Lendingtree (TREE) AI Stock Analysis

• Market Cap: $845.27M
• Dividend Yield: N/A
• Average Volume (3M): 382.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: 51.65%
• EPS Growth: 58.63%
• Country: US
• Employees: 927
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Conglomerates
• EPS (TTM): 0.65
• Shares Outstanding: 13,620,161
• 10 Day Avg. Volume: 348,507
• 30 Day Avg. Volume: 382,849
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: 10.66
• 1Y Price Target: $65.67
• Price Target Upside: 5.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: $67.00 ▲(7.32% Upside)

LendingTree's overall stock score is primarily impacted by financial instability due to high leverage and negative profitability, despite strong revenue growth and positive market momentum. The strategic focus on AI and shareholder support provide a foundation for potential improvement, but significant financial restructuring is needed to enhance long-term stability.

Positive Factors

Earnings

TREE's 2Q results exceeded expectations on all fronts, with outperformance across all segments.

Guidance

TREE provided an above-consensus 3Q guidance and raised the FY25 outlook primarily due to strength in the Insurance segment.

Valuation

Shares are set to open at an inexpensive ~7x EV/FY26 EBITDA multiple, with a reiterated BUY rating and raised price target.

Negative Factors

Macro Concerns

There could be some NT choppiness given the heightened macro concerns.

Past Performance

TREE's 1Q results missed expectations on the top and bottom line, largely due to headwinds in the insurance vertical.

Lendingtree Business Overview & Revenue Model

Company Description

LendingTree, Inc. (TREE) is a leading online marketplace that connects consumers with multiple lenders, offering a variety of financial products including mortgages, personal loans, auto loans, and credit cards. Founded in 1996 and headquartered in Charlotte, North Carolina, LendingTree operates primarily in the financial services sector, providing consumers with tools to compare loan offers from various lenders, thereby facilitating informed borrowing decisions. The company's platform enables users to receive multiple loan offers after filling out a single application, streamlining the lending process.

How the Company Makes Money

LendingTree generates revenue primarily through a performance-based model, earning money from lenders when consumers engage with their services. The company charges lenders a fee for every lead generated through its platform, which includes completed loan applications and consumer inquiries. Key revenue streams include mortgage leads, personal loan leads, and credit card leads. Additionally, LendingTree may offer advertising services to lenders, adding another layer of revenue. Significant partnerships with various financial institutions and lenders enhance its offerings and contribute to its earnings by providing a wide range of options for consumers, which in turn attracts more users to the platform.

Lendingtree Financial Statement Overview

Summary

LendingTree's financial performance is challenged by consistent negative net income and high leverage, despite strong operational cash flow and promising revenue trends. The financial structure is strained, requiring strategic adjustments for profitability improvement.

Income Statement

LendingTree has demonstrated fluctuating revenue growth with a recent increase in the TTM period, recovering from a decline in the prior year. However, consistent negative net income and low EBIT margins indicate profitability challenges. The gross profit margin remains strong, reflecting operational efficiency, but overall profitability needs improvement.

Balance Sheet

The company exhibits a high debt-to-equity ratio, indicating significant leverage, which poses a risk in the financial structure. The equity ratio has weakened over the years, reflecting reduced shareholder equity relative to assets. Return on equity is negative, highlighting ongoing profitability issues affecting shareholder returns.

Cash Flow

LendingTree shows a positive trend in operating cash flow, with a favorable operating cash flow to net income ratio, indicating strong cash generation relative to earnings. Free cash flow has shown growth, but the cash flow from financing activities is volatile, which could impact long-term cash stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	900.22M	672.50M	984.99M	1.10B	909.99M
Gross Profit	973.10M	864.15M	633.74M	927.22M	1.04B	855.50M
EBITDA	86.34M	73.12M	21.86M	16.49M	47.58M	53.25M
Net Income	-53.98M	-41.70M	-122.40M	-187.95M	69.11M	-48.26M
Balance Sheet
Total Assets	835.76M	767.67M	802.76M	1.20B	1.30B	1.19B
Cash, Cash Equivalents and Short-Term Investments	149.13M	106.59M	112.05M	298.85M	251.23M	169.93M
Total Debt	563.46M	544.09M	611.15M	912.76M	740.32M	703.77M
Total Liabilities	717.65M	658.85M	678.63M	991.37M	851.36M	824.23M
Stockholders Equity	118.11M	108.82M	124.13M	207.94M	447.99M	364.76M
Cash Flow
Free Cash Flow	77.33M	51.04M	55.04M	31.52M	99.51M	-3.58M
Operating Cash Flow	89.17M	62.26M	67.57M	42.97M	134.57M	38.57M
Investing Cash Flow	-11.90M	-11.22M	-12.48M	-27.88M	10.07M	-122.15M
Financing Cash Flow	5.03M	-56.50M	-242.01M	32.67M	-56.96M	193.29M

Lendingtree Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TREE, the sentiment is Positive. The current price of 62.43 is above the 20-day moving average (MA) of 55.40, above the 50-day MA of 44.84, and above the 200-day MA of 43.59, indicating a bullish trend. The MACD of 5.55 indicates Negative momentum. The RSI at 78.76 is Negative, neither overbought nor oversold. The STOCH value of 76.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TREE.

Lendingtree Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	74 Outperform	$511.53M	2.78	14.69%	6.69%	12.45%	-36.64%
WDH	73 Outperform	$661.84M	12.60	8.26%	0.87%	2.64%	100.00%
Sector *	65 Neutral	£5.46B	9.22	9.66%	4.98%	9.83%	-15.31%
TREE	59 Neutral	$845.27M	―	-40.91%	―	51.65%	58.63%
HIPO	55 Neutral	$777.62M	―	-3.27%	―	43.15%	94.09%
LDI	51 Neutral	$608.90M	―	-23.67%	―	6.60%	44.77%
OPRT	50 Neutral	$256.57M	―	-1.26%	―	-5.87%	94.07%

Lendingtree Corporate Events

LendingTree Secures $475 Million Loan Facility

On August 21, 2025, LendingTree, Inc. entered into a $475 million first lien term loan facility with Bank of America and Truist Securities. This facility, which includes $400 million in initial term loans and $75 million in revolving loans, is intended to refinance existing facilities and support general corporate purposes. The agreement imposes financial covenants and is secured by a lien on the company’s assets, impacting its financial strategy and stakeholder interests.

LendingTree Stockholders Approve Key Proposals at Annual Meeting

On June 11, 2025, LendingTree, Inc. held its Annual Meeting of Stockholders where 11,424,776 shares were represented, constituting a quorum. During the meeting, stockholders voted on three proposals: the election of nine directors, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. All proposals were approved, indicating strong support for the company’s leadership and strategic direction.