Why Did LendingTree (TREE) Plunge 13.34% on Earnings?

Generated by AI AgentAinvest Movers Radar
Friday, May 2, 2025 5:50 am ET1min read

LendingTree Inc (TREE) experienced a significant drop of 13.34% in pre-market trading on May 2, 2025, following the release of its Q1 2025 earnings report.

LendingTree reported a 43% increase in total revenue for Q1 2025, reaching $239.7 million. The Insurance segment was a standout performer with a 71% year-over-year increase. However, the company faced regulatory disruptions and high mortgage rates, which impacted overall performance.

Despite achieving revenue growth across all segments,

reported a GAAP net loss of $12.4 million, or $(0.92) per diluted share. The company also updated its earnings guidance for the full year of 2025, expecting revenue to be between $955 million and $995 million, down from the prior range of $985 million to $1,025 million.

LendingTree's Home Segment saw revenue of $37.0 million, up 22% year-over-year, with a segment profit of $13.1 million, a 36% increase. The company delivered earnings and revenue surprises of 33.78% and 1.77%, respectively, for the quarter ended March 2025.

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