Q2 2025 LendingTree Inc Earnings Call
Okay.
Andrew Wessel: Good day, and thank you for standing by. Welcome to the LendingTree Inc. second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Wessel, Senior Vice President of Investor Relations and Corporate Development. Please go ahead.
Good day and thank you for standing by welcome to the Lendingtree, Inc. Second quarter, 'twenty 25 earnings Conference call.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
Didn't hear an automated message advising your hand is raised to withdraw your question. Please press star one again.
Be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Andrew Wessel Senior Vice President of Investor Relations and corporate development. Please go ahead.
Scott Parie: Thank you, DeeDee, and hello to everyone joining us on the call to discuss LendingTree's second quarter 2025 financial results. On with us today are Doug Lebda, LendingTree's Chairman and CEO; Scott Parie, COO and President of Marketplace; and Jason Bengel, CFO. As a reminder to everyone, last week we pre-announced a summary of our quarterly results and our initial financial outlook for the third quarter and updated our 2025 outlook. This evening we posted a detailed letter to shareholders on our Investor Relations website. And for the purposes of today's discussion, we will assume that listeners have read that letter and will focus on Q&A. Before I hand the call over to Doug for his remarks, I remind everyone that during this call we may discuss LendingTree's expectations for future performance.
Thank you Didi and Hello to everyone joining us on the call to discuss lending trees second quarter 2025 financial results on with US today are Doug Lebda, Lendingtree as chairman and CEO, Scott Beury, CLO, CFO and president of marketplace, and Jason Bangle CFO.
As a reminder to everyone last week, we pre announced the summary of our quarterly results and our initial financial outlook for the third quarter and updated our 2025 outlook.
We posted a detailed letter to shareholders on our Investor Relations website.
And for the purposes of todays discussion, we will assume that with players have read that letter and we'll focus on Q&A.
Before I hand, the call over to Doug for his remarks, I'll remind everyone that during this call we may discuss lendingtree as expectations for future performance.
Scott Parie: Any forward-looking statements that we make are subject to risks and uncertainties, and LendingTree's actual results could differ materially from the views expressed today. Many, but not all, of the risks we face are described in our periodic reports filed with the SEC. We will also discuss a variety of non-GAAP measures on the call, and I refer you to today's press release and share the letter, both available on our website, for the comparable GAAP definitions and full reconciliations of non-GAAP measures to GAAP. And with that, Doug, please go ahead.
Any forward looking statements that we make are subject to risks and uncertainties and lendingtree as actual results could differ materially from the views expressed today.
Many but not all of the risks we face are described in our periodic reports filed with the SEC. We will also discuss a variety of non-GAAP measures on the call I'll refer you to today's press release and shareholder letter both available on our website for the comparable GAAP definitions and full reconciliations of non-GAAP measures to GAAP and with that Doug. Please go ahead.
Doug Lebda: Thanks, Andrew, and thank you to everyone for joining us today for our second quarter update. Overall, I am absolutely thrilled with how the company is performing. In Q2, we delivered another strong quarter marked by double-digit growth across all of our three business segments. Profitability is up for the fifth consecutive period of year-over-year revenue growth for a company. In short, we are on a roll. Revenue for the quarter came in at $250 million, representing 19% year-over-year growth. Adjusted EBITDA of $31.8 million was up 35% from last year. What's causing LendingTree to continue its momentum this quarter is simply being operationally excellent across the board. This has been a key tenet of our 2025 strategy, and it has taken shape in initiatives across the company that improved everything from how we build products to streamlining decision-making to building cost controls into the system.
Thanks, Andrew and thank you to everyone for joining us today for our second quarter update.
Overall, I am absolutely thrilled with how the company is performing.
Q2, we did we delivered another strong quarter marked by double digit growth across all of our three business segments.
Profitability is up for the fifth consecutive period year over year over year revenue growth for the company in short we are on a roll.
Revenue for the quarter came in at $250 million, representing 19% year over year growth adjusted EBITDA of $31 8 million was up 35% from last year.
