LendingTree, Inc.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
TREE$37.01-4.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-05.
0001434621-25-000011
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001434621-25-000021
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 133 current paragraphs.
71 unchanged; 44 reworded; 17 added; 17 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Convertible Note Maturity
Current report
On July 15, 2025 we repaid the $95.3 million outstanding principal amount of our 0.50% Convertible Senior Notes ("2025 Notes") upon maturity in cash plus $0.2 million of accrued interest. Upon this repayment, the 2025 Notes were extinguished and repaid in full and the Company has no further obligations with respect to the 2025 Notes.
Current report
Revenue from our home equity loans product increased $8.3 million, or 38%, to $30.3 million in the second quarter of 2025 from $22.0 million in the second quarter of 2024. The increase in revenue was due to a 65% increase in volume, representing $11.9 million of the increase, partially offset by a 16% decrease in revenue earned per consumer, representing a $3.6 million decrease.
Current report
Revenue from our home equity loans product increased $13.3 million, or 31%, to $56.1 million in the first six months of 2025 from $42.8 million in the first six months of 2024. The increase in revenue was due to a 57% increase in volume, representing $20.4 million of the increase, partially offset by a 16% decrease in revenue earned per consumer, representing a $7.1 million decrease. We measure volume for our home equity loans and lines of credit products as the number of consumers completing request forms.
Current report
General and administrative expense decreased $2.1 million in the second quarter of 2025 from the second quarter of 2024 primarily due decreases of $0.8 million professional fees and $0.4 million in loss on asset disposals. General and administrative expense increased $2.8 million in the first six months of 2025 from the first six months of 2024 primarily due to an increase in compensation and benefits of $4.5 million, partially offset by a decrease in professional fees of $0.8 million and a decrease in loss on asset disposals of $0.5 million.
Current report
In the second quarter of 2024, we repurchased approximately $161.3 million in principal amount of our 2025 Notes for $151.7 million plus accrued and unpaid interest of approximately $0.3 million. As a result of the repurchase, we recognized a gain on the extinguishment of $9.6 million and a loss on the write-off of unamortized debt issuance costs of $1.0 million, both of which are included in interest (expense) income, net in the consolidated statements of operations and comprehensive income.
Current report
Income tax expense
Current report
In the third quarter of 2025, we will adopt the One Big Beautiful Bill Act, which includes provisions impacting various aspects of the Company's tax obligations, including research and development expensing and 163(j) of the Internal Revenue Code limitation changes. The impact of these changes on our financial statements is being evaluated and will be disclosed in future filings.
Current report
Home equity revenue of $30.3 million in the second quarter of 2025 increased $8.3 million from $22.0 million in the second quarter of 2024. Volume of home equity consumers completing request forms increased 65% in the second quarter of
Current report
2025 compared to the second quarter of 2024, however, a 7% decline in revenue earned per consumer partially offset this volume growth. The home equity product remains the primary focus for consumers and our lender partners as mortgage rates remained persistently high during the quarter.
Current report
Within Home, our core mortgage business generated revenue of $10.1 million in the second quarter of 2025, which is consistent with the second quarter of 2024. Consumer demand for our core mortgage loans remains near trough levels. A shortage of in-the-money refinance borrowers persists given the current higher level of mortgage rates, and historically low existing home sales are suppressing consumer demand for purchase loans.
Current report
We believe financial market expectations for continued decreases in interest rates may benefit the mortgage and home equity lending environment and our Home segment.
Current report
Personal loans revenue of $30.6 million in the second quarter of 2025 increased 14% from the second quarter of 2024 primarily due to increases in the number of consumers completing request forms. Some of our prime and mid-prime lender partners have begun to increase credit availability to a broader segment of our consumer traffic. We continue to iterate and enhance our matching algorithms that aim to better align lenders and consumers, resulting in higher conversion rates and closed loans at positive unit economics. We are continually testing and improving our matching platform to ensure both our lending partners and consumers are being paired at the optimum rate, maximizing close rates for our partners while also helping customers obtain the best priced loans they qualify for.
Current report
Insurance revenue increased 21% to $147.2 million in the second quarter of 2025 from the second quarter of 2024 and segment profit increased 10% to $40.0 million in the second quarter of 2025 from the second quarter of 2024. Carrier demand for new auto insurance customers has been strong, with volume increasing 19% in the second quarter of 2025 compared to the second quarter of 2024, as carriers are broadly experiencing strong underwriting results following multiple quarters of premium increases and stable loss cost trends. Higher consumer rates remains the primary driver of increased consumer shopping traffic to our websites. Demand from our carrier partners remain at relatively elevated levels and we continue to be optimistic about the remainder of 2025.
Current report
Segment margin declined to 27% in the second quarter of 2025 from 30% in the second quarter of 2024 as continued strong demand requires the use of our highest cost marketing channels.
