LendingTree(TREE) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 2025 consolidated revenue reached $239.7 million, a 43% increase year-over-year, with Insurance revenue growing 71%, Home segment up 22%, and Consumer segment up 9%[8] - Adjusted EBITDA for Q1 2025 was $24.6 million, representing a 10% margin on revenue, despite regulatory headwinds and non-recurring expenses[10] - Adjusted net income for Q1 2025 was $13.5 million, translating to $0.99 per share, reflecting a 47% increase year-over-year[11] - For Q1 2025, total revenue was $239.7 million, an increase from $167.8 million in Q1 2024, representing a year-over-year growth of approximately 42.8%[33] - The company reported a net loss of $12.4 million in Q1 2025, compared to a net income of $1.0 million in Q1 2024[33] - Net loss for Q1 2025 was $12,375,000, representing a net loss margin of 5% of revenue[41] - Adjusted EBITDA for Q1 2025 was $24,626,000, which is 10% of revenue[43] - 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[56] Segment Performance - The Insurance segment is expected to continue its growth trajectory in 2025, supported by a favorable carrier profitability backdrop and optimized marketing strategies[3] - The Consumer segment's small business loan revenue grew 48% year-over-year, driven by a 50% increase in the concierge sales team, enhancing service levels and conversion rates[4] - Home segment revenue was $37.0 million, up 22% year-over-year, with segment profit increasing 36% to $13.1 million[16] - The Insurance segment is positioned for continued growth following last year's record performance despite regulatory changes[29] - The Home segment has seen consistent demand for home equity loans, contributing to overall revenue growth[29] - The Consumer segment's results are improving, driven by increased demand for small business and personal loans[29] Cash and Assets - The company held $126 million in cash at the end of the quarter, with plans to meet the remaining $95 million convertible note balance at maturity[24] - Cash and cash equivalents increased to $126.4 million as of March 31, 2025, from $106.6 million at the end of 2024[35] - Total assets rose to $777.1 million as of March 31, 2025, compared to $767.7 million at the end of 2024[35] - The company’s balance sheet continues to strengthen, which is expected to help lower interest expenses over time[29] Expenses and Costs - General and administrative expenses increased to $30,660,000 in Q1 2025 from $29,111,000 in Q4 2024[41] - Non-variable selling and marketing expenses were $10,750,000 in Q1 2025, slightly down from $11,084,000 in Q4 2024[41] - Interest expense for Q1 2025 was $9,084,000, compared to $9,950,000 in Q4 2024[43] - Litigation settlements and contingencies amounted to $15,212,000 in Q1 2025, significantly higher than $6,000 in Q4 2024[43] - The company reported a significant increase in non-cash compensation to $9,867,000 in Q1 2025 from $6,494,000 in Q4 2024[43] Market Outlook and Strategy - The company anticipates ongoing expense discipline and targeted growth initiatives to drive strong performance throughout the year[5] - Full-year 2025 revenue is projected to be between $955 million and $995 million, down from the previous range of $985 million to $1,025 million[28] - The second-quarter 2025 revenue is expected to be between $241 million and $248 million[28] - The corporate credit rating was upgraded to "B" with a positive outlook by S&P, indicating improved EBITDA profile and reduced leverage[25] - Forward-looking statements highlight potential risks including adverse mortgage market conditions, interest rates, and competition, which could impact future performance[61] - The company emphasizes the importance of maintaining brand recognition and attracting consumers cost-effectively as part of its strategic outlook[61] - Future product development and service enhancements are critical for maintaining competitive advantage in the market[61] - The company is focused on integrating potential acquisitions successfully to enhance operational efficiency and market presence[61] - Risks related to regulatory compliance and network security are acknowledged as significant factors that could affect business operations[61]