{
  "@context": "https://frontierpicks.com/schemas/dossier.v1.json",
  "ticker": "TREE",
  "name": "LendingTree, Inc.",
  "url": "https://frontierpicks.com/dossiers/TREE/",
  "json_url": "https://frontierpicks.com/dossiers/TREE.json",
  "status": "WATCHLIST",
  "current_conviction": "MEDIUM",
  "archetype": {
    "code": "a4",
    "n": 4
  },
  "current_thesis": "LendingTree's insurance-led growth, falling debt and first planned buyback since 2022 give its shares a modest edge over the S&P 500 even after they gave back part of the post-report rally. The fourth-quarter report settles whether the $315M–$325M revenue guide was conservative.",
  "invalidation_trigger": "A daily close below $28.87, the 2026-11-03 close before the third-quarter report, which would erase the whole post-report gain. Fourth-quarter revenue under $315M or adjusted EBITDA under $34M, the low ends of the guide, would also break the case.",
  "catalyst_date": null,
  "portfolio": null,
  "pick": null,
  "themes": [
    "fintech-consumer-credit"
  ],
  "tags": [],
  "sources": [],
  "caveats": [],
  "source_links": [
    {
      "title": "LendingTree, Inc. - Form 8-K - FY2026",
      "url": "https://www.sec.gov/Archives/edgar/data/0001434621/000162828026069534/tree-93026xer.htm",
      "date": null
    },
    {
      "title": "LendingTree (TREE) Q3 2026 Earnings Call Transcript",
      "url": "https://www.fool.com/earnings/call-transcripts/2026/11/04/lendingtree-tree-q3-2026-earnings-call-transcript/",
      "date": "2026-11-04"
    },
    {
      "title": "usaherald.com",
      "url": "https://usaherald.com/federal-court-rejects-lendingtree-arbitration-clause-in-major-data-breach-lawsuit/",
      "date": null
    },
    {
      "title": "Why are LendingTree (TREE) shares soaring today",
      "url": "https://markets.financialcontent.com/stocks/article/stockstory-2026-11-4-why-are-lendingtree-tree-shares-soaring-today",
      "date": null
    },
    {
      "title": "LendingTree, Inc. - Form 8-K - FY2026",
      "url": "https://www.sec.gov/Archives/edgar/data/0001434621/000162828026050633/tree-63026xer.htm",
      "date": null
    }
  ],
  "evidence": [
    {
      "claim": "Third-quarter 2026 revenue was $343.6M, up 12% year over year; adjusted EBITDA was $39.6M, down 1%.",
      "source": "LendingTree 8-K, third-quarter 2026 release",
      "as_of": "2026-11-03"
    },
    {
      "claim": "Insurance revenue rose 15% to $234.9M and Insurance segment profit rose 14% to $54.2M in the third quarter of 2026.",
      "source": "LendingTree 8-K, third-quarter 2026 release",
      "as_of": "2026-11-03"
    },
    {
      "claim": "Consumer revenue rose 2% to $67.2M and Consumer segment profit fell 16% to $29.6M in the third quarter of 2026.",
      "source": "LendingTree 8-K, third-quarter 2026 release",
      "as_of": "2026-11-03"
    },
    {
      "claim": "Fourth-quarter 2026 guidance is revenue of $315M–$325M and adjusted EBITDA of $34M–$36M.",
      "source": "LendingTree 8-K, third-quarter 2026 release",
      "as_of": "2026-11-03"
    },
    {
      "claim": "Full-year 2026 revenue guidance narrowed to $1.300B–$1.310B from $1.300B–$1.320B; adjusted EBITDA guidance rose to $151M–$153M from $145M–$152M.",
      "source": "LendingTree 8-K releases, 2026-07-29 and 2026-11-03",
      "as_of": "2026-11-03"
    },
    {
      "claim": "The third quarter included a $98.8M non-cash goodwill impairment and a net loss of $72.4M, or $5.15 per diluted share; adjusted EPS was $1.88.",
      "source": "LendingTree 8-K, third-quarter 2026 release",
      "as_of": "2026-11-03"
    },
    {
      "claim": "The company repaid $60M of long-term debt, net leverage is 1.7 times versus 5.3 at the end of 2023, and it plans fourth-quarter share repurchases, its first since the first quarter of 2022.",
      "source": "Third-quarter 2026 earnings call",
      "as_of": "2026-11-03"
    },
    {
      "claim": "The Ninth Circuit affirmed the denial of LendingTree and QuoteWizard's motion to compel arbitration in the Snowflake data-breach litigation, in an unpublished memorandum.",
      "source": "Ninth Circuit memorandum, In re Snowflake, No. 25-7045",
      "as_of": "2026-11-04"
    }
  ],
  "view_changes": [],
  "frame": null,
  "filed_numbers": {
    "as_of": "2026-11-13",
    "sector": "Financial Services",
    "financials": {
      "status": "ok",
      "reason": null,
      "close_date": "2026-11-13",
      "latest_quarter": "2026-09-30",
      "figures": {
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          "status": "ok",
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        "gross_margin": {
          "status": "ok",
          "quarters": [
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        },
        "operating_margin": {
          "status": "ok",
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        "pretax_income": {
          "status": "ok",
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          "value_musd": -78.4
        },
        "net_income": {
          "status": "ok",
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          "filed": "2026-11-06",
          "four_quarters_end": "2026-09-30",
          "value_musd": -72.4,
          "four_quarters_musd": 99.1
        },
        "operating_cash_flow": {
          "status": "ok",
          "end": "2026-09-30",
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          "value_musd": 93
        },
        "capital_spending": {
          "status": "ok",
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          "value_musd": 11.9
        },
        "free_cash_flow": {
