LendingTree (NASDAQ:TREE) Posts Earnings Results, Misses Estimates By $6.41 EPS

LendingTree (NASDAQ:TREE) posted its quarterly earnings data on Tuesday. The financial services provider reported ($5.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.26 by ($6.41), FiscalAI reports. The business had revenue of $343.59 million during the quarter, compared to analysts’ expectations of $329.72 million. LendingTree had a return on equity of 14.57% and a net margin of 14.33%. The business’s quarterly revenue was up 11.6% compared to the same quarter last year. During the same period in the previous year, the business posted $1.70 EPS.

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

• Q3 results exceeded guidance, and updated full-year guidance implies approximately 14% adjusted EBITDA growth despite mortgage headwinds. Management also highlighted a 25% EBITDA CAGR since 2023 and continued expense discipline, with costs expected to grow roughly in line with inflation.
• The insurance business remains a major growth driver, supported by strong carrier profitability, increasing client budgets, successful integration of a new bidding platform, and potential market-share gains. Management expects favorable industry conditions to persist through 2028 and beyond barring a major shift in inflation or pricing.
• Small-business lending recovered sequentially from its Q2 trough, with September and October producing the strongest SMB concierge sales since January. Lender sentiment has improved, although merchant take rates and average loan sizes remain below the Q4 2025 and Q1 2026 peaks.
• Mortgage remains challenging because of higher long-term interest rates and depressed home-sale activity, but management reported year-over-year growth and sees home equity and HELOC products as less rate-sensitive opportunities. The company also expects additional growth from organic traffic, social channels, publishers, and logged-in users.
• LendingTree plans to expand AI-driven shopping tools, personalized recommendations, and agentic capabilities across its product categories in 2027, while arguing that its broad lender and carrier network provides a structural advantage over general-purpose LLMs. With trailing-twelve-month free cash flow of about $100 million excluding litigation, the company plans to continue paying down debt and begin buying back shares in Q4.

LendingTree Stock Performance

Shares of NASDAQ TREE opened at $28.87 on Wednesday. The stock has a market cap of $405.33 million, a PE ratio of 2.24 and a beta of 1.99. LendingTree has a 1 year low of $23.50 and a 1 year high of $68.93. The firm has a fifty day moving average price of $26.38 and a 200-day moving average price of $37.98. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.85 and a quick ratio of 1.85.

LendingTree News Summary

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Q3 revenue rose about 12% year over year to $343.6 million, ahead of consensus, with growth across all three segments. Adjusted EPS was reported at $2.20, topping the $1.29 Zacks consensus estimate. LendingTree Q3 results
• Positive Sentiment: Management sees adjusted EBITDA growing 14% at the midpoint of its 2026 guidance and plans to resume stock buybacks in Q4—potential supports for investor confidence and shareholder returns. 2026 guidance and buybacks
• Neutral Sentiment: LendingTree’s general counsel is set to leave after year-end and will receive severance benefits. The report provides no further indication of operational impact. General counsel departure
• Negative Sentiment: GAAP results showed a $72.4 million net loss, or $(5.15) per diluted share, primarily because of a $98.8 million non-cash goodwill impairment charge. The reported quarterly revenue outlook also missed analyst expectations, tempering the strong quarter’s top-line results. Q3 results and goodwill charge Quarterly revenue guidance

Analyst Ratings Changes

Several research firms have weighed in on TREE. Wall Street Zen downgraded shares of LendingTree from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. Weiss Ratings reiterated a “hold (c)” rating on shares of LendingTree in a research note on Monday, September 21st. Truist Financial cut their price objective on shares of LendingTree from $78.00 to $70.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Keefe, Bruyette & Woods reduced their price objective on LendingTree from $70.00 to $58.00 and set an “outperform” rating for the company in a research note on Monday, July 13th. Finally, Needham & Company LLC decreased their target price on LendingTree from $60.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, LendingTree has an average rating of “Moderate Buy” and an average price target of $56.60.

LendingTree Company Profile

LendingTree, Inc operates an online marketplace that helps consumers compare financial products and services from a network of lenders, insurers and other providers. Its platform is designed to connect shoppers with potential offers based on their financial needs and preferences.

The company’s marketplace includes products such as mortgages and other home loans, personal loans, business loans, auto loans, credit cards, insurance and deposit accounts. LendingTree also provides educational content, comparison tools and financial guidance intended to help consumers evaluate borrowing, insurance and saving options.

Founded in 1996 by Doug Lebda, LendingTree is headquartered in Charlotte, North Carolina, and primarily serves consumers in the United States.