What's causing lending lendingtree to continue its momentum this quarter is simply being operationally excellent across the board.
This has been a key tenant of our 2025 strategy and it has taken shape and initiatives across the company that improved everything from how we build products streamlining decision, making to building cost controls into the system.
Doug Lebda: Delving into the specific segments, first, consumer delivered 12% revenue growth, with segment profit increasing 19%. Notably, small business loan revenue grew 61%, and personal loan revenue grew 14%. Personal loan lenders have shown some signs of widening their buy box, but improved execution is the larger driver there. In small business, we made a strategic investment to grow our sales force, and it has paid off in more business and more efficiency. I think that small business can be a real growth driver for us. In home, revenue climbed 25%, driven by a 38% increase in home equity revenue. We have a strategic focus this year on adding more small lenders to the network to fill in gaps and provide better coverage for consumers, and that is starting to pay off. I'm really pleased to see home doing so well despite any macro tailwinds.
Delving into the specific segments first consumer delivered 12% revenue growth with segment profit increasing 19%.
Notably small business loan revenue grew 61% in personal loan revenue grew 14%.
Personal loan lenders have shown some signs of widening the buy box, but improved execution is the larger driver there.
Small business, we made a strategic investment to grow our sales force and it has paid off in more business and more efficiencies I think that small business can be a real growth driver for us in home revenue climbed 25% driven by a 38% increase in home equity revenue.
We have a strategic focus this year on adding more small lenders to the network to fill in gaps and provide better coverage for consumers and that is starting to pay off.
Pleased to see home doing so well despite any macro tailwind.
Doug Lebda: In insurance, the results are awesome. Since the beginning of the year, we have been focused on increasing quality and conversion rates for our clients, and that is paying off in higher bids and more budget. To be at 21% year-over-year, particularly against an awesome Q2 last year, is great momentum for our insurance business. Now, AI and its impact on our business has certainly also been top of mind. 18 months ago, I told our board and our company that we are going to be an AI-first company. And today, effectively, all of our employees are using AI in their day jobs, including having Enterprise GPT for everyone. And our multi-year investment in data and Snowflake couldn't have come at a better time. As we connect AI to our internal data, we expect to see a lot more efficiency at the company.
In insurance the results are awesome since the beginning of the year, we have been focused on increasing quality and conversion rates for our clients and that is paying off in higher bids and more budget.
At 21% year over year, particularly against an awesome Q2 last year is great momentum for our insurance business.
Now AI and its impact on our business has certainly also been top of mind.
18 months ago, I told our board and our company that we're going to be an AI first company and.
And today effectively all of our employees are using AI in their day jobs, including having enterprise GPT for everyone.
And our multiyear investment in data and Snowflake Couldnt have come at a better time as we connect AI to our internal data, we expect to see a lot more efficiency at the company.
Doug Lebda: In marketing, in particular, we are very focused on the future of paid search, organic search, and most importantly, LLM answers. We believe we are well positioned in whatever the future may bring, and early data is very, very encouraging. We are also implementing AI in several of our key product initiatives with the aim of providing the right guidance to our customers to make smart decisions. AI unlocks potential that has never existed for us before. Since the founding of the company, we recognize that getting a loan or an insurance policy as Scott recognized is not just a transaction. It's a highly considered purchase that usually involves conversations over as long as several months.
And marketing in particular, we are very focused on the future of paid search organic search and more.
Importantly, LLM answers, we believe we are well positioned in whatever the future may bring an early data is very very encouraging.
We are also implementing AI in several of our key product initiatives with the aim of providing the right guidance to our customers to make smart decisions.
AI unlocks potential but has never existed for us before since.
Since the founding of the company, we recognize that getting a loan or an insurance policy as Scott recognized as not just a transaction.
Highly considered purchase that usually involves conversations over as long as several months.
