LendingTree, Inc. 10-Q

Item 1. Financial Statements LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2026 December 31, 2025 (in thousands, except par value and share amounts) ASSETS: Cash and cash equivalents $ 85,518 $ 81,073 Accounts receivable (net of allowance of $ 1,493 and $ 1,322 , respectively) 117,492 110,582 Prepaid and other current assets 41,389 38,053 Total current assets 244,399 229,708 Property and equipment (net of accumulated depreciation of $ 30,389 and $ 28,387 , respectively) 31,434 32,834 Operating lease right-of-use assets 30,812 31,655 Goodwill 381,539 381,539 Intangible assets, net 36,804 38,092 Deferred income tax assets 119,337 124,867 Other non-current assets 19,559 16,997 Total assets $ 863,884 $ 855,692 LIABILITIES: Current portion of long-term debt $ 3,929 $ 3,926 Accounts payable, trade 7,791 6,735 Accrued expenses and other current liabilities 117,611 126,803 Total current liabilities 129,331 137,464 Long-term debt 387,017 387,694 Operating lease liabilities 42,660 43,597 Other non-current liabilities 142 140 Total liabilities 559,150 568,895 Commitments and contingencies (Note 11) SHAREHOLDERS' EQUITY: Preferred stock $ 0.01 par value; 5,000,000 shares authorized; none issued or outstanding — — Common stock $ 0.01 par value; 50,000,000 shares authorized; 17,308,484 and 17,124,837 shares issued, respectively, and 13,953,018 and 13,769,371 shares outstanding, respectively 173 171 Additional paid-in capital 1,281,572 1,280,903 Accumulated deficit ( 710,833 ) ( 728,099 ) Treasury stock; 3,355,466 and 3,355,466 shares, respectively ( 266,178 ) ( 266,178 ) Total shareholders' equity 304,734 286,797 Total liabilities and shareholders' equity $ 863,884 $ 855,692 The accompanying notes to consolidated financial statements are an integral part of these statements. 3 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, 2026 2025 (in thousands, except per share amounts) Revenue $ 327,267 $ 239,728 Costs and expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 11,696 9,908 Selling and marketing expense 238,568 172,751 General and administrative expense 27,990 30,660 Product development 11,467 11,904 Depreciation 4,185 4,297 Amortization of intangibles 1,288 1,307 Restructuring and severance 939 798 Litigation settlements and contingencies 20 15,212 Total costs and expenses 296,153 246,837 Operating income (loss) 31,114 ( 7,109 ) Other income (expense), net: Interest expense, net ( 8,566 ) ( 9,084 ) Other income 369 1,388 Income (loss) before income taxes 22,917 ( 14,805 ) Income tax (expense) benefit ( 5,651 ) 2,430 Net income (loss) and comprehensive income (loss) $ 17,266 $ ( 12,375 ) Weighted average shares outstanding: Basic 13,824 13,441 Diluted 14,137 13,441 Net income (loss) per share: Basic $ 1.25 $ ( 0.92 ) Diluted $ 1.22 $ ( 0.92 ) The accompanying notes to consolidated financial statements are an integral part of these statements. 4 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) Common Stock Treasury Stock Total Number of Shares Amount Additional Paid-in Capital Accumulated Deficit Number of Shares Amount (in thousands) Balance as of December 31, 2025 $ 286,797 17,125 $ 171 $ 1,280,903 $ ( 728,099 ) 3,355 $ ( 266,178 ) Net income and comprehensive income 17,266 — — — 17,266 — — Non-cash compensation 4,060 — — 4,060 — — — Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes ( 3,389 ) 183 2 ( 3,391 ) — — — Balance as of March 31, 2026 $ 304,734 17,308 $ 173 $ 1,281,572 $ ( 710,833 ) 3,355 $ ( 266,178 ) Common Stock Treasury Stock Total Number of Shares Amount Additional Paid-in Capital Accumulated Deficit Number of Shares Amount (in thousands) Balance as of December 31, 2024 $ 108,821 16,747 $ 167 $ 1,254,239 $ ( 879,407 ) 3,355 $ ( 266,178 ) Net income and comprehensive loss ( 12,375 ) — — — ( 12,375 ) — — Non-cash compensation 9,927 — — 9,927 — — — Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes ( 2,630 ) 142 2 ( 2,632 ) — — — Balance as of March 31, 2025 $ 103,743 16,889 $ 169 $ 1,261,534 $ ( 891,782 ) 3,355 $ ( 266,178 ) The accompanying notes to consolidated financial statements are an integral part of these statements. 5 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2026 2025 (in thousands) Cash flows from operating activities: Net income (loss) and comprehensive income (loss) $ 17,266 $ ( 12,375 ) Adjustments to reconcile net income to net cash provided by operating activities: Loss on impairments and disposal of assets 3 254 Amortization of intangibles 1,288 1,307 Depreciation 4,185 4,297 Non-cash compensation expense 4,060 9,927 Deferred income taxes 5,530 396 Loss on investments 359 — Bad debt expense 196 86 Amortization of debt issuance costs 261 473 Amortization of debt discount 164 103 Reduction in carrying amount of ROU asset, offset by change in operating lease liabilities ( 242 ) ( 227 ) Gain on settlement of convertible debt — ( 266 ) Changes in assets and liabilities: Accounts receivable ( 7,106 ) 12,463 Prepaid and other assets ( 6,466 ) ( 4,680 ) Accounts payable, accrued expenses and other current liabilities ( 8,026 ) ( 8,798 ) Income taxes 77 ( 3,252 ) Other, net 