LendingTree (NASDAQ:TREE) Releases Quarterly Earnings Results, Misses Estimates By $1.29 EPS

LendingTree (NASDAQ:TREE) released its quarterly earnings data on Monday. The financial services provider reported ($0.39) EPS for the quarter, missing the consensus estimate of $0.90 by ($1.29), FiscalAI reports. The company had revenue of $310.92 million during the quarter, compared to analysts’ expectations of $286.56 million. LendingTree had a return on equity of 16.88% and a net margin of 13.55%.The company’s quarterly revenue was up 22.3% compared to the same quarter last year.

Here are the key takeaways from LendingTree’s conference call:

• LendingTree reported a very strong 2025 with VMD up 14% and adjusted EBITDA up 28%, and all three reportable segments delivered double-digit VMD growth.
• The Insurance marketplace is a standout — $174 million of VMD (+10% YoY) with broad-based growth (carriers #4–10 grew revenue 65% YoY), and management expects Q1 and 2026 to produce record insurance results.
• Management cites measurable ROI from AI investments — AI voice in the call center has driven over $10 million of incremental revenue per quarter with only modest OpEx increases, and overall network conversions rose 17% YoY in Q4.
• The Home segment showed limited improvement (Q4 revenue +6%) and margins were pressured by rising media costs and lower lender conversion rates, and the company’s guidance conservatively assumes no further mortgage rate relief.
• The company laid out a four-pillar “North Star” strategy (accelerate core, improve CX, expand products, rebuild brand) with targeted H2 brand tests and an initial brand spend under $10 million, while a new “trigger leads” rule effective this week should improve lead quality and monetization.

LendingTree Price Performance

Shares of NASDAQ TREE opened at $46.75 on Wednesday. LendingTree has a 1 year low of $32.65 and a 1 year high of $77.35. The stock has a market capitalization of $639.07 million, a P/E ratio of 4.36 and a beta of 2.21. The company’s 50-day moving average is $51.20 and its 200 day moving average is $57.52. The company has a debt-to-equity ratio of 2.93, a current ratio of 1.43 and a quick ratio of 1.43.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Tower Research Capital LLC TRC lifted its stake in shares of LendingTree by 281.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,120 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 826 shares during the period. Meeder Asset Management Inc. purchased a new stake in LendingTree in the fourth quarter worth $94,000. Advisory Services Network LLC bought a new position in LendingTree in the third quarter worth $95,000. Public Employees Retirement System of Ohio purchased a new position in LendingTree during the fourth quarter valued at $100,000. Finally, Quantbot Technologies LP purchased a new position in LendingTree during the second quarter valued at $122,000. Hedge funds and other institutional investors own 68.26% of the company’s stock.

Key Stories Impacting LendingTree

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Q4 / full-year revenue beat and outlook lift investor sentiment — LendingTree reported record annual revenue (~$1.12B) and Q4 revenue that beat Street expectations; several outlets say the revenue and forward revenue outlook drove the stock rally. MarketWatch: LendingTree Shares Surge
• Positive Sentiment: Company points to AI as a growth engine — Management cited AI tools as a key driver of customer acquisition and revenue scale; multiple local and national reports highlight AI adoption as supporting the step-up to >$1B in revenue. BizJ: LendingTree hits record $1.12 billion
• Positive Sentiment: Management raised revenue guidance for FY2026 and Q1 2026 — The firm issued a FY revenue target around ~$1.3B (above consensus) and Q1 revenue guidance of $317M–$325M, which materially exceeds Street Q1 revenue expectations and supports near-term growth visibility. PR Newswire: Q4 results
• Positive Sentiment: Brokerage coverage leans constructive — Recent consensus from brokerages summarized as a “Moderate Buy,” which can amplify buying interest after the beat-and-raise. AmericanBankingNews: Moderate Buy
• Neutral Sentiment: GAAP vs. adjusted metrics diverge — The company reported a large GAAP net income (helped by a one-time tax benefit) while adjusted results show a loss; investors should note the accounting drivers when parsing headline profit figures. PR Newswire: Q4 results
• Neutral Sentiment: Full-call transcripts and assessments are available — Analysts and outlets published detailed earnings transcripts and Q4 assessments for deeper metric review (VMM, adjusted EBITDA, customer trends). Yahoo: Q4 earnings call highlights
• Negative Sentiment: Adjusted EPS missed consensus — On an adjusted basis LendingTree reported an adjusted net loss per share (‑$0.39), missing EPS expectations; that gap introduces execution/expense concerns despite top-line strength. Zacks: Q4 loss, revenue beat

Wall Street Analysts Forecast Growth

A number of brokerages have commented on TREE. Keefe, Bruyette & Woods decreased their price target on LendingTree from $83.00 to $70.00 and set an “outperform” rating on the stock in a research note on Wednesday. Zacks Research downgraded shares of LendingTree from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 30th. Wall Street Zen cut shares of LendingTree from a “strong-buy” rating to a “buy” rating in a research report on Monday, November 10th. Weiss Ratings reissued a “hold (c-)” rating on shares of LendingTree in a report on Monday, December 29th. Finally, Needham & Company LLC decreased their price objective on shares of LendingTree from $85.00 to $60.00 and set a “buy” rating on the stock in a research report on Tuesday. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $73.17.

About LendingTree

LendingTree, Inc operates an online marketplace that connects consumers with a network of lenders and financial service providers. Through its platform, borrowers can compare loan offers for mortgages, home equity loans, personal loans, student loans, auto loans and small business financing. The company also offers tools for comparing credit cards and deposit accounts, allowing users to research rates and terms from a range of providers in one place.

Founded in 1996 by Doug Lebda, LendingTree pioneered the comparison-shopping model for consumer credit products.