Why LendingTree Stock Dived by Nearly 22% Today
Key Points
This, despite a flip into the black under GAAP standards and double-digit revenue growth.
It seems the market has high standards for financial services companies these days.
- 10 stocks we like better than LendingTree ›
LendingTree (NASDAQ: TREE) stock was looking more like a tired sapling as the trading week came to a close. The company released its first earnings report for 2026, and investors were obviously concerned about several aspects within it. On a generally good Friday for U.S. equities, LendingTree's shares lost almost 22% of their value.
A mixed first quarter
LendingTree's consolidated revenue for its first quarter was just over $327 million, 37% higher year over year. On the bottom line under generally accepted accounting principles (GAAP), the financial services company flipped to a net income of $17.3 million ($1.22 per share) from the year-ago loss of $12.4 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
However, that profitability was well below the consensus analyst GAAP earnings-per-share (EPS) estimate of $1.47. On the other hand, the company beat the average pundit revenue projection of slightly under $316 million.
LendingTree has three reporting units. The largest, insurance, increased its take by 51% to just under $222 million, while its profit rose by 50% to almost $58 million.
This was followed by an 18% revenue increase (to a bit more than $66 million) for consumer, accompanied by a 21% rise in profit to $32.9 million. Finally, the home segment posted a 6% top-line improvement (to $39 million). However, home suffered a rather steep decline in profitability, which plummeted by 24% to $10 million.
Guidance got a boost
LendingTree raised its annual revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance.
For the former, it's now expecting $1.3 billion to $1.35 billion, up from the preceding forecast of nearly $1.28 billion to $1.33 billion. As for the latter, the new guidance is $152 million to $162 million. Prior to that, it stood at $150 million to $160 million.
Although there were some concerns in the first-quarter report, I don't think LendingTree deserved the investor drubbing it eventually took post-earnings. I feel its revenue growth across all three business units was telling, and I feel it still has plenty of potential for continued improvement.
Should you buy stock in LendingTree right now?
Before you buy stock in LendingTree, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and LendingTree wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $504,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,471!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 1, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