Current report
See Note 12—Debt, in Part I. Item 1 Financial Statements, for additional information.
Current report
New Accounting Pronouncements and Critical Accounting Estimates
Removed paragraphs (17)
Previous report
Debt Activity
Previous report
In March 2025, we drew $50.0 million on our 2024 Term Loan (as defined below) delayed draw facility and incurred fees of $0.5 million associated with the borrowing. Additionally, we repurchased $20.0 million in principal amount of our 0.50% Convertible Senior Notes due July 15, 2025 ("2025 Notes"), through individual privately-negotiated transactions with certain holders of such notes, for approximately $19.7 million in cash plus accrued and unpaid interest.
Previous report
Revenue from our home equity loans and lines of credit product increased $5.0 million, or 24%, to $25.8 million in the first quarter of 2025 from $20.8 million in the first quarter of 2024. The increase in revenue was due to a 50% increase in volume, representing an increase of $8.6 million, partially offset by a 17% decrease in revenue earner per consumer, representing a decrease of $3.6 million. We measure volume for our home equity loans and lines of credit as the number of consumers completing request forms.
Previous report
Revenue from our mortgage products increased $1.6 million, or 16%, to $11.2 million in the first quarter of 2025 from $9.6 million in the first quarter of 2024. The increase in revenue was due to our refinance mortgage product which increased $1.6 million in the first quarter of 2025 compared to the first quarter of 2024 due to increases in the number of consumers completing request forms and an increase in revenue earned per consumer. While we experienced a slight increase in mortgage revenue, increased mortgage rates continue to cause reduced refinance volumes and continue to put pressure on purchase activity. We measure volume for our mortgage products as the number of consumers completing request forms.
Previous report
General and administrative expense increased $4.9 million in the first quarter of 2025 compared to the first quarter of 2024. Compensation and benefits increased in the first quarter of 2025 compared to the first quarter of 2024 by $4.8 million, primarily due to an increase in non-cash compensation of $3.0 million.
Previous report
For additional information, see Note—9-Stock-Based Compensation in the notes to the consolidated financial statements included elsewhere in this report. Non-cash compensation expense is excluded from Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”), as discussed below.
Previous report
Other income
Previous report
Other income primarily consists of dividend income.
Previous report
Income tax benefit (expense)
Previous report
Home equity revenue of $25.8 million in the first quarter of 2025 increased $5.0 million from $20.8 million in the first quarter of 2024. Our outlook for home equity remains positive. According to TransUnion, at the end of 2024 total tappable home equity in the U.S. was $20.9 trillion, up 3% compared to 2023 and an increase of 63% since the end of 2017. The historically high level of home equity drove 10% loan origination growth in the fourth quarter of 2024 compared to the fourth quarter of 2023, as measured by number of new accounts.
Previous report
Within Home, our core mortgage business generated revenue of $11.2 million in the first quarter of 2025, up 16% from the first quarter of 2024. Our refinance product within our mortgage business matches consumers in the market looking to refinance their existing mortgages with our network lenders. Our purchase product within our mortgage business matches consumers in the market looking to buy a new home with our network lenders. The environment for the purchase mortgage market is beginning to improve. According to the National Association of Realtors, inventory of existing homes for sale in the U.S. increased to 1.33 million units, or 20%, in March of 2025 compared to March of 2024, and has grown by a double-digit percentage each month dating back to March of 2024. Annual home price growth has slowed to 3% most recently, following several years of double-digit annual growth that began during the summer of 2020. Persistently higher mortgage rates and increased economic uncertainty stemming from U.S. policy are currently having an offsetting impact on the inventory and price benefits. Our mortgage business is directly impacted by the mortgage market in which we participate.
Previous report
Personal loans revenue of $23.4 million in the first quarter of 2025 increased 16% from the first quarter of 2024 as consumers completing request forms increased 34%. In March last year we saw appetite from many personal loan originators begin to firm following a prolonged period of historically high consumer price inflation. We responded by leaning into targeted marketing spend for the product to capitalize on the improving fundamentals, which we credit for the recent consistent growth in the business. We remain optimistic that the combination of record consumer credit card debt outstanding and a stable underwriting backdrop will drive forward growth.
Previous report
Insurance revenue increased 71% to $146.7 million in the first quarter of 2025 from the first quarter of 2024 and segment profit increased 16% to $38.7 million in the first quarter of 2025 from the first quarter of 2024. Carrier demand for new auto insurance customers has been strong, with volume increasing 22% in the first quarter of 2025 compared to the first quarter of 2024, as two years of compounded premium rate increases combined with declines in the price of used vehicles and replacement parts has created a favorable underwriting environment. Our Insurance segment was negatively impacted in the first quarter of 2025 by the implementation of changes to our consumer experience to comply with the FCC's one-to-one consent rule. However, following a Federal appeals court opinion that struck down the rule at the end of January of 2025, we were able to revert to our previous experience.
