Key Highlights

  • Revenue rose 12% to USD 343.6 million in the third quarter of 2026, the tenth straight quarter of double-digit growth according to the CEO.
  • GAAP net loss was USD 72.4 million, or USD 5.15 per diluted share, after a non-cash Goodwill Impairment of USD 98.8 million.
  • Adjusted EBITDA was USD 39.6 million, roughly flat against USD 39.8 million a year earlier, as variable Marketing Margin rose 2% to USD 94.9 million.
  • Full-year 2026 Revenue is guided to USD 1.30 billion to USD 1.31 billion, and share repurchases are planned for the fourth quarter for the first time since the first quarter of 2022.

Revenue Growth Meets a Non-Cash Impairment

LendingTree (NASDAQ:TREE) reported third quarter 2026 results on November 3, 2026, for the quarter ended September 30. Revenue grew 12% from USD 307.8 million, with all three segments higher: Insurance up 15% to USD 234.9 million, Home up 9% to USD 41.5 million and Consumer up 2% to USD 67.2 million. Operating results swung to a loss of USD 70.3 million from income of USD 28.8 million because of the USD 98.8 million goodwill impairment. The release described the charge as non-cash but the extract does not explain its cause.

Why Margins Lag Revenue in the Marketplace Model

LendingTree runs an online marketplace that connects consumers with lenders and insurers, and it is paid when those partners acquire customers. Selling and marketing expense rose to USD 260.5 million from USD 225.1 million, and variable marketing expense grew 16%, faster than revenue. That held variable marketing margin to 28% of revenue from 30%, and Consumer segment profit fell 16% to USD 29.6 million. Home Equity revenue rose 20% to USD 34.0 million, while the company said Interest Rate headwinds continue to affect the Home segment. Net interest expense nearly halved to USD 9.1 million from USD 17.9 million, and the extract does not give the reason. Insurance made up about 68% of revenue, simple arithmetic on the reported segment figures, so that segment drives the total.

Debt Paydown, Buyback Plan and Outlook Risks

The CFO said the company voluntarily repaid USD 60 million of long-term Debt during the quarter, and intends to repurchase shares in the fourth quarter. For the full year, the company guides revenue of USD 1.30 billion to USD 1.31 billion, variable marketing margin of USD 370 million to USD 375 million and adjusted EBITDA of USD 151 million to USD 153 million, with fourth quarter revenue of USD 315 million to USD 325 million. That implies a sequential revenue decline from USD 343.6 million, simple arithmetic on the guidance. The company cannot reconcile its forward non-GAAP measures to GAAP because of legal and tax uncertainty, and dependence on partner Advertising budgets remains a risk.

Where Things Stand

The goodwill charge, not operations, drove the loss: revenue grew 12% and adjusted EBITDA was close to last year's level. LendingTree (NASDAQ:TREE) showed healthy top-line momentum, but margin was squeezed because marketing costs grew faster than revenue. The outlook implies lower fourth quarter revenue and adjusted EBITDA of USD 34 million to USD 36 million, so growth is expected to slow. The first share repurchase since 2022, the Home segment's sensitivity to interest rates and the Insurance segment's concentration of revenue are the main items to watch.