3 82 Net cash provided by (used in) operating activities 11,552 ( 210 ) Cash flows from investing activities: Capital expenditures ( 2,770 ) ( 3,414 ) Other investing activities 52 — Net cash used in investing activities ( 2,718 ) ( 3,414 ) Cash flows from financing activities: Proceeds from term loan — 50,000 Repayment of term loan ( 1,000 ) ( 3,750 ) Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options ( 3,389 ) ( 2,630 ) Repurchase of 0.50 % Convertible Senior Notes — ( 19,700 ) Payment of debt issuance costs — ( 500 ) Net cash (used in) provided by financing activities ( 4,389 ) 23,420 Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents 4,445 19,796 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 81,073 106,594 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 85,518 $ 126,390 Supplemental cash flow information: Interest paid $ 8,018 $ 8,828 The accompanying notes to consolidated financial statements are an integral part of these statements. 6 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1— ORGANIZATION Company Overview LendingTree, Inc. is the parent of LT Intermediate Company, LLC, which holds all of the outstanding ownership interests of LendingTree, LLC, and LendingTree, LLC owns several companies (collectively, “LendingTree” or the “Company”). LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, auto loans, credit cards, deposit accounts, personal loans, small business loans, insurance quotes and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance, or other related offerings they are seeking. The Company also serves as a valued partner to lenders and other providers seeking an efficient, scalable, and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers. The consolidated financial statements include the accounts of LendingTree and all its wholly-owned entities. Intercompany transactions and accounts have been eliminated. Basis of Presentation The accompanying unaudited interim consolidated financial statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or any other period. The accompanying consolidated balance sheet as of December 31, 2025 was derived from audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”). The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in the 2025 Annual Report. Certain prior period amounts have been reclassified to conform to the current period presentation in the consolidated financial statements. NOTE 2— SIGNIFICANT ACCOUNTING POLICIES Accounting Estimates Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying consolidated financial statements include: the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; litigation accruals; contract assets; various other allowances, reserves and accruals; assumptions related to the determination of stock-based compensation; and the determination of right-of-use assets and lease liabilities. The Company considered the impact of the current economic conditions, including interest rates and inflation on the assumptions and estimates used when preparing its consolidated financial statements including, but not limited to, the allowance for doubtful accounts, valuation allowances, contract asset, and the recoverability of long-lived assets, goodwill and intangible assets. These assumptions and estimates may change as new events occur and additional information is obtained. If 7 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) economic conditions worsen, such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity. Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at March 31, 2026, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace. Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service. Other than a support services office in India, the Company's operations are geographically limited to and dependent upon the economic condition of the United States. Recently Issued Accounting Pronouncements In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2024-03 which requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, including adoption in interim periods. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In July 2025, the FASB issued ASU 2025-05 which provides a practical expedient permitting an entity to assume that conditions at the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current classified accounts receivable and contract assets. This ASU is effective for annual reporting periods beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The guidance in this ASU is to be applied on a prospective basis. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06 for targeted improvements to the accounting for internal-use software. The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs. This ASU is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In December 2025, the FASB issued ASU No. 2025-11 which clarifies interim disclosure requirements in order to improve the consistency, clarity and navigability of interim financial statements. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance in this ASU can be applied either on a prospective or a retrospective basis. