LendingTree (NASDAQ:TREE – Get Free Report) announced its quarterly earnings data 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. LendingTree had a net margin of 7.60% and a return on equity of 15.26%. The firm had revenue of $343.59 million during the quarter, compared to the consensus estimate of $329.72 million. During the same period in the prior year, the firm earned $1.70 earnings per share. The firm’s quarterly revenue was up 11.6% compared to the same quarter last year.
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 $38.35 on Thursday. LendingTree has a 1-year low of $23.50 and a 1-year high of $68.93. The stock has a market capitalization of $538.43 million, a P/E ratio of 5.46 and a beta of 1.99. 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 business has a 50-day moving average price of $26.54 and a two-hundred day moving average price of $37.84.
Wall Street Analysts Forecast Growth
Several analysts recently commented on the company. Truist Financial lowered their target price on LendingTree from $70.00 to $65.00 and set a “buy” rating on the stock in a research report on Wednesday. Weiss Ratings restated a “hold (c)” rating on shares of LendingTree in a research report on Monday, September 21st. Wall Street Zen lowered LendingTree from a “buy” rating to a “hold” rating in a report on Saturday, October 24th. Needham & Company LLC reduced 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, Northland Securities set a $60.00 price target on LendingTree in a report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $53.60.
View Our Latest Stock Analysis on LendingTree
LendingTree News Summary
Here are the key news stories impacting LendingTree this week:
- Positive Sentiment: Third-quarter revenue rose 12% year over year to $343.6 million, beating analyst expectations, with growth across all three segments. Adjusted EPS was reported at $2.20, above the cited $1.29 consensus. Q3 earnings and revenue beat estimates
- Positive Sentiment: Management plans to resume share buybacks in the fourth quarter—the first since 2022—citing improved cash generation and lower leverage. The company also forecast approximately 14% adjusted EBITDA growth at the midpoint of its 2026 guidance. Buyback plan
- Neutral Sentiment: JPMorgan lowered its price target to $40 from $48 but maintained an Overweight rating; Truist cut its target to $65 from $70 while keeping a Buy rating. The target reductions temper, but do not reverse, those firms’ positive ratings. JPMorgan rating information Truist rating information
- Negative Sentiment: The quarter included a $98.8 million non-cash goodwill impairment, producing a GAAP net loss of $72.4 million, or $5.15 per diluted share. That drove a sharp GAAP EPS miss despite the stronger adjusted result. Third-quarter results
- Negative Sentiment: The outlook is mixed: fourth-quarter revenue guidance reportedly fell short of expectations, while mortgage-market weakness remains a headwind despite strength in insurance. Quarterly sales and guidance
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.
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