Core Insights - LendingTree, Inc. (TREE) reported a second-quarter 2025 adjusted net income per share of $1.13, exceeding the Zacks Consensus Estimate of 97 cents and significantly up from 54 cents in the prior-year quarter [1][10] - The company's total revenues grew by 19% year over year to $250.1 million, matching the Zacks Consensus Estimate, while adjusted EBITDA increased by 35.3% to $31.8 million [3][10] - Despite the positive revenue growth, total costs rose by 19.2% to $10 million, which impacted overall performance [3] Financial Performance - The GAAP net income for TREE was reported at $8.9 million, an increase from $7.8 million in the same quarter last year [2] - Cash and cash equivalents as of June 30, 2025, were $149.1 million, up from $126.4 million as of March 31, 2025, while long-term debt decreased slightly to $385.1 million [4] Future Outlook - For Q3 2025, total revenues are projected to be between $273 million and $281 million, with adjusted EBITDA expected to be in the range of $34-$36 million [6] - The 2025 revenue outlook has been updated to between $1 billion and $1.05 billion, with adjusted EBITDA projected at $119-$126 million [7] Strategic Initiatives - The company is focusing on inorganic growth to strengthen its online lending platform, with efforts to diversify non-mortgage product offerings expected to support future revenue growth [8]

Company Performance - Tree.com reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and up from $0.54 per share a year ago, representing an earnings surprise of +16.49% [1] - The company posted revenues of $250.1 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.02%, but up from $210.1 million year-over-year [2] - Over the last four quarters, Tree.com has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Tree.com shares have increased approximately 20.1% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $275.26 million, and for the current fiscal year, it is $4.13 on revenues of $1.02 billion [7] Industry Outlook - The Financial - Mortgage & Related Services industry, to which Tree.com belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Tree.com may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited statements show increased assets, liabilities, and quarterly revenue, but a net loss for the six-month period [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities grew, driven by higher cash, receivables, and long-term debt Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $149,131 | $106,594 | | Accounts receivable, net | $126,187 | $97,790 | | Total current assets | $319,016 | $238,462 | | Goodwill | $381,539 | $381,539 | | Total assets | $835,765 | $767,674 | | **Liabilities & Equity** | | | | Total current liabilities | $260,592 | $240,476 | | Long-term debt | $385,110 | $344,124 | | Total liabilities | $717,653 | $658,853 | | Total shareholders' equity | $118,112 | $108,821 | [Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Quarterly net income rose, but a significant litigation expense drove a net loss for the six-month period despite revenue growth Quarterly Performance (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $250,116 | $210,140 | +19.0% | | Operating Income | $20,924 | $9,587 | +118.2% | | Net Income | $8,862 | $7,752 | +14.3% | | Diluted EPS | $0.65 | $0.58 | +12.1% | Year-to-Date Performance (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $489,844 | $377,908 | +29.6% | | Operating Income | $13,815 | $16,766 | -17.6% | | Net (Loss) Income | $(3,513) | $8,768 | N/A | | Diluted EPS | $(0.26) | $0.66 | N/A | - A significant litigation settlement expense of **$15.2 million** was recorded in the first six months of 2025, which was the primary driver of the net loss for the period[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved significantly, while financing activities were driven by proceeds from a new term loan Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $27,743 | $765 | | Net cash used in investing activities | $(6,158) | $(5,474) | | Net cash provided by (used in) financing activities | $20,952 | $(40,578) | | **Net increase (decrease) in cash** | **$42,537** | **$(45,287)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail segment revenue, debt structure, and a $19.0 million litigation settlement accrual Revenue by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Home | $77,437 | $62,609 | +23.7% | | Consumer | $118,552 | $107,352 | +10.4% | | Insurance | $293,809 | $207,943 | +41.3% | | **Total Revenue** | **$489,844** | **$377,908** | **+29.6%** | - The