$TREE

Tree.com, Inc.

CIK:0001434621|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 313,422	$ 250,116	$ 640,689	$ 489,844
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	11,269	10,029	22,965	19,937
Selling and marketing expense	236,453	176,753	475,021	349,504
General and administrative expense	25,710	25,034	53,700	55,694
Product development	10,032	11,473	21,499	23,377
Depreciation	4,277	4,241	8,462	8,538
Amortization of intangibles	1,288	1,307	2,576	2,614
Restructuring and severance	1,839	357	2,778	1,155
Litigation settlements and contingencies	756	(2)	776	15,210
Total costs and expenses	291,624	229,192	587,777	476,029
Operating income	21,798	20,924	52,912	13,815
Other income (expense), net:
Interest expense, net	(8,483)	(10,402)	(17,049)	(19,486)
Other income	832	248	1,201	1,636
Income (loss) before income taxes	14,147	10,770	37,064	(4,035)
Income tax (expense) benefit	(4,573)	(1,908)	(10,224)	522
Net income (loss) and comprehensive income (loss)	$ 9,574	$ 8,862	$ 26,840	$ (3,513)
Weighted average shares outstanding:
Basic (in shares)	13,965	13,549	13,895	13,495
Diluted (in shares)	14,054	13,650	14,156	13,495
Net income (loss) per share:
Basic (in dollars per share)	$ 0.69	$ 0.65	$ 1.93	$ (0.26)
Diluted (in dollars per share)	$ 0.68	$ 0.65	$ 1.90	$ (0.26)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss) and comprehensive income (loss)	$ 26,840	$ (3,513)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on impairments and disposal of assets	3	254
Amortization of intangibles	2,576	2,614
Depreciation	8,462	8,538
Non-cash compensation expense	10,276	15,089
Deferred income taxes	10,130	798
Bad debt expense	481	183
Amortization of debt issuance costs	527	994
Amortization of debt discount	333	206
Reduction in carrying amount of ROU asset, offset by change in operating lease liabilities	(530)	(507)
Gain on settlement of convertible debt	0	(266)
Loss on investments	359	1,225
Changes in assets and liabilities:
Accounts receivable	(39,186)	(28,580)
Prepaid and other assets	(5,346)	(6,001)
Accounts payable, accrued expenses and other current liabilities	25,419	38,944
Income taxes	368	(2,757)
Other, net	5	522
Net cash provided by operating activities	40,717	27,743
Cash flows from investing activities:
Capital expenditures	(5,935)	(6,158)
Other investing activities	52	0
Net cash used in investing activities	(5,883)	(6,158)
Cash flows from financing activities:
Repayment of term loan	(2,000)	(6,563)
Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options	(3,141)	(2,285)
Proceeds from term loan	0	50,000
Repurchase of 0.50% Convertible Senior Notes	0	(19,700)
Payment of debt costs	0	(500)
Net cash (used in) provided by financing activities	(5,141)	20,952
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	29,693	42,537
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	110,766	149,131
Supplemental cash flow information:
Interest paid	$ 16,031	$ 18,494

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS:
Cash and cash equivalents	$ 110,766	$ 81,073
Accounts receivable (net of allowance of $1,235 and $1,322, respectively)	149,287	110,582
Prepaid and other current assets	39,751	38,053
Total current assets	299,804	229,708
Property and equipment (net of accumulated depreciation of $30,703 and $28,387, respectively)	30,384	32,834
Operating lease right-of-use assets	29,973	31,655
Goodwill	381,539	381,539
Intangible assets, net	35,516	38,092
Deferred income tax assets	114,737	124,867
Other non-current assets	19,678	16,997
Total assets	911,631	855,692
LIABILITIES:
Current portion of long-term debt	3,932	3,926
Accounts payable, trade	47,351	6,735
Accrued expenses and other current liabilities	111,086	126,803
Total current liabilities	162,369	137,464
Long-term debt	386,351	387,694
Operating lease liabilities	41,996	43,597
Other non-current liabilities	143	140
Total liabilities	590,859	568,895
Commitments and contingencies (Note 11)
SHAREHOLDERS' EQUITY:
Preferred stock $0.01 par value; 5,000,000 shares authorized; none issued or outstanding	0	0
Common stock $0.01 par value; 50,000,000 shares authorized; 17,389,706 and 17,124,837 shares issued, respectively, and 14,034,240 and 13,769,371 shares outstanding, respectively	174	171
Additional paid-in capital	1,288,035	1,280,903
Accumulated deficit	(701,259)	(728,099)
Treasury stock; 3,355,466 and 3,355,466 shares, respectively	(266,178)	(266,178)
Total shareholders' equity	320,772	286,797
Total liabilities and shareholders' equity	$ 911,631	$ 855,692