LendingTree, Inc. (TREE) | Investment Case

1. Company Snapshot

1.a. Company Description

LendingTree, Inc., through its subsidiary, LT Intermediate Company, LLC, operates online consumer platform in the United States.It operates through three segments: Home, Consumer, and Insurance.The Home segment offers purchase mortgage, refinance mortgage, reverse mortgage, and home equity loans; lines of credit; and real estate brokerage services.

The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as credit repair and debt settlement services.The Insurance segment includes information, tools, and access to insurance quote products, including home and automobile, through which consumers are matched with insurance lead aggregators to obtain insurance offers.LendingTree, Inc.

also operates Student Loan Hero, a personal finance website dedicated to helping student loan borrowers manage their student debt; QuoteWizard.com, a marketplace for insurance comparison; ValuePenguin, a personal finance website that offers consumers objective analysis on various financial topics from insurance to credit cards; and Stash, a consumer investing and banking platform that offers a suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back rewards program.The company was formerly known as Tree.com, Inc.and changed its name to LendingTree, Inc.

in January 2015.LendingTree, Inc.was incorporated in 1996 and is headquartered in Charlotte, North Carolina.

Show Full description

1.b. Last Insights on TREE

LendingTree's recent performance was driven by strong Q4 earnings and revenue beat, surpassing analyst estimates. The company's revenue diversification efforts and expense management initiatives appear encouraging, with a 9.9% year-over-year rise in stock value. Analysts see a 28.4% upside potential, citing an upward trend in earnings estimate revisions. The stock's hammer chart pattern indicates support found after a recent decline, suggesting a potential trend reversal.

1.c. Company Highlights

Last Price	55.6
Change Percentage	-2.78%
Open	57.13
Previous Close	57.19
Market Cap ( Millions)	760
Volume	108735
Year High	77.35
Year Low	33.5
M A 50	57.94
M A 200	50.58

FCF Yield	7.97%
Dividend Yield	0.00%
ROE	12.23%
Debt / Equity	332.64%
Net Debt / EBIDTA	371.89%
Price To Book	5.64
Price Earnings Ratio	52.78
Price To FCF	12.55
Price To sales	0.72
EV / EBITDA	11.32

2. LendingTree's Q3 2025 Earnings: A Strong Performance Across Segments

LendingTree's third-quarter 2025 revenue reached $308 million, the second-highest in the company's history, with double-digit year-over-year revenue and Variable Margin Dollar (VMD) growth across its three segments. The company's EPS came out at $1.7, beating estimates of $1.23. The insurance business saw significant growth, with a 60% increase in spend from carriers ranked 4 through 10. The Consumer segment also performed well, with an 11% revenue growth, driven by the small business team's results. The Home segment saw a 35% increase in revenue from home equity products.

Publication Date: Nov -30

                                    📋 Highlights
                                    Q3 Revenue:
                                                Reaches $308 million, the second-highest in company history.
Insurance Business Growth:
                                                60% increase in spend from carriers ranked 4 through 10, signaling strong market share expansion.
Consumer Segment Performance:
                                                26% VMD growth and 11% revenue increase driven by small business success.
Home Equity Revenue:
                                                35% rise in revenue from home equity products, reflecting strategic positioning for a potential refi boom.
Balance Sheet Strength:
                                                Leverage ratio drops to 2.5x from 4.4x year-over-year, improving financial flexibility.

                                

Segment Performance

The insurance business is seeing a strong and sustainable cycle, driven by the industry's healthy profitability and clients' aggressive pursuit of market share. The Consumer segment's growth was driven by the small business team's spectacular results, with a 26% increase in VMD. The Home segment's growth in home equity products positions the company well for a potential refi boom.

Balance Sheet and Capital Allocation

The company's balance sheet is well-positioned, with a leverage ratio of 2.5x, down from 4.4x a year ago. The capital allocation priority is to pay down debt, but the company will also consider buying back shares and selective M&A if the stock price is attractive. The company's net debt to EBITDA ratio is 3.72, indicating a manageable debt burden.

Valuation and Outlook

With a P/S Ratio of 0.74 and an EV/EBITDA of 11.52, LendingTree's valuation appears reasonable. Analysts estimate next year's revenue growth at 7.4%. The company's focus on building content and tools around LLMs and AIOs is expected to drive growth. The insurance segment is expected to remain steady, while the mortgage segment is dependent on the refinance snowball starting to grow, expected at around 5.75% mortgage rates.

Growth Strategy

LendingTree is actively pursuing a small lender growth strategy, aiming to have over 1,000 clients on its network. The company is also considering bolt-on acquisitions, targeting small companies with unique products or services that can leverage its remarketing capabilities. The home equity business has grown, preparing for a potential refi boom, and home insurance VMD is up 80% year-over-year.

