LendingTree (TREE) Q2 EPS Soars 197%

Core Insights - LendingTree reported a significant earnings beat for Q2 2025, with non-GAAP EPS of $1.13, surpassing the consensus estimate of $0.38 by $0.75, and GAAP revenue of $250.1 million, slightly above the expected $246.97 million [1][2] Financial Performance - Adjusted EPS (Non-GAAP) increased by 109% year-over-year to $1.13 from $0.54 in Q2 2024 [2] - GAAP revenue rose 19% year-over-year to $250.1 million from $210.1 million in Q2 2024 [2] - Adjusted EBITDA (Non-GAAP) grew by 35.3% to $31.8 million compared to $23.5 million in Q2 2024 [2] - Variable Marketing Margin (Non-GAAP) increased by 18% year-over-year to $83.6 million [2] - Net Income (GAAP) rose 14.1% to $8.9 million from $7.8 million in Q2 2024 [2] Business Model and Strategy - LendingTree operates an online marketplace connecting consumers with over 400 partners, including lenders and insurance carriers, generating revenue through fees for completed requests [3] - The company has focused on diversifying product offerings and strengthening partner relationships, particularly in insurance and consumer loans [4] - Investments in AI and automation are central to improving user experience and operational efficiency [4] Segment Performance - The Insurance segment's revenue grew 21% to $147.2 million, with profit increasing 10% to $40.0 million, although profit margin decreased to 27% from 30% due to competitive pressures [6] - The Consumer segment saw a 12% revenue increase to $62.5 million, with profit jumping 19% to $32.1 million and profit margin expanding to 51% [7] - The Home segment's revenue climbed 25% to $40.4 million, with profit soaring 41% to $13.1 million, driven by a 38% increase in home equity loan revenue [8][9] Future Guidance - For Q3 2025, revenue guidance is set at $273–$281 million, with variable marketing margin expected to reach $86–$89 million and adjusted EBITDA forecasted between $34–$36 million [12] - For FY2025, management projects revenue of $1.00–$1.05 billion, with improved profitability metrics anticipated [12] - The company expects continued growth in the insurance segment and plans to invest in partner diversification and technology [12]