LendingTree (TREE) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $261.5 million, up 95% year-over-year, exceeding guidance with strong momentum and $32M adjusted EBITDA, surpassing forecasts.

• Insurance segment was the primary driver, with Home and Consumer segments also showing strong year-over-year growth; all three segments contributed to the return to growth.

• GAAP net income was $7.5 million ($0.55 per diluted share); adjusted net income per share was $1.16.

• Focused on cost discipline, operational efficiency, and scalable growth.

Financial highlights

• Q4 adjusted EBITDA reached $32.2 million, up 108% year-over-year and well ahead of guidance.

• Total revenue grew 95% year-over-year to $261.5 million; variable marketing margin increased 43% to $86.7 million (33% of revenue).

• Net leverage improved to 3.5x trailing adjusted EBITDA by year-end, down from 5.3x.

• Adjusted net income rose 339% year-over-year to $15.8 million.

• Adjusted EBITDA margin was 12% of revenue, consistent with prior year.

Outlook and guidance

• Q1 2025 revenue expected between $241–$248 million; adjusted EBITDA $25–$27 million.

• Full-year 2025 revenue guidance of $985–$1,025 million, up 9–14% from 2024; adjusted EBITDA forecasted at $116–$126 million, up 11–21%.

• Double-digit revenue growth expected in Home and Consumer segments; Insurance to see modest growth after a record year.

• Insurance segment growth expected to moderate in 2025, with margins returning to low to mid-30% range.

• Consumer segment margin expected to normalize to mid-high 40% in 2025, with continued double-digit revenue growth.