Doug Lebda: I believe, and we believe, that AI will enable us to more easily guide customers through these complicated transactions, which I will, which I expect will continue to improve close rates and thus unit revenue and thus revenue and profits to the company overall. For sure, there are still risks out there. At the moment, I believe the opportunities are far greater than the risks. I also believe that the deep relationships and integration with our clients isn't easily disintermediated. And in a world with exploding choice, our trusted brand and history with consumers is more relevant than ever. And now, operator, we're happy to take questions.
I believe and we believe that AI will enable us to more easily guide customers through these complicated transactions, which will which I expect will continue to improve close rates and thus unit revenue and thus revenue and profits to the company overall.
For sure there are still risks out there at the moment I believe the opportunities are far greater than the risks I also believe that the deep relationships and integration with our clients isn't easily disintermediation in a world with exploding choice, our trusted brand and history with consumers is more relevant than ever and now.
Now operator, we're happy to take questions.
Andrew Wessel: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. And our first question comes from Ryan Tomasello of KBW. Your line is open.
As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.
And our first question comes from Ryan Thomas Allen with VW. Your line is open.
Jason Bengel: Hi, everyone. Thanks for taking the questions. Last quarter, you alluded to experiencing some friction, I believe, with one of your carrier partners. So I was hoping you can give us an update on how that's going and if you feel comfortable about maintaining historical levels of wallet share there.
Hi, everyone. Thanks for taking the questions.
Last quarter, I think you alluded to last quarter, you alluded to experiencing some friction I believe with one of your carrier partners. So I was hoping you can give us an update on how that's going and if you feel comfortable.
Anthony historical levels of wallet share there.
Doug Lebda: Yeah, I wouldn't say friction, but we definitely had to go through a period of adjustment, as we talked about. And Scott, why don't you talk about that?
Yes, I wouldn't say friction but.
We definitely have.
To go through a period of adjustment as we talked about and Scott why don't you talk about that.
Scott Parie: Yeah, sure. Hi, Ryan. This is Scott Parie. Yeah, as we headed into the first quarter last year and we were dealing with the single lender consent issues, there wasn't as much friction with the carrier as we had introduced some technical errors, you know, in our system that was affecting our traffic and monetization. I mentioned that in the last earnings call that we were working through some of those issues. You know, we largely solved the technical issues late Q1, early Q2, and then started reinvesting into traffic and growing revenue, getting more into mid to late Q2. And so we exited Q2 with great, really high revenue levels. Q3 will be a record revenue for the insurance division. Our carriers are very happy. Almost all of our conversations with carriers right now are how do we drive more traffic, not the opposite.
Yes sure.
Hi, Ryan this is Scott.
Yes.
As we headed into the first quarter last year, and we were dealing with the single lender consent issues.
There wasn't as much friction with the carriers, we had introduced some technical errors.
System that was affecting our traffic and monetization I had mentioned in the last earnings call that we're working through some of those issues.
We largely solve the technical issues late Q1 early Q2 and started reinvesting.
And the traffic and growing revenue getting more in the mid to late Q2, and so we exited Q2 with.
Great really high revenue levels Q3 will be a record revenue for the insurance Division.
Our carriers are very happy almost all of our conversations with carriers right now or how do we drive more traffic.
Not not the opposite so.
Scott Parie: So the insurance industry is in a very good spot for us.
Insurance industry is in a very good spot for us.
Jason Bengel: Great. And then, dovetailing off the prepared remarks, Doug, was hoping you can just elaborate on how the company is assessing the evolving search landscape with generative and now genetic AI. How do you envision Tree playing a role in customer acquisition as consumer behaviors change? And do you view that as more of a risk or an opportunity? And what are some of the initiatives underway there? Thanks.
Great and then.
So I'm telling off the prepared remarks, Doug I was hoping you can just elaborate on how the company is assessing the evolving search landscape with generative and our Gen tick AI.
How do you envision tree.
Playing our role in customer acquisition as consumer behaviors change and do you view that as more of a risk or an opportunity and what are some of the initiatives under way there. Thanks.
Doug Lebda: Yeah, so as you can imagine, we're this is something at the top of our agenda. Scott, I know you're close to this in marketing, so why don't you take that one? And then I'll be happy to add comments too.