Previous report
Our Insurance segment margin decreased to 26% in the first quarter of 2025 compared to 39% in the first quarter of 2024. In the first quarter of 2024, we were able to exit from our highest cost marketing channels and continue to meet the decreased level of demand. Throughout 2024, we re-entered those marketing channels to fill the increase in carrier demand, which has resulted in lower segment profit margin.
Previous report
We expect the Insurance segment will return to a more normalized growth pattern in 2025 following a historic year of performance last year. As the pace of growth moderates, we are focused on optimizing our marketing mix and growing channels outside of internet search. Our goal is to retain the same level of quality, high-intent consumer traffic while seeking to lower our overall marketing cost to improve margin in this business.
Previous report
For more information, see Note 11—Debt, in the notes to the consolidated financial statements included elsewhere in this report.
Previous report
New Accounting Pronouncements
Reworded paragraphs (44)
Previous wording
We operate what we believe to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. Our online consumer platform provides consumers with access to product offerings from our Network Partners, including mortgage loans, home equity loans and lines of credit, auto loans, credit cards, deposit accounts, personal loans, small business loans, insurance quotes, sales of insurance policies and other related offerings. In addition, we offer consumers tools and resources, including free credit scores, that facilitate comparison shopping for loans, deposit products, insurance, and other offerings. We seek to match to match consumers with multiple providers, who can provide them competing quotes for the product(s) they are seeking. We also serve as a valued partner to lenders and other providers seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries we generate with these Network Partners.
Current wording
We operate what we believe to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. Our online consumer platform provides consumers with access to product offerings from our Network Partners, including mortgage loans, home equity loans and lines of credit, auto loans, credit cards, deposit accounts, personal loans, small business loans, insurance quotes and other related offerings. In addition, we offer consumers tools and resources, including free credit scores, that facilitate comparison shopping for loans, deposit products, insurance, and other offerings. We seek to match to match consumers with multiple providers, who can provide them competing quotes for the product(s) they are seeking. We also serve as a valued partner to lenders and other providers seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries we generate with these Network Partners.
Previous wording
During the first quarter of 2025, the challenging interest rate environment and inflationary pressures have continued to present challenges for many of our mortgage lending partners. In our Home segment, mortgage rates have remained relatively consistent in the first quarter of 2025 compared to the fourth quarter of 2024 and the first quarter of 2024, but nearly doubled compared to the first quarter of 2022. The increased mortgage rates continue to cause reduced refinance volumes and continue to put pressure on purchase activity. In our Insurance segment, demand from our carrier partners remain at relatively elevated levels and we continue to be optimistic about 2025.
Current wording
During 2025, the challenging interest rate environment and inflationary pressures have continued to present challenges for many of our mortgage lending partners. In our Home segment, mortgage rates have remained relatively consistent in the second quarter of 2025 compared to the fourth quarter of 2024 and second quarter of 2024, but significantly increased compared to the second quarter of 2022. The increased mortgage rates continue to cause reduced refinance volumes and continue to put pressure on purchase activity. In our Insurance segment, demand from our carrier partners remain at relatively elevated levels and we continue to be optimistic about the remainder of 2025.
Previous wording
Typically, when interest rates decline, we see increased consumer demand for mortgage refinancings, which in turn leads to increased traffic to our website and decreased selling and marketing efforts associated with that traffic. At the same time, lender demand for leads from third-party sources typically decreases, as there are more consumers in the marketplace seeking refinancings and, accordingly, lenders receive more organic mortgage lead volume. Due to lower lender demand, our revenue earned per consumer typically decreases, but with correspondingly lower selling and marketing costs.
Current wording
Typically, when interest rates decline, we see increased consumer demand for mortgage refinancing, which in turn leads to increased traffic to our website and decreased selling and marketing efforts associated with that traffic. At the same time, lender demand for leads from third-party sources typically decreases, as there are more consumers in the marketplace seeking refinancings and, accordingly, lenders receive more organic mortgage lead volume. Due to lower lender demand, our revenue earned per consumer typically decreases, but with correspondingly lower selling and marketing costs.
Previous wording
According to Freddie Mac, the monthly average 30-year mortgage interest rates decreased from 6.72% in December 2024 to 6.65% in March 2025. On a quarterly basis, 30-year mortgage interest rates increased in the first quarter of 2025 to an average 6.82%, from 6.65% in the fourth quarter of 2024. The quarterly average was up slightly in the first quarter of 2025 compared to 6.75% in the first quarter of 2024.
