Lendingtree (TREE) AI Stock Analysis

• Market Cap: $674.65M
• Dividend Yield: N/A
• Average Volume (3M): 279.16K
• Price to Earnings (P/E): 49.0
• Beta (1Y): 1.59
• 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: 250,523
• 30 Day Avg. Volume: 279,158
• 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: 1.91
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 1.26
• Enterprise Value/Ebitda: 12.87
• 1Y Price Target: $81.33
• Price Target Upside: 64.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $56.00 ▲(13.48% Upside)

LendingTree's strong earnings call performance and strategic positioning in AI and debt reduction are significant positives. However, high leverage, declining cash flow, and technical indicators pointing to bearish momentum weigh down the overall score. The high P/E ratio further suggests overvaluation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth across segments highlights LendingTree's strong market position and ability to adapt to changing consumer needs, supporting long-term business sustainability.

Insurance Segment Leadership

Leadership in the insurance segment indicates strong competitive positioning and potential for sustained revenue growth, enhancing the company's market presence.

Debt Reduction

Reducing leverage improves financial flexibility, allowing for better capital allocation and reduced risk, which supports long-term financial health and stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Declining Free Cash Flow

A decline in free cash flow growth can constrain the company's ability to reinvest in the business, pay down debt, or return capital to shareholders, impacting long-term growth prospects.

Mortgage Segment Challenges

Challenges in the mortgage segment due to high rates can limit growth in this area, affecting overall revenue diversification and increasing reliance on other segments.

Lendingtree Business Overview & Revenue Model

Company Description

LendingTree, Inc. is an online marketplace based in the United States that connects consumers with multiple lenders to facilitate loans, including mortgages, personal loans, auto loans, and student loans. Founded in 1996, LendingTree operates primarily in the financial services sector, providing a platform where users can compare loan offers, credit cards, and other financial products. The company aims to empower consumers to make informed financial decisions by simplifying the borrowing process and providing access to a broad range of financial products.

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

LendingTree shows strong gross profit margins and a positive turnaround in net profit margin. However, high leverage and declining free cash flow growth present significant risks. Improvements in return on equity are positive, but maintaining stability amidst high debt levels is crucial.

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: 49.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 49.35 is below the 20-day moving average (MA) of 56.45, below the 50-day MA of 61.64, and below the 200-day MA of 50.13, indicating a bearish trend. The MACD of -3.50 indicates Positive momentum. The RSI at 32.60 is Neutral, neither overbought nor oversold. The STOCH value of 12.03 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	75 Outperform	$413.02M	2.36	13.64%	9.21%	12.69%	-35.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HIPO	65 Neutral	$898.26M	-85.19	25.65%	―	34.48%	―
WDH	63 Neutral	$589.51M	10.07	9.11%	2.77%	9.50%	69.82%
OPRT	62 Neutral	$205.64M	7.08	8.59%	―	-5.29%	―
TREE	59 Neutral	$674.65M	48.98	12.49%	―	37.01%	―
LDI	41 Neutral	$859.75M	-7.00	-25.72%	―	3.91%	27.78%

Lendingtree Corporate Events

LendingTree’s Earnings Call: Growth Amid Challenges

LendingTree’s recent earnings call revealed a generally positive sentiment, driven by robust growth across its business segments, particularly in insurance and consumer loans. The company has successfully maintained financial health by reducing leverage, although challenges persist in the mortgage segment due to high rates. Additionally, there is a need to adapt to changes in search engine and AI traffic. Despite these challenges, the positives in revenue growth and strategic positioning outweigh the negatives.

LendingTree Reports Strong Q3 2025 Financial Results

LendingTree, Inc., headquartered in Charlotte, NC, operates as a leading online financial services marketplace, connecting consumers with a wide range of financial products including loans, credit cards, and insurance through its extensive network of financial partners.

LendingTree Appoints New Leadership After CEO’s Passing

On October 13, 2025, LendingTree announced the unexpected passing of its Founder, Chairman, and CEO, Doug Lebda, due to an all-terrain vehicle accident on October 12, 2025. In response, the Board appointed Scott Peyree as the new President and CEO, while Steve Ozonian was named Chairman of the Board. The company expressed its commitment to upholding Doug Lebda’s legacy and continuing his mission of consumer empowerment in the financial services industry.

The most recent analyst rating on (TREE) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Lendingtree stock, see the TREE Stock Forecast page.

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.

The most recent analyst rating on (TREE) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Lendingtree stock, see the TREE Stock Forecast page.