company repaid the remaining **$95.3 million** of its 0.50% Convertible Senior Notes due 2025 in cash upon maturity on July 15, 2025[83](index=83&type=chunk)[119](index=119&type=chunk) - An estimated liability of **$19.0 million** was accrued for the Mantha v. QuoteWizard.com, LLC class action lawsuit, with a settlement hearing scheduled for September 29, 2025[110](index=110&type=chunk) Segment Profit (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Home | $26,202 | $18,899 | +38.6% | | Consumer | $59,207 | $54,352 | +8.9% | | Insurance | $78,706 | $69,814 | +12.7% | | **Total Segment Profit** | **$164,091** | **$143,010** | **+14.7%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth across all segments, offset by a litigation expense, and improved liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Revenue grew across all segments, but a litigation contingency expense negatively impacted overall profitability - Insurance segment revenue grew **21%** in Q2 2025, driven by a 19% increase in volume and a 2% increase in revenue per consumer[148](index=148&type=chunk) - Home segment revenue increased **26%** in Q2 2025, primarily due to a 38% increase in revenue from home equity loan products[149](index=149&type=chunk)[150](index=150&type=chunk) - Consumer segment revenue rose **12%** in Q2 2025, led by a 14% increase in personal loans revenue and a 61% increase in small business loans revenue[152](index=152&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) - Selling and marketing expense increased by **19%** in Q2 2025 to $176.8 million, in line with revenue growth, as the company adjusted advertising spend to meet network partner demand[146](index=146&type=chunk)[160](index=160&type=chunk)[163](index=163&type=chunk) [Segment Profit](index=31&type=section&id=Segment%20Profit) Total segment profit increased, led by strong growth in the Home and Consumer segments Segment Profit and Margin (Three Months Ended June 30) | Segment | Segment Profit 2025 (M) | Segment Profit 2024 (M) | YoY Change | Segment Margin 2025 | Segment Margin 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Home | $13.1 | $9.3 | +41% | 32% | 29% | | Consumer | $32.1 | $26.9 | +19% | 51% | 48% | | Insurance | $40.0 | $36.4 | +10% | 27% | 30% | | **Total** | **$85.1** | **$72.5** | **+17%** | **34%** | **34%** | [Non-GAAP Measures (Adjusted EBITDA & Variable Marketing Margin)](index=32&type=section&id=Non-GAAP%20Measures) Adjusted EBITDA and Variable Marketing Margin both showed significant year-over-year improvement for the second quarter Adjusted EBITDA Reconciliation Summary (in thousands) | Period | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | **Q2 2025** | $8,862 | $31,793 | | **Q2 2024** | $7,752 | $23,527 | | **YTD 2025** | $(3,513) | $56,419 | | **YTD 2024** | $8,768 | $45,078 | [Financial Condition, Liquidity and Capital Resources](index=35&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's cash position strengthened, and it successfully repaid its 2025 convertible notes post-quarter - Cash and cash equivalents increased to **$149.1 million** as of June 30, 2025, from $106.6 million at December 31, 2024[200](index=200&type=chunk) - In March 2025, the company drew the remaining **$50.0 million** available under its 2024 Term Loan facility[201](index=201&type=chunk) - The outstanding **$95.3 million** principal of the 2025 Convertible Notes was fully repaid in cash on July 15, 2025[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity, affecting both consumer demand and variable-rate debt costs - A hypothetical **100-basis point** increase in interest rates would result in a $2.4 million annual effect on interest paid for the Credit Facility and a $1.6 million annual effect for the 2024 Term Loan[217](index=217&type=chunk) - Changes in mortgage interest rates directly impact the company's Home segment by influencing consumer demand for refinancing and purchase loans, which affects lead volume and pricing[218](index=218&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** as of the end of the reporting period, June 30, 2025[220](index=220&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[221](index=221&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with details available in the financial statement notes - Information regarding legal proceedings is detailed in **Note 13—Contingencies** of the financial statements[223](index=223&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported for the period - The company reports **no material