A month has gone by since the last earnings report for Tree.com (TREE Quick QuoteTREE - Free Report) . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Tree.com due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for LendingTree, Inc. before we dive into how investors and analysts have reacted as of late.

LendingTree Lags Q4 Earnings Estimates, Revenue Improves Y/Y

LendingTree reported fourth-quarter 2025 adjusted net loss per share of 39 cents against the Zacks Consensus Estimate of earnings of 90 cents and the year-ago adjusted net income of $1.16 per share.

The bottom-line performance was primarily affected by higher total costs and expenses. However, growth in revenues and an increase in adjusted EBITDA offered some support.

Results exclude certain non-recurring items. After considering these, the company reported a GAAP net income of $144.7 million or $10.27 per share, up substantially from $7.5 million or 55 cents per share in the prior-year quarter.

For 2025, adjusted net income per share of $3.38 missed the consensus estimate of $3.84. The figure represented a rise of 5.9% from the previous year. The company reported GAAP net income of $151.3 million against a loss of $41.7 million in 2024.

Revenues, Variable Marketing Margin Increase

Total revenues in the fourth quarter grew 22.2% year over year to $319.7 million. The reported figure surpassed the Zacks Consensus Estimate by 11.5%.

In 2025, total revenues increased 24.1% year over year to $1.12 billion. Also, the top line surpassed the Zacks Consensus Estimate of $1.06 billion.

The total cost of revenues was $11.6 million, up 18.6% from the prior-year quarter.

Total costs and expenses were $297.5 million, up 22.1% from the previous-year quarter.

Adjusted EBITDA totaled $36.7 million, up 14% from the year-ago quarter. The variable marketing margin was $92 million, up 6.1%.

As of Dec. 31, 2025, cash and cash equivalents were $81.1 million compared with $106.6 million as of Dec. 31, 2024. Long-term debt was $387.7 million compared with $344.1 million as of Dec. 31, 2024.

Outlook

First-Quarter 2026

Total revenues are projected to be between $317 million and $325 million.

Adjusted EBITDA and variable marketing margin are anticipated to be $39-$41 million and $94-$99 million, respectively.

Management expects the adjusted EBITDA to variable marketing margin ratio to be around 41%.

2026

Total revenues are expected to be between $1.28 billion and $1.33 billion.

Adjusted EBITDA is projected to be in the range of $150-$160 million.

The variable marketing margin is expected to be in the range of $374-$394 million.

The adjusted EBITDA to variable marketing margin ratio is expected to be around 40%.

Long-term

Adjusted EBITDA is expected to grow at a double-digit rate.

Management targets variable marketing margin in the range of 45%-50%.

How Have Estimates Been Moving Since Then?

Investors have witnessed a upward trend in estimates review over the past two months.

The consensus estimate has shifted 56.3% due to these changes.

VGM Scores

At this time, Tree.com has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Tree.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.