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. 8 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) NOTE 3— REVENUE The Company derives its revenue primarily from match fees and closing fees. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and promised services have transferred to the customer. The Company's services are generally transferred to the customer at a point in time. Revenue from Home products is primarily generated from upfront match fees paid by mortgage Network Partners that receive a loan request, and in some cases upfront fees for clicks or call transfers. Match fees and upfront fees for clicks and call transfers are earned through the delivery of loan requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a loan request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a loan request to the customer. Revenue from Consumer products is generated by match and other upfront fees for clicks or call transfers, as well as from closing fees and approval fees. Closing fees are derived from lenders on certain auto loans, business loans and personal loans when the lender funds a loan with the consumer. Approval fees are derived from credit card issuers when the credit card consumer receives card approval from the credit card issuer. The Company recognizes revenue on closing fees and approval fees at the point when a loan request or a credit card consumer is delivered to the customer. The Company's contractual right to closing fees and approval fees is not contemporaneous with the satisfaction of the performance obligation to deliver a loan request or a credit card consumer to the customer. As such, the Company records a contract asset at each reporting period-end related to the estimated variable consideration on closing fees and approval fees for which the Company has satisfied the related performance obligation but are still pending the loan closing or credit card approval before the Company has a contractual right to payment. The closing fee on an original loan and approval is estimated using the Company's historical closing rates and historical time between when a consumer request for a loan or credit card is delivered to the lender or card issuer and when the loan is closed by the lender or approved by the card issuer. The closing fee on a renewal loan is estimated using historical renewal and commission rates. Revenue from the Company's Insurance products is primarily generated from upfront match fees and upfront fees for website clicks or fees for calls. Match fees and upfront fees for clicks and call transfers are earned through the delivery of consumer requests that originated through the Company's websites or affiliates. The Company recognizes revenue at the time a consumer request is delivered to the customer, provided that no significant obligations remain. The Company's contractual right to the match fee consideration is contemporaneous with the satisfaction of the performance obligation to deliver a consumer request to the customer. The total contract asset related to estimated variable consideration was $ 39.4 million and $ 33.5 million at March 31, 2026 and December 31, 2025, respectively, of which $ 25.2 million and $ 22.5 million, respectively, is included in prepaid and other current assets on the consolidated balance sheet. The non-current contract asset is included in other non-current assets on the consolidated balance sheet. Revenue recognized in any reporting period includes estimated variable consideration for which the Company has satisfied the related performance obligations but are still pending the occurrence or non-occurrence of a future event outside the Company's control (such as lenders providing loans to consumers or credit card approvals of consumers) before the Company has a contractual right to payment. The Company recognizes increases or decreases to such revenue from prior periods. The Company recognized an increase for closing and approval fees of $ 0.2 million in the first quarter of 2026 and an increase of $ 0.2 million in the first quarter of 2025. NOTE 4— ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, previous loss history, current and expected economic conditions and the specific customer's current and expected ability to pay its obligation. Accounts receivable are considered past due when they are outstanding longer than the contractual payment terms. Accounts receivable are written off when management deems them uncollectible. 