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          "value_musd": 81.1
        },
        "diluted_share_change": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "base_end": "2025-09-30",
          "pct": 0.4
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        "cash": {
          "status": "ok",
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          "value_musd": 82.7
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        "debt": {
          "status": "ok",
          "end": "2026-09-30",
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          "value_musd": 330.6,
          "composition": "non-current long-term debt plus current maturities"
        },
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          "status": "not reported"
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          "status": "ok",
          "end": "2026-09-30",
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          "value_musd": 165
        },
        "inventory": {
          "status": "not reported"
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        "equity": {
          "status": "ok",
          "end": "2026-09-30",
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          "value_musd": 253.2
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        "market_value": {
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          "close_date": "2026-11-13",
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          "value_musd": 502.2
        },
        "enterprise_value": {
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          "basis_end": "2026-10-30",
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          "value_musd": 750.1
        },
        "ev_sales": {
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          "basis_filed": "2026-11-06",
          "multiple": 0.6
        },
        "ev_ebit": {
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          "close_date": "2026-11-13",
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          "basis_filed": "2026-11-06",
          "multiple": 154.1
        },
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          "multiple": 5.1
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          "multiple": 2
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    "short_interest": {
      "status": "ok",
      "settlement": "2026-10-15",
      "published": "2026-10-26",
      "short_pct_of_outstanding": 7.49,
      "days_to_cover": 4.2,
      "change_pct": -5.1
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      "windows": [
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          "days": 90,
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          "bought_usd": 0,
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  },
  "body_markdown": "## Current Thesis\n\nLendingTree's shares hold a modest edge over the S&P 500 because insurance leads are driving growth, debt is falling and the company plans its first share buyback since 2022. The fourth-quarter report, expected around early March 2027, settles the case. It will show whether the $315M–$325M revenue guide was as conservative as management said.\n\nThe shares trade as a business pivot. The company began as a loan marketplace and now earns most of its revenue from insurance leads. Insurance brought in $234.9M of $343.6M in third-quarter revenue, according to the company's 2026-11-03 8-K. The shares closed at $28.87 on 2026-11-03, the day of the report, then $38.73 on 2026-11-05 and $35.31 on 2026-11-12.\n\nThe only new company fact since the post-report rally is a court ruling. In a memorandum dated 2026-11-04 and reported on 2026-11-12, the Ninth Circuit Court of Appeals affirmed a district court's refusal to send data-breach claims against LendingTree and its QuoteWizard unit to arbitration (In re Snowflake, No. 25-7045). The ruling is unpublished, so it sets no binding precedent. It also does not decide liability. The rating is Medium because the third-quarter results and capital plan still support the case, and the ruling adds legal cost without changing the earnings outlook.\n\nAt $35.31 on 2026-11-12, the shares sit 48.8% below the 52-week intraday high of $68.93 set on 2026-01-15. That price reflects a fourth-quarter guide below third-quarter revenue more than any recovery in mortgage.\n\n## Bull Case\n\n- **Insurance is carrying the growth.** Insurance revenue rose 15% to $234.9M and segment profit rose 14% to $54.2M in the third quarter (8-K, 2026-11-03). On the 2026-11-03 call, CEO Scott Peyree said more carriers are raising marketing budgets. He also said he broadly agrees with a competitor's view that good carrier profitability could last into 2028 and 2029.\n- **The full-year profit outlook moved up.** Guidance for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose to $151M–$153M on 2026-11-03, from $145M–$152M on 2026-07-29. Guidance for variable marketing margin rose to $370M–$375M from $364M–$374M.\n- **The fourth-quarter guide excludes late budgets.** On the 2026-11-03 call, management said the $315M–$325M guide does not assume the large late-quarter insurance budgets seen in prior years. If those budgets return, revenue would come in above the guide.\n- **Debt is falling and a buyback is planned.** The company repaid $60M of long-term debt in the third quarter (2026-11-03 call). Net leverage fell to 1.7 times, from 5.3 at the end of 2023. CFO Jason Bengel said the company intends to buy back shares in the fourth quarter, its first repurchase since the first quarter of 2022.\n- **Home has a recovery that is not yet earned.