Lendingtree (TREE) AI Stock Analysis

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Lendingtree

(NASDAQ:TREE)

Rating:69Neutral

Price Target:

$54.00

▲(9.16%Upside)

LendingTree's positive earnings call and strong technical momentum are significant strengths, indicating potential for future growth. However, financial challenges such as high leverage and a negative P/E ratio weigh on the overall score, highlighting the need for profitability improvements.

Positive Factors

Guidance and Outlook

The company provided a solid guidance that is above consensus and raised its FY25 outlook.

Revenue Growth

TREE pre-announced positive results with all business segments achieving double-digit year-over-year revenue growth.

Negative Factors

Financial Performance

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

Macroeconomic Concerns

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

Lendingtree (TREE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$631.82M

Dividend YieldN/A

Average Volume (3M)291.21K

Price to Earnings (P/E)―

Beta (1Y)2.05

Revenue Growth51.65%

EPS Growth58.63%

CountryUS

Employees927

SectorFinancial

Sector Strength73

IndustryFinancial - Conglomerates

Share Statistics

EPS (TTM)0.65

Shares Outstanding13,535,183

10 Day Avg. Volume410,280

30 Day Avg. Volume291,206

Financial Highlights & Ratios

PEG Ratio-7.31

Price to Book (P/B)5.67

Price to Sales (P/S)0.00

P/FCF Ratio8.66

Enterprise Value/Market Cap1.54

Enterprise Value/Revenue0.27

Enterprise Value/Gross Profit1.00

Enterprise Value/Ebitda3.40

Forecast

1Y Price Target

$66.40

Price Target Upside34.22% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Lendingtree Business Overview & Revenue Model

Company DescriptionLendingTree, Inc. is a leading online marketplace that connects consumers with a variety of lenders for financial products such as mortgages, personal loans, credit cards, and insurance. Operating primarily within the financial technology sector, LendingTree provides a platform that allows consumers to compare different financial products and services, ensuring they can make informed decisions tailored to their needs. The company aims to simplify the process of obtaining financial products by offering a one-stop-shop for consumers seeking competitive rates and terms.

How the Company Makes MoneyLendingTree makes money primarily through fees charged to lenders and other financial service providers who participate on its platform. The company operates a lead generation model where lenders pay LendingTree for access to qualified consumer leads. These fees are generally based on the type of loan product and the quality of the lead. Additionally, LendingTree earns revenue from advertising and sponsored listings on its platform, where financial institutions can pay for enhanced visibility to attract potential customers. Significant partnerships with banks, credit unions, and other financial institutions contribute to its earnings by expanding the range of products offered and maintaining a competitive marketplace.

Lendingtree Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how much revenue each business segment generates, indicating the company’s diversified income sources and potential growth areas.

Chart InsightsLendingTree's Insurance segment shows remarkable growth with a 71% year-over-year increase, despite regulatory challenges. The Consumer segment is gaining momentum, particularly in small business and personal loans, setting up for record revenue in 2025. The Home segment is recovering, driven by demand for home equity loans. However, adjusted EBITDA fell short due to regulatory headwinds and legal expenses. The company remains optimistic, projecting a 15% adjusted EBITDA growth, while managing costs through zero-based budgeting to mitigate macroeconomic risks.

Data provided by:

Main Street Data

Lendingtree Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: 5.98%|

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call presented strong financial results with significant growth in revenue and profitability across all business segments. The integration of AI into operations is seen as a major opportunity. While there were some technical issues earlier in the year, they have been resolved. Overall, the positive aspects significantly outweigh the negative ones.

Q2-2025 Updates

Positive Updates

Revenue Growth

Revenue for the quarter was $250 million, representing a 19% year-over-year growth.

Profitability Increase

Adjusted EBITDA of $31.8 million was up 35% from last year.

Segment Performance

Consumer segment delivered 12% revenue growth with a 19% increase in segment profit. Small business loan revenue grew 61% and personal loan revenue grew 14%.

Home Segment Growth

Revenue climbed 25%, driven by a 38% increase in home equity revenue.

Insurance Segment Success

Insurance revenue grew 21% year-over-year, demonstrating strong momentum.

AI Integration

The company has become an AI-first company with all employees using AI in their day jobs, including having enterprise GPT for everyone.

