TREE Stock Down as Q2 Earnings Miss on Higher Costs, 2026 View Lowered

Results were affected by a decline in Consumer segment revenues and higher total costs. However, growth in revenues and adjusted EBITDA, along with strong Insurance segment performance, supported the results to some extent.

Results exclude certain non-recurring items. After considering these, TREE reported a GAAP net income of $9.6 million, or 68 cents per share, compared with $8.9 million, or 65 cents per share, in the year-ago quarter.

TREE’s Revenues, Variable Marketing Margin Increase

Total revenues in the second quarter increased 25.3% year over year to $313.4 million. The reported figure missed the Zacks Consensus Estimate of $315.07 million by 0.5%.

Total cost of revenues was $11.3 million, up 12.4% from the prior-year quarter.

Total costs and expenses were $291.6 million, up 27.2% from the previous-year quarter.

Adjusted EBITDA totaled $35.2 million, up 10.6% from the year-ago quarter. The variable marketing margin was $87.3 million, up 4.4%.

As of June 30, 2026, cash and cash equivalents were $110.8 million compared with $85.5 million as of March 31, 2026. Long-term debt was $386.4 million compared with $387 million as of March 31, 2026.

LendingTree’s Segment Details

Home segment revenues increased 9% year over year to $43.9 million. Segment profit declined 14% year over year to $11.3 million.

Consumer segment revenues decreased 4% year over year to $60.3 million. Segment profit fell 14% year over year to $27.6 million.

Insurance segment revenues grew 42% year over year to $209.3 million. Segment profit increased 25% year over year to $50 million.

LendingTree’s Outlook

Third-Quarter 2026

Total revenues are projected to be between $325 million and $335 million.

Adjusted EBITDA is anticipated to be between $34 million and $36 million.

The variable marketing margin is anticipated to be between $88 million and $93 million.

2026

Total revenues are expected to be between $1.30 billion and $1.32 billion compared with the prior range of $1.30 billion to $1.35 billion.

Adjusted EBITDA is projected to be in the range of $145-$152 million compared with the previous range of $152-$162 million.

The variable marketing margin is expected to be in the range of $364-$374 million compared with $378-$395 million previously.

Our View on LendingTree

TREE’s Consumer segment weakness and higher total costs remain concerns. Nevertheless, its diversified online lending platform, strong Insurance segment performance and efforts to expand non-mortgage product offerings are expected to support revenue growth in the future.

Currently, LendingTree carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Finance Stocks

Hancock Whitney Corp.’s HWC second-quarter 2026 earnings per share of $1.55 matched the Zacks Consensus Estimate. The bottom line rose 17.4% from the prior-year quarter.

HWC’s results were supported by higher net interest income and non-interest income, along with a decline in provisions. Also, a sequential increase in loans and deposit balances was positive. However, higher expenses were the undermining factor.

Texas Capital Bancshares, Inc. TCBI reported second-quarter 2026 adjusted earnings per share of $1.88, which surpassed the Zacks Consensus Estimate of $1.85. The figure also compared favorably with $1.63 in the year-ago quarter.

TCBI’s results benefited from higher net interest income and non-interest income, along with solid loan and deposit balances. However, results were impacted by higher expenses and credit costs.

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This article originally published on Zacks Investment Research (zacks.com).

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