LendingTree Q2 revenue rises 25%, but fails to impress investors

Overview

• U.S. online financial marketplace's Q2 revenue grew 25% yr/yr, slightly missing analyst expectations

• Adjusted EBITDA rose for eighth straight quarter, reflecting double-digit yr/yr growth

• Insurance segment strength offset by weaker consumer segment due to lower small business loan demand

• Shares of the company were down about 7% in extended trading

Outlook

• LendingTree sees full-year 2026 revenue of $1.30 bln to $1.32 bln

• Company expects Q3 revenue between $325 mln and $335 mln

• Company expects sequential revenue growth through the remainder of the year

Result Drivers

• INSURANCE SEGMENT - Insurance revenue rose 42% yr/yr and segment profit increased 25%, driving overall growth

• CONSUMER SEGMENT WEAKNESS - Consumer revenue fell 4% yr/yr and profit declined 14%, due to suppressed small business loan demand

• HOME EQUITY GROWTH - Home equity revenue rose 15% yr/yr, partially offsetting profit decline in Home segment

Company press release: ID:nPn6TQYW6a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for Lendingtree Inc is $65.00, about 58.5% above its July 28 closing price of $41.00

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

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• July 29 - PSQ Holdings Q2 revenue jumps on Fintech growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)