Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of $308 million, marking the second highest in its history, with each of its three segments showing double-digit year-over-year revenue and VMD growth [8][10] - The company has achieved revenue growth for six consecutive quarters, indicating a strong upward trend in financial performance [8] Business Line Data and Key Metrics Changes - The consumer segment's VMD grew by 26% in the quarter, with an 11% increase in revenue, driven by a 30% increase in loans closed for partners [10] - The home equity product revenue increased by 35% in Q3, despite high mortgage rates, indicating strong demand in this area [11] - The small business team reported a 50% year-over-year increase in revenue, benefiting from a concierge sales strategy [10] Market Data and Key Metrics Changes - The insurance marketplace has seen a resurgence, with the company regaining a leadership position and a nearly 60% increase in spending from its 4th to 10th largest carriers compared to the previous year [9] - The overall insurance industry remains profitable, with major clients looking to aggressively pursue market share, which bodes well for the company's revenue [27] Company Strategy and Development Direction - The company aims to leverage advancements in AI technology to enhance the consumer shopping experience for financial products [6] - A focus on operational excellence and continuous improvement is emphasized, with plans to optimize business operations further [6] - The company is prioritizing paying down debt as a default strategy, while also considering share buybacks and selective M&A opportunities [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the insurance cycle, noting that major clients are in healthy positions and likely to continue investing in market share [27] - The company anticipates strong growth in the insurance segment, particularly in the first half of the next year, driven by increased VMD [30] - There is optimism regarding the personal loans business, with expectations for continued growth as lenders expand their credit criteria [10][32] Other Important Information - The company is well-positioned for growth, with a focus on expanding its distribution network and preparing for potential refinancing opportunities as mortgage rates decline [47] - Home insurance and health insurance are emerging as significant growth areas, with home insurance VMD up 80% year-over-year and health insurance VMD up 41% [55] Q&A Session Summary Question: Insights on Consumer Segment Margins - Management noted that consumer VMD margins are driven largely by the small business segment, which has seen spectacular growth and is expected to continue [14][15] Question: Capital Allocation Priorities - The company plans to prioritize debt repayment, viewing it as a risk-free return, while also considering share buybacks and M&A if attractive opportunities arise [21][22] Question: Confidence in Insurance Cycle - Management expressed confidence in the insurance industry's profitability and the likelihood of continued aggressive marketing from major clients [27] Question: Trends in Consumer Credit - Overall, there is more expansion than contraction in credit boxes, with most clients maintaining acceptable delinquency rates [32][34] Question: SEO and AI Impact on Leads - The company is experiencing a shift in traffic dynamics, with AI-driven traffic showing significantly higher conversion rates, although traditional SEO remains important [41][42] Question: Revenue Visibility Compared to Previous Quarters - Management indicated that the insurance segment is becoming more predictable, while the mortgage segment remains uncertain until rates reach a certain inflection point [43][44] Question: Potential for M&A Activity - The company is not currently looking for large acquisitions but is open to smaller deals that enhance its service offerings [51][52] Question: Contribution of Homeowner and Health Insurance - Home insurance is a significant growth area, making up about 20% of the insurance business, while health insurance contributes just over 10% [55]

Company Performance - Tree.com reported quarterly earnings of $1.7 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and up from $0.8 per share a year ago, representing an earnings surprise of +38.21% [1] - The company posted revenues of $307.8 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 10.51%, compared to revenues of $260.8 million in the same quarter last year [2] - Over the last four quarters, Tree.com has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance - Tree.com shares have increased approximately 55.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $266.06 million, and for the current fiscal year, it is $4.37 on revenues of $1.03 billion [7] Industry Outlook - The Financial - Mortgage & Related Services industry, to which Tree.com belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Tree.com's stock performance [5]

