Lendingtree (TREE) AI Stock Analysis

• Market Cap: $774.58M
• Dividend Yield: N/A
• Average Volume (3M): 231.40K
• Price to Earnings (P/E): 56.2
• Beta (1Y): 1.52
• Revenue Growth: 37.01%
• EPS Growth: N/A
• Country: US
• Employees: 927
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 0.73
• Shares Outstanding: 13,670,696
• 10 Day Avg. Volume: 268,310
• 30 Day Avg. Volume: 231,403
• PEG Ratio: 0.18
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 1.13
• Enterprise Value/Ebitda: 11.56
• 1Y Price Target: $79.00
• Price Target Upside: 39.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $59.00 ▲(4.13% Upside)

The score is driven primarily by improving operating performance and a constructive earnings update highlighting strong segment growth and deleveraging progress. Offsetting factors include high balance-sheet leverage and weakening free-cash-flow growth, with valuation (high P/E and no dividend) and mixed technical signals further limiting the upside.

Positive Factors

Business model & margins

LendingTree’s high gross margin and performance-based lead-gen model create a scalable, low‑capex business. With most incremental revenue converting at the gross level, the platform can sustain operating leverage, supporting durable margin resilience and repeatable per-lead economics.

Segment diversification and growth

Double-digit growth across Consumer, Home and Insurance reduces reliance on any single market cycle. Insurance leadership and small-business loan momentum create multiple structural revenue engines, enhancing stability if mortgage activity weakens over coming quarters.

Deleveraging & capital flexibility

Meaningful reduction in leverage materially lowers refinancing and interest-rate risk, improving financial flexibility. Prioritizing debt paydown while keeping buybacks/acquisitions optional positions the company to strengthen the balance sheet and pursue strategic opportunities over the medium term.

Negative Factors

High financial leverage

A debt-to-equity ratio near 3.3x indicates sustained reliance on leverage, which can amplify downside in slower revenue periods. Elevated debt limits capital allocation options, increases refinancing exposure, and raises the company’s sensitivity to rising interest rates over multiple quarters.

Weakening free cash flow growth

A ~21.7% decline in FCF growth and modest OCF-to-net-income conversion point to deteriorating cash generation. That makes sustained debt reduction, investment and shareholder returns harder without restoring operating cash flow, increasing execution reliance on margin and volume recovery.

Structural traffic and mortgage headwinds

Changes in search/AI distribution are structurally altering organic acquisition channels, a core source of leads. Coupled with prolonged mortgage weakness from high rates, these shifts can reduce lead volumes or raise acquisition costs unless the platform redeploys resources to new content and AI-integrated distribution strategies.

Lendingtree Business Overview & Revenue Model

Company Description

LendingTree, Inc., through its subsidiary, LT Intermediate Company, LLC, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance. The Home segment offers purchase mortgage, refinance mortgage, reverse mortgage, and home equity loans; lines of credit; and real estate brokerage services. The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as credit repair and debt settlement services. The Insurance segment includes information, tools, and access to insurance quote products, including home and automobile, through which consumers are matched with insurance lead aggregators to obtain insurance offers. LendingTree, Inc. also operates Student Loan Hero, a personal finance website dedicated to helping student loan borrowers manage their student debt; QuoteWizard.com, a marketplace for insurance comparison; ValuePenguin, a personal finance website that offers consumers objective analysis on various financial topics from insurance to credit cards; and Stash, a consumer investing and banking platform that offers a suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back rewards program. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was incorporated in 1996 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

LendingTree generates revenue primarily through a performance-based model, where it earns money by charging lenders for the leads generated from its platform. When a consumer uses LendingTree to request loan offers, lenders pay LendingTree for the opportunity to connect with potential borrowers. This is known as lead generation and is a significant revenue stream for the company. Additionally, LendingTree earns revenue from advertising and affiliate partnerships, where it promotes financial products and services from various companies and receives a commission for successful referrals. The company has established partnerships with numerous financial institutions, which enhances its ability to offer a wide range of loan products and increases its earnings potential through diverse revenue streams.

Lendingtree Financial Statement Overview

Summary

Profitability is improving (net margin 1.34% TTM) with strong gross margin (96.16% TTM) and positive revenue growth (4.64% TTM). However, leverage is high (debt-to-equity 3.33 TTM) and free cash flow growth declined (-21.68% TTM), which raises financial risk.