So as you can imagine we're.
This is something that's top of our agenda as Scott I know Youre close this in marketing so on them to why don't you take that one.
I'll be happy to add comments, yeah, yeah sure I mean.
Scott Parie: Yeah, sure. I mean, to be honest, Ryan, I would call all the Gen AI and the LLMs, I would call it more of a huge opportunity than any sort of risk for us. A few big reasons I put there. You know, first, as the Gen AI competitors grow in popularity and receive more consumer usage, we'll see the benefit of a new source of traffic. We're actually, we're already seeing a tangible number of high-quality consumers being referred to LendingTree from the likes of ChatGPT, for example. And they're very high quality, very high-intent consumers coming through. You know, we're being referenced in their results, and that's why we're getting the traffic. We're also seeing a significant increase in direct type-in traffic to the website, which we believe one of the big drivers of that is our presence in AI overviews across the internet.
The honest Ryan I would call all Virgin AI in the Netherlands.
<unk>.
I would call more of a huge opportunity than any sort of risk growth a few big reasons I'd put there first.
As a generic competitors grow in popularity and receive more consumer usage, we will see the benefit of a new source of traffic. We're actually we're already seeing a tangible number of high quality consumers being referred to lendingtree from the likes of chat GPT for example.
And they're very high quality very high intent consumers coming through.
Were being referenced in their results and that's why we're getting the traffic. We are also seeing a significant increase in direct type in traffic to the website, which we believe one of the big drivers of that is our presence in the AI era overviews across across the Internet.
Scott Parie: So, you know, and then, you know, our SEO team, obviously, as Doug said in his prepared remarks, is very focused on making sure all of our content is built and able to be used very well in AI overviews across the internet as those are growing in popularity. And then, obviously, as Gen AI companies look to advertising to support monetization of their platforms, we'll, of course, be an aggressive first mover there. Second, I would say Google themselves, they're a clear leader in the Gen AI space. And obviously, we have a very close relationship with Google and drive a lot of traffic from them. You know, and as Google themselves even said, their search queries have gone up very significantly since they've been introducing more and more AI overviews.
So and then yes.
Our Seo team obviously its Doug.
Said in his prepared remarks, it's very focused on making sure all of our content is is built in and enable to be used very well in AI overviews across across the internet as those are growing in popularity.
And then obviously a gin AI companies look.
Advertising to support monetization of their platform will of course being aggressive first mover there.
Second I would say Google themselves are a clear leader in the Gen AI space and obviously, we have a very close relationship with Google and drive a lot of traffic from them.
And as Google themselves, even further their search queries have gone up very significantly since they've been introducing more and more areas and as a reflection of that we've seen an increase in AR.
Scott Parie: And as a reflection of that, we've seen an increase in clicks, you know, both paid and SEO clicks coming to our site. And I think a benefit of that is a lot of these clicks are coming through much higher intent than they were before. Because I think the consumers with AI assistance, with these LLMs, are getting more of their early questions answered. So by the time they're coming to us, they're ready to transact, which is great. Third, and the final point I'd make, and this is more of a long-term point, is I'm a big believer that Gen AI will create more overall comparison shoppers in the marketplace. You know, products like insurance and financial products are, at the end of the day, complicated products. And it's hard for a lot of consumers to understand these products.
Clicks, both paid and SCO clicks coming to our site.
And I think a benefit of that is a lot of these clips are coming through much higher intent than they were before because I think the consumers with.
Assistance with these <unk>.
Getting more of the early questions answered so by the time they are coming to us they are ready to transact which is great.
Third and the final point on making this as more of a long term point is.
I'm, a big believer that Jim I will create more overall comparison shoppers in the marketplace.
Products like insurance and financial products are at the end of the day complicated products and its hard for a lot of consumers to understand these products I believe Jan add AI is and will continue to do a good and better job of helping to democratize to explain these products to consumers and because of that consumer is going to be.