changes** to the risk factors disclosed in its 2024 Annual Report[224](index=224&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during the quarter, with $96.7 million remaining under the authorized program - **No shares were repurchased** under the stock repurchase program during the quarter ended June 30, 2025[226](index=226&type=chunk) - As of July 31, 2025, approximately **$96.7 million remains authorized** for share repurchases[226](index=226&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter - No directors or executive officers adopted or terminated a **Rule 10b5-1 trading arrangement** during the fiscal quarter[231](index=231&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including required CEO and CFO certifications

Financial Data and Key Metrics Changes - Revenue for Q2 reached $250 million, representing a 19% year-over-year growth [7] - Adjusted EBITDA increased to $31.8 million, up 35% from the previous year [7] - Profitability has improved for the fifth consecutive period, indicating strong operational performance [6] Business Segment Data and Key Metrics Changes - Consumer segment revenue grew by 12%, with segment profit increasing by 19% [8] - Small business loan revenue surged by 61%, while personal loan revenue rose by 14% [8] - Home segment revenue climbed 25%, driven by a 38% increase in home equity revenue [9] - Insurance segment revenue increased by 21% year-over-year, reflecting improved quality and conversion rates [10] Market Data and Key Metrics Changes - The company is focusing on adding more small lenders to enhance consumer coverage, which is starting to yield positive results [9] - The insurance industry is experiencing a favorable environment, with carriers eager to drive more traffic [18] Company Strategy and Development Direction - The company is committed to being an AI-first organization, with all employees utilizing AI tools to enhance productivity [10][11] - Strategic investments in data and technology are expected to improve operational efficiency and customer guidance [11][12] - The company aims to leverage AI to democratize financial products, making consumers more active shoppers [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities presented by AI, viewing it as a significant growth driver rather than a risk [22] - The company anticipates continued strong performance in the second half of the year, supported by strategic investments and operational excellence [58] Other Important Information - The company has resolved previous technical issues that affected traffic and monetization, leading to high revenue levels exiting Q2 [17] - The company does not rely on long-term contracts, allowing for flexibility in customer acquisition [43] Q&A Session Summary Question: Update on friction with carrier partners - Management clarified that there was a period of adjustment but no significant friction, and revenue levels are high with carriers eager to drive more traffic [15][18] Question: Impact of generative AI on customer acquisition - Management views generative AI as a major opportunity, with increased traffic from AI platforms and a focus on optimizing content for AI searches [19][22] Question: Strength in personal loans and potential interest rate cuts - The strength in personal loans is attributed to improved execution and lender optimism, with potential interest rate cuts expected to further accelerate growth [30][34] Question: Ability to reduce expenses with AI - Management is excited about AI's potential to enhance productivity and reduce expenses, aiming to automate lower-skill tasks and focus on higher-value work [35][40] Question: Impact of competitor losing a contract - Management confirmed that the situation does not affect them, as their business model does not rely on long-term contracts [42][43] Question: Guidance and macro assumptions - Management is not assuming any changes in interest rates in their guidance, expecting continued strength in home equity and a seasonal decline in Q4 [48][50]