Financial Performance - Consolidated revenue for Q3 2025 was $307.8 million, an 18% increase year-over-year, marking the second highest quarterly revenue in the company's history [3] - The Insurance segment achieved record revenue of $203.5 million, up 20% from the prior year, with segment profit of $47.6 million, a 15% increase YoY [17] - The Consumer segment revenue grew 11% YoY to $66.2 million, driven by a 50% increase in revenue from the Small Business product [21] - The Home segment reported revenue of $38.1 million, an 18% increase YoY, with segment profit rising 27% to $11.8 million [24] - Adjusted EBITDA for Q3 2025 was $39.8 million, reflecting a 48% increase compared to the previous year [12] - Net income for the quarter was $10.2 million, or $0.73 per diluted share, representing a 118% increase YoY [10] - Revenue for Q3 2025 was $307.8 million, an increase from $260.8 million in Q3 2024, representing a growth of approximately 18% year-over-year [32] - Net income for Q3 2025 was $10,165,000, representing 3% of revenue, compared to a net loss of $57,978,000 in Q3 2024 [39] - Adjusted net income for Q3 2025 was $23,770,000, with adjusted net income per share at $1.70, compared to $0.80 in Q3 2024 [44] Debt and Cash Management - The company successfully refinanced its debt with a new $400 million five-year term loan, improving its net leverage to 2.6x, the lowest since 2020 [7] - The balance sheet remains strong with a cash balance of $69 million, allowing for enhanced capital flexibility and potential shareholder accretive strategies [25] - Cash and cash equivalents at the end of Q3 2025 were $68.6 million, down from $106.6 million at the beginning of the period [35] Marketing and Expenses - Variable marketing margin increased by 21% YoY to $93.2 million, with a margin percentage of 30% [11] - The company reported a significant increase in selling and marketing expenses, totaling $225.1 million for Q3 2025, compared to $193.5 million in Q3 2024 [37] - General and administrative expenses were $26,229,000 in Q3 2025, a decrease from $30,660,000 in Q1 2025 [39] - Product development expenses were $11,297,000 in Q3 2025, slightly down from $11,904,000 in Q1 2025 [39] - Interest expense increased to $17,907,000 in Q3 2025, compared to $10,060,000 in Q3 2024 [42] - Non-cash compensation for Q3 2025 was $5,002,000, compared to $6,859,000 in Q3 2024 [44] - The company reported a restructuring and severance expense of $80,000 in Q3 2025, down from $798,000 in Q1 2025 [39] - Litigation settlements and contingencies amounted to $69,000 in Q3 2025, compared to $3,762,000 in Q3 2024 [44] Future Outlook - The company expects continued strength in the insurance cycle into 2026, following previous disruptions due to inflation in auto loss costs [4] - The company expects full-year 2025 revenue to be between $1.08 billion and $1.09 billion, with an implied Q4 revenue of $280 million to $290 million [28] - Forward-looking statements highlight potential risks including adverse mortgage market conditions, interest rates, and competition, which could impact future performance [60] - The company emphasizes the importance of maintaining brand recognition and attracting consumers cost-effectively as part of its strategic outlook [60] - The ability to develop new products and enhance existing services is crucial for the company's future growth and competitiveness [60] - The company faces risks related to regulatory compliance and potential liabilities, which could affect operational stability and financial results [60] - Management acknowledges the need for successful integration of potential acquisitions to enhance overall business performance [60] Financial Metrics and Adjustments - Variable Marketing Margin for Q3 2025 was $214.6 million, compared to $183.6 million in Q3 2024, indicating a year-over-year increase of about 17% [37] - Adjusted EBITDA for Q3 2025 was $29.5 million to $31.5 million, reflecting a significant improvement from the previous year's loss [28] - Adjusted EBITDA for Q3 2025 was $39,795,000, which is 13% of revenue, compared to 10% in Q3 2024 [42] - Adjusted net income per share is calculated by dividing adjusted net income by adjusted weighted average diluted shares outstanding, with specific treatment for potentially dilutive securities during GAAP loss periods [55] - LendingTree provides GAAP measures alongside non-GAAP measures to ensure transparency and comparability, highlighting the importance of reconciling items [56] - There were no adjustments for one-time items in the periods presented, indicating stable financial reporting without unusual expenses [57] - Non-cash compensation expenses, primarily from stock grants and options, are excluded from adjusted EBITDA and adjusted net income calculations [58] - Amortization of intangibles, related to acquisitions, is excluded from adjusted EBITDA, reflecting the company's focus on cash-based performance metrics [59]

