📊 TREE Key Takeaways
Is LendingTree, Inc. (TREE) a Good Investment?
Despite strong 24.1% revenue growth, LendingTree exhibits critical financial stress with interest coverage of only 1.2x—unsustainably low and indicating the company barely covers its debt obligations. Weak profitability metrics (5.3% net margin, 5.7% ROE), poor cash flow generation (2.7% FCF margin), and high leverage (1.27x debt-to-equity) substantially outweigh growth momentum, signaling underlying operational inefficiency and refinancing risk.
LendingTree, Inc. Key Strengths (TREE)
- Strong revenue growth of 24.1% year-over-year demonstrates market demand and scaling
- Healthy current and quick ratios at 1.89x indicating adequate short-term liquidity
- Low capital intensity (2.8M CapEx on 327M revenue) suggests scalable, asset-light business model
TREE Stock Risks: LendingTree, Inc. Investment Risks
- Interest coverage ratio of 1.2x is critically low; any earnings decline or rate increase threatens debt sustainability
- Operating cash flow (11.6M) trails net income (17.3M), suggesting poor earnings quality and cash conversion
- High absolute debt load (387M) combined with weak capital returns (5.7% ROE) and thin margins constrains financial flexibility and increases default risk
Key Metrics to Watch
- Interest coverage ratio—must trend above 1.5x to reduce distress risk
- Free cash flow generation and FCF-to-revenue ratio—currently 2.7% is insufficient for debt service sustainability
- Operating margin and net margin trends—weak profitability must expand to justify leverage
LendingTree, Inc. (TREE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.7% FCF margin may limit capital allocation flexibility.
TREE Profit Margin, ROE & Profitability Analysis
TREE vs Finance Sector: How LendingTree, Inc. Compares
How LendingTree, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LendingTree, Inc. Stock Overvalued? TREE Valuation Analysis 2026
Based on fundamental analysis, LendingTree, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LendingTree, Inc. Balance Sheet: TREE Debt, Cash & Liquidity
TREE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: LendingTree, Inc.'s revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $-9.46 indicates the company is currently unprofitable.
TREE Revenue Growth, EPS Growth & YoY Performance
TREE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $239.7M | -$12.4M | $-0.92 |
| Q3 2025 | $260.8M | $1.0M | $0.48 |
| Q2 2025 | $210.1M | $1.0M | $-0.26 |
| Q1 2025 | $167.8M | $1.0M | $0.08 |
| Q3 2024 | $155.2M | -$115.0K | $-3.72 |
| Q2 2024 | $182.5M | -$115.0K | $-0.01 |
| Q1 2024 | $167.8M | $1.0M | $0.08 |
| Q3 2023 | $155.2M | -$115.0K | $-10.46 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LendingTree, Inc. Dividends, Buybacks & Capital Allocation
TREE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for LendingTree, Inc. (CIK: 0001434621)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TREE
What is the AI rating for TREE?
LendingTree, Inc. (TREE) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TREE's key strengths?
Claude: Strong revenue growth of 24.1% year-over-year demonstrates market demand and scaling. Healthy current and quick ratios at 1.89x indicating adequate short-term liquidity.
What are the risks of investing in TREE?
Claude: Interest coverage ratio of 1.2x is critically low; any earnings decline or rate increase threatens debt sustainability. Operating cash flow (11.6M) trails net income (17.3M), suggesting poor earnings quality and cash conversion.
What is TREE's revenue and growth?
LendingTree, Inc. reported revenue of $327.3M.
Does TREE pay dividends?
LendingTree, Inc. does not currently pay dividends.
Where can I find TREE SEC filings?
Official SEC filings for LendingTree, Inc. (CIK: 0001434621) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TREE's EPS?
LendingTree, Inc. has a diluted EPS of $1.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TREE's fundamental grade?
Based on our AI fundamental analysis in June 2026, LendingTree, Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TREE stock overvalued or undervalued?
Valuation metrics for TREE: ROE of 5.7% (sector avg: 12%), net margin of 5.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is TREE's AI grade for 2026?
Our dual AI analysis gives LendingTree, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TREE's free cash flow?
LendingTree, Inc.'s operating cash flow is $11.6M, with capital expenditures of $2.8M. FCF margin is 2.7%.
How does TREE compare to other Finance stocks?
Vs Finance sector averages: Net margin 5.3% (avg: 25%), ROE 5.7% (avg: 12%), current ratio 1.89 (avg: 1.2).