[Preliminary Q2 2025 Results and Revised 2025 Guidance](index=1&type=section&id=LENDINGTREE%20PROVIDES%20PRELIMINARY%20SECOND%20QUARTER%20RESULTS%20AND%20REVISED%202025%20GUIDANCE) LendingTree announced strong preliminary Q2 2025 financial results, exceeding prior guidance and leading to a raised full-year 2025 outlook [Executive Summary](index=1&type=section&id=Executive%20Summary) LendingTree announced strong preliminary Q2 2025 financial results, exceeding prior guidance with double-digit revenue growth across all segments, improved capital position, and a raised full-year 2025 outlook - All three business segments produced double-digit year-over-year revenue growth in the second quarter[2](index=2&type=chunk) - The company's capital position has improved significantly, with net leverage falling to **3x** at the end of the second quarter[2](index=2&type=chunk) - Management expressed increased confidence in continued improvement for the second half of the year, with the third-quarter forecast ahead of previous expectations[2](index=2&type=chunk) [Updated Financial Outlook](index=1&type=section&id=Updated%20Financial%20Outlook) This section provides LendingTree's preliminary Q2 2025 results and updated financial guidance for Q3 and the full year 2025 [Q2 2025 Preliminary Results](index=1&type=section&id=Q2%202025%20Preliminary%20Results) Preliminary Q2 2025 results surpassed prior guidance, with revenue reaching **$250 million**, Variable Marketing Margin **$83.6 million**, and Adjusted EBITDA **$31.8 million** Q2 2025 Preliminary Results vs. Prior Guidance | Metric | Preliminary Q2 2025 Result (in millions) | Previous Guidance (in millions) | | :--- | :--- | :--- | | Revenue | $250 | $241 - $248 | | Variable Marketing Margin | $83.6 | $80 - $84 | | Adjusted EBITDA | $31.8 | $29 - $31 | [Q3 2025 Preliminary Outlook](index=1&type=section&id=Q3%202025%20Preliminary%20Outlook) LendingTree projects continued growth for Q3 2025, with revenue expected between **$273 million** and **$281 million** and Adjusted EBITDA between **$34 million** and **$36 million** Q3 2025 Preliminary Financial Outlook | Metric | Q3 2025 Guidance Range (in millions) | | :--- | :--- | | Revenue | $273 - $281 | | Variable Marketing Margin | $86 - $89 | | Adjusted EBITDA | $34 - $36 | [Full-Year 2025 Updated Outlook](index=1&type=section&id=Full-Year%202025%20Updated%20Outlook) Reflecting strong performance, the company raised its full-year 2025 revenue forecast to **$1.0 - $1.05 billion**, with corresponding increases to Variable Marketing Margin and Adjusted EBITDA guidance Full-Year 2025 Updated Outlook vs. Prior Outlook | Metric | Updated 2025 Outlook (in millions) | Prior 2025 Outlook (in millions) | | :--- | :--- | :--- | | Revenue | $1,000 - $1,050 | $955 - $995 | | Variable Marketing Margin | $329 - $336 | $319 - $332 | | Adjusted EBITDA | $119 - $126 | $116 - $124 | [Reconciliation of Non-GAAP Measures to GAAP](index=2&type=section&id=LENDINGTREE%27S%20RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20TO%20GAAP) This section provides detailed reconciliations of LendingTree's non-GAAP financial measures, including Variable Marketing Expense, Variable Marketing Margin, and Adjusted EBITDA, to their respective GAAP equivalents [Variable Marketing Expense Reconciliation](index=2&type=section&id=Variable%20Marketing%20Expense%20Reconciliation) For Q2 2025, GAAP Selling and marketing expense of **$176.8 million** was reconciled to non-GAAP Variable marketing expense of **$166.5 million** by excluding **$10.3 million** in non-variable costs Reconciliation of Selling and Marketing Expense to Variable Marketing Expense (Q2 2025) | Line Item | Amount (in thousands) | | :--- | :--- | | Selling and marketing expense (GAAP) | $176,753 | | Less: Non-variable selling and marketing expense | ($10,285) | | **Variable marketing expense (Non-GAAP)** | **$166,468** | [Variable Marketing Margin Reconciliation](index=2&type=section&id=Variable%20Marketing%20Margin%20Reconciliation) The company reconciled its Q2 2025 GAAP Net Income of **$8.9 million** to a non-GAAP Variable Marketing Margin of **$83.6 million**, representing **33%** of revenue after various adjustments Reconciliation of Net Income to Variable Marketing Margin (Q2 2025) | Line Item | Amount (in thousands) | | :--- | :--- | | Net income (GAAP) | $8,862 | | Adjustments (Cost of revenue, G&A, etc.) | $74,786 | | **Variable marketing margin (Non-GAAP)** | **$83,648** | [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) For Q2 2025, GAAP Net Income of **$8.9 million** was reconciled to a non-GAAP Adjusted EBITDA of **$31.8 million**, representing a **13%** margin after various add-backs Reconciliation of Net Income to Adjusted EBITDA (Q2 2025) | Line Item | Amount (in thousands) | | :--- | :--- | | Net income (GAAP) | $8,862 | | Adjustments (Amortization, Depreciation, Interest, etc.) | $22,931 | | **Adjusted EBITDA (Non-GAAP)** | **$31,793** | [Principles of Financial Reporting](index=4&type=section&id=LENDINGTREE%27S%20PRINCIPLES%20OF%20FINANCIAL%20REPORTING) This