9 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) A reconciliation of the beginning and ending balances of the allowance for doubtful accounts is as follows (in thousands) : Three Months Ended March 31, 2026 2025 Balance, beginning of the period $ 1,322 $ 1,407 Charges to earnings 196 86 Write-off of uncollectible accounts receivable ( 26 ) ( 51 ) Recoveries collected 1 16 Balance, end of the period $ 1,493 $ 1,458 NOTE 5— GOODWILL AND INTANGIBLE ASSETS The balance of goodwill, net and intangible assets, net is as follows (in thousands) : March 31, 2026 December 31, 2025 Goodwill $ 903,227 $ 903,227 Accumulated impairment losses ( 521,688 ) ( 521,688 ) Net goodwill $ 381,539 $ 381,539 Intangible assets with indefinite lives $ 10,142 $ 10,142 Intangible assets with definite lives, net 26,662 27,950 Total intangible assets, net $ 36,804 $ 38,092 Goodwill and Indefinite-Lived Intangible Assets The Company's goodwill at each of March 31, 2026 and December 31, 2025 consisted of $ 59.3 million associated with the Home segment, $ 166.1 million associated with the Consumer segment, and $ 156.1 million associated with the Insurance segment. The Company monitors each of the reporting units and the impact of business or economic changes on the fair value of the reporting unit. Changes in the timing of the recovery of the mortgage business, inflation, interest rates and other changes in current expectations could cause an impairment to the Insurance, Mortgage, or Consumer reporting units. Intangible assets with indefinite lives relate to the Company's trademarks. Intangible Assets with Definite Lives Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Amortization Net Customer lists 69,100 ( 42,438 ) 26,662 Balance at March 31, 2026 $ 69,100 $ ( 42,438 ) $ 26,662 Cost Accumulated Amortization Net Customer lists $ 69,100 $ ( 41,150 ) $ 27,950 Balance at December 31, 2025 $ 69,100 $ ( 41,150 ) $ 27,950 10 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of March 31, 2026, future amortization is estimated to be as follows (in thousands) : Amortization Expense Remainder of current year $ 3,803 Year ending December 31, 2027 4,948 Year ending December 31, 2028 4,539 Year ending December 31, 2029 2,767 Year ending December 31, 2030 2,767 Thereafter 7,838 Total intangible assets with definite lives, net $ 26,662 NOTE 6— ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands) : March 31, 2026 December 31, 2025 Accrued advertising expense $ 76,972 $ 69,250 Accrued compensation and benefits 13,295 25,707 Accrued professional fees 1,244 1,141 Customer deposits and escrows 8,386 8,114 Current lease liabilities 4,247 4,394 Accrued contingencies 6,712 13,001 Other 6,755 5,196 Total accrued expenses and other current liabilities $ 117,611 $ 126,803 NOTE 7— SHAREHOLDERS' EQUITY Basic and diluted income per share was determined based on the following share data (in thousands) : Three Months Ended March 31, 2026 2025 Weighted average basic common shares 13,824 13,441 Effect of stock options — — Effect of dilutive share awards 313 — Weighted average diluted common shares 14,137 13,441 For the first quarter of 2026 the weighted average shares that were anti-dilutive, and therefore excluded from the calculation of diluted income per share, included options to purchase 0.8 million shares of common stock and an immaterial amount of restricted stock units. For the first quarter of 2025, the Company was in a net loss position and, as a result, no potentially dilutive securities were included in the denominator for computing diluted loss per share, because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding was used to compute loss per share. Approximately 0.2 million shares related to potentially dilutive securities were excluded from the calculation of diluted loss per share for the first quarter of 2025, because their inclusion would have been anti-dilutive. For the first quarter of 2025 the weighted average shares that were anti-dilutive, and therefore excluded from the calculation of diluted income per share, included options to purchase 0.9 million shares of common stock and an immaterial amount of restricted stock units. 11 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The convertible notes and the warrants issued by the Company could have been converted or exercised, respectively, for the Company’s common stock, subject to certain contingencies. These convertible notes were settled in 2025 and the warrants have expired and are no longer outstanding. The if-converted method was used for diluted net income per share calculation of our convertible notes. Approximately 0.3 million shares related to the potentially dilutive shares of the Company's common stock associated with the 0.50 % Convertible Senior Notes due July 15, 2025 for the first quarter of 2025 were excluded from the calculation of diluted income per share because their inclusion would have been anti-dilutive. Shares of the Company's common stock associated with the warrants issued by the Company in 2020 were excluded from the calculation of diluted loss per share for the first quarter of 2026 and for the first quarter of 2025, as they were anti-dilutive because the strike price of the warrants was greater than the average market price of the Company's common stock during the relevant periods. The warrants expired on February 11, 2026. Equity Distribution Agreement In July 2024, the Company entered into an Equity Distribution Agreement in connection with the establishment of an ATM Equity Program under which the Company may sell up to an aggregate of $ 50.0 million of shares of the Company's common stock. No sales were made under the Equity Distribution Agreement during the three months ended March 31, 2026. Common Stock Repurchases The Company has a plan authorized