LendingTree, Inc. (TREE) - Stock Analysis
Last updated: Jan 15, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
LendingTree shows strong short-term growth supported by Q3 2025 double-digit revenue growth, profitability turnaround, sharp 22% recent price appreciation through early January 2026, and positive analyst sentiment despite leverage and sector pressures.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Improved margins ⢠Positive FCF ⢠High leverage TREE shows a clear operational turnaround with EBITDA margin up to 11% and GAAP net income of $10.2m, improved liquidity and positive FCF, but remains constrained by very high leverage and large intangibles.
Price Behavior
Key Price Behavior Insights: ⢠Strong breakout ⢠Rapid ascent ⢠Prior consolidation Support Level: $50â$55 Resistance Level: $58â$60 Over the last month TREE rallied from the lowâmid $50s to above $62 on a breakout past $58â$60, showing bullish momentum but with short-term pullback risk after a rapid run.
Sentiment & News
Key News Insights: ⢠Analyst buy consensus ⢠Leadership promotions ⢠Mortgage/BNPL tailwinds LendingTree shows renewed bullish momentumâanchored by analyst "Buy" consensus, leadership promotions, a strong price spike and tech/market positioning that suggest undervaluation amid favorable mortgage and BNPL trends.
AI Summary
LendingTree's shift to positive FCF and modest GAAP profitability reframes it from a growth-at-all-costs story to a margin-and-deleveraging play where continued execution on AI monetization and a mix-shift into higher-margin insurance/lending products is required to justify current premium multiples. If management can drive net leverage toward ~2.0x while delivering consecutive quarters of midâteens EBITDA margins, the valuation is supported; failure to cut debt or sustain margin expansion (or material receivables trouble) would likely trigger sharp multiple compression.
Description
LendingTree, Inc. operates an online consumer marketplace in the United States organized into three segments: Home (mortgage origination, refinancing, home equity and related brokerage services), Consumer (credit cards, personal and small-business loans, student and auto loans, deposit products and related credit services) and Insurance (comparison tools and matchmaking to insurance quote aggregators). The company also maintains several consumer finance brands and platformsâincluding Student Loan Hero, QuoteWizard, ValuePenguin and the investing/banking platform Stashâthat provide comparison, analysis and account services. Founded in 1996, the firm is headquartered in Charlotte, North Carolina and changed its name from Tree.com in 2015.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 12 | Jan 19 | TREE | LendingTree, Inc. | LendingTree shows strong short-term growth supported by Q3 2025 double-digit revenue growth, profitability turnaround, sharp 22% recent price appreciation through early January 2026, and positive analyst sentiment despite leverage and sector pressures. | Closed | +15.6% |