LendingTree (TREE) Q1 2025 earnings summary

Executive summary

• Revenue reached $239.7 million in Q1 2025, up 43% year-over-year, with strong growth across Insurance, Home, and Consumer segments.

• Adjusted EBITDA grew 14% year-over-year to $24.6 million, but came in just below forecast due to regulatory and one-time legal and benefits expenses.

• Net loss was $12.4 million, or $(0.92) per diluted share, compared to net income of $1.0 million in Q1 2024, primarily due to higher marketing and litigation expenses.

• The diversified business model and cost discipline helped mitigate economic volatility, and management remains committed to targeted growth investments.

• Spring platform users reached 32.1 million, with 0.8 million new users added in Q1 2025.

Financial highlights

• Insurance segment revenue surged 71% year-over-year to $146.7 million, with segment profit up 16%.

• Home segment revenue increased 22% to $37.0 million, with segment profit up 36%.

• Consumer segment revenue grew 9% to $56.0 million, though segment profit declined 1% due to margin compression.

• Small business lending and home equity products drove strong performance, with small business revenue up 48% year-over-year.

• Cost of revenue rose 16% to $9.9 million; selling and marketing expense increased 60% to $172.8 million.

Outlook and guidance

• Full-year 2025 revenue guidance updated to $955–$995 million, slightly lower than previous range.

• Annual adjusted EBITDA growth is forecast at 15% at the midpoint of the updated outlook, with full-year adjusted EBITDA expected at $116–$124 million.

• Insurance and Home Equity segments expected to see continued revenue and VMD growth, with incremental improvement in the second half of the year.

• Small business lending is forecasted to generate record revenue in 2025.

• Expenses are expected to decrease modestly in Q2 and the remainder of the year.