Core Insights - LendingTree, Inc. reported its financial results for the third quarter of 2025, highlighting a sixth consecutive quarter of year-over-year revenue growth and double-digit growth in revenue and segment profit across all business segments [3][5][6]. Financial Performance - Total revenue for the third quarter of 2025 was $307.8 million, an 18% increase compared to $260.8 million in the same quarter of 2024 [4][8]. - Net income for the quarter was $10.2 million, or $0.73 per diluted share, compared to a net loss of $57.9 million in the prior year [5][22]. - Adjusted EBITDA was reported at $39.8 million, representing a 48% increase year-over-year [7][19]. Segment Results - The Insurance segment generated revenue of $203.5 million, up 20% year-over-year, with a segment profit of $47.6 million, a 15% increase [6][8]. - The Consumer segment reported revenue of $66.2 million, an 11% increase year-over-year, with personal loans revenue increasing by 12% [6][8]. - The Home segment revenue was $38.1 million, an 18% increase year-over-year, with Home Equity revenue rising by 35% [6][8]. Debt Management - The company successfully refinanced its debt, securing a new five-year $475 million credit facility that enhances financial flexibility by removing operating covenants [3][4]. Leadership Transition - The unexpected passing of founder, Chairman, and CEO Doug Lebda was acknowledged, with the company expressing commitment to continue his vision and legacy [3][43].

Core Insights - The Zacks Mortgage & Related Services industry is experiencing benefits from declining mortgage rates, which are driving improvements in purchase originations and refinancing volumes [1][3][4] - Increased competition is pressuring mortgage servicers to cut prices, leading to reduced sales margins [1][5] - Companies like Rocket Companies and LendingTree are well-positioned to navigate the challenges posed by the competitive landscape [1][16][19] Industry Overview - The Zacks Mortgage & Related Services industry includes providers of mortgage-related loans, refinancing, and loan-servicing facilities, with non-banks gaining market share as banks retreat due to compliance and capital requirements [2] - The industry is heavily influenced by Federal Reserve interest rates, which affect customer decisions regarding mortgage applications [2] Trends - Mortgage rates have decreased significantly, with the 30-year fixed-rate mortgage dropping from above 7% to around 6%, stimulating renewed interest in purchase applications [3] - The Federal Reserve's recent rate cuts are expected to improve housing affordability, leading to increased demand for mortgages and refinancing activities [4] - The U.S. single-family mortgage debt is projected to grow due to house price appreciation, although competition may hinder profitability for many originators [5] Performance Metrics - The Zacks Mortgage & Related Services industry holds a Zacks Industry Rank of 95, placing it in the top 39% of over 243 Zacks industries, indicating positive prospects [6] - Over the past year, the industry has underperformed compared to the broader Zacks Finance sector and the S&P 500, with a growth of 15.9% compared to 16.7% and 20.5% respectively [8][9] Valuation - The industry currently trades at a price-to-book (P/B) ratio of 6.58X, lower than the S&P 500's 8.93X, indicating a premium compared to the broader Zacks Finance sector's P/B of 4.27X [12][14] Company Highlights - **Rocket Companies**: This fintech platform is increasing its market share through process optimizations and recently acquired Mr. Cooper Group, enhancing its position in the mortgage servicing and origination space. The Zacks Consensus Estimate for its 2025 earnings is 25 cents per share, reflecting an 8.7% increase year-over-year, with revenues expected to rise 16.6% [16][17] - **LendingTree**: The company is focusing on improving purchase conversion rates and diversifying its offerings beyond mortgages. The Zacks Consensus Estimate for its 2025 earnings indicates a 36.9% year-over-year increase, with revenues anticipated to grow 14.9% [19][20]