for the repurchase of LendingTree's common stock. During the first quarter of 2026 and the first quarter of 2025, the Company did no t repurchase shares of its common stock. At March 31, 2026, approximately $ 96.7 million of the previous authorizations to repurchase common stock remain available. NOTE 8— STOCK-BASED COMPENSATION Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended March 31, 2026 2025 Cost of revenue $ 105 $ ( 30 ) Selling and marketing expense 601 657 General and administrative expense 2,721 8,371 Product development 633 869 Restructuring and severance — 60 Total non-cash compensation $ 4,060 $ 9,927 12 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Stock Options A summary of changes in outstanding stock options is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2026 359,477 $ 228.86 Granted — — Exercised — — Forfeited — — Expired ( 8,351 ) 82.14 Options outstanding at March 31, 2026 351,126 232.35 2.30 $ — Options exercisable at March 31, 2026 351,126 $ 232.35 2.30 $ — (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $ 42.88 on the last trading day of the quarter ended March 31, 2026 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on March 31, 2026. The intrinsic value changes based on the market value of the Company's common stock. Stock Options with Market Conditions A summary of changes in outstanding stock options with market conditions at target is as follows: Number of Options with Market Conditions Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2026 481,669 $ 195.10 Granted — — Exercised — — Forfeited — — Expired — — Options outstanding at March 31, 2026 481,669 195.10 0.53 $ — Options exercisable at March 31, 2026 481,669 $ 195.10 0.53 $ — (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $ 42.88 on the last trading day of the quarter ended March 31, 2026 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on March 31, 2026. The intrinsic value changes based on the market value of the Company's common stock. As of March 31, 2026, no additional performance-based nonqualified stock options with a market condition had been earned or remain available to be earned. 13 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Restricted Stock Units A summary of changes in outstanding nonvested restricted stock units (“RSUs”) is as follows: RSUs Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2026 720,460 $ 41.50 Granted 468,700 45.53 Vested ( 262,952 ) 39.85 Forfeited ( 20,707 ) 41.34 Nonvested at March 31, 2026 905,501 $ 44.07 Restricted Stock Units with Market Conditions A summary of changes in outstanding nonvested RSUs with performance conditions is as follows: RSUs with Market Conditions Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2026 79,000 $ 38.39 Granted (a) 62,800 29.36 Vested ( 5,000 ) 36.25 Forfeited — — Nonvested at March 31, 2026 136,800 $ 34.32 (a) During the three months ended March 31, 2026, the Company granted RSUs with market conditions that will vest if the Company's 90 trading day average closing stock prices equals or exceeds certain price hurdles ($ 69.15 , $ 83.85 and $ 98.55 ) during the performance period of March 5, 2026 to March 5, 2030. Upon achievement of each price hurdle, one-half of the awards will vest upon the later of the achievement date or the one-year anniversary of the grant date, and the other half of the awards will vest on the first anniversary of the achievement date. For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the RSUs with market conditions was estimated using the Monte Carlo simulation model, which requires the use of various key assumptions. Three Months Ended March 31, 2026 2025 Expected term (1) 4.04 years 4.00 years Expected volatility (2) 76.84 % 74.09 % Risk-free interest rate (3) 3.55 % 3.91 % Expected dividend (4) — — (1) The expected term of RSUs with market conditions granted was calculated using the respective performance period plus any time-based vesting requirement. (2) The expected volatility rate is based on the historical volatility of the Company's common stock. (3) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date. 14 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (4) For all RSUs with market conditions granted, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate. Employee Stock Purchase Plan In 2021, the Company implemented an employee stock purchase plan (“ESPP”) under which a total of 262,731 shares of the Company's common stock were reserved for issuance. As of March 31, 2026, 74,304 shares of common stock were available for issuance under the ESPP. The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code. Under the terms of the ESPP, eligible employees are granted options to purchase shares of the Company's common stock at 85 % of the lesser of (1) the fair market value at time of grant or (2) the fair market value at time of exercise. The offering periods and purchase periods are typically six-month periods ending on June 30 and December 31 of each year. No shares were issued under the ESPP during the three months ended March 31, 2026. During the three months ended March 31, 2026 