LendingTree, Inc.

Previous wording

During 2026, the 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 2026 compared to the second quarter of 2025, but remain significantly increased compared to the low rates seen in 2021. 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. Our Consumer segment has benefited from the Federal Reserve rate decreases, but recent geopolitical events and higher consumer tax refunds appear to have pressured consumer demand for new borrowing. In our Insurance segment, carriers are broadly experiencing strong automotive underwriting results following multiple quarters of premium increases and stable loss cost trends. We continue to be optimistic about the remainder of 2026.

Current wording

During 2026, the interest rate environment and inflationary pressures have continued to present challenges for many of our mortgage lending partners. In our Home segment, mortgage rates increased in the third quarter of 2026 and remain significantly higher than the low rates seen in 2021. 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. The 10-year treasury rate (benchmark mortgage rates) increased in the third quarter to the highest rate in decades. In September 2026 we saw a shift in the Federal Reserve stance on interest rates as they increased the federal funds rate by 25 basis points and signaled the potential for additional increases which, with other continuing geopolitical events, could continue to pressure demand for new borrowing in the Consumer segment. In our Insurance segment, carriers are broadly experiencing strong automotive underwriting results following multiple quarters of premium increases and stable loss cost trends, and we continue to be optimistic about the remainder of 2026.

Previous wording

According to Freddie Mac, the monthly average 30-year mortgage interest rates increased from a monthly average of 6.2% in December 2025 to a monthly average of 6.5% in June 2026. On a quarterly basis, 30-year mortgage interest rates in the second quarter of 2026 averaged 6.4%, compared to 6.8% in the second quarter of 2025.

Current wording

According to Freddie Mac, the monthly average 30-year mortgage interest rates increased from a monthly average of 6.2% in December 2025 to a monthly average of 6.9% in September 2026. On a quarterly basis, 30-year mortgage interest rates in the third quarter of 2026 averaged 6.7%, compared to 6.6% in the third quarter of 2025.

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 37% in the second quarter of 2026 compared to 40% in the first quarter of 2026 and increased from 29% in the second quarter of 2025. In the second quarter of 2026, total refinance origination dollars decreased 16% from the fourth quarter of 2025 and increased 40% from the second quarter of 2025. Industry-wide mortgage origination dollars in the second quarter of 2026 decreased 3% from the fourth quarter of 2025, but increased 10% from the second quarter of 2025.

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 27% in the third quarter of 2026. In the third quarter of 2026, total refinance origination dollars decreased 29% from the fourth quarter of 2025 and decreased 6% from the third quarter of 2025. Industry-wide mortgage origination dollars in the third quarter of 2026 decreased 5% from the fourth quarter of 2025 and decreased 4% from the third quarter of 2025.

Previous wording

According to MBA projections, the mix of mortgage origination dollars is expected to continue to be weighted towards purchase mortgages with the refinance share representing approximately 35% for 2026 compared to 34% in 2025.

Current wording

According to MBA projections, the mix of mortgage origination dollars is expected to continue to be weighted towards purchase mortgages with the refinance share representing approximately 33% for 2026 compared to 28% in 2025.

Previous wording

According to Fannie Mae data, existing home sales increased approximately 2% in the second quarter of 2026 compared to the second quarter of 2025. Fannie Mae predicts overall existing-home sales to increase approximately 1% in 2026 compared to 2025.

Current wording

According to Fannie Mae data, existing home sales decreased approximately 2% in the third quarter of 2026 compared to the third quarter of 2025. Fannie Mae predicts overall existing-home sales to decrease approximately 1% in 2026 compared to 2025.

Previous wording

Results of Operations for the Three and Six Months ended June 30, 2026 and 2025

Current wording

Results of Operations for the Three and Nine Months ended September 30, 2026 and 2025

Previous wording

Revenue increased in the second quarter of 2026 compared to the second quarter of 2025 primarily due to increases in our Insurance and Home segments. Revenue increased in the first six months of 2026 compared to the first six months of 2025 due to increases in our Insurance, Home and Consumer segments.

Current wording

Revenue increased in the third quarter and first nine months of 2026 compared to the third quarter and first nine months of 2025 primarily due to increases in our Insurance, Home and Consumer segments.