Negative Updates

Technical Issues in Insurance

Earlier in the year, there were technical errors affecting traffic and monetization, but these were largely resolved by late Q1, early Q2.

Company Guidance

During the LendingTree, Inc. Second Quarter 2025 Earnings Conference Call, the company reported robust financial performance and provided optimistic guidance for future periods. In Q2 2025, LendingTree achieved a revenue of $250 million, reflecting a 19% year-over-year growth, and an adjusted EBITDA of $31.8 million, marking a 35% increase from the previous year. The company witnessed double-digit growth across its three business segments: Consumer, Home, and Insurance. Specifically, the Consumer segment saw a 12% revenue increase, with small business loan revenue surging by 61% and personal loan revenue rising by 14%. The Home segment experienced a 25% revenue climb, propelled by a 38% increase in home equity revenue. Insurance revenue grew by 21% year-over-year. Furthermore, the company highlighted its strategic focus on AI, which is expected to enhance efficiency and guide customers through complex transactions, potentially improving close rates and revenue. The forward-looking outlook remains positive, with expectations for continued strong momentum in financial results and strategic investments in AI and data integration to drive long-term growth.

Lendingtree Financial Statement Overview

Summary

LendingTree shows strong gross profit margins and operational cash flow but struggles with negative net income and high leverage, indicating a need to improve profitability and reduce debt.

Income Statement

Neutral

Lendingtree's revenue shows a mixed trend with a decline in recent periods, but TTM revenue indicates some recovery. The gross profit margin remains strong, showing efficient cost management. However, the company struggles with profitability, reflected in negative net income and narrow EBIT and EBITDA margins, indicating high operational costs relative to revenue.

Balance Sheet

Neutral

The balance sheet reveals a high debt-to-equity ratio, indicating considerable leverage. Stockholder's equity has decreased over time, suggesting potential risk. Nevertheless, the equity ratio is adequate, and there is some asset stability. The company's financial structure warrants caution due to high liabilities relative to equity.

Cash Flow

Positive

The cash flow statement shows strong operating cash flow relative to net income, suggesting good cash generation from operations. Free cash flow is positive, and there has been free cash flow growth, but the overall cash position is challenged by significant financing outflows. Although operating cash flow supports liquidity, cash management remains crucial.

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	80.43M	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	451.23M	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 Price49.47

Price Trends

50DMA

38.37

Positive

100DMA

42.17

Positive

200DMA

43.47

Positive

Market Momentum

MACD

2.87

Negative

RSI

71.24

Negative

STOCH

73.79

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 49.47 is above the 20-day moving average (MA) of 42.15, above the 50-day MA of 38.37, and above the 200-day MA of 43.47, indicating a bullish trend. The MACD of 2.87 indicates Negative momentum. The RSI at 71.24 is Negative, neither overbought nor oversold. The STOCH value of 73.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TREE.

Lendingtree Risk Analysis

Lendingtree disclosed 59 risk factors in its most recent earnings report. Lendingtree reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Lendingtree Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDH	79 Outperform	$600.36M	11.43	8.26%	0.96%	2.64%	100.00%
YRD	73 Outperform	$490.79M	2.66	14.69%	6.87%	12.45%	-36.64%
TREE	69 Neutral	$631.82M	―	-40.91%	―	51.65%	58.63%
Sector *	67 Neutral	$16.60B	11.20	9.14%	3.93%	10.99%	-3.70%
HIPO	55 Neutral	$637.98M	―	-15.58%	―	77.44%	85.53%
OPRT	51 Neutral	$254.89M	―	-11.37%	―	-5.79%	59.24%
LDI	48 Neutral	$524.56M	―	-29.48%	―	3.76%	16.19%

* Financial Sector Average

Performance Comparison

TREE

Lendingtree

49.47

2.95

6.34%

YRD

Yiren Digital

5.68

1.62

39.90%

LDI

loanDepot

1.68

-0.53

-23.98%

OPRT

Oportun Financial

5.81

3.02

108.24%

HIPO

Hippo Holdings

25.36

9.58

60.71%

WDH

Waterdrop

1.66

0.64

62.75%

Lendingtree Corporate Events

Shareholder MeetingsBusiness Operations and Strategy

LendingTree Stockholders Approve Key Proposals at Annual Meeting

Positive

Jun 13, 2025

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.

The most recent analyst rating on (TREE) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Lendingtree stock, see the TREE Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025