Second quarter 2026
Filed Jul 29, 2026Revenue Grew 25% YoY Driven By Strong Insurance Segment Performance
Revenue grew 25% year over year and adjusted EBITDA grew 11%, led by Insurance, but Consumer revenue and segment profit declined year over year and sequentially, while consolidated revenue, variable marketing margin, net income and adjusted EBITDA all declined sequentially.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $313.4 million | (4)% | 25% |
| Income before income taxesGAAP | $14.1 million | (38)% | 31% |
| Income tax expenseGAAP | $(4.5) million | (20)% | 137% |
| Net incomeGAAP | $9.6 million | (45)% | 8% |
| Net income % of revenueGAAP | 3% | – | – |
| Income per share, basicGAAP | $0.69 | – | – |
| Income per share, dilutedGAAP | $0.68 | – | – |
| Operating incomeGAAP | $21,798 (in thousands) | – | – |
| Cost of revenueGAAP | $11,269 (in thousands) | – | – |
| Selling and marketing expenseGAAP | $236,453 (in thousands) | – | – |
| General and administrative expenseGAAP | $25,710 (in thousands) | – | – |
| Product developmentGAAP | $10,032 (in thousands) | – | – |
| DepreciationGAAP | $4,277 (in thousands) | – | – |
| Amortization of intangiblesGAAP | $1,288 (in thousands) | – | – |
| Restructuring and severanceGAAP | $1,839 (in thousands) | – | – |
| Litigation settlements and contingenciesGAAP | $756 (in thousands) | – | – |
| Total costs and expensesGAAP | $291,624 (in thousands) | – | – |
| Interest expense, netGAAP | $(8,483) (in thousands) | – | – |
| Variable marketing expensenon-GAAP | $(226.1) million | (1)% | 36% |
| Variable marketing marginnon-GAAP | $87.3 million | (12)% | 4% |
| Variable marketing margin % of revenuenon-GAAP | 28% | – | – |
| Adjusted EBITDAnon-GAAP | $35.2 million | (16)% | 11% |
| Adjusted EBITDA % of variable marketing marginnon-GAAP | 40% | – | – |
| Total segment profitother | $88.8 million | (12)% | 4% |
| Brand marketing expenseother | $(1.5) million | 25% | —% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| HomeWithin Home, revenue from Home Equity of $34.9 million increased 15% over prior year. | $43.9 million | 12% | 9% |
| ConsumerWeaker than expected Consumer performance reflected suppressed borrower demand in the small business segment, and this demand trend continued to deteriorate throughout the quarter. | $60.3 million | (9)% | (4)% |
| InsuranceStrong Insurance segment performance. | $209.3 million | (6)% | 42% |
| OtherThe Other category primarily includes marketing revenue and related expenses not allocated to a specific segment. | $— | —% | —% |
Full-year 2026; Third-quarter 2026 outlook
- RevenueFull-year 2026: $1.30 to $1.32 billion; Third-quarter 2026: $325 - $335 million
- NoteFull-year 2026 Variable Marketing Margin: $364 - $374 million
- NoteFull-year 2026 Adjusted EBITDA: $145 - $152 million
- NoteThird-quarter 2026 Variable Marketing Margin: $88 - $93 million
- NoteThird-quarter 2026 Adjusted EBITDA: $34 - $36 million
What drove it
- Insurance segment revenue increased 42% over second quarter 2025 and segment profit increased 25% over the same period.
- Home Equity revenue of $34.9 million increased 15% over prior year.
- The company launched several new consumer-facing AI capabilities such as its ChatGPT app, expanded its marketplace into six new verticals, and reported strong results from its homepage redesign.
- Lenders remain very active on the network, and management said borrower demand in small business loans has stabilized.
Concerns
- Consumer segment revenue decreased 4% from the prior-year period and declined 9% sequentially.
- Consumer segment profit declined 14% from the prior-year period and 16% sequentially.
- Home segment profit declined 14% from the prior-year period.
- Consolidated revenue declined 4% sequentially, while variable marketing margin declined 12%, net income declined 45%, and adjusted EBITDA declined 16%.
- Suppressed borrower demand in the small business segment continued to deteriorate throughout the quarter.
What to watch
- Management expects sequential revenue growth through the remainder of the year as borrower demand from small business owners has stabilized.
- Management expects to climb back to, and eventually surpass, record SMB performance in Q1 of this year based on strong structural tailwinds in the segment.
- Third-quarter 2026 revenue outlook is $325 - $335 million, variable marketing margin outlook is $88 - $93 million, and adjusted EBITDA outlook is $34 - $36 million.
