Mon, May 5, 10:02 AM (18 days ago)
**LendingTree, Inc. (TREE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $239.7 million, up 43% from Q1 2024 ($167.8 million). - **Profit Margins:** Operating loss of $7.1 million, down from a profit of $7.2 million in Q1 2024. Net loss of $12.4 million, compared to a net income of $1.0 million in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $0.2 million, down from $5.7 million provided in Q1 2024. Net cash provided by financing activities was $23.4 million, significantly lower than $115.7 million in Q1 2024. - **Earnings Changes:** Net loss per share was $0.92, compared to a net income per share of $0.08 in Q1 2024. **Segment Performance:** - **Home:** Revenue up 22% to $37.0 million. Segment profit increased 37% to $13.1 million. - **Consumer:** Revenue up 9% to $56.0 million. Segment profit decreased 1% to $27.1 million. - **Insurance:** Revenue up 71% to $146.7 million. Segment profit increased 16% to $38.7 million. **Trends and Uncertainties:** - **Economic Conditions:** Challenging interest rate environment and inflationary pressures continue to impact mortgage lending partners and the insurance segment. - **Debt Activity:** Drew $50.0 million on the 2024 Term Loan and repurchased $20.0 million of 2025 Notes. - **Legal Contingencies:** $15.2 million in litigation expenses due to the Mantha litigation. **Future Operations Impact:** - **Debt Repayment:** Plans to use cash on hand and future cash flows for the repayment of the $95.3 million outstanding principal amount of 2025 Notes. - **Market Conditions:** Continues to monitor economic conditions, including interest rates and inflation, and their impact on financial position and results of operations. - **Segment Growth:** Focus on optimizing marketing mix and growing channels outside of internet search in the Insurance segment. Positive outlook for home equity and small business products. **Key Metrics:** - **Spring Platform:** Added 0.8 million new users, bringing cumulative sign-ups to 32.1 million. $3.7 million of revenue attributed to registered Spring users. - **Variable Marketing Margin:** $77.7 million, up from $69.4 million in Q1 2024. **Financial Position:** - **Cash and Cash Equivalents:** $126.4 million as of March 31, 2025, up from $106.6 million at the end of 2024. - **Debt:** $95.3 million outstanding on the 2025 Notes, with intentions to repay using cash on hand and future cash flows.