LendingTree, Inc. (NASDAQ:TREE) shares dropped more than 7% on Friday following the release of the company’s revised Q2 guidance.

Given rapidly increasing interest rates and persistent inflation above 8% that are negatively impacting the company’s Homes and Insurance segments, management lowered its Q2 revenue estimate to $259-$264 million, compared to its prior guidance of $283-$293 million. Adjusted EBITDA estimates were reduced to $26-$29 million, compared to the prior guidance of $35-$40 million.

Despite the difficult macro back-drop, the company remains committed to its growth initiatives and expects to be free cash flow positive throughout the year.