Gross Margin % is calculated as gross profit divided by its revenue. LendingTree's Gross Profit for the
three
months ended in Dec. 2024 was $251.8 Mil. LendingTree's Revenue for the
three
months ended in Dec. 2024 was $261.5 Mil. Therefore, LendingTree's Gross Margin % for the quarter that ended in Dec. 2024 was 96.27%.
The historical rank and industry rank for LendingTree's Gross Margin % or its related term are showing as below:
TREE'
s Gross Margin % Range Over the Past 10 Years
Min: 93.82 Med: 95.01 Max: 97.21
Current: 95.99
During the past 13 years, the highestGross Margin % of LendingTree was 97.21%. The lowest was 93.82%. And the median was 95.01%.
TREE's Gross Margin % is ranked better than 95.89% of 73
companies
in the Diversified Financial Services industry
Industry Median: 40.26
vs TREE: 95.99
LendingTree had a gross margin of 96.27% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LendingTree was 0.30% per year.
LendingTree Gross Margin % Historical Data
The historical data trend for LendingTree's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of LendingTree's Gross Margin %
For the Financial Conglomerates subindustry, LendingTree's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LendingTree's Gross Margin % Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, LendingTree's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LendingTree's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
LendingTree (NAS:TREE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
LendingTree had a gross margin of 96.27% for the quarter that ended in Dec. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
LendingTree Gross Margin % Related Terms
Thank you for viewing the detailed overview of LendingTree's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
LendingTree Inc. is a U.S.-based company that mainly operates an online loan marketplace. The company offers online tools and resources to help consumers find loans or other credit-based products, including mortgage loans, reverse mortgages, home equity loans, personal loans, auto loans, credit cards, student loans, small business loans, and various related products. It provides consumers with direct access to a wide array of lenders. The company has three reportable segments: Home, Consumer, and Insurance. It generates match fees by connecting consumers with lenders and closing fees from lenders when a transaction is finalized. The company conducts business solely in the United States.
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