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Lendingtree (TREE) AI Stock Analysis
Lendingtree
(NASDAQ:TREE)
TREE scores well overall due to a clear profitability/FCF turnaround and a very low P/E valuation, reinforced by constructive earnings-call commentary (growth, improving efficiency, and reduced leverage). The score is held back by longer-term bearish price trends and ongoing business risks noted on the call, including SMB volatility, margin pressure (Home and insurance variable margins), and rising acquisition/AI costs.
Lendingtree Key Performance Indicators (KPIs)
Gross Profit by SegmentReveals the profitability of different business segments, highlighting which areas are driving financial success and where there might be challenges or opportunities for improvement.
Insurance gross profit has become the engine of LendingTree’s margin recovery, accelerating materially since 2024 and driving the recent record adjusted EBITDA, while Consumer has rebounded—helped by SMB lending—and is restoring pre‑2023 levels. Home remains at cyclical lows despite recent marketing‑driven stabilization. The shift toward higher‑margin insurance/consumer mix underpins the company’s improved leverage and credit upgrade and validates management’s view that modest mix gains can meaningfully lift profit; watch for insurance normalization and persistent home weakness from elevated rates.
The FlyLendingtree (TREE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $392.27M
- Dividend Yield
- ―
- Average Volume (3M)
- 382.30K
- Price to Earnings (P/E)
- 2.1
- Beta (1Y)
- 1.07
- Revenue Growth
- 25.29%
- EPS Growth
- ―
- Country
- US
- Employees
- 919
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Credit Services
Lendingtree Business Overview & Revenue Model
Company Description
LendingTree, Inc., primarily operating through its subsidiary LT Intermediate Company, LLC, maintains a robust online platform serving consumers throughout the United States. The company structures its diverse financial offerings across three key seg...
How the Company Makes Money
LendingTree makes money primarily by monetizing consumer demand for financial products and selling performance-based marketing outcomes to providers on its marketplace. Key revenue streams generally include: (1) Lead generation and referral fees: Whe...
Lendingtree Earnings Call Summary
The call presented multiple strong operational and financial positives: double-digit revenue growth, rising adjusted EBITDA, improved efficiency via AI, robust insurance performance, meaningful free cash flow, and a materially improved leverage ratio. The primary near-term concern is a pronounced but described-as-temporary weakness in the SMB lending channel (soft merchant sentiment and Q2 underperformance), plus margin pressure in Home and some compression in insurance variable margins and rising marketing/AI costs. Management positions the SMB weakness as cyclical and already showing early signs of recovery (lender appetite returning and July strength), and the majority of other metrics and strategic initiatives are favorable.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company’s guidance assumes continued overall growth with a midpoint that reflects nearly a doubling of adjusted EBITDA over the last three years and roughly 12% growth this year; Q2 results showed revenue up 25% YoY and adjusted EBITDA up 11% YoY, insurance revenue +42% YoY with segment profit +25%, Home revenue +9% YoY with segment profit +13% sequentially, and adjusted EBITDA as a percentage of VMD improving 225 bps to 40% (long‑term target 45–50%). Management expects healthy insurance growth in H2 with margins roughly in line with Q2 (mid‑20s variable margin environment), is assuming only the lender recovery observed to date for SMB (so sequential Consumer revenue and VMD improvement but not a return to Q1 record SMB levels; SMB could be flat to down for the year despite averaging ~40% YoY profit growth since early 2024), and is not modeling Home upside given higher rates; OpEx was essentially flat YoY (<1%), annual free cash flow is ~$80M after interest with net leverage down to 1.9x from 3.0x a year ago (providing capacity for debt paydown, buybacks or M&A), and operational/AI initiatives (six new consumer products, ChatGPT rate tool, homepage redesign driving +11% sessions and +18% form starts, July was the best sales month since Q1) are expected to drive further VMD and margin expansion.
