LendingTree Q1 Earnings Surpass Estimates, Revenues Up Y/Y

LendingTree, Inc.’s TREE first-quarter 2025 adjusted net income per share of 99 cents topped the Zacks Consensus Estimate of 74 cents. The figure compares favorably with the 70 cents reported in the prior-year quarter.

The results were driven by a rise in revenues. An increase in adjusted EBITDA was an added positive. However, a rise in total cost was a spoilsport.

The results exclude certain non-recurring items. After considering these, TREE reported a GAAP net loss of $12.4 million against the net income of $1 million in the year-ago quarter.

TREE’s Revenues, Variable Marketing Margin Increase

The first quarter’s total revenues grew 43% year over year to $239.7 million. However, the reported figure missed the Zacks Consensus Estimate by 1.8%.

The total cost of revenues was $9.9 million, up 15.9% from the prior-year quarter.

Adjusted EBITDA totaled $24.6 million, up 14.3% from the year-ago quarter. The variable marketing margin was $77.7 million, up 11.9% year over year.

As of March 31, 2025, cash and cash equivalents were $126.4 million compared with $106.6 million as of Dec. 31, 2024. Long-term debt was $387.7 million compared with $344.1 million as of Dec. 31, 2024.

Lending Tree’s Outlook

The company provided the second-quarter view and updated its 2025 outlook.

Q2

For the second quarter of 2025, total revenues are estimated between $241 million and $248 million. 

Adjusted EBITDA and the variable marketing margin are anticipated to be $29-$31 million and $80-$84 million, respectively.

2025

For 2025, total revenues are expected between $955 million and $995 million compared with the prior mentioned $985-$1.03 billion.

Adjusted EBITDA is projected to be $116-$124 million compared with the prior stated $116-$126 million. The variable marketing margin is expected to be $319-$332 million compared with the $319-$336 million mentioned previously.

Our View on Lending Tree

TREE’s inorganic growth moves have strengthened its online lending platform. Its first-quarter results primarily benefited from an increase in EBITDA. The company’s efforts to increase revenues by diversifying its non-mortgage product offerings will support top-line growth in the future.

LendingTree, Inc. Price, Consensus and EPS Surprise

LendingTree, Inc. price-consensus-eps-surprise-chart | LendingTree, Inc. Quote

Currently, LendingTree flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Finance Stocks

Sallie Mae SLM reported first-quarter 2025 earnings per share of $1.40, which outpaced the Zacks Consensus Estimate of $1.19. The bottom line increased from the prior-year quarter’s $1.27. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The quarterly results were primarily aided by a rise in non-interest income, robust loan originations and lower non-interest expenses. However, higher provisions for credit losses and a fall in net interest income (NII) negatively impacted SLM’s results.

Hancock Whitney Corp.’s HWC first-quarter 2025 earnings per share of $1.38 exceeded the Zacks Consensus Estimate and the year-ago figure of $1.28. 

Results benefited from an increase in non-interest income and NII. Lower provisions were other positives. However, higher adjusted expenses, alongside lower loan and deposit balances, were headwinds for HWC.

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This article originally published on Zacks Investment Research (zacks.com).

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