LendingTree, Inc. Q4 FY2025 earnings call

• Strong 2025 results: VMD up 14%, adjusted EBITDA grew 28%, each of three reportable segments grew VMD at double - digit rates. - Insurance segment: strong demand from carriers, market share gain from competitors, 4 - 10 insurers on network had 65% revenue growth in 2025, momentum carried into 2026. - Consumer segment: profit by 17% last year, small business revenue grew 78% year over year, segment margin stable at 51%. - Home segment: 6% revenue growth in fourth quarter, but pressured by media costs and conversion rates. - AI and AI - enabled search: accelerating, used in call center with revenue growth and OpEx growth under control, marketing team used AI - enabled tech for efficiency. - North Star strategy: four strategic pillars - accelerate core business (expand SMB concierge sales force, develop auto lending concierge sales force, invest in media business development and marketing tech), improve consumer experience (resolve pain points with AI, improve login experience, develop personal loan rate table), expand product offerings (add categories like commercial insurance, pet insurance, etc.), rebuild and reposition brand (hire key brand personnel, redesign homepage, target brand spin in large markets in second half of year)

VMD was up 14%, adjusted EBITDA grew 28%. Insurance segment: generated $174 million of BMD, a 10% increase over previous year; 4 - 10 insurers on network grew revenue by 65% in 2025. Consumer segment: profit by 17% last year, small business team had 60% revenue growth; segment margin for quarter and full year was stable at 51%. Home segment: 6% year - over - year growth in fourth quarter, but increasing media costs and lower conversion rates pressured segment margins

• Home: not assuming rate benefit, expect margin to be roughly where it was in Q4, investing in quality and small lender network. - Consumer: small business to drive growth, personal loans expect measured growth, margin generally where it was in Q4. - Insurance: favorable backdrop, expect margin improvement, but being conservative in guidance as only two months into Q1. - Brand investment: initially less than $10 million as part of second half strategy

• Threat of disintermediation due to AI, but legal and regulatory structures and partners' incentive structures make it difficult. - Trigger leads issue where Congress passed a bill to address, which affects consumer experience and lead quality. - Volatility in carrier behavior and ad spend swings in insurance segment in previous history, although expecting more stability

Q: Talk about sustainability of growth in insurance and drivers.

A: Carriers are profitable, aggressive in growing market share, high - quality, high - intent consumers through network, expected rate decreases and expanded geographies, good consumer traffic growth.

Q: How integrating with LLMs to stay visible as search transitions?

A: Focus on SEO, LLMs testing advertising, using AI development for consumer products.

Q: Targeted brand investments in second half?

A: Redesigned homepage, different messaging, testing in large markets, initial investment less than $10 million.

Q: Granularity at segment level for revenue, VMD growth, and margins?

A: Home margin expected to be Q4 level, consumer small business to drive growth, personal loans measured growth, insurance favorable backdrop but conservative in guidance.

Q: Trigger leads and insurance predictability?

A: Trigger leads issue resolved by new law, insurance expected to be more predictable with less volatility.

Q: Visibility in business today for revenue vs six months/year ago?

A: Revenue visibility solid, dependent on driving more consumers.

Q: Mortgage tipping point?

A: 30 - year rate still too high for significant refi traffic, home purchase affected by affordability, 575 rate is where snowball starts.

Q: Insurance partner incentivization for actionable quotes for automated bots?

A: Insurance carriers resistant to sharing rate info, many lack capability to provide rates online