section defines LendingTree's non-GAAP measures, Variable Marketing Margin and Adjusted EBITDA, explaining their use for evaluating marketing effectiveness and operating performance, while noting the inability to reconcile forward-looking non-GAAP guidance to GAAP [Definitions of Non-GAAP Measures](index=4&type=section&id=Definitions%20of%20Non-GAAP%20Measures) LendingTree defines Variable Marketing Margin as a measure of marketing efficiency and Adjusted EBITDA as a primary metric for evaluating business operating performance, both excluding specific items - Variable marketing margin is a measure of the efficiency of the Company's operating model, representing revenue after subtracting variable marketing expense[12](index=12&type=chunk) - Adjusted EBITDA is a primary metric by which LendingTree evaluates the operating performance of its businesses and on which internal budgets and compensation are based[13](index=13&type=chunk) - The company cannot reconcile projected Variable Marketing Margin or Adjusted EBITDA to GAAP results due to the unknown effect of legal matters, tax considerations, and other variable items[15](index=15&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) This section includes a safe harbor statement regarding forward-looking information and an overview of LendingTree's business operations [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This section provides a standard legal disclaimer for forward-looking statements, cautioning that actual results may differ due to various risk factors including economic conditions, competition, and regulatory changes - The press release contains forward-looking statements subject to risks and uncertainties[16](index=16&type=chunk) - Key risk factors include adverse economic conditions (particularly interest rates and inflation), changes in relationships with network partners, competition, and evolving laws and regulations[16](index=16&type=chunk)[18](index=18&type=chunk) [About LendingTree, Inc.](index=5&type=section&id=About%20LendingTree%2C%20Inc.) LendingTree is one of the largest online financial platforms in the U.S., empowering consumers by providing access to loans, credit cards, and insurance offers through a network of over **430** financial partners - LendingTree is one of the nation's largest online financial platforms, providing customers access to offers on loans, credit cards, and insurance[20](index=20&type=chunk) - The company operates a network of over **430** financial partners to provide these offers to consumers[20](index=20&type=chunk)

Core Insights - LendingTree, Inc. reported strong financial results for Q2 2025, with Adjusted EBITDA increasing by 35% year-over-year, driven by revenue growth across all business segments [2][5] - The company has experienced five consecutive quarters of year-over-year revenue growth, with a positive outlook for continued growth [2][6] - The Insurance segment saw a revenue increase of 21% year-over-year, while the Consumer and Home segments also reported healthy gains despite challenging market conditions [2][6] Financial Performance - Total revenue for Q2 2025 was $250.1 million, a 19% increase from $210.1 million in Q2 2024 [4][8] - GAAP net income was $8.9 million, or $0.65 per diluted share, compared to $7.8 million, or $0.58 per diluted share in the same quarter last year [5][7] - Adjusted net income increased by 114% year-over-year to $15.4 million, with adjusted net income per share rising to $1.13 from $0.54 [5][25] Segment Performance - The Insurance segment generated $147.2 million in revenue, up 21% year-over-year, with a segment profit of $40.0 million, a 10% increase [6][8] - The Consumer segment reported revenue of $62.5 million, a 12% increase year-over-year, with personal loans revenue rising by 14% [6][8] - The Home segment achieved revenue of $40.4 million, a 25% increase year-over-year, with Home Equity revenue increasing by 38% [6][8] Capital Structure and Outlook - The company's net leverage improved to 3x from 5x over the past year, indicating a stronger capital position [2][6] - LendingTree aims to further reduce net leverage and enhance capital efficiency while continuing to invest in core business areas [2][6] - The company reiterated its financial outlook for Q3 and full-year 2025, projecting revenue between $273 million and $281 million [12][17]

