TREE Lags Q4 Earnings Estimates, Stock Up 23.9% on Revenue Growth

LendingTree, Inc.TREE reported fourth-quarter 2025 adjusted net loss per share of 39 cents against the Zacks Consensus Estimate of earnings of 90 cents and the year-ago adjusted net income of $1.16 per share.

Shares of TREE soared 23.9% yesterday on record fourth-quarter revenues and upward momentum that is expected to continue in 2026, too. 

The bottom-line performance was primarily affected by higher total costs and expenses. However, growth in revenues and an increase in adjusted EBITDA offered some support.

Results exclude certain non-recurring items. After considering these, TREE reported a GAAP net income of $144.7 million or $10.27 per share, up substantially from $7.5 million or 55 cents per share in the prior-year quarter.

For 2025, adjusted net income per share of $3.38 missed the consensus estimate of $3.84. The figure represented a rise of 5.9% from the previous year. The company reported GAAP net income of $151.3 million against a loss of $41.7 million in 2024.

TREE’s Revenues, Variable Marketing Margin Increase

Total revenues in the fourth quarter grew 22.2% year over year to $319.7 million. The reported figure surpassed the Zacks Consensus Estimate by 11.5%.

In 2025, total revenues increased 24.1% year over year to $1.12 billion. Also, the top line surpassed the Zacks Consensus Estimate of $1.06 billion.

The total cost of revenues was $11.6 million, up 18.6% from the prior-year quarter.

Total costs and expenses were $297.5 million, up 22.1% from the previous-year quarter.

Adjusted EBITDA totaled $36.7 million, up 14% from the year-ago quarter. The variable marketing margin was $92 million, up 6.1%.

As of Dec. 31, 2025, cash and cash equivalents were $81.1 million compared with $106.6 million as of Dec. 31, 2024. Long-term debt was $387.7 million compared with $344.1 million as of Dec. 31, 2024.

LendingTree’s Outlook

First-Quarter 2026

Total revenues are projected to be between $317 million and $325 million.

Adjusted EBITDA and variable marketing margin are anticipated to be $39-$41 million and $94-$99 million, respectively.

Management expects the adjusted EBITDA to variable marketing margin (AEBITDA/VMM) ratio to be around 41%.

2026

Total revenues are expected to be between $1.28 billion and $1.33 billion.

Adjusted EBITDA is projected to be in the range of $150-$160 million.

The variable marketing margin is expected to be in the range of $374-$394 million.

AEBITDA/VMM margin is expected to be around 40%.

Long-term

Adjusted EBITDA is expected to grow at a double-digit rate.

Management targets AEBITDA / VMM in the range of 45%-50%.

Our View on LendingTree

TREE’s elevated costs and expenses might act as headwinds. However, its inorganic growth moves have strengthened its online lending platform. The company’s efforts to increase revenues by diversifying its non-mortgage product offerings are expected to support growth in the future.

Currently, LendingTree carries a Zacks Rank #3 (Hold).

Performance of Other Finance Stocks

Hancock Whitney Corp.’s HWC fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.

HWC’s results benefited from an increase in non-interest income and net interest income (NII). Higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds.

WaFd, Inc.’s WAFD first-quarter fiscal 2026 (ended Dec. 31) earnings of 79 cents per share beat the Zacks Consensus Estimate of 76 cents. The bottom line also jumped 46% year over year.
 
WAFD’s results reflected higher NII, a surge in non-interest income and lower expenses. However, credit costs remained elevated, with provisions for credit losses recorded in the quarter.