LendingTree Sees 14% VMD Growth, 28% EBITDA Rise and 60% Small Business Surge
Variable marketing dollars at LendingTree rose 14% in 2025 while adjusted EBITDA climbed 28%, driven by insurance’s $174 million VMD (+10%) and a 60% surge in small business revenue (78% in Q4). AI-led automation contributed over $10 million in quarterly incremental revenue and lifted network conversions 17% in Q4.
1. Earnings Performance
In 2025, LendingTree’s total variable marketing dollars grew 14% year-over-year, while adjusted EBITDA increased by 28%, reflecting a strong finish to the year and positioning the company for another record revenue quarter in Q1.
2. Insurance and Small Business Segments
The insurance segment generated $174 million in variable marketing dollars, up 10% from 2024, with carriers ranked four through ten growing revenue by 65%. The small business channel delivered a 60% annual revenue increase and a 78% jump in Q4, supported by an expanded concierge sales force and stable consumer segment margins at 51%.
3. AI Initiatives and Strategic Priorities
AI-driven call-center automation and search enhancements contributed over $10 million in incremental revenue per quarter and boosted network conversions by 17% in Q4. Management outlined a four-pillar 2026 plan emphasizing product breadth, user experience improvements, brand rebuilding (under $10 million spend), and debt reduction with greater cash flexibility.
4. Home Segment Outlook
Home segment revenue rose 6% in Q4, though margins were pressured by higher media costs and lower lender conversion rates. Guidance assumes no further mortgage-rate relief, with refinance activity expected to pick up meaningfully if rates decline to approximately 5.75%–5.5%, representing potential upside to outlook.