LendingTree (NASDAQ:TREE) Posts Earnings Results, Misses Estimates By $1.29 EPS

LendingTree (NASDAQ:TREE) posted its earnings results on Monday. The financial services provider reported ($0.39) earnings per share for the quarter, missing the consensus estimate of $0.90 by ($1.29), FiscalAI reports. LendingTree had a net margin of 1.34% and a return on equity of 36.30%. The business had revenue of $310.92 million for the quarter, compared to analyst estimates of $286.56 million. The business’s revenue for the quarter was up 22.3% on a year-over-year basis.

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

• LendingTree reported a very strong 2025 with VMD up 14% and adjusted EBITDA up 28%, and all three reportable segments delivered double-digit VMD growth.
• The Insurance marketplace is a standout — $174 million of VMD (+10% YoY) with broad-based growth (carriers #4–10 grew revenue 65% YoY), and management expects Q1 and 2026 to produce record insurance results.
• Management cites measurable ROI from AI investments — AI voice in the call center has driven over $10 million of incremental revenue per quarter with only modest OpEx increases, and overall network conversions rose 17% YoY in Q4.
• The Home segment showed limited improvement (Q4 revenue +6%) and margins were pressured by rising media costs and lower lender conversion rates, and the company’s guidance conservatively assumes no further mortgage rate relief.
• The company laid out a four-pillar “North Star” strategy (accelerate core, improve CX, expand products, rebuild brand) with targeted H2 brand tests and an initial brand spend under $10 million, while a new “trigger leads” rule effective this week should improve lead quality and monetization.

LendingTree Stock Performance

Shares of TREE opened at $37.74 on Tuesday. The firm has a market cap of $515.91 million, a price-to-earnings ratio of 37.37 and a beta of 2.21. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 2.93. The business’s 50 day moving average is $51.32 and its two-hundred day moving average is $57.64. LendingTree has a 52-week low of $32.65 and a 52-week high of $77.35.

Institutional Trading of LendingTree

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

Key Stories Impacting LendingTree

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Revenue topped expectations — LendingTree reported quarterly revenue (~$311M per filings, or $319.7M consolidated in the press release), above analysts’ consensus, supporting the view that demand/volume held up. LendingTree (NASDAQ:TREE) Surprises With Strong Q4 CY2025, Stock Jumps 14.7%
• Positive Sentiment: GAAP net income was positive due to a one?time $146.4M tax benefit that reduced the deferred tax valuation allowance, producing GAAP net income of $144.7M — a technical but meaningful item that helped headline profitability. LENDINGTREE REPORTS FOURTH QUARTER 2025 RESULTS
• Positive Sentiment: Underlying profitability metrics showed positives: Variable Marketing Margin (VMM) of $92.0M and Adjusted EBITDA of $36.7M, which investors may view as evidence of operational resilience. LENDINGTREE REPORTS FOURTH QUARTER 2025 RESULTS
• Neutral Sentiment: Company commentary and the earnings call are available for detail — listening to management on the conference call will be important to gauge sustainability of revenue strength and whether any forward guidance or commentary offsets the EPS miss. Listen to Conference Call
• Neutral Sentiment: Analyst and media recaps and metric breakdowns are being published (Zacks, Yahoo), which will shape short?term sentiment as investors parse adjusted vs. GAAP results. Compared to Estimates, Tree.com (TREE) Q4 Earnings: A Look at Key Metrics
• Negative Sentiment: Adjusted EPS missed materially — LendingTree reported an adjusted net loss per share of $(0.39), well below the consensus of $0.90, reflecting weaker adjusted profitability and prompting caution among earnings-focused investors. Tree.com (TREE) Reports Q4 Loss, Beats Revenue Estimates
• Negative Sentiment: Year?over?year earnings deterioration: the company earned $1.16 a year ago, so the swing to an adjusted loss signals earnings pressure that could weigh on the stock until the business demonstrates consistent margin recovery. LendingTree (NASDAQ:TREE) Surprises With Strong Q4 CY2025, Stock Jumps 14.7%

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Zacks Research cut LendingTree from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 30th. Wall Street Zen lowered LendingTree from a “strong-buy” rating to a “buy” rating in a research report on Monday, November 10th. Truist Financial upped their price target on LendingTree from $62.00 to $72.00 and gave the stock a “buy” rating in a report on Monday, November 3rd. Needham & Company LLC reiterated a “buy” rating on shares of LendingTree in a research note on Tuesday. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of LendingTree in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $76.67.

LendingTree Company Profile

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

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