3. NewsRoom

Tree.com (TREE) Loses 16.9% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Nov -18

Source: zacks.com

Newzip Named Winner of LendingTree's 2025 Innovation Challenge for Second Time

Nov -10

Source: prnewswire.com

4 Stocks Trading Near 52-Week High With Room to Rise Further

Nov -05

Source: zacks.com

Wall Street Analysts Predict a 31.14% Upside in Tree.com (TREE): Here's What You Should Know

Nov -05

Source: zacks.com

Cwm LLC Lowers Stock Holdings in LendingTree, Inc. $TREE

Nov -04

Source: defenseworld.net

Trump tariffs could add $40 billion to holiday shoppers' and sellers' costs, LendingTree warns

Nov -02

Source: cnbc.com

LendingTree Q3 Earnings Top Estimates, EBITDA Improves Y/Y

Oct -31

Source: zacks.com

LendingTree, Inc. (TREE) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.53%)

6. Segments

Consumer

Expected Growth: 10%

Consumer segment growth driven by increasing online lending adoption, rising demand for personal loans, and expansion into new markets. Strong brand recognition, user-friendly platform, and strategic partnerships also contribute to growth. Additionally, increasing consumer debt and credit card usage fuel demand for debt consolidation and credit monitoring services, further driving segment growth.

Insurance

Expected Growth: 12%

LendingTree, Inc.'s insurance segment growth of 12% is driven by increasing demand for online insurance marketplaces, expansion into new product lines such as life insurance, and strategic partnerships with leading insurance providers. Additionally, the company's investment in digital marketing and user experience enhancements has improved customer engagement and conversion rates.

Home

Expected Growth: 9%

LendingTree's Home segment growth is driven by increasing demand for online mortgage platforms, rising homeownership rates, and expansion into adjacent markets. Additionally, strategic partnerships, investments in digital marketing, and a user-friendly interface contribute to the 9% growth rate.

Other

Expected Growth: 11%

LendingTree's 11% growth in 'Other' segment is driven by increasing adoption of credit cards and personal loans, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital marketing and technology has improved customer acquisition and retention, contributing to the segment's growth.

7. Detailed Products

Mortgage Loans

LendingTree offers a wide range of mortgage loan options, including fixed-rate and adjustable-rate mortgages, government-backed loans, and jumbo loans.

Personal Loans

LendingTree provides access to personal loans for debt consolidation, weddings, home improvements, and other expenses.

Credit Cards

LendingTree offers a range of credit cards from multiple issuers, including cashback, rewards, and low-interest cards.

Auto Loans

LendingTree connects consumers with lenders offering new and used car loans, refinancing, and lease buyouts.

Home Equity Loans

LendingTree provides access to home equity loans and lines of credit for home renovations, debt consolidation, and other expenses.

Student Loans

LendingTree offers private student loans and student loan refinancing options from multiple lenders.

Business Loans

LendingTree connects small business owners with lenders offering term loans, lines of credit, and invoice financing.

Insurance

LendingTree offers insurance quotes and comparisons for auto, home, life, and health insurance.

8. LendingTree, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

LendingTree, Inc. operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

LendingTree, Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's diversified customer base.

Bargaining Power Of Suppliers

LendingTree, Inc. has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The online lending market is highly competitive, and new entrants can easily enter the market, posing a significant threat to LendingTree, Inc.'s market share.

Intensity Of Rivalry

The online lending market is highly competitive, with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	83.12%
Debt Cost	3.95%
Equity Weight	16.88%
Equity Cost	14.40%
WACC	5.71%
Leverage	492.34%

11. Quality Control: LendingTree, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

180 Degree Capital

A-Score: 5.7/10

Value: 6.5

Growth: 2.6

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

First Seacoast Bank

A-Score: 5.6/10

Value: 8.6

Growth: 2.0

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

Hagerty

A-Score: 5.1/10

Value: 3.0

Growth: 8.4

Quality: 6.6

Yield: 0.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

Generations Bancorp NY

A-Score: 4.8/10

Value: 7.0

Growth: 2.3

Quality: 3.8

Yield: 0.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

B Riley Financial

A-Score: 4.8/10

Value: 8.2

Growth: 4.1

Quality: 4.9

Yield: 5.0

Momentum: 6.0

Volatility: 0.7

1-Year Total Return ->

LendingTree

A-Score: 3.3/10

Value: 6.0

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.92%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.71%

LendingTree, Inc. - US52603B1070

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TREE

1.c. Company Highlights

Lower Quality

More Volatile

Strong Momentum

Earnings Beats

Revenues Beats

Lower Yield

Revenues Miss

Weak Momentum

2. LendingTree's Q3 2025 Earnings: A Strong Performance Across Segments

Segment Performance

Balance Sheet and Capital Allocation

Valuation and Outlook

Growth Strategy

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.53%)

6. Segments

Consumer

Expected Growth: 10%

Insurance

Expected Growth: 12%

Home

Expected Growth: 9%

Other

Expected Growth: 11%

7. Detailed Products

Mortgage Loans

Personal Loans

Credit Cards

Auto Loans

Home Equity Loans

Student Loans

Business Loans

Insurance

8. LendingTree, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: LendingTree, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.6$

Current Price

55.6$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA