LendingTree Posts 14% VMD Gain, $174M Insurance VMD, 78% Q4 Small Business Growth
LendingTree’s variable marketing dollars rose 14% in 2025, driving adjusted EBITDA up 28% and insurance VMD reached $174 million (+10%). Small business revenue surged 60% for the year (78% in Q4) as AI initiatives contributed over $10 million in quarterly revenue and boosted network conversions 17%.
1. Q4 Financial Performance
LendingTree’s variable marketing dollars grew 14% in 2025, lifting adjusted EBITDA by 28% as all three reportable segments delivered double-digit VMD gains. Management projects first-quarter revenue to set a new record based on sustained demand and robust budgets among top carriers.
2. Insurance and Small Business Momentum
Insurance led with $174 million in VMD (up 10%) supported by 65% revenue growth from carriers ranked four through ten. The small business channel powered consumer segment profit, with revenue climbing 78% in Q4 and 60% for the full year, while maintaining a 51% segment margin.
3. AI Initiatives Driving Growth
Deployments like call-center automation generated over $10 million in incremental quarterly revenue and increased network conversion rates by 17% year-over-year in Q4. These AI enhancements are part of a four-pillar strategy to broaden product offerings and improve customer experience.
4. Home Segment Outlook and Guidance
Home revenue rose 6% in Q4 but margins were squeezed by higher media costs and lower lender conversion rates. Guidance assumes no further mortgage-rate relief, with management noting any rate declines toward 5.75%–5.5% could provide upside through revived refinance activity.