Scott Parie: I believe Gen AI is and will continue to do a good and better job of helping to democratize, to explain these products to consumers. And because of that, consumers are going to become more active shoppers of these products. Whereas today, we have a lot of consumers that will just go to the insurance agent they know or go to their local bank branch for these products. You know, I think as it's easier for them to get questions answered and understand these products better, they'll be more active shoppers of which we'll be a direct beneficiary of. Hopefully, that answers your question.
Are going to become more active shoppers of these products, whereas today, we have a lot of consumers that will just go to the insurance agent they know or go to their local bank branch for these products.
I think as it's easier for them to get questions answered.
And understand these products better there'll be more active shoppers of which will be a direct beneficiary of hopefully that answers your question.
Doug Lebda: Got it.
Got it thanks, guys appreciate the color Scott.
Scott Parie: Thanks, Scott. Appreciate the time.
Doug Lebda: Scott, that was, yeah, the only thing I'd add to that, which Scott, excellent answer, is because we don't today have, versus our competitors, such a dependence on SEO, traditional Google-based SEO, it enables us to take to do more testing and find more opportunities in the early, early days of LLMs. And at the same time, because we have enough content, enough history in our brands and our reputation, particularly including the acquisitions that we made, we've got a lot of domain authority. And so we're finding ourselves showing up more than we would have expected compared to traditional SEO in LLM results.
Yes, the only thing I'd add.
To that which Scott excellent answer is.
Because we don't today have.
<unk>, our competitors such a dependence on SCO traditional Google.
Google based SCO.
It enables us to pay to do more testing in opportunity and find more.
Or opportunities in the early early days of our labs and at the same time, because we have enough content enough history in our brands and our reputation, particularly including the acquisitions that we've made.
We've got a lot of domain authority and so we're finding ourselves.
Showing up more than more than we would've expected compared to traditional SCS.
Results.
Yeah.
Andrew Wessel: Thank you. And our next question comes from Jed Kelly of Oppenheimer & Company. Your line is open.
Thank you.
Okay.
And our next question comes from Jed Kelly of Oppenheimer <unk> Company. Your line is open.
Jason Bengel: Hey, great. Two, if I may, then I have a follow-up. Just on the personal loans, can you discuss what's driving the strength there and what happens if we potentially get an interest rate cut? And then just on the AI topic, you know, can you talk about what it can do to your expense space and is their ability to sort of reduce that $200 million in expenses, you know, lower? Thank you.
Hey, great two if I may then I have a follow up.
Just on the personal loans can you discuss what's driving the strength there and what happens if we potentially get an interest rate cuts and then just on the AI topic.
Can you talk about what it can do to your expense base and is there ability to sort of reduce that $200 million in expenses.
Lower thank you.
Doug Lebda: Scott, why don't you take the first, and Jason, you take the second, and I'll add on.
Scott why don't you take the first and Jason when you take the second one now.
On.
Scott Parie: All right, sounds good. Yeah, Jed, on personal loans, you know, it's a combination of things. I would start with saying our industry has done an absolutely excellent job of executing over the past year plus, and with a lot of growth. We've really broadened the network of where we're getting consumers shopping. You know, so we've just, we've been, we've done a really good job of increasing the number of consumer shopping for personal loans through our network. It remains a very popular product out there. And I think we've got a lot of growth opportunities in the future. I mean, there are a lot of green sheets we're seeing in different areas where we feel like we can continue significant growth for the foreseeable future. And then secondly, I would say on the industry standpoint, more and more optimism coming from the lenders.
Alright sounds good.
On personal loans, it's a combination of things I would start with saying.
Please.
And absolutely excellent job of executing over the past year, plus with a lot of growth, we've really broadened the <unk>.
Network of where we're getting consumers shopping.
So we've just we've been we've done a really good job of increasing the number of consumer shopping for personal loans through our network.
It remains a very popular product out there.
And I think we.
We've got a lot of growth opportunities in the future I mean, there is a lot of green shoots we're seeing in different areas, where we feel like we can continue significant growth for the foreseeable future and then secondly on the industry standpoint, more and more optimism coming from the lenders one quick anecdote for you is.
