Executive Summary

• Consolidated revenue for Q4 2025: \$319.7 million
• GAAP net income for Q4 2025: \$144.7 million or \$10.27 per diluted share
• Full year net leverage reduced to 2.4x from 3.5x at end 2024
• Insurance segment revenue up 25% year-over-year
• Adjusted EBITDA up 14% on 6% growth in Variable Marketing Margin (VMM)
• Company enters 2026 with strengthened financial profile and strategic focus on AI and consumer satisfaction

Key Financial Results

CEO & CFO Commentary

CEO Peyree: “Our company enters 2026 from a strong financial position as we begin executing our strategy to ‘Be the #1 Destination to Shop for Financial Products.’ This North Star shapes everything the team is working on to improve consumer satisfaction, deepen our relationships with network partners, and embed advances in AI into both our internal workstreams and customer funnels.”

CFO Jason Bengel: “Our commitment to generating operating leverage on continued strong VMM growth was evidenced again in Q4, with AEBITDA increasing 14% on 6% growth in VMM. Results exceeded prior guidance due to Insurance performance. Segment profit grew slightly over a difficult Q4 comparison last year, a record result for the business. The company’s financial profile strengthened further, with net leverage ending the year at 2.4x, a decline from 3.5x at year-end 2024. We remain well positioned to enjoy another year of healthy growth in our financial results.”

Business Segment Highlights

• Insurance: Segment revenue of \$214.6 million (+25% YoY), segment profit \$48.1 million (slight increase). Strong carrier spend environment expected to continue into 2026, with margin improvement as the company tactically drives marketing efficiency.
• Home: Segment revenue of \$36.2 million (+6% YoY), segment profit \$10.4 million (-11%). Home equity demand is strong, but primary mortgage activity remains historically low, pressuring margins.
• Consumer: Investment in Small Business concierge sales team expected to drive continued strong growth. Modest acceleration anticipated in other Consumer products; credit expansion from 2025 is not expected to repeat in 2026.

Financial Outlook for 2026

• Q1 2026 Revenue Guidance: \$317 – \$325 million
• Full-Year 2026 Guidance: Not fully disclosed, but expectations are for continued healthy growth and margin improvements.
• Guidance assumes targeted brand investments in H2 to support the North Star strategy. No assumptions about changes in interest rates or other macro factors.
• Segment-level assumptions for 2026:
  • Insurance: Continued strong carrier spend, margin improvement as marketing efficiency gains are realized.
  • Consumer: Small Business segment to drive growth, modest acceleration in other Consumer products, no repeat of last year’s credit expansion.
  • Home: Strong home equity demand, but primary mortgage activity remains low.
• LendingTree cannot provide a reconciliation of projected VMM or adjusted EBITDA to GAAP due to unknown effects of legal matters and tax considerations, which may significantly affect GAAP results in certain periods.

Balance Sheet & Cash Flow

• Cash and cash equivalents: \$140 million at year-end 2025 (vs. \$131 million at year-end 2024)
• Total liabilities: \$568.9 million (vs. \$609.9 million prior year)
• Total shareholders’ equity: \$286.8 million (vs. \$108.8 million prior year)
• Repayment and repurchase of convertible senior notes, and other financing activities, notably reduced net leverage.
• Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents: \$(242.0) million

Shareholder & Price-Sensitive Information

• Significant GAAP net income: \$144.7 million, largely driven by a \$146.4 million tax benefit to reduce the full valuation allowance against net deferred tax assets. This is a one-time item and may affect future earnings comparability.
• Balance sheet improvement: Net leverage reduced by more than 30% year-over-year, improving financial stability and potentially increasing future borrowing capacity.
• Segment growth: Insurance segment leads with double-digit growth; Home segment faces margin pressure despite revenue gains.
• Strategic focus: Investments in AI, consumer experience, and brand are expected to drive future value creation.
• Guidance surpassed: Q4 results exceeded prior guidance due to unexpectedly strong Insurance segment performance.
• Legal and tax risks: Company notes inability to predict timing and potential significance of legal matters and tax consequences, which could materially impact future GAAP results.

Potential Catalysts for Share Price Movement

• Record net income and reduced leverage may lead to improved investor confidence and share price appreciation.
• Strong Insurance segment performance and anticipated continuation of carrier spend could drive future revenue and profit growth.
• Strategic investments in AI and brand are likely to enhance competitive positioning and long-term shareholder value.
• One-time tax benefit, while boosting current earnings, may create volatility in future earnings periods.
• Ongoing legal and tax risks could introduce uncertainty and price volatility.