Double-Digit YoY Revenue Growth In All Business Segments Powers Strong Performance
- Consolidated revenue of $250.1 million
- GAAP net income of $8.9 million or $0.65 per diluted share
- Variable marketing margin of $83.6 million
- Adjusted EBITDA of $31.8 million
- Adjusted net income per share of $1.13
CHARLOTTE, N.C., July 31, 2025 /PRNewswire/ — LendingTree, Inc. (NASDAQ:TREE), operator of LendingTree.com, the nation’s leading online financial services marketplace, today announced results for the quarter ended June 30, 2025.
The company has posted a letter to shareholders on the company’s website at investors.lendingtree.com.
“Our company continues to generate impressive financial results, with Adjusted EBITDA up 35% YoY, fueled by strong revenue growth across all three segments of the business,” said Doug Lebda, Chairman and CEO. “These results emphasize the growing strategic importance of our platform to our partners, who increasingly turn to us to help expand their lending and insurance operations. The momentum we are generating is a testament to our disciplined execution and the strength of our operating model. We remain confident in our ability to drive sustained, profitable growth going forward.”
Scott Peyree, President and COO, commented, “This quarter represents the fifth consecutive period of YoY revenue growth for the company, and our outlook is for this trend to continue. The Insurance business had a great quarter with revenue up 21% YoY despite a difficult comparison. Carrier demand for homeowners’ insurance customers has increased significantly, and there is continued strong appetite from health insurance companies as well. Carrier interest in additional products bolsters the durability of the current Insurance growth cycle. Our Consumer and Home segments also enjoyed healthy gains in Q2, as we have been effective at growing both consumer and lender demand despite persistent higher interest rates and still restrictive credit environment. We are well positioned for further improvement in all of our segments for the foreseeable future, and our performance would accelerate should credit and underwriting conditions loosen, or if interest rates decline.”
Jason Bengel, CFO, added, “Our capital position has improved rapidly over the last year, with net leverage declining to 3x from 5x. Strong AEBITDA growth assisted by positive operating leverage from focused expense discipline provides us a healthy financial position to execute our growth strategy. We are committed to lowering our net leverage position further to create future flexibility and improve the efficiency of our capital structure, while also investing prudently in our core business to accelerate returns for shareholders.”
Second Quarter 2025 Business Results
- Insurance segment revenue of $147.2 million increased 21% over second quarter 2024 and translated into segment profit of $40.0 million, up 10% over the same period.
- Consumer segment revenue of $62.5 million was up 12% over second quarter 2024, and grew 12% sequentially.
- Within Consumer, personal loans revenue of $30.6 million increased 14% over prior year.
- Revenue from our small business offering increased 61% over prior year.
- Home segment revenue of $40.4 million increased 25% over second quarter 2024 and produced segment profit of $13.1 million, up 41% over the same period.
- Within Home, revenue from Home Equity of $30.3 million increased 38% over prior year.
|
LendingTree Summary Financial Metrics |
|||||||||||
|
(In millions, except per share amounts) |
|||||||||||
|
Three Months Ended June 30, |
Y/Y |
Three Months Ended |
Q/Q |
||||||||
|
2025 |
2024 |
% Change |
2025 |
% Change |
|||||||
|
Total revenue |
$ 250.1 |
$ 210.1 |
19 % |
$ 239.7 |
4 % |
||||||
|
Income (loss) before income taxes |
$ 10.8 |
$ 9.4 |
15 % |
$ (14.8) |
173 % |
||||||
|
Income tax (expense) benefit |
$ (1.9) |
$ (1.6) |
(19) % |
$ 2.4 |
(179) % |
||||||
|
Net income (loss) |
$ 8.9 |
$ 7.8 |
14 % |
$ (12.4) |
172 % |
||||||
|
Net income (loss) % of revenue |
4 % |
4 % |
(5) % |
||||||||
|
Income (loss) per share |
|||||||||||
|
Basic |
$ 0.65 |
$ 0.58 |
$ (0.92) |
||||||||
|
Diluted |
$ 0.65 |
$ 0.58 |
$ (0.92) |
||||||||
|
Variable marketing margin |
|||||||||||
|
Total revenue |
$ 250.1 |
$ 210.1 |
19 % |
$ 239.7 |
4 % |
||||||
|
Variable marketing expense (1) (2) |
$ (166.5) |
$ (139.2) |
20 % |
$ (162.0) |
3 % |
||||||
|
Variable marketing margin (2) |
$ 83.6 |
$ 70.9 |
18 % |
$ 77.7 |
8 % |
||||||
|
Variable marketing margin % of revenue (2) |
33 % |
34 % |
32 % |
||||||||
|
Adjusted EBITDA (2) |
$ 31.8 |
$ 23.5 |
35 % |
$ 24.6 |
29 % |
||||||
|
Adjusted EBITDA % of revenue (2) |
13 % |
11 % |
10 % |
||||||||
|
Adjusted net income (2) |
$ 15.4 |
$ 7.2 |
114 % |
$ 13.5 |
14 % |
||||||
|
Adjusted net income per share (2) |
$ 1.13 |
$ 0.54 |
109 % |
$ 0.99 |
14 % |
||||||
|
(1) |
Represents the portion of selling and marketing expense attributable to variable costs paid for advertising, direct marketing and related expenses. Excludes overhead, fixed costs and personnel-related … |