Scott Parie: You know, one quick anecdote for you is we track internally the number of actions our lenders take to expand the swath of demographics they're willing to offer loans to versus contracting. And in Q2, there were 37 expansions compared to four contractions in opening up the number of loans they're willing to offer to people. So I think that just shows you, like in general, the industry, they have a strong desire to write more quantities of loans, more total value of loans, and they're starting to be willing to accept more risk while they're writing those loans. And that's happening outside of interest rates dropping. So if interest rates drop, that would only accelerate that.
We track internally the number of actions our lenders take to expand the swath of demographics. They are willing to offer loans to versus contracting and in Q2. There was 37 expansions compared to four contractions and opening up the number of loans that are willing to offer to people. So I think.
That just shows you like in general the industry.
They have a strong desire to write more quantities of loans more total value of loans and.
Starting to be willing to accept more risk while they are writing those loans and that's that's happening outside of interest rates dropping so if interest rates drop that would that would only accelerate that.
Doug Lebda: Thanks, Jay.
Thank you Jay.
Jason Bengel: Yeah, so I can comment on the expense point. You know, I'm personally really excited about AI. You know, as you know, like the expense base and using zero-based budgeting to break it apart and make sure we're happy with all the pieces of it has been a big priority. I think this is going to take all the work to another level. And so we are getting, you know, like Doug said, we're getting everyone in the company will have a ChatGPT license. And you know, it's pretty amazing what you can do. When you think about a custom GPT, what you're able to do with it, it's almost like having your own personal developer. And so when you think about the work that can be automated, it's pretty extensive and it's pretty exciting.
Yes, so I can I can comment on the expense point.
I'm personally really excited about AI.
As you know.
Expense base and zero based budgeting.
Break it apart and make sure we're happy with all of the pieces are there has been a big priority.
This is going to it's going to take all the work to another level.
So we are getting.
Doug said, we're getting everyone on the company will have a chat GBP by some.
And.
It's pretty amazing what you can do when you think about custom GPT, what youre able to deal with it.
It's almost like having your own personal developer.
And so when you think about the work that can be automated it's pretty extensive and it's pretty exciting and so I think we're really excited internally.
Jason Bengel: And so I think we're really excited internally to point ourselves at a goal of just becoming way more productive in our expense space. And so we're trying to work through the details of all that. But the goal here is really to get everyone trained on it so they know how to use it. We may even have like a competition for the best use case to really drive adoption. And then we're going to set ourselves a goal internally to make sure we become more productive with all the work that's happening today. You know, sort of upskill people to stop doing lower skill labor. Let's automate that and let's free up people to work on sort of the higher skill labor that they'd like to do, but they don't have time to. It's going to add a whole lot of, a whole lot more value to them.
<unk> ourselves on a goal just becoming a more productive.
Our expense base and so we're trying to work through the details of all of that.
But the goal here is really to get everyone trained on it so they know how to use it.
We may even have like a competition for the best use case to really drive adoption.
And then we're going to set ourselves a goal.
To make sure we become more productive.
All of the work.
What's happening today sort of upscale people to stop doing lower skilled labor automate that much free up people to work on sort of a higher skilled labor.
I'd like to do but they don't have time to it's going to add a whole lot a whole lot more value.
Doug Lebda: Yeah, and the way I'd add on is to say if we expected our business to be the same size, AI could probably, you know, have us run the business with a whole lot fewer people and a whole lot less expense. And it can also enable us to do with the same expense base and/or drifting and/or coming down as it has, to do 10 times more work and run 50 times more tests and get products in market much faster and know what works much faster and be able to develop stuff at much lower cost. And you know, it's just the speed at which I've seen us move just even product development over the last few months and how it's just accelerated since we started on this journey has just been incredible.
Yes, the way I Dan.
Add on is to say.
If we expected our business to be the same size it could probably.
No.
Run the business with a whole lot fewer people and a whole lot less expense.
And it can also enable us to do.