Core Viewpoint - Tree.com (TREE) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates significantly in the last two quarters [1][2]. Earnings Performance - For the last reported quarter, Tree.com achieved earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.74 per share by 33.78% [2]. - In the previous quarter, the company reported earnings of $1.16 per share against an expected $0.37 per share, resulting in a surprise of 213.51% [2]. Earnings Estimates and Predictions - Estimates for Tree.com have been trending higher, influenced by its history of earnings surprises [5]. - The company currently has a positive Earnings ESP of +10.96%, indicating that analysts are optimistic about its earnings prospects [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Company Overview - Tree.com (TREE) shares increased by 22.6% to $50.34 in the last trading session, with a notable trading volume, compared to a 14.7% gain over the past four weeks [1] - LendingTree reported stronger-than-expected preliminary second-quarter 2025 results, with anticipated revenue of $250 million, surpassing the previous guidance of $241–$248 million [2] - Adjusted EBITDA for the second quarter is expected to be $31.8 million, exceeding the earlier range of $29–$31 million [2] Financial Guidance - TREE raised its full-year 2025 revenue guidance to between $1.00 and $1.05 billion, up from $955–$995 million [3] - Variable Marketing Margin (VMM) is now projected at $329–$336 million, compared to the previous estimate of $319–$332 million [3] - Adjusted EBITDA guidance for the full year is increased to $119–$126 million, up from $116–$124 million [3] Earnings Expectations - The company is expected to report quarterly earnings of $1.09 per share, reflecting a year-over-year increase of 101.9% [4] - Revenue expectations for the quarter are $243.36 million, representing a 15.8% increase from the same quarter last year [4] - The consensus EPS estimate for TREE has remained unchanged over the last 30 days, indicating a potential stability in stock price movements [5] Industry Context - Tree.com operates within the Zacks Financial - Mortgage & Related Services industry, where UWM Holdings Corporation (UWMC) recently closed 4.6% lower at $4.38, with a 10.9% return over the past month [5] - UWM's consensus EPS estimate has increased by 1.5% over the past month to $0.06, showing a year-over-year change of 50% [6]

Core Insights - LendingTree, Inc. reported strong financial performance with all three segments achieving double-digit year-over-year revenue growth in Q2 2025 [2] - The company anticipates continued improvement in financial performance for the second half of 2025, with Q3 forecasts exceeding previous expectations [2] - LendingTree's net leverage has significantly improved, falling to 3x by the end of Q2 2025 [2] Financial Results - Preliminary revenue for Q2 2025 is expected to be $250 million, surpassing the previous range of $241 - $248 million [5] - Variable Marketing Margin for Q2 2025 is anticipated at $83.6 million, at the high end of the prior outlook of $80 - $84 million [5] - Adjusted EBITDA for Q2 2025 is projected to be $31.8 million, exceeding the previous range of $29 - $31 million [5] Updated Financial Outlook - For Q3 2025, revenue is expected to be in the range of $273 - $281 million [5] - Variable Marketing Margin for Q3 is anticipated to be between $86 - $89 million [5] - Adjusted EBITDA for Q3 is projected to be in the range of $34 - $36 million [5] - Full-year 2025 revenue outlook has been updated to $1 billion to $1.05 billion, compared to the prior range of $955 - $995 million [5] Company Overview - LendingTree operates as a leading online financial services marketplace, providing access to various financial products through a network of over 430 partners [19] - The company aims to empower consumers to achieve financial success by offering personalized financial recommendations and innovative products [19]

Core Points - LendingTree, Inc. will release its fiscal second quarter 2025 results after market close on July 31, 2025 [1] - A conference call will be held at 5:00 p.m. ET to discuss the earnings release, which will also be webcast [2] - LendingTree is a leading online financial services marketplace, providing access to loans, credit cards, insurance, and more through a network of over 600 financial partners [3] Company Overview - LendingTree aims to empower consumers financially by helping them obtain financing, save money, and improve their financial health [3] - The company has a portfolio of innovative products and personalized financial recommendations to assist customers in achieving financial wins [3] - LendingTree is headquartered in Charlotte, NC [4]