Current wording
According to Freddie Mac, the monthly average 30-year mortgage interest rates increased from a monthly average of 6.72% in December 2024 to a monthly average of 6.82% in June 2025. On a quarterly basis, 30-year mortgage interest rates in the second quarter of 2025 averaged 6.79%, compared to 6.99% in the second quarter of 2024 and 6.65% in the fourth quarter of 2024.
Previous wording
Typically, as mortgage interest rates rise, there are fewer consumers in the marketplace seeking refinancings and, accordingly, the mix of mortgage origination dollars will move toward purchase mortgages. According to Mortgage Bankers Association (“MBA”) data, total refinance origination dollars decreased to 29% of total mortgage origination dollars in the first quarter of 2025 compared to 38% in the fourth quarter of 2024 and increased from 23% in the first quarter of 2024. In the first quarter of 2025, total refinance origination dollars decreased 41% from the fourth quarter of 2024 and increased 30% from the first quarter of 2024. Industry-wide mortgage origination dollars in the first quarter of 2025 decreased 22% from the fourth quarter of 2024, but increased 2% from first quarter of 2024.
Current wording
Typically, as mortgage interest rates rise, there are fewer consumers in the marketplace seeking refinancings and, accordingly, the mix of mortgage origination dollars will move toward purchase mortgages. According to Mortgage Bankers Association (“MBA”) data, total refinance origination dollars decreased to 33% of total mortgage origination dollars in the second quarter of 2025 compared to 38% in the fourth quarter of 2024 and increased when compared to 22% in the second quarter of 2024. In the second quarter of 2025, total refinance origination dollars decreased 4% from the fourth quarter of 2024 and increased 96% from the second quarter of 2024. Industry-wide mortgage origination dollars in the second quarter of 2025 increased 11% from the fourth quarter of 2024 and increased 28% from second quarter of 2024.
Previous wording
According to Fannie Mae data, existing home sales increased 1% in the first quarter of 2025 compared to the fourth quarter of 2024, and increased 1% compared to the first quarter of 2024. Fannie Mae predicts an overall increase in existing-home sales of approximately 3.1% in 2025 compared to 2024.
Current wording
According to Fannie Mae data, existing home sales decreased approximately 3% in the second quarter of 2025 compared to the fourth quarter of 2024, and increased approximately 1% compared to the second quarter of 2024. Fannie Mae predicts an overall increase in existing-home sales of approximately 3% in 2025 compared to 2024.
Previous wording
We consider certain metrics related to LendingTree Spring ("Spring") set forth below to help us evaluate our business and growth trends and assess operational efficiencies. We believe our Spring platform drives repeat user engagement resulting in lower acquisition costs and increases consumer lifetime value. The calculation of the metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts or investors.
Current wording
We consider certain metrics related to LendingTree Spring TM ("Spring") set forth below to help us evaluate our business and growth trends and assess operational efficiencies. We believe our Spring platform drives repeat user engagement resulting in lower acquisition costs and increases consumer lifetime value. The calculation of the metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts or investors.
Previous wording
We added 0.8 million new users in the first quarter of 2025, bringing cumulative sign-ups to 32.1 million at March 31, 2025. We calculate the number of Spring users at a period end as the number of users that had an active account at any point during the quarter that includes the period end date. Users that deactivated their accounts prior to the most recent quarter are no longer considered in the user base at the end of the most recent quarter. We attribute approximately $3.7 million of revenue, or 2% of total revenue, in the first quarter of 2025 to registered Spring users who initiated their transaction from the Spring platform. During the first quarter of 2025, approximately 0.2 million Spring users initiated a transaction from the Spring platform that contributed to revenue.
Current wording
We added 0.5 million net new users in the second quarter of 2025, bringing cumulative active users to 32.6 million as of June 30, 2025. We calculate the number of Spring users at a period end as the number of users that had an active account at any point during the quarter that includes the period end date. Users that deactivated their accounts prior to the most recent quarter are no longer considered in the user base at the end of the most recent quarter. We attribute approximately $4.9 million of revenue, or 2% of total revenue, in the second quarter of 2025 to registered Spring users who initiated their transaction from the Spring platform. During the second quarter of 2025, approximately 0.3 million Spring users initiated a transaction from the Spring platform that contributed to revenue.
Previous wording
Results of Operations for the Three Months ended March 31, 2025 and 2024
Current wording
Results of Operations for the Three and Six Months ended June 30, 2025 and 2024
Previous wording
Revenue increased in the first quarter of 2025 compared to the first quarter of 2024 due to increases in our Insurance, Home and Consumer segments.
Current wording
Revenue increased in the second quarter and first six months of 2025 compared to the second quarter and first six months of 2024 due to increases in our Insurance, Home and Consumers segments.