Lendingtree Financial Statement Overview
Summary
Financials reflect a meaningful turnaround: TTM revenue is ~$1.27B with positive growth and profitability has flipped to ~$155M TTM net income (~15% net margin) and ~10% EBIT margin. Free cash flow is positive (~$74M TTM) and broadly supports earnings quality, but operating cash flow conversion is weaker (~66% of net income) and results have been historically volatile. Leverage has improved (debt-to-equity down to ~1.44x), though it remains a notable risk versus a low-leverage profile.
Income Statement
74PositiveBalance Sheet
60NeutralCash Flow
66Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.27B | 1.12B | 900.22M | 672.50M | 984.99M | 1.10B |
| Gross Profit | 1.22B | 1.05B | 864.15M | 633.74M | 927.22M | 1.04B |
| EBITDA | 143.70M | 103.76M | 73.12M | 35.26M | 17.05M | 60.88M |
| Net Income | 181.66M | 151.31M | -41.70M | -122.40M | -187.95M | 69.11M |
Balance Sheet | ||||||
| Total Assets | 911.63M | 855.69M | 767.67M | 802.76M | 1.20B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 110.77M | 81.07M | 106.59M | 112.05M | 298.85M | 251.23M |
| Total Debt | 432.28M | 439.61M | 544.09M | 611.15M | 912.76M | 748.92M |
| Total Liabilities | 590.86M | 568.89M | 658.85M | 678.63M | 991.37M | 851.36M |
| Stockholders Equity | 320.77M | 286.80M | 108.82M | 124.13M | 207.94M | 447.99M |
Cash Flow | ||||||
| Free Cash Flow | 73.88M | 60.68M | 51.04M | 55.04M | 31.52M | 89.81M |
| Operating Cash Flow | 86.08M | 73.10M | 62.26M | 67.57M | 42.97M | 124.87M |
| Investing Cash Flow | -9.65M | -9.93M | -11.22M | -12.48M | -27.88M | 13.38M |
| Financing Cash Flow | -114.79M | -88.70M | -56.50M | -242.01M | 32.67M | -56.96M |
Lendingtree Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TREE, the sentiment is Neutral. The current price of 27.94 is above the 20-day moving average (MA) of 25.84, above the 50-day MA of 26.50, and below the 200-day MA of 38.09, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 79.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TREE.
Lendingtree Risk Analysis
Lendingtree disclosed 52 risk factors in its most recent earnings report. Lendingtree reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksLendingtree Peers Comparison
Overall Rating
NRDS75Outperform- TREE73Outperform
ENVA71Outperform
OPRT65Neutral
SOFI65Neutral
UPST58Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NRDS | 75Outperform | $714.66M | 12.29 | 18.07% | ― | 11.51% | 42.17% |
| TREE | 73Outperform | $392.27M | 2.12 | 69.56% | ― | 25.29% | ― |
| ENVA | 71Outperform | $4.26B | 11.32 | 26.36% | ― | 20.08% | 33.74% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| OPRT | 65Neutral | $454.81M | 24.73 | 4.95% | ― | -2.34% | ― |
| SOFI | 65Neutral | $21.65B | 28.90 | 6.76% | ― | 37.62% | 0.62% |
| UPST | 58Neutral | $2.24B | 37.05 | 7.85% | ― | 46.30% | ― |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TREE | Lendingtree Inc | 27.94 | -37.80 | -57.50% | |
| ENVA | Enova International Inc. | 174.09 | 51.66 | 42.20% | |
| OPRT | Oportun Financial Corp. | 9.89 | 4.53 | 84.51% | |
| UPST | Upstart Holdings, Inc. | 23.02 | -24.52 | -51.58% | |
| SOFI | Sofi Technologies Inc | 16.76 | -13.87 | -45.28% | |
| NRDS | NerdWallet, Inc. Class A | 11.18 | -0.85 | -7.07% |
Lendingtree Corporate Events
LendingTree Updates Bylaws for Shareholder Meeting Governance
NeutralLendingTree announced that General Counsel Heather Novitsky will leave her role effective December 31, 2026, and remain as a non-executive employee providing transition services until March 12, 2027, when her employment will be terminated without cau...
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: Nov 01, 2026