- Execution of new consumer-facing AI capabilities, expansion into six new verticals, and the homepage redesign.
Balance sheet and cash flow
- Cash and cash equivalents: $110,766 (in thousands) as of June 30, 2026; $81,073 (in thousands) as of December 31, 2025.
- Current portion of long-term debt: $3,932 (in thousands) as of June 30, 2026; $3,926 (in thousands) as of December 31, 2025.
- Long-term debt: $386,351 (in thousands) as of June 30, 2026; $387,694 (in thousands) as of December 31, 2025.
- Net cash provided by operating activities: $40,717 (in thousands) for the six months ended June 30, 2026; $27,743 (in thousands) for the six months ended June 30, 2025.
- Capital expenditures: $(5,935) (in thousands) for the six months ended June 30, 2026; $(6,158) (in thousands) for the six months ended June 30, 2025.
- Net cash used in investing activities: $(5,883) (in thousands) for the six months ended June 30, 2026; $(6,158) (in thousands) for the six months ended June 30, 2025.
- Repayment of term loan: $(2,000) (in thousands) for the six months ended June 30, 2026; $(6,563) (in thousands) for the six months ended June 30, 2025.
- Net cash used in financing activities: $(5,141) (in thousands) for the six months ended June 30, 2026; net cash provided by financing activities of $20,952 (in thousands) for the six months ended June 30, 2025.
- Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period: $110,766 (in thousands) for the six months ended June 30, 2026; $149,131 (in thousands) for the six months ended June 30, 2025.
Analysis
LendingTree reported a mixed second quarter. Total revenue was $313.4 million, up 25% year over year, with Insurance revenue of $209.3 million rising 42%. The Insurance segment generated $50.0 million of segment profit, up 25% from the same period last year. Home revenue rose 9% to $43.9 million, supported by Home Equity revenue of $34.9 million, which increased 15% over prior year.
Consumer was the material offset. Segment revenue was $60.3 million, down 4% year over year and 9% sequentially, while segment profit declined 14% year over year and 16% sequentially. Management attributed the weakness to suppressed borrower demand in small business loans that continued to deteriorate during the quarter. It stated that small-business borrower appetite has since stabilized and expects sequential revenue growth through the remainder of the year.
Profitability expanded year over year but weakened sequentially. Variable marketing margin was $87.3 million, up 4% year over year but down 12% from $99.5 million in the first quarter. Adjusted EBITDA increased 11% year over year to $35.2 million, but fell 16% sequentially. GAAP net income was $9.6 million, or $0.68 per diluted share, compared with $8.9 million and $0.65 per diluted share in the prior-year quarter. Net income declined from $17.3 million, or $1.22 per diluted share, in the first quarter.
Liquidity increased during the first six months of 2026. Cash and cash equivalents were $110,766 (in thousands) at June 30, 2026, compared with $81,073 (in thousands) at December 31, 2025. Net cash provided by operating activities was $40,717 (in thousands) for the six months ended June 30, 2026, while capital expenditures were $(5,935) (in thousands). Long-term debt was $386,351 (in thousands) and the current portion of long-term debt was $3,932 (in thousands) at quarter end.
The company updated its full-year 2026 outlook to revenue of $1.30 to $1.32 billion, variable marketing margin of $364 - $374 million, and adjusted EBITDA of $145 - $152 million. For the third quarter, it guided to revenue of $325 - $335 million, variable marketing margin of $88 - $93 million, and adjusted EBITDA of $34 - $36 million. The key operating issue is whether stabilization in small-business borrower demand produces the expected Consumer recovery while Insurance maintains its elevated contribution.
Management, verbatim
We posted our eighth straight quarter of double-digit year-over-year adjusted EBITDA growth in Q2, powered by another solid quarter from our Insurance segment.
Scott Peyree, CEO
Solid Insurance segment results were offset by weaker than expected Consumer performance in Q2.
Jason Bengel, CFO
Lenders remain very active on our network, and we expect an increase in borrower demand will allow us to climb back to, and eventually surpass, the record SMB performance in Q1 of this year based on strong structural tailwinds in the segment.
Jason Bengel, CFO
Not in the filing
stated, not guessed- Prior-period outlook needed to compare actual results with prior guidance
- Gross margin
- GAAP gross-margin guidance
- GAAP and non-GAAP operating-expense guidance
- Tax-rate guidance
- Non-GAAP earnings per share
- Free cash flow
- Dividend declaration or payment
- Share-repurchase authorization or share-repurchase activity for the reported quarter
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.