#United States #Charlotte #revenue growth #Financial Services #LendingTree

LendingTree Reports First Quarter 2025 Results

LendingTree, Inc. (NASDAQ: TREE), which runs the prominent online financial services marketplace LendingTree.com, announced its financial results for the first quarter of 2025 on May 1, 2025, revealing remarkable growth across its business segments. The company achieved consolidated revenue of $239.7 million, marking a 43% increase compared to the same quarter in 2024. Amidst ongoing operational improvements, the highlights of the latest financial outcomes reflect the strategies implemented for sustainable growth.

Financial Performance Overview

The impressive results for the quarter ended March 31, 2025, were characterized by notable year-over-year achievements. LendingTree's Adjusted EBITDA rose by 14%, showcasing the company’s solid financial performance despite a GAAP net loss of $12.4 million, translating to $(0.92) per diluted share. This loss includes a $15 million increase in the litigation reserve linked to a preliminary settlement agreement in an ongoing legal matter with Mantha, pending court approval.

According to Doug Lebda, Chairman and CEO, “We are pleased to report that our annualized EBITDA grew, buoyed by revenue growth in all three of our business segments, demonstrating the lasting improvements in our financial health.”

Segment Performance Insights

With segment performances reflecting their commitment to operational excellence, LendingTree has seen significant growth across the board:

• - Home Segment: Revenue reached $37.0 million, increasing by 22% relative to the first quarter of 2024, yielding a segment profit of $13.1 million, which is a 36% increase. In particular, revenue from Home Equity surged by 24%, amounting to $25.8 million.
• - Consumer Segment: Revenue generated from this segment was $56.0 million, representing a 9% rise year-over-year. The personal loans segment experienced particularly robust growth, with a 16% increase to $23.4 million.
• - Insurance Segment: This segment saw a revenue increase of 71%, totaling $146.7 million, which resulted in a segment profit of $38.7 million—a 16% uptick from the previous year.

Strategic Focus and Outlook

Looking ahead, LendingTree plans to continue managing its fixed costs judiciously while strategically investing in selective growth initiatives. Jason Bengel, the company's CFO, expressed confidence in the current direction, emphasizing the company’s priorities of maintaining a strong balance sheet and fostering a culture of efficiency and accountability across all levels of the organization.

New Financial Projections

The update on LendingTree's financial outlook anticipated revenue generation of between $955 million and $995 million for the full 2025, which is slightly lower than the previous range of $985 million to $1,025 million. They projected their adjusted EBITDA between $116 million and $124 million for the year.

For the second quarter, the anticipated revenue is set between $241 million and $248 million, with an adjusted EBITDA expected at $29 million to $31 million. The company acknowledges the potential impact of legal matters and tax considerations on financial results, making it challenging to provide definitive reconciliations for projected metrics.

Conference Call and Additional Information

A conference call was initiated to provide further insights regarding the first-quarter results, available for public listening on the LendingTree investor relations website. This reinforces the company’s strategy of transparency and communication with stakeholders.

Through ongoing enhancements and results-driven initiatives, LendingTree continues to establish its position as a leader within the financial services sector, leveraging a portfolio of innovative products to meet customer needs and drive financial success.