and 2025, the Company granted employee stock purchase rights to certain employees with a grant date fair value per share of $ 15.95 and $ 13.70 , respectively, calculated using the Black-Scholes option pricing model. For purposes of determining stock-based compensation expense, the grant date fair value per share estimated using the Black-Scholes option pricing model required the use of the following key assumptions: Three Months Ended March 31, 2026 2025 Expected term (1) 0.50 years 0.50 years Expected dividend (2) — — Expected volatility (3) 55 % 71 % Risk-free interest rate (4) 3.58 % 4.24 % (1) The expected term was calculated using the time period between the grant date and the purchase date. (2) No dividends are expected to be paid, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the employee stock purchase rights, in effect at the grant date. NOTE 9— INCOME TAXES Three Months Ended March 31, 2026 2025 (in thousands, except percentages) Income tax (expense) benefit $ ( 5,651 ) $ 2,430 Effective tax rate 24.7 % 16.4 % For the first quarter of 2026, the effective tax rate varied from the federal statutory rate of 21 % primarily due to the effect of state income taxes. For the first quarter of 2025, the effective tax rate varied from the federal statutory rate of 21 % primarily due to the change in the valuation allowance, net of the current period change in tax effected net indefinite-lived intangibles. Certain out-of-the-money stock options may expire unexercised, and as a result the Company could be required to reverse the related deferred tax asset for share-based compensation, which would increase income tax expense and the effective tax rate in a future period in 2026. 15 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) NOTE 10— DEBT On August 21, 2025, the Company entered into a credit agreement (the “2025 Credit Agreement”), consisting of a $ 75.0 million revolving credit facility (the “2025 Revolving Facility”), which matures on August 21, 2030, and a $ 400.0 million term loan facility (the “2025 Term Loan” and together with the 2025 Revolving Facility, the “2025 Credit Facility”), which matures on August 21, 2030. A summary of the gross carrying amount, debt issuance costs, original issue discount, and net carrying value of the 2025 Term Loan in the accompanying consolidated balance sheets, are as follows (in thousands) : March 31, 2026 December 31, 2025 Current Portion Gross carrying amount $ 4,000 $ 4,000 Debt issuance costs 35 37 Unamortized original issue discount 36 37 Net carrying amount $ 3,929 $ 3,926 Long-term Portion Gross carrying amount $ 394,000 $ 395,000 Debt issuance costs 3,474 3,634 Unamortized original issue discount 3,509 3,672 Net carrying amount $ 387,017 $ 387,694 As of March 31, 2026, the Company's borrowings outstanding under the 2025 Term Loan bear interest based on the Secured Overnight Financing Rate ("SOFR") of 7.92 %. The carrying value of the Company's financial instruments are equal to fair value at March 31, 2026. As of March 31, 2026, the Company had no borrowings outstanding under the 2025 Revolving Facility. The Company was in compliance with all covenants at March 31, 2026. In the first three months of 2026, the Company recorded interest expense related to its 2025 Credit Agreement of $ 8.5 million which consisted of $ 7.9 million associated with borrowings bearing interest based on the SOFR rate, $ 0.3 million associated with the amortization of debt issuance costs, and $ 0.2 million associated with the accretion of the original issue discount and $ 0.1 million in unused commitment fees. In the first three months of 2025, the Company recorded interest expense on the 2025 Notes of $ 0.2 million which consisted of $ 0.1 million associated with the 0.50 % coupon rate and $ 0.1 million associated with the amortization of the debt issuance costs. Additionally, a gain on the extinguishment of debt of $ 0.3 million for the repurchase of a portion of the 2025 Notes is included in interest expense, net in the consolidated statement of operations and comprehensive income. In the first three months of 2025, the Company recorded interest expense related to its Credit Agreement from 2021 of $ 5.6 million which consisted of $ 5.1 million associated with borrowings bearing interest at the SOFR option rate, $ 0.3 million in unused commitment fees and $ 0.2 million associated with the amortization of the debt issuance costs. In the first three months of 2025, the Company recorded interest expense related to the 2024 Term Loan of $ 3.4 million which consisted of $ 3.0 million associated with borrowings bearing interest based on the SOFR option rate, $ 0.2 million associated with unused commitment fees, $ 0.1 million associated with the amortization of debt issuance costs, and $ 0.1 million associated with the accretion of the original issue discount. NOTE 11— CONTINGENCIES Overview LendingTree is involved in legal proceedings on an ongoing basis. In assessing the materiality of a legal proceeding, the Company evaluates, among other factors, the amount of monetary damages claimed, as well as the potential