LendingTree’s second quarter saw sales rise significantly year on year, but results disappointed investors as both revenue and non-GAAP earnings fell short of Wall Street expectations. The insurance segment was the primary driver of growth, with CEO Scott Peyree calling out “strong carrier demand” and a 42% year-on-year revenue jump in that division. However, management was candid about underperformance in its small business (SMB) lending segment, attributing the softness to weaker merchant sentiment and external macroeconomic pressures. Peyree acknowledged that “demand came in softer than we forecast,” resulting in a sequential decline despite prior investments in SMB growth.
Is now the time to buy TREE? Find out in our full research report (it’s free for active Edge members).
LendingTree (TREE) Q2 CY2026 Highlights:
- Revenue: $313.4 million vs analyst estimates of $315.6 million (25.3% year-on-year growth, 0.7% miss)
- Adjusted EPS: $1.06 vs analyst expectations of $1.41 (25.2% miss)
- Adjusted EBITDA: $35.16 million vs analyst estimates of $39.01 million (11.2% margin, 9.9% miss)
- The company dropped its revenue guidance for the full year to $1.31 billion at the midpoint from $1.33 billion, a 1.1% decrease
- EBITDA guidance for the full year is $148.5 million at the midpoint, below analyst estimates of $158.1 million
- Operating Margin: 7%, down from 8.4% in the same quarter last year
- Market Capitalization: $474 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From LendingTree’s Q2 Earnings Call
- Ryan Tomasello (KBW) asked about the specific drivers of lower variable margins in insurance and assumptions underlying second-half segment guidance. CFO Jason Bengel explained that strong carrier demand is supporting growth, but high competition and immediate costs are keeping margins at current levels.
- Jed Kelly (Oppenheimer) inquired whether SMB softness was more related to gas prices or interest rates, and about the health of the personal loans product. CEO Scott Peyree replied that SMB demand is mostly driven by macro sentiment, while personal loans remain stable with steady consumer shopping activity.
- Jed Kelly (Oppenheimer) also requested an update on LendingTree’s arbitration with Google regarding alleged overcharges. CFO Jason Bengel outlined the arbitration process and noted that the company is working with an economist to estimate potential damages.
- Mike Grondahl (Northland) asked for more detail on SMB’s contribution to revenue and EBITDA, and whether margin softness was caused by investment or competition. CFO Jason Bengel and CEO Scott Peyree explained that both increased investment in business development and heightened competition are contributing to margin pressure.
- Mike Grondahl (Northland) questioned the most meaningful learnings from recent AI initiatives. CEO Scott Peyree emphasized the importance of structuring data for AI, cost management with different AI models, and effective use of AI in both operations and consumer-facing applications.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) whether SMB lending recovers as merchant sentiment improves and lender demand remains stable, (2) sustained insurance segment outperformance and the impact of competitive pressures on margins, and (3) the effectiveness of AI initiatives in driving operating efficiency and customer engagement. Progress on debt reduction and any updates in the Google arbitration process will also be important signposts.
LendingTree currently trades at $34.21, down from $39.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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