Income Statement

Lendingtree's income statement shows a strong gross profit margin of 96.16% TTM, indicating efficient cost management. The net profit margin has improved to 1.34% TTM from negative figures in previous years, reflecting a positive turnaround. Revenue growth is positive at 4.64% TTM, showing recovery and growth potential. However, historical volatility in net income and EBIT margins suggests potential risks in maintaining profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.33 TTM, indicating significant leverage which could pose financial risk. Return on equity has improved to 12.23% TTM, showing better utilization of equity. However, the equity ratio remains low, suggesting a reliance on debt financing. Overall, while there are improvements, the high leverage remains a concern.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 21.68% TTM, which is concerning. The operating cash flow to net income ratio is 0.40 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.83 TTM, suggesting good cash conversion. Despite some strengths, the decline in free cash flow growth is a notable weakness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	900.22M	672.50M	984.99M	1.10B	909.99M
Gross Profit	1.02B	864.15M	633.74M	927.22M	1.04B	855.50M
EBITDA	99.98M	73.12M	35.26M	17.05M	60.88M	61.05M
Net Income	14.16M	-41.70M	-122.40M	-187.95M	69.11M	-48.26M
Balance Sheet
Total Assets	759.92M	767.67M	802.76M	1.20B	1.30B	1.19B
Cash, Cash Equivalents and Short-Term Investments	68.58M	106.59M	112.05M	298.85M	251.23M	169.93M
Total Debt	449.84M	544.09M	611.15M	912.76M	748.92M	709.15M
Total Liabilities	627.52M	658.85M	678.63M	991.37M	851.36M	824.23M
Stockholders Equity	132.40M	108.82M	124.13M	207.94M	447.99M	364.76M
Cash Flow
Free Cash Flow	60.57M	51.04M	55.04M	31.52M	89.81M	-3.58M
Operating Cash Flow	72.81M	62.26M	67.57M	42.97M	124.87M	38.57M
Investing Cash Flow	-9.75M	-11.22M	-12.48M	-27.88M	13.38M	-122.15M
Financing Cash Flow	-91.27M	-56.50M	-242.01M	32.67M	-56.96M	193.29M

Lendingtree Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TREE, the sentiment is Negative. The current price of 56.66 is below the 20-day moving average (MA) of 60.43, above the 50-day MA of 56.31, and above the 200-day MA of 52.67, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TREE.

Lendingtree Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	73 Outperform	$343.03M	1.99	12.53%	10.37%	10.48%	-30.67%
WDH	71 Outperform	$596.74M	8.62	10.37%	2.12%	18.70%	62.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPRT	65 Neutral	$239.18M	8.23	8.59%	―	-5.29%	―
HIPO	63 Neutral	$754.99M	8.08	25.65%	―	34.48%	―
TREE	60 Neutral	$774.58M	56.24	12.49%	―	37.01%	―
LDI	47 Neutral	$726.45M	-5.92	-25.72%	―	3.91%	27.78%

Lendingtree Corporate Events

LendingTree appoints new COO and insurance leader

On January 6, 2026, LendingTree’s board appointed Ian Smith, previously Senior Vice President of Insurance at its QuoteWizard subsidiary, as Chief Operating Officer, formalizing his role in overseeing company-wide operations and bringing his track record of operational discipline in the insurance marketplace to LendingTree’s broader lending and financial services platform. The company also promoted Laura Nelson, formerly Senior Vice President of Sales, to Head of Insurance, placing her in charge of strategy and performance for LendingTree’s insurance marketplace; together, these leadership changes, announced publicly on January 9, 2026, signal a consolidation of experienced internal talent to drive disciplined execution, scalable growth and stronger insurer and partner relationships following the recent elevation of former COO Scott Peyree to CEO after the death of founder Doug Lebda.

The most recent analyst rating on (TREE) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Lendingtree stock, see the TREE Stock Forecast page.

LendingTree Updates Bylaws to Enhance Governance

On November 21, 2025, LendingTree, Inc. announced amendments to its Amended and Restated Bylaws following updates to SEC rules and Delaware General Corporation Law. These changes aim to enhance corporate governance, improve administrative efficiency, and align with evolving legal standards, impacting stockholder meetings, nominations, and officer responsibilities.

The most recent analyst rating on (TREE) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Lendingtree stock, see the TREE Stock Forecast page.