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LendingTree, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 2 lowered, 1 narrowed, 3 new. The quarter’s numbers.

Key takeaways

  • Revenue rose 25% year over year: Revenue was $313.4 million, up 25% from $250.1 million a year earlier and down 4% from $327.3 million in the first quarter. Insurance drove the increase. Source
  • Adjusted EBITDA up 11% year over year: Adjusted EBITDA was $35.2 million, up 11% from $31.8 million a year earlier and down 16% from $42.0 million in the first quarter. Source
  • Insurance revenue up 42%: Insurance segment profit was $50.0 million, up 25%. Segment margin was 24%, against 27% a year earlier and 26% in the first quarter. Source
  • Consumer revenue and profit declined: Consumer segment profit was $27.6 million, down 14%. Consumer revenue was down 9% from $66.3 million in the first quarter. Source
  • Small business appetite has stabilized: The CFO said small business owners' appetite for new loans on the network has stabilized after a period of suppressed demand. Source
  • Variable marketing expense up 36%: Variable marketing expense was $226.1 million, up 36% from $166.5 million a year earlier, while revenue rose 25%. It was down 1% from the first quarter. Source
  • Variable marketing margin at 28% of revenue: Variable marketing margin was $87.3 million, or 28% of revenue, against 33% a year earlier and 30% in the first quarter, when it was $99.5 million. Source

“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

Guidance

AreaPeriodFigureAgainst last quarter
Revenue Sourcefull-year 2026$1.30 to $1.32 billionNarrowed, top end cut from $1,300 - $1,350 million
Variable marketing margin Sourcefull-year 2026$364 - $374 millionLowered from $378 - $395 million
Adjusted EBITDA Sourcefull-year 2026$145 - $152 millionLowered from $152 - $162 million
Revenue Sourcethird quarter 2026$325 - $335 millionNew
Variable marketing margin Sourcethird quarter 2026$88 - $93 millionNew
Adjusted EBITDA Sourcethird quarter 2026$34 - $36 millionNew

What changed from last quarter

  • Guidance lowered: Full-year 2026 revenue, variable marketing margin and adjusted EBITDA ranges were all lowered from the first-quarter update. Source
  • New guidance: Third-quarter 2026 guidance was given for revenue, variable marketing margin and adjusted EBITDA. Source
  • New: Consumer-facing AI capabilities launched, including a ChatGPT app, and the marketplace expanded into six new verticals. Source

Results and growth drivers

  • Revenue rose 25% year over year: Revenue was $313.4 million, up 25% from $250.1 million a year earlier and down 4% from $327.3 million in the first quarter. Insurance drove the increase. Source
  • Net income and diluted EPS rose: GAAP net income was $9.6 million, or $0.68 per diluted share, against $8.9 million and $0.65 a year earlier. First-quarter net income was $17.3 million. Source
  • Adjusted EBITDA up 11% year over year: Adjusted EBITDA was $35.2 million, up 11% from $31.8 million a year earlier and down 16% from $42.0 million in the first quarter. Source
  • Tax expense rose on higher pretax income: Income tax expense was $4.6 million, against $1.9 million a year earlier, on income before taxes of $14.1 million. Source

Segment results

  • Insurance revenue up 42%: Insurance segment profit was $50.0 million, up 25%. Segment margin was 24%, against 27% a year earlier and 26% in the first quarter. Source
  • Consumer revenue and profit declined: Consumer segment profit was $27.6 million, down 14%. Consumer revenue was down 9% from $66.3 million in the first quarter. Source
  • Home revenue up, segment profit down: Home revenue was $43.9 million, up 9%. Home segment profit was $11.3 million, down 14%, while Home Equity revenue of $34.9 million was up 15%. Source

“Solid Insurance segment results were offset by weaker than expected Consumer performance in Q2.”

Jason Bengel, CFO

Small business and borrower demand

  • Small business appetite has stabilized: The CFO said small business owners' appetite for new loans on the network has stabilized after a period of suppressed demand. Source
  • Small business revenue averaged near 40% growth: The CFO said small business segment revenue has grown nearly 40% year over year on average since the beginning of 2024. Source
  • Lenders remain very active on network: The CFO said lenders remain very active on the network and expects an increase in borrower demand. Source

Marketing spend and operating costs

  • Variable marketing expense up 36%: Variable marketing expense was $226.1 million, up 36% from $166.5 million a year earlier, while revenue rose 25%. It was down 1% from the first quarter. Source
  • Selling and marketing expense rose: Selling and marketing expense was $236.5 million, against $176.8 million a year earlier. First-quarter expense was $238.6 million. Source
  • Restructuring and severance costs rose: Restructuring and severance costs were $1.8 million, against $0.4 million a year earlier. Six-month costs were $2.8 million. Source

Margins and operating income

  • Variable marketing margin at 28% of revenue: Variable marketing margin was $87.3 million, or 28% of revenue, against 33% a year earlier and 30% in the first quarter, when it was $99.5 million. Source
  • Adjusted EBITDA share of margin 40%: Adjusted EBITDA was 40% of variable marketing margin, against 38% a year earlier and 42% in the first quarter. Source
  • Operating income higher year over year: Operating income was $21.8 million, against $20.9 million a year earlier. Six-month operating income was $52.9 million, against $13.8 million. Source

Cash, balance sheet and capital

  • Operating cash flow rose for six months: Operating cash flow was $40.7 million for the six months, against $27.7 million a year earlier. Cash and equivalents were $110.8 million at June 30, up from $81.1 million. Source
  • Trade payables increased sharply: Trade accounts payable were $47.4 million at June 30, up from $6.7 million at December 31. Accrued expenses were $111.1 million, down from $126.8 million. Source
  • Term loan repayments reduced: Term loan repayments were $2.0 million for the six months, against $6.6 million a year earlier. Net-share settlement payments were $3.1 million. Source
  • Capital expenditures lower year over year: Capital expenditures were $5.9 million for the six months, against $6.2 million a year earlier. Source

Strategy and communications

  • Homepage redesign results continuing: Management said it continues to see results from the homepage redesign. No figures were given. Source
  • Stated aim: Number One destination: Management said it is focused on executing its strategy to become the Number One Destination to Shop For Financial Products. Source
  • Shareholder letter posted online: A letter to shareholders was posted on the company's website. The letter itself is not included in these documents. Source
  • Results call held July 29: The conference call to discuss second-quarter results was webcast live on July 29, 2026 at 4:30 PM Eastern Time. Source

Coming up, as management said on 29 July 2026

  • Sequential revenue growth expected: The CFO expects sequential revenue growth through the rest of 2026, after small business appetite stabilized. Source
  • Small business demand to recover: The CFO expects rising borrower demand to lift small business segment performance back to, and above, its Q1 2026 level. Source

Figures management reported

FigureReported
Financial partners in network Sourceapproximately 770

Risks management discussed

  • Demand: The CFO said small business borrower demand continued to decline through the quarter. Source
  • Regulatory: Legal matters and tax items could affect GAAP results, so guidance is not reconciled to GAAP. Source

Earlier plans management reported on

  • Not stated: Management said it had called out an expected sequential Consumer decline last quarter. Consumer revenue fell 9% from the first quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.