Previous wording
Revenue from our Insurance segment increased $60.8 million, or 71%, to $146.7 million in the first quarter of 2025 from $85.9 million in the first quarter of 2024. The increase in revenue was due to a 41% increase in revenue earned per consumer, representing $34.8 million of the increase and a 22% increase in volume, representing $26.0 million of the increase. We measure volume for insurance product as the number of consumer request forms and in certain cases of re-engagement with a consumer, the number of subsequent consumer engagements through our platform.
Current wording
Revenue from our Insurance segment increased $25.1 million, or 21%, to $147.2 million in the second quarter of 2025 from $122.1 million in the second quarter of 2024. The increase in revenue was due to a 19% increase in volume, representing $23.2 million of the increase, and a 2% increase in revenue earned per consumer, representing $1.9 million of the increase. Revenue from our Insurance segment increased $85.9 million, or 41%, to $293.8 million in the first six months of 2025 from $207.9 million in the first six months of 2024. The increase in revenue was due to a 20% increase in volume, representing $49.5 million of the increase, and a 17% increase in revenue earned per consumer, representing $36.4 million of the increase. We measure volume for our insurance product as the number of consumer request forms and, in certain cases re-engagement with a consumer, the number of such subsequent consumer engagements through our platform.
Previous wording
Our Home segment includes the following products: purchase mortgage, refinance mortgage, and home equity loans and lines of credit. Revenue from our Home segment increased $6.6 million, or 22%, in the first quarter of 2025 from the first quarter of 2024 due to increases in revenue from our home equity loans and mortgage products.
Current wording
Our Home segment includes the following products: purchase mortgage, refinance mortgage, and home equity loans and lines of credit. Revenue from our Home segment increased $8.3 million, or 26%, in the second quarter of 2025 from the second quarter of 2024 and increased $14.8 million, or 24%, in the first six months of 2025 from the first six months of 2024 primarily due to increases in revenue from our home equity loans.
Previous wording
Our Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products. Many of our Consumer segment products are not individually significant to revenue. Revenue from our Consumer segment increased $4.6 million, or 9%, in the first quarter of 2025 from the first quarter of 2024 primarily due to increases in our personal loans and small business loans products, partially offset by decreases in our credit cards and other credit products.
Current wording
Our Consumer segment includes the following products: credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products. Many of our Consumer segment products are not individually significant to revenue. Revenue from our Consumer segment increased $6.6 million, or 12%, in the second quarter of 2025 from the second quarter of 2024 primarily due to increases in our small business loans and personal loans products, partially offset by decreases in credit cards and other credit products. Revenue from our Consumer segment increased $11.2 million, or 10%, in the first six months of 2025 from the first six months of 2024 primarily due to increases in our small business loans and personal loans products, partially offset by decreases in credit cards and other credit products.
Previous wording
Revenue from our personal loans product increased $3.3 million, or 16%, to $23.4 million in the first quarter of 2025 from $20.1 million in the first quarter of 2024. The increase in revenue was due to a 36% increase in volume, representing $6.2 million of an increase, partially offset by a 14% decrease in revenue earned per consumer, representing $2.9 million of a decrease. We measure volume for our personal loans product as the number of unique consumers completing request forms.
Current wording
Revenue from our personal loans product increased $3.7 million, or 14%, to $30.6 million in the second quarter of 2025 from $26.9 million in the second quarter of 2024. The increase in revenue was due to an 18% increase in volume, representing an increase of $4.6 million, partially offset by a 3% decrease in revenue earned per consumer, representing a $0.9 million decrease. Revenue from our personal loans product increased $7.0 million, or 15%, to $54.0 million in the first six months of 2025 from $47.1 million in the first six months of 2024. The increase in revenue was due to a 25% increase in volume, representing $10.8 million of the increase, partially offset by an 8% decrease in revenue earned per consumer, representing $3.8 million of a decrease. We measure volume for our personal loans product as the number of unique consumers completing request forms.
Previous wording
For the periods presented, no other products in our Consumer segment represented more than 10% of revenue; however, certain other Consumer products experienced notable changes. Revenue from small business increased $6.4 million, or 48%, in the first quarter of 2025 compared to the first quarter of 2024 due increases in the number of consumers completing request forms and in revenue earned per consumer. Revenue from credit cards decreased $3.7 million, or 48%, in the first quarter of 2025 compared to the first quarter of 2024 primarily due to decreases in the number of consumer clicks and revenue earned per click. Revenue from other credit products decreased $1.2 million, or 31%, in the first quarter of 2025 compared to the first quarter of 2024 due to a decrease in revenue earned per consumer.
