LendingTree (NASDAQ:TREE) Releases Quarterly Earnings Results, Misses Expectations By $6.41 EPS

LendingTree (NASDAQ:TREE) announced its earnings results on Tuesday. The financial services provider reported ($5.15) earnings per share for the quarter, missing the consensus estimate of $1.26 by ($6.41), FiscalAI reports. The firm had revenue of $343.59 million for the quarter, compared to the consensus estimate of $329.72 million. LendingTree had a net margin of 14.33% and a return on equity of 14.57%.

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 Trading Up 6.6%

Shares of LendingTree stock traded up $1.79 on Tuesday, reaching $28.87. 1,103,994 shares of the company were exchanged, compared to its average volume of 347,875. The stock has a fifty day moving average price of $26.42 and a 200-day moving average price of $38.16. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 1.20. The firm has a market capitalization of $405.33 million, a price-to-earnings ratio of 2.24 and a beta of 2.04. LendingTree has a fifty-two week low of $23.50 and a fifty-two week high of $68.93.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Northland Securities set a $60.00 price target on shares of LendingTree in a report on Thursday, July 30th. Keefe, Bruyette & Woods lowered their price objective on shares of LendingTree from $70.00 to $58.00 and set an “outperform” rating on the stock in a research note on Monday, July 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of LendingTree in a report on Monday, September 21st. Needham & Company LLC cut their target price on shares of LendingTree from $60.00 to $45.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Finally, Truist Financial cut their target price on shares of LendingTree from $78.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price 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.