LendingTree Q1 Earnings Surpass Estimates, Revenues Up Y/Y

Core Insights - LendingTree, Inc. (TREE) reported an adjusted net income per share of 99 cents for Q1 2025, exceeding the Zacks Consensus Estimate of 74 cents and up from 70 cents in the prior-year quarter [1] - The company's total revenues grew by 43% year over year to $239.7 million, although this figure missed the Zacks Consensus Estimate by 1.8% [3] - A significant increase in total costs, which rose by 15.9% to $9.9 million, negatively impacted overall performance [3] Financial Performance - The adjusted EBITDA for Q1 2025 was $24.6 million, reflecting a 14.3% increase from the previous year [3] - The variable marketing margin increased to $77.7 million, up 11.9% year over year [3] - The company reported a GAAP net loss of $12.4 million, contrasting with a net income of $1 million in the same quarter last year [2] Cash and Debt Position - As of March 31, 2025, cash and cash equivalents stood at $126.4 million, an increase from $106.6 million as of December 31, 2024 [4] - Long-term debt rose to $387.7 million from $344.1 million as of December 31, 2024 [4] Future Outlook - For Q2 2025, total revenues are projected to be between $241 million and $248 million, with adjusted EBITDA expected to be in the range of $29-$31 million [6] - The 2025 revenue outlook has been updated to between $955 million and $995 million, down from the previous estimate of $985-$1.03 billion [7] - Adjusted EBITDA for 2025 is projected to be $116-$124 million, slightly revised from the earlier estimate of $116-$126 million [7] Strategic Insights - The company is focusing on inorganic growth to strengthen its online lending platform, with first-quarter results benefiting from increased EBITDA [8] - Efforts to diversify non-mortgage product offerings are expected to support future revenue growth [8]