LendingTree (TREE) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $327.3 million, up 37% year-over-year, driven by strong Insurance marketplace performance and robust Consumer segment growth.

• Adjusted EBITDA grew 71% year-over-year to $42.0 million, with margin improvements from marketing optimization and a high-margin, asset-light business model.

• Net income reached $17.3 million ($1.22 per diluted share), reversing a prior year loss, and the company maintained a strong liquidity position with $85.5 million in cash.

• Strategic focus remains on accelerating the core business, leveraging AI for operational efficiency, expanding product offerings, and rebuilding the brand.

• Durable, diversified business model proven through multiple economic cycles, supported by rapid deleveraging and a strong balance sheet.

Financial highlights

• Insurance segment revenue rose 51% year-over-year to $221.9 million, with segment profit up 50%.

• Consumer segment revenue increased 18% to $66.3 million, with small business lending up 49% and segment profit up 21%.

• Home segment revenue grew 6% to $39.1 million, but segment profit declined 24% due to higher marketing costs.

• Adjusted EBITDA margin improved to 13% of revenue, and variable marketing margin was $99.5 million, up 28% year-over-year.

• Net leverage declined to 2.1x from 3.4x year-over-year, and S&P credit rating was upgraded to B+ with a stable outlook.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1,300–$1,350 million; Adjusted EBITDA outlook increased to $152–$162 million.

• Q2 2026 revenue expected at $305–$325 million, with Adjusted EBITDA of $38–$40 million.

• Continued strength anticipated in Insurance, with conservative expectations for Home and Consumer segments due to macro headwinds.

• Guidance assumes muted seasonality in Consumer due to low sentiment and elevated gas prices, with potential for further credit tightening.

• Cash and cash equivalents and operating cash flows are expected to be sufficient for operating needs for the next twelve months and beyond.