** On the 2026-11-03 call, management said a return to mid-cycle mortgage earnings would add about $50M of variable marketing margin, most of which would reach EBITDA. Home equity revenue grew 20% to $34.0M in the third quarter.\n\n## Bear Case\n\n- **Revenue growth is not reaching profit.** Third-quarter revenue rose 12%, but variable marketing margin rose only 2% and adjusted EBITDA fell 1% to $39.6M (8-K, 2026-11-03).\n- **Guidance points to a sequential decline.** The fourth-quarter revenue guide of $315M–$325M is below third-quarter revenue of $343.6M. Full-year revenue guidance narrowed to $1.300B–$1.310B from $1.300B–$1.320B, which lowered the top of the range (8-K, 2026-11-03).\n- **Consumer profit is shrinking.** Consumer revenue rose 2% to $67.2M, while segment profit fell 16% to $29.6M in the third quarter (8-K, 2026-11-03). On the call, management called the small-business recovery a major wildcard for 2027.\n- **Mortgage recovery has no date.** On the 2026-11-03 call, the CFO said the company cannot say when Home returns to mid-cycle earnings. The quarter included a $98.8M non-cash goodwill impairment across Home and Consumer. That charge produced a net loss of $72.4M, or $5.15 per diluted share.\n- **The data-breach case stays in court.** The Ninth Circuit memorandum dated 2026-11-04 keeps plaintiffs' claims against LendingTree and QuoteWizard in the Snowflake multidistrict litigation in federal court. The $100M trailing free cash flow figure that management cited on the 2026-11-03 call excludes litigation payments.\n- **AI search could change traffic.** On the 2026-11-03 call, management said large language models make up about 5% of total search. A rising share would raise the cost of reaching shoppers.\n\n## Setup & Price Structure\n\nThe shares closed at $35.31 on 2026-11-12. The 3-month change is 8.3%, measured from the $32.59 close on 2026-08-14. StockStory reported the shares up 33.4% in the 2026-11-04 session, the day after the report. The highest close since the report was $38.73, on 2026-11-05.\n\nThe close of $35.31 sits between two moving averages as of 2026-11-12. It is above the 50-day average of $27.52 and below the 200-day average of $36.78. A move back above the 200-day average would show the post-report gain holding.\n\nThe pre-report close of $28.87 on 2026-11-03 marks where the shares traded before the buyback plan and the raised profit outlook. The 52-week closing low is $24.00, set on 2026-09-23. The 52-week intraday high is $68.93, set on 2026-01-15. No company event is scheduled before the fourth-quarter report, so the price is the main test of the case until then.\n\n## Catalyst Calendar\n\n- **~2026-12-31 (est.):** End of the fourth-quarter window for the planned share repurchases, the first since the first quarter of 2022. Management gave no dollar amount on the call. The size and pace reported afterward show how much capital return adds to the case.\n- **~2027-03-03 (est.):** Fourth-quarter 2026 report and likely first 2027 guidance; the company has not set a date. It shows whether the $315M–$325M revenue guide was conservative and whether late insurance budgets returned. It also shows what management expects from Home and small-business lending in 2027.\n\n## What Would Change Our Mind\n\nA daily close below $28.87, the 2026-11-03 close before the third-quarter report, which would erase the whole post-report gain. Fourth-quarter revenue under $315M or adjusted EBITDA under $34M, the low ends of the guide, would also break the case.\n\nThe risks this note tracks, each with what would confirm it:\n\n- Insurers cut marketing budgets, which would shrink the segment that supplied most third-quarter revenue. Confirmed by: Insurance segment profit falling year over year, or fourth-quarter revenue below the $315M low end of guidance.\n- Revenue keeps growing faster than profit, as in the third quarter, when revenue rose 12% and adjusted EBITDA fell 1%. Confirmed by: Fourth-quarter adjusted EBITDA below $34M, or 2027 guidance showing variable marketing margin growing more slowly than revenue.\n- Small-business lending and mortgage stay weak, keeping Consumer and Home profit under pressure into 2027. Confirmed by: Further year-over-year declines in Consumer segment profit, or no improvement in mortgage in the fourth-quarter report.\n- The Snowflake data-breach claims against LendingTree and QuoteWizard stay in federal court and lead to settlement or legal costs that reduce free cash flow. Confirmed by: A disclosed settlement amount, a class certification ruling against the company, or a larger litigation line in the fourth-quarter report.\n- AI search takes consumer traffic and raises the cost of reaching shoppers. Confirmed by: Management reporting large language models well above the roughly 5% search share cited on the 2026-11-03 call, together with lower variable marketing margin as a share of revenue.\n\n## Correlation Notes\n\nEverQuote and MediaAlpha sell insurance leads to the same auto and home insurers, so insurer marketing budgets move all three. A pullback in insurer spending reported by either company would also hit LendingTree's largest segment. The Home segment depends on mortgage and home equity demand, which ties it to mortgage rates. Small-business lending ties the Consumer segment to credit conditions for small firms. The Snowflake data-breach litigation is specific to LendingTree and QuoteWizard, so it adds risk that its lead-generation peers do not share.",
  "first_seen": "2026-11-10",
  "last_analyzed": "2026-11-12T22:54:03+00:00",
  "last_synthesized": "2026-11-12",
  "date_modified": "2026-11-12",
  "license": "Content © FrontierPicks. Cite the canonical URL."
}