Core Points - LendingTree's founder and CEO Doug Lebda passed away unexpectedly in an all-terrain vehicle accident, leading to the appointment of Scott Peyree as the new CEO [1][8] - The board expressed deep sadness over Lebda's death, highlighting his visionary leadership and the impact he had on the financial services landscape [2][3] - Lebda founded LendingTree in 1996 with the mission to simplify the loan-shopping process, allowing consumers to compare offers from multiple banks online [5][6] Company Overview - LendingTree is one of the largest online financial platforms in the U.S., offering loans, credit cards, and insurance through a network of approximately 430 financial partners [5] - The company went public in 2000 and has navigated significant events, including the dot-com meltdown and a sale to IAC/InterActiveCorp in 2003 [6][7] Leadership Transition - Scott Peyree, previously the Chief Operating Officer and President, has been appointed as the new CEO, with the board emphasizing the strength of the management team established by Lebda [8][10] - Steve Ozonian, the lead independent director, will serve as the chairman of the board, effective immediately [9] Market Reaction - Following the announcement of Lebda's death, shares of LendingTree's stock experienced a decline [12]

Company Overview - Doug Lebda, the CEO and founder of LendingTree, passed away in an all-terrain vehicle accident at the age of 55 [1] - LendingTree was founded in 1996 to simplify the loan shopping process and became a public company in 2000 [3] - The company operates an online loaning marketplace that helps users find and compare loans for various financial needs [4] Leadership Transition - Following Lebda's death, Scott Peyree has been appointed as the new CEO, effective immediately [2] - Steve Ozonian will take over Lebda's role as chairman of the board [2] Market Reaction - Shares of LendingTree fell more than 4% in afternoon trading on the day of the announcement [3] Legacy and Impact - Lebda's vision and innovation significantly transformed the financial services landscape, impacting millions of consumers [2] - He co-founded a financial services platform for children and families called Tykoon in 2010 and had a background in auditing and consulting [4]

Core Points - Doug Lebda, founder and CEO of LendingTree, passed away in an ATV accident at the age of 55, leaving a significant impact on the financial services industry [1][6][8] - Scott Peyree, the company's President and COO, has been appointed as the new CEO, with Steve Ozonian as the chairman of the board [1][2][7] Company Overview - LendingTree was founded in 1996 by Lebda after his personal struggles with obtaining a mortgage, aiming to create a digital marketplace for lenders to compete for borrowers [6][9] - The company went public in 2000 and has since grown into one of the largest financial comparison platforms in the U.S., expanding its offerings to include credit cards, auto loans, insurance, and small-business financing [6][11] Market Reaction - Following the announcement of Lebda's death, LendingTree's shares fell approximately 9%, from nearly $61 to around $56.91, extending a 10% decline over the previous week [2][3] - The stock has fluctuated between $33.50 and $77.35 over the past 52 weeks [3] Leadership Transition - The board expressed confidence in the existing management team established by Lebda, emphasizing the commitment to uphold his legacy and vision for the company [2][7][8] - Ozonian stated that the board will work closely with Peyree and the leadership team to honor Lebda's vision [7] Legacy and Impact - Lebda's innovative approach transformed the financial services landscape, impacting millions of consumers and establishing a competitive environment for lenders [1][6][8] - He was also involved in various corporate boards and contributed to the civic and philanthropic community in Charlotte [12]

Group 1 - The company appointed Scott Peyree as the new chief executive officer [1] - Steve Ozonian was named chairman of the board [1]

Core Points - LendingTree's Chairman and CEO Doug Lebda passed away unexpectedly in an all-terrain vehicle accident [2] - Scott Peyree has been appointed as the new President and CEO, effective immediately [2] - Steve Ozonian will serve as the board chairman, also effective immediately [2]