LendingTree Q4 Earnings Surpass Estimates, Expenses Increase Y/Y

LendingTree, Inc.’s TREE fourth-quarter 2024 adjusted net income per share of $1.16 per share topped the Zacks Consensus Estimate of 37 cents. The figure compares favorably with the 28 cents reported in the prior-year quarter.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

The results were driven by a rise in revenues. However, an increase in total cost was a spoilsport.

The results exclude certain non-recurring items. After considering these, TREE reported a GAAP net income of $7.5 million compared with $12.7 million in the year-ago quarter.

For 2024, the company reported adjusted net income per share of $3.19, up from $2.28 reported in 2023. The metric topped the Zacks Consensus Estimate of $2.45 per share. In 2024, net loss was $41.7 million compared with $122.4 million in 2023.

TREE’s Revenues, Variable Marketing Margin Increase

The fourth quarter’s total revenues grew 95% year over year to $261.5 million. Also, the reported figure surpassed the Zacks Consensus Estimate by 10.9%.

For 2024, total revenues were $900.2 million, up 33.9% from 2023. The metric surpassed the Zacks Consensus Estimate by 2.9%. 

The total cost of revenues was $9.7 million in the fourth quarter, up 19.9% from the prior-year quarter.

Adjusted EBITDA totaled $32.2 million, up from $15.5 million in the year-ago quarter. The variable marketing margin was $86.7 million, up 43% year over year.

As of Dec. 31, 2024, cash and cash equivalents were $107 million compared with $96.8 million as of Sept. 30, 2024. Long-term debt was $344.2 million compared with $346.2 million as of Sept. 30, 2024.

Lending Tree’s Outlook

The company provided the first-quarter and full-year 2025 outlook.

1Q 2025

For the first quarter of 2025, total revenues are estimated to be between $241 million and $248 million. 

Adjusted EBITDA and the variable marketing margin are anticipated to be in the range of $25-$27 million and $75-$79 million, respectively.

2025

For 2025, total revenues are projected to be between $985 million and $1.02 billion, an increase of 9% to 14% compared to 2024. 

Adjusted EBITDA is projected to be $116-$126 million, an increase of 11% to 21% from 2024. The variable marketing margin is expected to be $319-$336 million, representing growth of 5% to 10% over last year. 

Our View on Lending Tree

TREE’s inorganic growth moves have strengthened its online lending platform. Its fourth-quarter results were boosted by strong growth in the Insurance segment revenues. The company’s efforts to increase revenues by diversifying its non-mortgage product offerings will support top-line growth in the future.

LendingTree, Inc. Price, Consensus and EPS Surprise

LendingTree, Inc. price-consensus-eps-surprise-chart | LendingTree, Inc. Quote

Currently, LendingTree carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Finance Stocks

WaFd, Inc. WAFD adjusted earnings of 62 cents per share lagged the Zacks Consensus Estimate of 69 cents. Also, the bottom line declined 26.2% year over year. Quarterly net revenues were $171.1 million, rising 2.8% from the prior-year quarter. However, the top line lagged the Zacks Consensus Estimate of $193 million.

WAFD results were adversely impacted by a rise in non-interest expenses. However, higher net interest income and non-interest income (driven by the acquisition of Luther Burbank Corporation in February 2024) majorly supported WAFD’s performance. Higher loan balances and nil provisions were other positives. 

Hancock Whitney Corp.’s HWC fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter. Quarterly total revenues amounted to $364.8 million, up 18.3% year over year. The top line beat the Zacks Consensus Estimate of $361.3 million.

HWC's results benefited from the increase in non-interest income and net interest income (NII). Lower expenses and provisions were other positives. However, the decline in total loans was a headwind.

This article originally published on Zacks Investment Research (zacks.com).

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