Previous wording

Revenue from our Insurance segment increased $62.1 million, or 42%, to $209.3 million in the second quarter of 2026 from $147.2 million in the second quarter of 2025. The increase in revenue was due to a 22% increase in volume, representing $38.3 million of the increase, and a 16% increase in revenue earned per consumer, representing $23.8 million of the increase. Revenue from our Insurance segment increased $137.3 million, or 47%, to $431.1 million in the first six months of 2026 from $293.8 million in the first six months of 2025. The increase in revenue was due to a 25% increase in volume, representing $87.5 million of the increase, and a 17% increase in revenue earned per consumer, representing $49.8 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.

Current wording

Revenue from our Insurance segment increased $31.4 million, or 15%, to $234.9 million in the third quarter of 2026 from $203.5 million in the third quarter of 2025. The increase in revenue was due to a 36% increase in revenue earned per consumer, representing $73.9 million of the increase, offset by a 15% decrease in volume, representing $42.5 million of a decrease. Revenue from our Insurance segment increased $168.7 million, or 34%, to $666.1 million in the first nine months of 2026 from $497.3 million in the first nine months of 2025. The increase in revenue was due to a 22% increase in revenue earned per consumer, representing $110.2 million of the increase, and a 10% increase in volume, representing $58.5 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 Consumer segment includes the following products: credit cards, personal loans, small business 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 decreased $2.3 million, or 4%, in the second quarter of 2026 from the second quarter of 2025 primarily due to a decrease in credit cards. Revenue from our Consumer segment increased $8.0 million, or 7%, in the first six months of 2026 from the first six months of 2025 primarily due to increases in our small business loans, partially offset by a decrease in credit cards.

Current wording

Our Consumer segment includes the following products: credit cards, personal loans, small business 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 $1.0 million, or 2%, in the third quarter of 2026 from the third quarter of 2025 primarily due to an increase in personal loans partially offset by a decrease in credit cards. Revenue from our Consumer segment increased $9.1 million, or 5%, in the first nine months of 2026 from the first nine months of 2025 primarily due to increases in our small business loans and personal loans, partially offset by a decrease in credit cards.

Previous wording

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. Revenue from small business increased $9.7 million, or 25%, in the first six months of 2026 compared to the first six months of 2025 due to increases in revenue earned per consumer.

Current wording

For the current periods, no products in our Consumer segment represented more than 10% of revenue; however, certain Consumer products experienced notable changes. Revenue from small business increased $9.6 million, or 16%, in the first nine months of 2026 compared to the first nine months of 2025 due to increases in revenue earned per consumer, partially offset by a decrease in volume.

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 $3.5 million, or 9%, in the second quarter of 2026 from the second quarter of 2025 and increased $5.5 million, or 7%, in the first six months of 2026 from the first six months of 2025 primarily due to increases in revenue from our home equity loans.

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 $3.3 million, or 9%, in the third quarter of 2026 from the third quarter of 2025 and increased $8.9 million, or 8%, in the first nine months of 2026 from the first nine months of 2025 primarily due to increases in revenue from our home equity loans, partially offset by decreases in mortgage products. As more homeowners choose to stay in their homes and home equity levels remain near record highs, consumers are increasingly utilizing the value in their homes to fund renovations and other large ticket expenses, which we expect will continue in the current interest rate environment.

Previous wording

Cost of revenue increased $1.2 million in the second quarter of 2026 from the second quarter of 2025 primarily due to an increase in compensation and benefits of $1.0 million. Cost of revenue increased $3.0 million in the first six months of 2026 from the first six months of 2025 primarily due to an increase in compensation and benefits of $2.8 million.

Current wording

Cost of revenue increased $0.7 million in the third quarter of 2026 from the third quarter of 2025 primarily due to an increase in compensation and benefits. Cost of revenue increased $3.7 million in the first nine months of 2026 from the first nine months of 2025 primarily due to an increase in compensation and benefits of $3.2 million.

Previous wording

Cost of revenue as a percentage of revenue was 4% in the second quarter and first six months of 2026 which is consistent with the second quarter and the first six months of 2025.

Current wording

Cost of revenue as a percentage of revenue decreased to 3% in the third quarter of 2026 compared to 4% in the third quarter of 2025. Cost of revenue as a percentage of revenue was 4% in first nine months of 2026 which is consistent with the first nine months of 2025.

Previous wording

Selling and marketing expense increased in the second quarter of 2026 compared to the second quarter 2025 by $59.7 million, and increased $125.5 million in the first six months of 2026 compared to the first six months of 2025 primarily due to the changes in advertising and promotional expense discussed below.

Current wording

Selling and marketing expense increased $35.5 million in the third quarter of 2026 compared to the third quarter 2025, and increased $161.0 million in the first nine months of 2026 compared to the first nine months of 2025 primarily due to the changes in advertising and promotional expense discussed below.

