LendingTreeTREE +6.72%75 Gross Margin % is 96.43% as of Mar. 2026, which is 1% above its 10-year median of 95.01. GuruFocus rates TREE with a GF Score™ of 75/100 and a GF Value™ of $59.30 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 73 Diversified Financial Services companies, LendingTree ranks better than 93.15% on this metric.
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: 96.32
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 93.15% of 73
companies
in the Diversified Financial Services industry
Industry Median: 42.14
vs TREE: 96.32
LendingTree had a gross margin of 96.43% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LendingTree was 0.40% per year.
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 96.43% for the quarter that ended in Mar. 2026 => 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
LendingTree Gross Margin % Historical Data
* Premium members only.
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.
TREE vs RILY, HTH, FRHC: Gross Margin % Comparison
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 Gross Margin % vs 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 (TREE) has a Gross Margin % of 96.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LendingTree and its competitors. This is near median its historical median of 95.01. Over the past decade, LendingTree's Gross Margin % has ranged from 93.82 to 97.21. According to the industry distribution chart, LendingTree ranks #5 out of 73 companies in the Diversified Financial Services industry, placing it in the top 6.8%.
Is LendingTree's Gross Margin % too high?
LendingTree's current Gross Margin % of 96.43% is near median its 10-year median of 95.01. Over the past 10 years, this metric has ranged from a low of 93.82 to a high of 97.21. The Diversified Financial Services industry median Gross Margin % is 42.14. LendingTree's value of 96.43% is 128.8% above this industry median. Based on the distribution chart, LendingTree ranks #5 out of 73 companies in the Diversified Financial Services industry, which is in the top quartile — a strong position relative to peers. Overall, LendingTree has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does LendingTree's Gross Margin % compare to RILY and HTH?
According to the Diversified Financial Services industry distribution chart, LendingTree ranks #5 out of 73 companies for Gross Margin %. This places LendingTree in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 42.14. LendingTree's value of 96.43% is 128.8% above this benchmark. Historically, LendingTree's own Gross Margin % has ranged from 93.82 to 97.21 over the past decade. While the company's 10-year median is 95.01 vs. the industry median of 42.14, LendingTree has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Diversified Financial Services company?
The median Gross Margin % among Diversified Financial Services companies is 42.14, based on 73 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LendingTree's current Gross Margin % of 96.43% is 128.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on LendingTree and its competitors. For the Diversified Financial Services industry, the median Gross Margin % is 42.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LendingTree's current Gross Margin % is 96.43%, which is near median its own 10-year median of 95.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LendingTree stock overvalued right now?
Based on GuruFocus' analysis, LendingTree (TREE) is currently considered Possible Value Trap. The stock's GF Value™ is $59.30, compared to a current price of $40.68 — trading 31.4% below its estimated fair value. The current Gross Margin % is 96.43%, which is near median its 10-year median of 95.01 and 128.8% above the Diversified Financial Services industry median of 42.14. LendingTree's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For LendingTree (TREE), the current Gross Margin % is 96.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LendingTree (TREE) Overvalued in 2026?
Based on GuruFocus' analysis, LendingTree stock appears to be undervalued.
The current stock price of $40.68 is trading 31.4% below its estimated GF Value™ of $59.30.
GuruFocus considers LendingTree to be Possible Value Trap.
Key valuation signals for TREE:
Gross Margin %: 96.43% (near median its 10-year median of 95.01)
GF Value™: $59.30 vs. price of $40.68 (31.4% below fair value)
Industry Position: 128.8% above the Diversified Financial Services median (#5 of 73)
No single metric tells the full story. See the TREE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
75GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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