LendingTree (NASDAQ:TREE) Releases Earnings Results, Misses Expectations By $0.11 EPS

LendingTree (NASDAQ:TREE) posted its earnings results on Thursday. The financial services provider reported $1.38 earnings per share for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.11), Zacks reports. LendingTree had a return on equity of 19.99% and a net margin of 15.02%.The firm had revenue of $319.07 million for the quarter, compared to analyst estimates of $321.33 million. During the same period in the prior year, the business posted $0.99 EPS. The firm’s quarterly revenue was up 36.5% compared to the same quarter last year.

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

• LendingTree delivered an exceptional Q1 — Adjusted EBITDA grew 71% YoY on 37% revenue growth, posted the highest quarterly adjusted EBITDA in six years, reduced net leverage to 2.1x, and received an S&P upgrade to B+.
• The insurance segment was the primary driver, with revenue up 51% YoY and segment profit up 50% YoY, supported by stronger carrier demand, expanding carrier diversification (including health insurance), and expected continued momentum from increased competition and pricing dynamics.
• Consumer revenue grew 49% YoY (led by small business lending) but management cautioned about recent softening in personal and SMB loan demand—attributed to very low consumer sentiment, higher gas prices, and some lender tightening—and guided conservatively assuming muted seasonality.
• Home remains pressured by elevated mortgage rates and low transaction volumes; management is investing to win higher-quality traffic and expand lender relationships, viewing current results as cyclical lows with upside if rates normalize.
• Management is prioritizing a shift to organic traffic and AI adoption — noting that each 5-point increase in organic mix could add about $40 million of segment profit — and is using AI internally and in customer journeys to improve conversion and reduce costs.

LendingTree Price Performance

TREE stock traded down $10.78 during midday trading on Friday, reaching $38.81. The company had a trading volume of 1,473,132 shares, compared to its average volume of 179,868. The company has a market capitalization of $541.52 million, a price-to-earnings ratio of 3.62 and a beta of 2.13. The stock has a 50 day moving average price of $42.86 and a 200-day moving average price of $50.63. LendingTree has a 1-year low of $32.65 and a 1-year high of $77.35. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.67 and a quick ratio of 1.67.

Analyst Ratings Changes

TREE has been the subject of a number of research reports. Needham & Company LLC reissued a “buy” rating and set a $60.00 target price on shares of LendingTree in a report on Friday. Keefe, Bruyette & Woods decreased their price target on LendingTree from $83.00 to $70.00 and set an “outperform” rating on the stock in a research report on Wednesday, March 4th. Truist Financial set a $78.00 price target on LendingTree in a research note on Friday. Wall Street Zen raised LendingTree from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Finally, JPMorgan Chase & Co. began coverage on LendingTree in a research note on Tuesday, April 14th. They issued an “overweight” rating and a $50.00 price target for the company. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $68.60.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Tower Research Capital LLC TRC raised its stake in LendingTree by 281.0% in the second quarter. Tower Research Capital LLC TRC now owns 1,120 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 826 shares in the last quarter. Meeder Asset Management Inc. bought a new position in LendingTree in the fourth quarter valued at about $94,000. Advisory Services Network LLC bought a new position in LendingTree in the third quarter valued at about $95,000. Public Employees Retirement System of Ohio bought a new position in LendingTree in the fourth quarter valued at about $100,000. Finally, Quantbot Technologies LP bought a new position in LendingTree in the second quarter valued at about $122,000. Institutional investors and hedge funds own 68.26% of the company’s stock.

LendingTree News Summary

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Zacks reports TREE’s Q1 results beat estimates, adjusted EBITDA jumped and the company raised its full‑year 2026 outlook — a key driver of the stock’s intraday strength. LendingTree Q1 Earnings Top Estimates, Stock Up, 2026 Outlook Raised
• Positive Sentiment: Company press release: record quarterly revenue of $327.3M, GAAP net income of $17.3M ($1.22/sh), and adjusted EBITDA of $42.0M — strong top‑line growth (yr/yr) underpinning the upbeat outlook. LENDINGTREE REPORTS FIRST QUARTER 2026 RESULTS
• Positive Sentiment: Needham reaffirmed its “buy” rating and set a $60 price target, signaling analyst confidence and giving the stock notable upside potential. Benzinga
• Neutral Sentiment: The company provided Q2 revenue guidance of roughly $305M–$325M and FY2026 revenue guidance of $1.3B–$1.4B (around street estimates), so guidance is not materially out of line but leaves room for upside/downside within the range.
• Neutral Sentiment: Investors can read the full Q1 earnings call transcript for color on product performance, marketing, and margin dynamics. Earnings Call Transcript
• Negative Sentiment: Some outlets reported a headline EPS miss (MarketBeat: $1.38 vs. $1.49 consensus), reflecting differences between GAAP and adjusted figures — this mixed messaging likely contributed to selling pressure and intraday volatility. MarketBeat Earnings Summary

About LendingTree

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.