Previous wording

We adjusted our advertising expenditures in the second quarter and first six months of 2026 compared to the second quarter and first six months of 2025 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 third quarter and first nine months of 2026 compared to the third quarter and first nine months of 2025 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 was generally consistent in the second quarter of 2026 and the second quarter of 2025. General and administrative expense decreased $2.0 million in the first six months of 2026 from the first six months of 2025 primarily due to a decrease in compensation and benefits of $3.3 million, partially offset by an increase in professional fees of $0.6 million and technology costs of $0.6 million.

Current wording

General and administrative expense was generally consistent in the third quarter of 2026 and the third quarter of 2025. General and administrative expense decreased $1.8 million in the first nine months of 2026 from the first nine months of 2025 primarily due to a decrease in compensation and benefits of $3.6 million, partially offset by an increase in professional fees of $1.3 million and technology costs of $0.8 million.

Previous wording

General and administrative expense as a percentage of revenue decreased to 8% in the second quarter of 2026 compared to 10% in the second quarter of 2025, and decreased to 8% in the first six months of 2026 compared to 11% in the first six months of 2025.

Current wording

General and administrative expense as a percentage of revenue decreased to 8% in the third quarter of 2026 compared to 9% in the third quarter of 2025, and decreased to 8% in the first nine months of 2026 compared to 10% in the first nine months of 2025.

Previous wording

Product development expense decreased $1.4 million in the second quarter of 2026 compared to the second quarter of 2025 and decreased $1.9 million in the first six months of 2026 from the first six months of 2025. 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 decreased $1.1 million in the third quarter of 2026 compared to the third quarter of 2025 and decreased $2.9 million in the first nine months of 2026 from the first nine months of 2025. 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 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. See Note 10—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 nine months of 2025, which is included in interest expense, net in the consolidated statement of operations and comprehensive income. See Note 10—Debt for additional information.

Previous wording

For the second quarter and first six months of 2026, the effective tax rate varied from the federal statutory rate of 21% primarily due to the effect of state taxes and various unfavorable permanent tax adjustments.

Current wording

For the third quarter of 2026, the effective tax rate varied from the federal statutory rate of 21% primarily due to a non-cash discrete tax benefit resulting from the write-off of a deferred tax liability related to a goodwill impairment. This benefit is partially offset by state taxes and permanent non-deductible items. For the first nine months of 2026, these offsetting factors exceeded the discrete goodwill benefit.

Previous wording

For the second quarter and first six months of 2025, the effective tax rate varied from the federal statutory rate of 21% primarily due 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.

Current wording

For the third quarter and first nine months of 2025, the effective tax rate varied from the federal statutory rate of 21% primarily due 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

Our Consumer segment revenue decreased 4% to $60.3 million in the second quarter of 2026 from the second quarter of 2025, and segment profit decreased 14% to $27.6 million in the second quarter of 2026 from the second quarter of 2025. Segment margin decreased to 46% in the second quarter of 2026 compared to 51% in the second quarter of 2025 primarily due to lower close rates and small loan sizes in our small business product. After the initial reactions to the Middle East hostilities and spiking oil prices, demand from small business owners has been stable and lender approval rates have normalized.

Current wording

Our Consumer segment revenue increased 2% to $67.2 million in the third quarter of 2026 from the third quarter of 2025, and segment profit decreased 16% to $29.6 million in the third quarter of 2026 from the third quarter of 2025. Segment margin decreased to 44% in the third quarter of 2026 compared to 53% in the third quarter of 2025 primarily due to lower close rates and an increase in marketing costs in our small business product. After the initial reactions to the Middle East hostilities and spiking oil prices, demand from small business owners improved in the third quarter of 2026 compared to the second quarter of 2026 and lender approval rates have stabilized.

Previous wording

Insurance carriers continue to broadly generate strong underwriting results. Auto rate decreases in numerous states has led to increased competition for market share and an increase in customer volume to our sites. The increased demand has created a competitive market to acquire customers seeking an auto policy, which has led to strong growth in both revenue as well as associated media costs. We expect advertising costs to remain elevated for the remainder of 2026. Our strategy is to capture the maximum level of carrier advertising budgets when we have an opportunity to drive incremental segment profit and take share from competitors. These incremental dollars have pressured overall segment margin while simultaneously contributing to robust segment profit.