Current wording
Revenue from our small business loans product increased $7.3 million, or 61%, in the second quarter of 2025 compared to the second quarter of 2024, and increased $13.7 million, or 54% in the first six months of 2025 compared to the first six months of 2024 due to increases in the number of consumers completing request forms and in revenue earned per consumer. Revenue from our credit cards product decreased $2.3 million, or 41%, in the second quarter of 2025 compared to the second quarter of 2024, and decreased $6.0 million, or 45%, in the first six months of 2025 compared to the first six months of 2024 due to decreases in the number of consumer clicks and revenue earned per click. Revenue from our other credit products decreased $1.7 million, or 29%, in the second quarter of 2025 compared to the second quarter of 2024, and decreased $2.9 million, or 30%, in the first six months of 2025 compared to the first six months of 2024 primarily due to a decrease in revenue earned per consumer.
Previous wording
Cost of revenue increased in the first quarter of 2025 from the first quarter of 2024 by $1.4 million, primarily due to an increase in compensation and benefits of $0.9 million.
Current wording
Cost of revenue increased $1.6 million in the second quarter of 2025 from the second quarter of 2024 primarily due to an increase in compensation and benefits of $1.3 million. Cost of revenue increased $3.0 million in the first six months of 2025 from the first six months of 2024 primarily due to an increase in compensation and benefits of $2.2 million.
Previous wording
Cost of revenue as a percentage of revenue decreased to 4% in the first quarter of 2025 compared to 5% in the first quarter of 2024.
Current wording
Cost of revenue as a percentage of revenue was 4% in the second quarter and first six months of 2025 which is consistent to the second quarter and the first six months of 2024.
Previous wording
Selling and marketing expense increased in the first quarter of 2025 compared to the first quarter 2024 by $64.6 million primarily due to the changes in advertising and promotional expense discussed below. Additionally, compensation and benefits increased $0.9 million in the first quarter of 2025 compared to the first quarter 2024.
Current wording
Selling and marketing expense increased in the second quarter of 2025 compared to the second quarter 2024 by $28.4 million, and increased $92.9 million in the first six months of 2025 compared to the first six months of 2024 primarily due to the changes in advertising and promotional expense discussed below. Additionally, compensation and benefits increased $1.1 million in the second quarter of 2025 compared to the second quarter of 2024, and increased $2.0 million in the first six months of 2025 compared to the first six months of 2024.
Previous wording
We adjusted our advertising expenditures in the first quarter of 2025 compared to the first quarter of 2024 in response to changes in Network Partner demand on our marketplace. We will continue to adjust selling and marketing expenditures dynamically in response to anticipated revenue opportunities.
Current wording
We adjusted our advertising expenditures in the second quarter and first six months of 2025 compared to the second quarter and first six months of 2024 in response to changes in Network Partner demand on our marketplace. We will continue to adjust selling and marketing expenditures dynamically in response to anticipated revenue opportunities.
Previous wording
General and administrative expense as a percentage of revenue in the first quarter of 2025 was 13% compared to 15% for the first quarter of 2024.
Current wording
General and administrative expense as a percentage of revenue decreased to 10% in the second quarter of 2025 compared to 13% in the second quarter of 2024, and decreased to 11% in the first six months of 2025 compared to 14% in the first six months of 2024.
Previous wording
Product development expense remained consistent in the first quarter of 2025 compared to the first quarter of 2024 as we continued to invest in internal development of new and enhanced features, functionality and business opportunities that we believe will enable us to better and more fully serve consumers and Network Partners.
Current wording
Product development expense increased $1.1 million in the second quarter of 2025 compared to the second quarter of 2024 as we continued to invest in internal development of new and enhanced features, functionality and business opportunities that we believe will enable us to better and more fully serve consumers and Network Partners.
Previous wording
In March 2024 and March 2025, we drew $125.0 million and $50.0 million, respectively, on the 2024 Term Loan and incurred $3.4 million of interest expense in the first quarter of 2025 as a result of the 2024 Term Loan.
Current wording
In March 2024 and March 2025, we drew $125.0 million and $50.0 million, respectively, on the 2024 Term Loan resulting in an increase of $0.4 million and $3.6 million of interest expense in the second quarter and first six months of 2025, respectively, compared to the second quarter and the first six months of 2024.
Previous wording
In the first quarter of 2025, we repurchased approximately $20.0 million in principal amount of our 0.50% Convertible Senior Notes due July 15, 2025 (the "2025 Notes") for $19.7 million plus accrued and unpaid interest. As a result of the repurchase, we recognized a gain on the extinguishment of $0.3 million, which is included in interest expense, net in the consolidated statement of operations and comprehensive income. See Note 11—Debt for additional information.
Current wording
In the first quarter of 2025, we repurchased approximately $20.0 million in principal amount of our 0.50% Convertible Senior Notes due July 15, 2025 (the "2025 Notes") for $19.7 million plus accrued and unpaid interest. As a result of the repurchase, we recognized a gain on the extinguishment of $0.3 million in the first six months of 2025, which is included in interest expense, net in the consolidated statement of operations and comprehensive income.
