LendingTree, Inc. Q1 FY2026 earnings call

• Highlights from first quarter results: Adjusted EBITDA grew 71% year over year on a 37% increase in revenue, record revenue quarter and highest quarterly adjusted EBITDA in six years; net leverage declined to 2.1 times from 3.4 times a year ago and received credit upgrade from S&P to B-plus with stable outlook.
• Strategy execution: North Star is to be the number one destination to shop for financial products, anchored in four pillars: accelerating core business, improving consumer experience, expanding product offerings, rebuilding brand. Focus on shifting traffic mix towards organic channels, with every five-point increase in organic revenue mix representing incremental segment profit and uplift in variable marketing margin. AI is a critical enabler, seen as a tailwind, used to improve consumer journey and drive efficiency internally, with initiatives like launching AI agent for search marketing teams and extending AI-powered voice tools.

Insurance: Revenue and segment profit both achieved new records in the quarter, growing 51% and 50% respectively year over year. Consumer: Delivered another quarter of healthy growth led by small business lending, with revenue increasing 49% year over year, but starting to see softening in consumer demand for loans tied to broader macro dynamics. Home: Pressured by elevated mortgage rates, but current revenue and profit are viewed as cyclical lows with upside as rates normalize and transaction volumes recover. Insurance contributed a significant revenue share, with consumer and home also having their respective contributions.

• Midpoint of updated 26 outlook: Adjusted EBITDA running at a three-year compound annual growth rate of 26%.
• Consumer: Expecting very conservative guide due to muted seasonality and possible further credit tightening, despite seeing demand start to increase in April but still below expected seasonal levels.
• Insurance: Q1 performance normalized but still performing at very strong levels, with expectation of insurance continuing to grow year over year indefinitely.

• Forward-looking statements subject to risks and uncertainties where actual results could differ materially from views expressed. Many risks described in periodic reports filed with the SEC. Near-term macro headwinds in consumer segment tied to broader macro dynamics like elevated tax refunds, low consumer sentiment, geopolitical backdrop, and in home segment tied to elevated mortgage rates and competitive marketing conditions.

Q: On the slowdown in consumer loan demand, whether accompanied by tightening credit boxes at partners and quantifying impact on guidance.

A: Credit availability not seen as much impact on consumer side, more around shopping behavior and sentiment; small business lending sees fewer merchants, lower loan size, and lenders offering lower amounts at higher rates, with short-term nature expected to pass once sentiment and geopolitics settle.

Q: On insurance run rate trends and carrier spend diversification.

A: Q1 insurance performance strong, beat prior record, Q2 expected to normalize but still strong; carrier demand extremely strong with new carriers coming back, increased budgets, and expansion in product buying; health insurance was a pleasant surprise in Q1.

Q: On home section balance between protecting margins and investing through weaker housing backdrop.

A: Diversified product set allows investing in high quality traffic as can leverage strength in other segments like insurance and consumer lending; strategic focus on growing small and medium sized brokers in mortgage world, with knowledge gained from testing and plan to win in certain areas long-term.

Q: On homepage redesign metrics and opportunities to improve funnel conversion and personalization.

A: New homepage launched not even a month ago, early results impressive, revamping specific product pages next, excited about approach to win organic traffic long-term and create sticky consumers