Current wording

Insurance carriers continue to broadly generate strong underwriting results. Auto rate decreases in numerous states has led to increased competition for market share. The increased demand has created a competitive market to acquire customers seeking an auto policy, which has led to strong growth in both revenue as well as associated media costs. We expect advertising costs to remain elevated for the remainder of 2026. Our strategy is to capture the maximum level of carrier advertising budgets when we have an opportunity to drive incremental segment profit and take share from competitors. These incremental dollars have pressured overall segment margin while simultaneously contributing to robust segment profit.

Previous wording

The following is a reconciliation of net income (loss), the most directly comparable GAAP measure, to variable marketing margin:

Current wording

The following is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to variable marketing margin:

Previous wording

The following table is a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA.

Current wording

The following table is a reconciliation of net (loss) income, the most directly comparable GAAP measure, to Adjusted EBITDA.

Previous wording

As of June 30, 2026, we had $110.8 million of cash and cash equivalents, compared to $81.1 million of cash and cash equivalents as of December 31, 2025.

Current wording

As of September 30, 2026, we had $82.7 million of cash and cash equivalents, compared to $81.1 million of cash and cash equivalents as of December 31, 2025.

Previous wording

On August 21, 2025, we entered into a $475.0 million first lien term loan facility ("the 2025 Credit Facility"), consisting of a $75.0 million revolving credit facility (the "2025 Revolving Credit Facility") and a $400.0 million term loan facility (the "2025 Term Loan"), both with maturities of August 21, 2030. Proceeds from the 2025 Facility were used to refinance two previously outstanding term loans and for working capital and general corporate purposes.

Current wording

On August 21, 2025, we entered into a credit agreement (the "2025 Credit Agreement"), consisting of a $75.0 million revolving credit facility (the "2025 Revolving Facility") and a $400.0 million term loan facility (the "2025 Term Loan" and together with the 2025 Revolving Facility, the "2025 Credit Facility"), which matures on August 21, 2030. Proceeds from the 2025 Term Loan were used to refinance two previously outstanding term loans and for working capital and general corporate purposes.

Previous wording

As of July 30, 2026, we had $397.0 million borrowings outstanding under the 2025 Term Loan and we have $75.0 million available for borrowing under the 2025 Revolving Facility.

Current wording

As of November 6, 2026, we had $336.0 million borrowings outstanding under the 2025 Term Loan and we have $75.0 million available for borrowing under the 2025 Revolving Facility.

Previous wording

Net cash provided by operating activities increased in the first six months of 2026 from the first six months of 2025 primarily due to increases in revenue, partially offset by operating costs.

Current wording

Net cash provided by operating activities increased in the first nine months of 2026 from the first nine months of 2025 primarily due to increases in revenue, partially offset by operating costs.

Previous wording

Net cash used in investing activities in the first six months of 2026 and 2025 of $5.9 million and $6.2 million, respectively, consisted of capital expenditures primarily related to internally developed software.

Current wording

Net cash used in investing activities in the first nine months of 2026 and 2025 of $8.8 million and $6.9 million, respectively, consisted of capital expenditures primarily related to internally developed software, partially offset by proceeds from the sale of fixed assets in the first nine months of 2025.

Previous wording

Net cash used in financing activities in the first six months of 2026 of $5.1 million consisted primarily of $3.1 million in withholding taxes paid upon surrender of shares to satisfy obligations on equity awards, net of proceeds from the exercise of stock options and $2.0 million for scheduled payments on the 2025 Term Loan.

Current wording

Net cash used in financing activities in the first nine months of 2026 of $66.0 million consisted primarily of $62.7 million of payments on the 2025 Term Loan and $3.3 million in withholding taxes paid upon surrender of shares to satisfy obligations on equity awards, net of proceeds from the exercise of stock options.

Previous wording

Net cash provided by financing activities in the first six months of 2025 of $21.0 million consisted primarily of $49.5 million net proceeds from the 2024 Term Loan, partially offset by the repurchase of the 2025 Notes for $19.7 million, term loan repayments of $6.6 million and $2.3 million in withholding taxes paid upon surrender of shares to satisfy obligations on equity awards, net of proceeds from the exercise of stock options.

Current wording

Net cash used in financing activities in the first nine months of 2025 of $87.7 million consisted primarily of the repurchase of the 2025 Notes for $115.0 million, term loan repayments of $409.4 million, and $2.8 million in withholding taxes paid upon surrender of shares to satisfy obligations on equity awards, net of proceeds from the exercise of stock options, partially offset by net proceeds from term loans of $439.5 million.