Previous wording
For the first quarter of 2025 and 2024, the effective tax rate varied from the federal statutory rate of 21% primarily due to the change in the valuation allowance, net of the current period change in tax effected net indefinite-lived intangibles.
Current wording
For the second quarter and first six months of 2025 and 2024, the effective tax rate varied from the federal statutory rate of 21% primarily due to the change in the valuation allowance, net of the current period change in tax effected net indefinite-lived intangibles and current tax expense on taxable income.
Previous wording
Revenue in the Home segment increased 22% to $37.0 in the first quarter of 2025 and segment profit increased 37% to $13.1 million in the first quarter of 2025 compared to the first quarter of 2024. Segment margin increased to 36% in the first quarter of 2025 compared to 32% in the first quarter of 2024, primarily due to a change in product mix.
Current wording
Home segment revenue increased 26% to $40.4 million in the second quarter of 2025 from the second quarter of 2024 and segment profit increased 41% to $13.1 million in the second quarter of 2025 from the second quarter of 2024. Segment margin increased to 32% in the second quarter of 2025 compared to 29% in the second quarter of 2024, primarily due to a change in product mix.
Previous wording
Revenue in our Consumer segment increased 9% to $56.0 million in the first quarter of 2025 from the first quarter of 2024, and segment profit decreased 1% to $27.1 million in the first quarter of 2025 from the first quarter of 2024. Segment margin was 48% in the first quarter of 2025 compared to 53% in the first quarter of 2024 primarily due to decline in revenue earned per consumer on certain products as well as a change in mix shift in the product revenue. Underwriting criteria for lenders on our network was broadly stable in the first quarter, as a positive employment environment and lower pace of inflation compared to more recent periods presents an attractive underwriting environment for many loan types.
Current wording
Our Consumer segment revenue increased 12% to $62.5 million in the second quarter of 2025 from the second quarter of 2024, and segment profit increased 19% to $32.1 million in the second quarter of 2025 from the second quarter of 2024 primarily due to the increase in revenue. Segment margin was 51% in the second quarter of 2025 compared to 48% in the second quarter of 2024 primarily due to a change in mix shift in the product revenue.
Previous wording
Small business revenue increased 48% in the first quarter of 2025 from the first quarter of 2024 due to increases in the number of consumers completing request forms and in revenue earned per consumer. The investment to grow our concierge sales team has strengthened our renewal and lender bonus revenue streams. Improved unit economics from this investment has allowed us to increase our marketing spend to capture more high-intent small business owners searching for new loans. We forecast the small business product will generate record revenue in 2025.
Current wording
Small business revenue increased 61% in the second quarter of 2025 from the second quarter of 2024, due to increases in the number of consumers completing request forms and in revenue earned per consumer. The investment to grow our concierge sales team has strengthened our renewal and lender bonus revenue streams. Improved unit economics from this investment has allowed us to increase our marketing spend to capture more high-intent small business owners searching for new loans. We are focused on growing the number and types of lenders on our small business network, including in the government SBA loan market.
Previous wording
See the section titled "Revenue" above for additional discussion of product revenues within the Consumer segment.
Current wording
See the section titled "Revenue" above for additional discussion of declines in product revenues within the Consumer segment.
Previous wording
The following is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to variable marketing margin:
Current wording
The following is a reconciliation of net income (loss), the most directly comparable GAAP measure, to variable marketing margin:
Previous wording
The following table is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to Adjusted EBITDA.
Current wording
The following table is a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA.
Previous wording
Financial Position, Liquidity and Capital Resources
Current wording
Financial Condition, Liquidity and Capital Resources
Previous wording
As of March 31, 2025, we had $126.4 million of cash and cash equivalents, compared to $106.6 million of cash and cash equivalents as of December 31, 2024.
Current wording
As of June 30, 2025, we had $149.1 million of cash and cash equivalents, compared to $106.6 million of cash and cash equivalents as of December 31, 2024.
Previous wording
We expect our cash and cash equivalents and cash flows from operations to be sufficient to fund our operating needs for the next twelve months and beyond. We will continue to monitor the impact of the current economic conditions, including interest rates, and inflation on our liquidity and capital resources.
Current wording
We expect our cash and cash equivalents, cash flows from operations to be sufficient to fund our operating needs for the next twelve months and beyond. We will continue to monitor the impact of the current economic conditions, including interest rates and inflation on our liquidity and capital resources.
Previous wording
As of March 31, 2025, we have $95.3 million outstanding on the 2025 Notes. We intend to use cash on hand and future cash flows from operations for the repayment of the 2025 Notes, due July 15, 2025.
Current wording
As of June 30, 2025, we had $95.3 million outstanding on the 2025 Notes. On July 15, 2025, the outstanding 2025 Notes were fully repaid using cash on hand.
