LendingTree — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue increased 12% year-over-year to $343.6 million (vs. $307.8 million in Q3 2025).
• GAAP net loss was $(72.4) million, or $(5.15) per diluted share, compared to a net income of $10.2 million, or $0.73 per diluted share, in Q3 2025.
• The GAAP net loss included a $98.8 million non-cash goodwill impairment charge.
• Variable marketing margin was $94.9 million, a 2% increase from $93.2 million in Q3 2025.
• Adjusted EBITDA was $39.6 million, a 1% decrease from $39.8 million in Q3 2025.
• Variable marketing expense increased 16% year-over-year to $248.7 million (vs. $214.6 million in Q3 2025).
• Total costs and expenses were $413.9 million for the quarter, compared to $279.0 million in Q3 2025.
• Cash and cash equivalents were $82.7 million as of September 30, 2026, compared to $81.1 million as of December 31, 2025.
• Long-term debt decreased to $326.7 million as of September 30, 2026, from $387.7 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance is updated to $1.30 to $1.31 billion.
• Full-year 2026 variable marketing margin guidance is $370 to $375 million.
• Full-year 2026 Adjusted EBITDA guidance is $151 to $153 million.
• Fourth-quarter 2026 revenue guidance is $315 to $325 million.
• Fourth-quarter 2026 variable marketing margin guidance is $88 to $93 million.
• Fourth-quarter 2026 Adjusted EBITDA guidance is $34 to $36 million.
• Management expects to grow revenue and Adjusted EBITDA for the full year 2026 by 17% and 14%, respectively, at the midpoint of the updated forecast.

Business Segments and Product Lines:

• Insurance segment revenue increased 15% year-over-year to $234.9 million, with segment profit rising 14% to $54.2 million.
• Consumer segment revenue increased 2% year-over-year to $67.2 million, while segment profit declined 16% to $29.6 million.
• Home segment revenue increased 9% year-over-year to $41.5 million, with segment profit increasing 5% to $12.4 million.
• Home Equity revenue specifically increased 20% year-over-year to $34.0 million.
• The company launched AI features and distribution improvements, including voice AI services, AI overviews on offer pages, and controlled distribution to prevent multiple carrier contacts.

Market and Competitive Landscape:

• The company noted ongoing interest rate-related headwinds impacting the Home segment.
• LendingTree operates a marketplace with approximately 770 financial partners.
• Management cited the diversity of product offerings as a benefit against market headwinds.

Risks and Challenges:

• The company faces risks related to adverse conditions in primary and secondary mortgage markets, interest rates, and inflation.
• Potential liabilities exist regarding illegal monopolization claims against Google and the outcome of the government's antitrust case.
• Risks include dependence on key network partners, cybersecurity breaches, and regulatory compliance issues.

Management Commentary and Tone:

• CEO Scott Peyree highlighted the tenth straight quarter of double-digit revenue growth, attributing success to strength in Insurance and healthy growth in Home driven by equity lending.
• CFO Jason Bengel stated the business is on track to meet updated growth forecasts despite interest rate headwinds.
• Management expressed confidence in the balance sheet strength and the attractiveness of the equity valuation.

Other Key Points:

• The company voluntarily repaid $60 million of long-term debt during the quarter using excess cash.
• Management intends to repurchase shares in the fourth quarter, marking the first buyback activity since the first quarter of 2022.
• Goodwill on the balance sheet decreased from $381.5 million at December 31, 2025, to $282.7 million at September 30, 2026, due to the impairment charge.
• Net cash provided by operating activities was $76.4 million for the nine months ended September 30, 2026.