impact of non- 16 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require it to change its business practices in a manner that could have a material and adverse impact on the Company's business. With respect to the matters disclosed in this Note 11, unless otherwise indicated, the Company is unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. In the ordinary course of business, we are party to litigation involving property, contract, intellectual property and a variety of other claims. The amounts that may be incurred in such matters may be subject to insurance coverage. As of March 31, 2026 and December 31, 2025, the Company had litigation settlement accruals of $ 6.7 million and $ 13.0 million, respectively. The litigation settlement accruals relate to litigation matters that were either settled or a firm offer for settlement was extended or an estimated settlement range has been determined, thereby establishing an accrual amount that is both probable and reasonably estimable. Legal Matters On or about October 29, 2019, Joseph Mantha filed a class action lawsuit against QuoteWizard.com, LLC alleging claims in violation of the Telephone Consumer Protection Act. On August 16, 2024, the U.S. District Court of Massachusetts granted the plaintiff’s motion to certify a class. The Company participated in a mediation in April 2025 and reached a preliminary agreement on the terms of settlement for $ 19.0 million. The settlement was approved by the court on September 29, 2025, and the matter was dismissed with prejudice. A liability of $ 6.3 million for this matter is included in the accompanying consolidated balance sheet as of March 31, 2026. The settlement was scheduled to be paid over three equal installments. The first payment was made in October 2025, the second payment was made in January 2026, and the final payment was made in April 2026. NOTE 12— RELATED PARTY TRANSACTIONS In the first quarter of 2026, the Company's Board of Directors approved a $ 0.4 million contribution to the LendingTree Foundation that the Company paid in the second quarter of 2026. Officers of the Company serve as officers of the LendingTree Foundation. NOTE 13— SEGMENT INFORMATION The Company manages its business and reports its financial results through the following three operating and reportable segments: Home, Consumer, and Insurance. Characteristics which were relied upon in making the determination of the reportable segments include the nature of the products, the organization's internal structure, and the information that is regularly reviewed by the chief operating decision maker, the Company's Chief Executive Officer, for the purpose of assessing performance and allocating resources. The Home segment includes the following products: purchase mortgage, refinance mortgage, and home equity loans and lines of credit. The Consumer segment includes the following products: credit cards, personal loans, small business loans, auto loans, deposit accounts, and other credit products. The Insurance segment consists of insurance quote products and sales of insurance policies in the agency businesses. The insurance agency business was closed in the second quarter of 2025. The following tables are a reconciliation of segment profit, which is the Company's primary segment profitability measure, to income before income taxes. Segment marketing expense represents the portion of selling and marketing expense 17 Table of Contents LENDINGTREE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) attributable to variable costs paid for advertising, direct marketing and related expenses, that are directly attributable to the segments' products. This measure excludes overhead, fixed costs and personnel-related expenses. Three Months Ended March 31, 2026 Home Consumer Insurance Other Total (in thousands) Revenue $ 39,068 $ 66,333 $ 221,859 $ 7 $ 327,267 Segment marketing expense 29,106 33,400 163,927 77 226,510 Segment profit (loss) 9,962 32,933 57,932 ( 70 ) 100,757 Cost of revenue 11,696 Brand and other marketing expense 12,058 General and administrative expense 27,990 Product development 11,467 Depreciation 4,185 Amortization of intangibles 1,288 Restructuring and severance 939 Litigation settlements and contingencies 20 Operating income 31,114 Interest expense, net ( 8,566 ) Other income 369 Income before income taxes $ 22,917 Three Months Ended March 31, 2025 Home Consumer Insurance Other Total (in thousands) Revenue $ 37,019 $ 56,033 $ 146,652 $ 24 $ 239,728 Segment marketing expense 23,873 28,896 107,942 36 160,747 Segment profit (loss) 13,146 27,137 38,710 ( 12 ) 78,981 Cost of revenue 9,908 Brand and other marketing expense 12,004 General and administrative expense 30,660 Product development 11,904 Depreciation 4,297 Amortization of intangibles 1,307 Restructuring and severance 798 Litigation settlements and contingencies 15,212 Operating loss ( 7,109 ) Interest expense, net ( 9,084 ) Other income 1,388 Loss before income taxes $ ( 14,805 ) The CODM does not review information on segment assets and as such, no segment asset information is reported herein. 18 Table of Contents