LendingTree Q3 2026: Strong Revenue, but a $98.8M Charge Stings

LendingTree's third quarter revenue of $343.6 million grew 11.6% year over year, clearing the Wall Street consensus of $329.7 million and marking the company's tenth consecutive quarter of double-digit top-line growth. GAAP earnings per share, however, came in at a loss of $5.15, missing expectations of $1.26, a gap that traces almost entirely to a single non-cash item.

That item is a $98.8 million goodwill impairment charge recorded during the quarter. Because goodwill impairments are non-cash write-downs of previously acquired intangible value rather than actual cash outflows, they can distort the headline loss figure significantly. The company also recorded restructuring and severance costs and litigation settlements, though those were far smaller contributors to the bottom-line shortfall.

The Insurance segment was the clearest bright spot, generating $234.9 million in revenue, up 15% year over year, and remaining the primary growth engine for the business. Home Equity lending also stood out, with revenue rising 20% year over year and driving growth within the broader Home segment. The Consumer segment saw segment profit decline despite modest revenue growth, and rising variable marketing expense compressed the company-wide variable marketing margin.

On the balance sheet and capital allocation front, management voluntarily repaid $60 million of long-term debt during the quarter, which CFO Jason Bengel cited as a move to improve free cash flow generation. The company also signaled it intends to repurchase shares in the fourth quarter of 2026, which would be its first buyback since the first quarter of 2022. No program size was disclosed.

CEO Scott Peyree highlighted a wave of AI-driven product changes rolled out during the quarter, including voice AI tools designed to help consumers evaluate offers before speaking with a lender, AI-generated overviews on offer pages, and a "controlled distribution" feature meant to prevent multiple lenders or carriers from contacting a shopper simultaneously. Management views these features as a path to higher consumer satisfaction and increased monetization of the platform's traffic over time.

Looking ahead, LendingTree raised its full-year 2026 guidance to revenue of $1.30 to $1.31 billion and adjusted EBITDA of $151 to $153 million, with the CFO noting those midpoints imply year-over-year growth of 17% and 14%, respectively. Implied fourth-quarter revenue guidance of $315 to $325 million would represent a step down from the third quarter's level, a seasonal pattern worth monitoring alongside the trajectory of the Insurance segment and any update on the buyback program.