Previous wording
In July 2024, we entered into an Equity Distribution Agreement in connection with the establishment of an ATM Equity Program (as defined in the 2024 Term Loan agreement) under which we may sell up to an aggregate of $50.0 million of shares of the our common stock. No sales were made under the Equity Distribution Agreement during 2024 or in the first quarter of 2025.
Current wording
In July 2024, we entered into an Equity Distribution Agreement in connection with the establishment of an ATM Equity Program (as defined in the 2024 Term Loan agreement) under which we may sell up to an aggregate of $50.0 million of shares of our common stock. No sales were made under the Equity Distribution Agreement during 2024 or in the first six months of 2025.
Previous wording
On September 15, 2021, we entered into a credit agreement (the “Credit Agreement”), consisting of a $200.0 million revolving credit facility (the “Revolving Facility”), which matures on September 15, 2026, and a $250.0 million delayed draw term loan facility (the “2021 Term Loan” and together with the Revolving Facility, the “Credit Facility”), which matures on September 15, 2028. The proceeds of the Revolving Facility can be used to finance working capital, for general corporate purposes and any other purpose not prohibited by the Credit Agreement. We borrowed $250.0 million under the delayed draw term loan on May 31, 2022 and used $170.2 million of the proceeds to settle the Company’s 0.625% Convertible Senior Notes due June 1, 2022, including interest. The remaining proceeds of $79.8 million may be used for general corporate purposes and any other purposes not prohibited by the Credit Agreement.
Current wording
On September 15, 2021, we entered into a credit agreement (the “Credit Agreement”), consisting of a $200.0 million revolving credit facility (the “Revolving Facility”), which matures on September 15, 2026, and a $250.0 million delayed draw term loan facility (the “2021 Term Loan” and together with the Revolving Facility, the “Credit Facility”), which matures on September 15, 2028. The proceeds of the Revolving Facility can be used to finance working capital, for general corporate purposes and any other purpose not prohibited by the Credit Agreement. We borrowed $250.0 million under the delayed draw term loan on May 31, 2022 and used $170.2 million of the proceeds to settle our 0.625% Convertible Senior Notes due June 1, 2022, including interest. The remaining proceeds of $79.8 million may be used for general corporate purposes and any other purposes not prohibited by the Credit Agreement.
Previous wording
As of May 2, 2025, we have outstanding $243.1 million under the 2021 Term Loan. As of March 31, 2025, we have $20.0 million available for borrowing under the Revolving Facility.
Current wording
As of July 31, 2025, we have outstanding $242.5 million under the 2021 Term Loan and the remaining borrowing capacity under the Revolving Facility is $200.0 million. As of June 30, 2025, we had $45.9 million available for borrowing under the Revolving Credit Facility. As of July 31, 2025, following the repayment of the 2025 Notes, we have $20.0 million available for borrowing under the Revolving Facility.
Previous wording
On March 27, 2024, we entered a first lien term loan facility (the “2024 Term Loan”), consisting of $175.0 million which matures on March 27, 2031. We drew $125.0 million of the 2024 Term Loan upon closing and drew the remaining $50.0 million on March 27, 2025. The proceeds of the 2024 Term Loan can be used for working capital and general corporate purposes, which may include repayment of our 2025 Notes. The funding had a $3.1 million original issue discount and associated debt issuance costs of $4.8 million.
Current wording
On March 27, 2024, we entered a first lien term loan facility (the “2024 Term Loan”), consisting of $175.0 million which matures on March 27, 2031. We drew $125.0 million of the 2024 Term Loan upon closing and drew the remaining $50.0 million on March 27, 2025. The proceeds of the 2024 Term Loan were used to pay fees and expenses incurred in connection with the closing of the 2024 Term Loan and delayed draw term loan, and will be used for working capital and general corporate purposes, including the repayment of our 2025 Notes on July 15, 2025. The funding had a $3.1 million original issue discount and associated debt issuance costs of $4.3 million.
Previous wording
As of May 2, 2025, the Company had $162.5 million borrowings outstanding under the 2024 Term Loan.
Current wording
As of July 31, 2025, we had $160.3 million borrowings outstanding under the 2024 Term Loan.
Previous wording
Net cash (used in) provided by operating activities decreased in the first three months of 2025 from the first three months of 2024 primarily due to unfavorable changes in accounts payable, accrued expenses and other current liabilities, prepaid expenses and other current assets, and income taxes, partially offset by favorable changes in accounts receivable.
Current wording
Net cash provided by operating activities increased in the first six months of 2025 from the first six months of 2024 primarily due to favorable changes in accounts receivable and accounts payable, accrued expenses and other current liabilities, partially offset by unfavorable changes in prepaid expenses and other current assets, and income taxes.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the current periods, no other products in our Consumer segment represented more than 10% of revenue; however, certain other Consumer products experienced notable changes.