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]

Core Insights - Upstart has experienced significant stock price volatility, with a notable recovery following strong earnings reports, but has recently faced a sharp decline [1][2] Business Performance - Upstart reported a 56% year-over-year revenue growth and a 68% increase in loan volume in the fourth quarter, despite challenging economic conditions [3] - The company's net loss has narrowed significantly, and adjusted margins have improved [3] - Investor demand for loans is increasing, with Upstart securing $1.3 billion in new commitments from partners to purchase originated loans [4] Conversion and Loan Volume - Upstart's loan conversion rate improved to 19.3% in the fourth quarter from 11.6% a year ago, indicating a positive trend in loan approvals [5] - The company is expanding into auto loans and home equity lines of credit (HELOCs), with auto loan volume tripling year-over-year and HELOC volume growing 59% sequentially in the fourth quarter [6] Market Opportunities - The auto loan market in the U.S. is valued at $677 billion, while the home loan market is $1.4 trillion, presenting substantial growth opportunities for Upstart [7] - Americans currently hold approximately $35 trillion in home equity, suggesting potential demand for HELOCs as interest rates decline [7] Future Outlook - Upstart anticipates achieving its first billion-dollar revenue year and expects to at least break even on unadjusted net income, a milestone not reached since 2021 [8] Stock Valuation - Despite recent stock price declines, Upstart's stock is trading at approximately 6.5 times trailing-12-month revenue, the lowest price-to-sales multiple since October [10] - The stock has lost nearly half its value from its 2025 high, yet there has been no negative news regarding the company's business [10]