LendingTree, Inc.

Good day and thank you for standing by. Welcome to the LendingTree, Inc. second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Wessel, Senior Vice President of Investor Relations and Corporate Development. Please go ahead.

Thank you, DeeDee, and hello to everyone joining us on the call to discuss LendingTree's second quarter 2025 financial results. On with us today are Doug Lebda, LendingTree's Chairman and CEO, Scott Perry, COO and President of Marketplace, and Jason Bangle, CFO. As a reminder to everyone, last week we pre-announced the summary of our quarterly results and our initial financial outlook for the third quarter and updated our 2025 outlook. This evening, we posted a detailed letter to shareholders on our investor relations website. And for the purposes of today's discussion, we will assume that listeners have read that letter and will focus on Q&A. Before I hand the call over to Doug for his remarks, I remind everyone that during this call we may discuss LendingTree's expectations for future performance. Any forward-looking statements that we make are subject to risks and uncertainties, and LendingTree's actual results could differ materially from the views expressed today. Many but not all of the risks we face are described in our periodic reports filed with the SEC. We will also discuss a variety of non-GAAP measures on the call, and I refer you to today's press release and share of the letter both available on our website for comparable gap definitions and full reconciliations of non-gap measures to gaps. And with that, Doug, please go ahead.

Thanks, Andrew, and thank you to everyone for joining us today for our second quarter update. Overall, I am absolutely thrilled with how the company is performing. In Q2, we delivered another strong quarter marked by double-digit growth across all of our three business segments, Profitability is up for the fifth consecutive period of year-over-year revenue growth for a company. In short, we are on a roll. Revenue for the quarter came in at $250 million, representing 19% year-over-year growth. Adjusted EBITDA of $31.8 million was up 35% from last year. What's causing LendingTree to continue its momentum this quarter is simply being operationally excellent across the board. This has been a key tenet of our 2025 strategy, and it has taken shape in initiatives across the company that improved everything from how we build products to streamlining decision-making to building cost controls into the system. Delving into the specific segments. First, consumer delivered 12% revenue growth, with segment profit increasing 19%. Notably, small business loan revenue grew 61%, and personal loan revenue grew 14%. Personal loan lenders have shown some signs of widening their buy box, but improved execution is the larger driver there. In small business, we made a strategic investment to grow our sales force, and it has paid off in more business and more efficiency. I think that small business can be a real growth driver for us. In home, revenue climbed 25%, driven by a 38% increase in home equity revenue. We have a strategic focus this year on adding more small lenders to the network to fill in gaps and provide better coverage for consumers, and that is starting to pay off. I'm really pleased to see Home doing so well despite any macro tailwinds. In insurance, the results are awesome. Since the beginning of the year, we have been focused on increasing quality and conversion rates for our clients, and that is paying off in higher bids and more budget. To be at 21% year-over-year, particularly against an awesome Q2 last year is great momentum for our insurance business. Now, AI and its impact on our business has certainly also been top of mind. 18 months ago, I told our board and our company that we're going to be an AI-first company. And today, effectively, all of our employees are using AI in their day jobs, including having enterprise GPT for everyone. And our multi-year investment in data and Snowflake couldn't have come at a better time. As we connect AI to our internal data, we expect to see a lot more efficiency as a company. In marketing, in particular, we are very focused on the future of paid search, organic search, and most importantly, LLM answers. We believe we are well positioned in whatever the future may bring, and early data is very, very encouraging. We are also implementing AI in several of our key product initiatives with the aim of providing the right guidance to our customers to make smart decisions. AI unlocks potential that has never existed for us before. Since the founding of the company, we recognize that getting a loan or an insurance policy, as Scott recognized, is not just a transaction. It's a highly considered purchase that usually involves conversations over as long as several months. I believe and we believe that AI will enable us to more easily guide customers through these complicated transactions, which I expect will improve close rates and thus unit revenue and thus revenue and profits to the company overall. For sure, there are still risks out there. At the moment, I believe the opportunities are far greater than the risk. I also believe that the deep relationships and integration with our clients isn't easily disintermediated. In a world with exploding choice, our trusted brand and history with consumers is more relevant than ever. And now, operator, we're happy to take questions.