With the same expense base and or drifting in there are coming down.
To do 10 times more work and run 50 times more tests and get products in market much faster and know what works much faster and be able to develop stuff.
At much lower cost.
It's just the.
The speed at which I've seen us.
Move just even product development over the last.
Few months and how it's just accelerated since we started on this journey has just been incredible so.
Doug Lebda: So we want to keep our employees motivated on just increasing productivity and anything you can automate, you know, automate, and then you go do the higher level work that only you could do. And let's do, let's use this as an opportunity to do a lot more work and do a lot more business and make us a lot smarter.
We want to keep our employees motivate them, just increasing productivity and anything you can automate.
<unk>.
And then Hugo due to the higher level work that only you can do.
Let's do let's use this as an opportunity to do a lot more work and do a lot more business and make us a lot smarter.
Jason Bengel: Thank you. And then just as a follow-up real quick, I think there was a local competitor that lost a contract. It was like, you know, call it 10-15% of their EBITDA. Are you having that same impact, or was that just, was that just your competitor's issue? Thank you. Yeah. It's Jason. I can take that one too. Yeah, we're familiar with the situation. And you know, as you know, like a value that we provide is on-demand customer acquisition. So we don't really have longer-term contracts or any longer-term committed spend. That's not really our business model. So whatever the specific issue is, it's not affecting us. And you know, I think you can see in the results how well we're performing and how strong our guide is. So it's definitely not an issue for us. Thank you.
Thank you and then just as a follow up real quick I think there was a local competitor that lost a contract.
I'll call it 10% to 15% of their EBITDA are you having that same impact or was that just.
Is that just your competitors' issue. Thank you.
Yes, Jason I can take that one too.
We're familiar with the situation.
You know like a value that we provide is.
On demand customer acquisition. So we don't really have longer term contracts or any longer term committed spend that's not really our business model.
So whatever the specific issue as it's not affecting us.
I think you can see in the results.
While we are performing and how strong our guidance.
Especially non issue for us.
Thank you.
Andrew Wessel: Thank you. Our next question comes from Luke Horton of Northland. Your line is open.
Thank you.
Okay.
Our next question comes from Luke Horton of Northland. Your line is open.
Luke Horton: Yeah, hey guys, this is Luke on for Mike Grendel. Congrats on the quarter. Just wanted to touch here on the kind of raised guidance, sort of puts in takes either from a macro standpoint, kind of the assumptions baked in here, and any sort of trends to call out across the business here in the month of July.
Yeah, Hey, guys. This is Luke on for Mike Grondahl.
Congrats on the quarter I just wanted to touch here on the kind of rate guidance sort of puts and takes either from a macro standpoint kind of the assumptions baked in here and any any sort of trend to call out across the business here in the month of July.
Okay.
Jason Bengel: Yeah, it's Jason. I can take that one too. Yeah, yeah, I'm happy to take that one. I can kind of go segment by segment like I usually do, and hopefully that's helpful. You know, the big question is rates, and are they going to decrease? We're not assuming any change in rates in the current guide. So we're, you know, assuming basically continued strength in home equity, which like we've talked about, it's performing very, very well. Margin may normalize a little bit upward from where it was in Q2, but generally where we are in Q2 forward. We do expect a seasonal decline in Q4 in the guide. This is a little bit of a departure from Q4 last year where we had home equity ramp up to the sort of the current levels in Q4 last year.
Yes, it's Jason.
I'll take that one too.
Yes, Im happy to take that one I can just kind of go segment by segment like I, usually do I'll hopefully that's helpful.
Yes.
Sure.
Good question as rates are they going to decrease so we're not assuming any any change in rates in our current guidance.
So we're assuming basically continued strength in home equity, which looks like we've talked about before.
Going very very well.
Margin may normalize a little bit.
Upward from where it was in Q2, but generally where we are in Q2 forward.
We do expect a seasonal decline in Q4 and the guide.
This is a little bit of a departure from Q4 last year, where we had home equity ramp up to the sort of the current levels in Q4 last year. So we.
