LendingTree's Mixed Q1 Earnings: Sharply Slashes Full-Year Forecast, Stocks Dive Premarket Friday

LendingTree Inc. TREE shares are diving premarket on Friday after the company reported first quarter adjusted EPS of 99 cents, which beat the analyst consensus estimate of 65 cents.

Revenue grew 43% Y/Y to $239.7 million, missing the analyst consensus estimate of $244.93 million.

For the quarter, LendingTree reported:

• Home segment revenue of $37 million increased 22% Y/Y and produced segment profit of $13.1 million, a 36% increase over the same period.
• Consumer segment revenue of $56.0 million increased 9% Y/Y in the quarter. Within Consumer, personal loans revenue of $23.4 million increased 16% Y/Y, while Small Business revenue increased 48% Y/Y in the period.
• Insurance segment revenue of $146.7 million increased 71% Y/Y and segment profit of $38.7 million, an increase of 16% over the same period.

Adjusted EBITDA increased 14% Y/Y to $24.6 million, with margin contracting to 10% from 13% a year ago.

Outlook: LendingTree sees second-quarter revenue of $241 million-$248 million (versus the $248.50 million analyst estimate) and adjusted EBITDA of $29 million-$31 million.

The company slashed the FY25 revenue outlook to $955 million-$995 million (from $985 million to $1.025 billion) versus the street view of $1.01 billion and revised adjusted EBITDA guidance to $116 million-$124 million from $116 million-$126 million prior.

TREE Price Action: LendingTree shares are down 27.37% at $39.36 premarket at publication Friday.

Read Next:

• Amex CEO Says Consumers Still Spending Freely: So Why Is the Stock Sliding?

Photo: Shutterstock