to $797.6 million, a substantial improvement from $638.7 million in the same period of 2024. This top-line growth has translated into profitability, with net income reaching $6.7 million for the nine months, reversing a net loss of $49.2 million in the comparable 2024 period. The company also reported improved basic EPS, moving from $(3.72) to $0.49. While cash reserves have decreased, the overall trend indicates a positive operational and financial turnaround.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share TREE The Nasdaq Sto

Filing Documents

• tree-20250930.htm (10-Q) — 1345KB
• tree-2025930x10qexx311.htm (EX-31.1) — 10KB
• tree-2025930x10qexx312.htm (EX-31.2) — 10KB
• tree-2025930x10qexx321.htm (EX-32.1) — 5KB
• tree-2025930x10qexx322.htm (EX-32.2) — 5KB
• tree-20250930_g1.jpg (GRAPHIC) — 36KB
• tree-20250930_g2.jpg (GRAPHIC) — 152KB
• 0001628280-25-047863.txt ( ) — 7500KB
• tree-20250930.xsd (EX-101.SCH) — 42KB
• tree-20250930_cal.xml (EX-101.CAL) — 74KB
• tree-20250930_def.xml (EX-101.DEF) — 257KB
• tree-20250930_lab.xml (EX-101.LAB) — 608KB
• tree-20250930_pre.xml (EX-101.PRE) — 444KB
• tree-20250930_htm.xml (XML) — 996KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 5. Other Information 41 Item 6. Exhibits 42 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, 2025 December 31, 2024 (in thousands, except par value and share amounts) ASSETS: Cash and cash equivalents $ 68,578 $ 106,594 Accounts receivable (net of allowance of $ 1,405 and $ 1,407 , respectively) 149,444 97,790 Prepaid and other current assets 40,744 34,078 Total current assets 258,766 238,462 Property and equipment (net of accumulated depreciation of $ 26,146 and $ 33,375 , respectively) 33,915 42,780 Operating lease right-of-use assets 40,038 52,557 Goodwill 381,539 381,539 Intangible assets, net 39,381 43,283 Equity investments 475 1,700 Other non-current assets 5,808 7,353 Total assets $ 759,922 $ 767,674 LIABILITIES: Current portion of long-term debt $ 3,936 $ 124,931 Accounts payable, trade 52,050 8,360 Accrued expenses and other current liabilities 124,885 107,185 Total current liabilities 180,871 240,476 Long-term debt 388,370 344,124 Operating lease liabilities 52,044 69,238 Deferred income tax liabilities 6,082 4,884 Other non-current liabilities 157 131 Total liabilities 627,524 658,853 Commitments and contingencies (Note 13) 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; 16,993,223 and 16,746,556 shares issued, respectively, and 13,637,757 and 13,391,090 shares outstanding, respectively 170 167 Additional paid-in capital 1,271,161 1,254,239 Accumulated deficit ( 872,755 ) ( 879,407 ) Treasury stock; 3,355,466 and 3,355,466 shares, respectively ( 266,178 ) ( 266,178 ) Total shareholders' equity 132,398 108,821 Total liabilities and shareholders' equity $ 759,922 $ 767,674 The accompanying notes to consolidated financial statements are an integral part of these statements. 3 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEME

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1— ORGANIZATION Company Overview LendingTree, Inc. is the parent of LT Intermediate Company, LLC, which holds all of the outstanding ownership interests of LendingTree, LLC, and LendingTree, LLC owns several companies (collectively, "LendingTree" or the "Company"). LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, auto loans, credit cards, deposit accounts, personal loans, small business loans, insurance quotes and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance, or other related offerings they are seeking. The Company also serves as a valued partner to lenders and other providers seeking an efficient, scalable, and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers. The consolidated financial statements include the accounts of LendingTree and all its wholly-owned entities. Intercompany transactions and accounts have been eliminated. Basis of Presentation The accompanying unaudited interim consolidated financial statements as of September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In the opinion of management, the unaudited interim consolidated financial st

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at September 30, 2025, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which, in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace. Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service. Other than a support services office in India, the Company's operations are geographically limited to and dependent up

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) In September 2025, the FASB issued ASU 2025-06 for targeted improvements to the accounting for internal-use software. The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs. This ASU is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. NOTE 3— REVENUE Revenue is as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Home $ 38,109 $ 32,248 $ 115,546 $ 94,857 Personal loans 31,263 27,819 85,305 74,882 Other Consumer 34,910 31,655 99,420 91,944 Total Consumer 66,173 59,474 184,725 166,826 Insurance 203,512 169,065 497,321 377,008 Other ( 2 ) 2 44 6 Total revenue $ 307,792 $ 260,789 $ 797,636 $ 638,697 The Company derives its revenue primarily from match fees and closing fees. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and promised services have transferred to the customer. The Company's services are generally transferred to the customer at a point in time. Revenue from Home products is primarily generated from upfront match fees paid by mortgage Network Partners that receive a loan request, and in some cases upfront fees for clicks or call transfers. Match fees and upfront fees for clicks and call transfers are earned through the delivery of loan requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a loan request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a loan request to the cust

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Revenue recognized in any reporting period includes estimated variable consideration for which the Company has satisfied the related performance obligations but are still pending the occurrence or non-occurrence of a future event outside the Company's control (such as lenders providing loans to consumers or credit card approvals of consumers) before the Company has a contractual right to payment. The Company recognizes increases or decreases to such revenue from prior periods. There was an increase of $ 0.4 million in the third quarter of 2025, and there was an increase of $ 0.2 million in the third quarter of 2024. NOTE 4— ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, previous loss history, current and expected economic conditions and the specific customer's current and expected ability to pay its obligation. Accounts receivable are considered past due when they are outstanding longer than the contractual payment terms. Accounts receivable are written off when management deems them uncollectible. A reconciliation of the beginning and ending balances of the allowance for doubtful accounts is as follows (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Balance, beginning of the period $ 1,366 $ 1,930 $ 1,407 $ 2,222 Charges to earnings 84 478 267 422 Write-off of uncollectible accounts receivable ( 45 ) ( 33 ) ( 288 ) ( 269 ) Recoveries collected — — 19 — Balance, end of the period $ 1,405 $ 2,375 $ 1,405 $ 2,375 NOTE 5— GOODWILL AND INTANGIBLE ASSETS The balance of goodwill, net and intangible assets, net is as follows (in thousands) : September 30, 2025 December 31, 2024 Goodwill $ 903,227 $ 90

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Intangible Assets with Definite Lives Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Amortization Net Customer lists $ 69,100 $ ( 39,861 ) $ 29,239 Balance at September 30, 2025 $ 69,100 $ ( 39,861 ) $ 29,239 Cost Accumulated Amortization Net Customer lists $ 69,700 $ ( 36,559 ) $ 33,141 Balance at December 31, 2024 $ 69,700 $ ( 36,559 ) $ 33,141 Amortization of intangible assets with definite lives is computed on a st

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