Jason Bengel: So you do expect a little bit of a decline in Q4 this year, whereas last year in Q4, you can see like it actually increased. We don't expect that to repeat. Consumer, you know, Scott talked about PL. It's pretty exciting what we're seeing where lenders are growing, you know, all this year within their credit boxes. They've been growing originations double digits. Now we're starting to see them sort of creep out of their credit boxes. That's very encouraging. If credit can start to open, that would be fantastic for the consumer segment. We're not contemplating that in the guide. We're sort of assuming generally, you know, current performance forward with a normal seasonal decrease. But I think those macro indications are very encouraging there, I would say. Insurance, you know, insurance is one area where, you know, as Scott mentioned, we do expect a significant step up.
We do expect a little bit of a decline in Q4 this year, whereas last year in Q4, you can see it actually increase we call we don't expect that to repeat.
Consumer.
Scott talked about PL.
The exciting what we're seeing where lenders are growing.
This year within our credit box and the payment growing originations double digits now, we're starting to see them sort of creep out of their credit boxes.
That's very encouraging and if credit can start to open that would be fantastic for the consumer segment, we're not contemplating that in the guide we're sort of assuming generally current performance forward with the normal seasonal decrease.
But I think those macro indications are very encouraging there I would say.
Insurance insurance is one area, where Scott mentioned, we do expect a significant step up and we're seeing that in July and this includes the July actuals were run rating significantly higher.
Jason Bengel: And we're seeing that in July. And this is the July actuals where we're run rating significantly higher than where we were in Q2. And this is based on the quality investment that Scott outlined. And we're seeing real results coming through in July. So we do expect a step change in Q3. Margin may be slightly less than where it was in Q2. It is a competitive environment. Like Scott said, carriers are intent on acquiring customers. So it is a pretty hot market, and we expect it to continue to be hot. But we do expect strength going forward and significantly higher than Q2. Expenses generally, you kind of see in the guide, is generally where we are Q2 forward. So hopefully that outlines things for you.
Where we were in Q2 and this is this is based on the quality investments Scott outlined and were seeing real results coming through in July. So we do is we do expect a step change in Q3.
Margin, maybe slightly less than where it was in Q2 as it is a competitive environment like Scott said carriers are intact.
Intent on acquiring customers. So it is a pretty hot market and we expect that to continue to be hot.
But we do expect strengths going forward and significantly higher than Q2.
Expenses generally.
See in the guide is generally where we are Q2 forward.
So hopefully that that outlines thanks for it.
Luke Horton: Yeah, definitely. That was awesome. Really appreciate it. And congrats again on the quarter.
Yes, definitely that sounds awesome really appreciate it.
Congrats again on the quarter.
Okay.
Andrew Wessel: Thanks. I'm showing no further questions at this time. I'd like to turn it back to Doug Lebda for closing remarks.
Thank you.
I'm showing no further questions at this time I would like to turn it back to Doug Lebda for closing remarks.
Doug Lebda: Thank you all so much. In closing, I am just really proud of our second quarter results and thrilled that they reflect the strength of our business model and the consistency of our execution and the strategic investments we've made to position LendingTree for long-term growth. We're delivering measurable value to our partners. We're expanding share across core verticals, driving innovation through thoughtful integration of AI. As we look to the second half of the year, we forecast a strong momentum and our financial results will continue. Thank you again for your continued support and partnership, and I look forward to talking to you again in three months.
Thank you all so much in closing I am just really proud of our second quarter results and thrilled that they reflect the strength of our business model and the consistency of our execution and the strategic investments we've made to position lending tree for long term growth.
Delivering measurable value to our partners, we're expanding share across corporate core verticals driving innovation through thoughtful integration of AI as.
As we look to the second half of the year, we forecast a strong momentum in our financial results will continue.
You again for your continued support and partnership and I look forward to talking to you again in three months.
Andrew Wessel: This concludes today's conference call. Thank you for participating, and you may now disconnect.
This concludes today's conference call. Thank you for participating and you may now disconnect.
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