Angi : Reports Q4 2025 Results

About this update from Angi Inc.

ANGI REPORTS Q4 2025 Q4'25 Operating income grew 175% and Adjusted EBITDA grew 25% FY'25 Operating income of $65 million and Adjusted EBITDA of $140 million Angi repurchased 19.9% of its shares outstanding since its spin-off from IAC DENVER - February 10, 2026 - Angi Inc. (NASDAQ: ANGI) released its fourth quarter results today and separately posted a letter to shareholders from Jeff Kip, the Chief Executive Officer of Angi Inc., on the Investor Relations section of Angi Inc.'s website at ir.angi.com . ANGI INC. SUMMARY RESULTS ($ in millions except per share amounts) Q4 2025 Q4 2024 % Change Revenue $ 240.8 $ 267.9 -10% Operating income 5.9 2.2 175% Net earnings (loss) 7.2 (1.3) NM Diluted earnings (loss) per share $ 0.17 $ (0.03) NM Adjusted EBITDA 39.7 31.8 25% See reconciliations of GAAP to non-GAAP measures beginning on page 10. Q4 2025 PERFORMANCE AND UPDATES Revenue was down (10)% from the prior year due primarily to a (79)% decrease in Network Revenue as a result of the implementation of homeowner choice in January 2025, partially offset by a 23% increase in Proprietary Revenue from strong execution in paid marketing in Proprietary channels. Following the successful completion of the transition to homeowner choice, Angi continues to expect to return to revenue growth for fiscal year 2026. Service Requests decreased (4)% and Leads decreased (9)% year-over-year in Q4 2025. Proprietary Service Requests increased 15% year-over-year and Proprietary Leads increased 25% year-over-year in Q4 2025, primarily driven by improvements in customer experience and strong performance in performance marketing. Network Service Requests declined (69)% and Network Leads declined (78)% year-over-year in the fourth quarter driven by the implementation of homeowner choice in January of 2025. Revenue per Lead decreased (2)% year-over-year in Q4 2025 vs. an increase of 11% in Q3 2025, primarily driven by delivering additional Leads to subscription Pros in excess of their contract values. Operating income was $5.9 million, up from $2.2 million in Q4 2024, which reflects a $12.8 million restructuring expense due to a reduction of the Company's global workforce, a $7.1 million decrease in depreciation due primarily to lower capitalized software and real estate-related write-offs in 2024, and a $0.7 million decrease in stock-based compensation expense. Adjusted EBITDA was $39.7 million, up from $31.8 million in Q4 2024, driven by both a reduction in fixed costs and greater efficiency and lower costs in Pro acquisition. The results exclude both of the potential $5.0 million one-time income items referenced in the 3rd quarter shareholder letter. Between November 3, 2025 and December 31, 2025, the Company repurchased 3.2 million common shares for an aggregate of $37.3 million. As of December 31, 2025, there were no shares remaining in its share repurchase authorization. Since the spin-off from IAC Inc. on March 31, 2025, Angi has repurchased 9.9 million shares or 19.9% of its shares outstanding at the time of the spin-off for $138.0 million. The Company recorded an income tax benefit of $2.7 million in Q4 2025 for an effective tax rate of 30% in fiscal year 2025 and (61)% in Q4 2025. The Q4 tax benefit was primarily due to a release of valuation allowance. The effective tax rate for the year is higher than the statutory rate of 21% due primarily to the effect of cross-border tax laws, change in unrecognized tax benefits and state taxes, partially offset by research credits and a valuation allowance release. In the prior year period, the Company recorded an income tax provision of $1.7 million, which was due primarily to unbenefited realized losses and the impact of stock-based awards. OPERATING METRICS In Q1 2025, the Company introduced new metrics to better reflect the core business activities, targeted customer behaviors, and unit economics. Definitions can be found on page 14, and more information regarding the changes is available in the Q1 2025 Earnings Release and the "Angi Change to Key Metrics Q1 2025 Primer" document available at https://ir.angi.com/quarterly-earnings . QUARTERLY PRO METRICS (in thousands, rounding differences may occur) Q4 2025 Q4 2024 % Change Acquired Pros 20 27 -27% Average Monthly Active Pros 111 143 -23% Average Monthly Churn -6.0% -6.5% 8% PROPRIETARY AND NETWORK CHANNEL METRICS (in thousands, rounding differences may occur) Q4 2025 Q4 2024 % Change Service Requests Proprietary 3,224 2,806 15 % Network 252 823 -69 % Total 3,476 3,629 -4% Leads Proprietary 4,399 3,508 25 % Network 376 1,746 -78 % Total 4,775 5,255 -9% Proprietary Revenue $ 195,986 $ 159,733 23 % Network Revenue $ 16,744 $ 79,511 -79 % LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2025: Angi Inc. had 40.1 million shares of Class A and no shares of Class B common stock outstanding, Angi Inc. had $303.7 million in cash and cash equivalents, ANGI Group, LLC (a subsidiary of Angi Inc.) had $500.0 million of 3.875% Senior Notes due August 15, 2028, and ANGI Group, LLC had $175.0 million available under its senior secured revolving facility, including a letter of credit sublimit of up to $25.0 million, that matures on November 6, 2030. As of December 31, 2025, Angi Inc. had no shares remaining of its approximately 3.2 million stock repurchase authorization, which was approved by the Angi Inc. Board of Directors on September 17, 2025. CONFERENCE CALL Angi Inc. will host a conference call to answer questions regarding its fourth quarter results on Wednesday, February 11, 2026, at 8:30 a.m. Eastern Time. This conference call will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of Angi Inc.'s businesses. The conference call will be accessible to the public at ir.angi.com and a recording of the webcast will be made available at the location. DILUTIVE SECURITIES Angi Inc. has various dilutive securities. The table below details these securities as well as potential dilution at various stock prices (shares in millions; rounding differences may occur). Avg. Exercise As of Shares Price 2/6/26 Dilution At: Share Price $ 11.85 $12.00 $13.00 $14.00 $15.00 Absolute Shares as of 2/6/26 40.1 40.1 40.1 40.1 40.1 40.1 SARs and Options 1.0 $ 18.45 0.0 0.0 0.0 0.0 0.0 RSUs and MSUs 3.3 0.9 0.9 0.9 0.9 0.9 Total Dilution 0.9 0.9 0.9 0.9 0.9 % Dilution 2.1% 2.1% 2.1% 2.1% 2.1% Total Diluted Shares Outstanding 41.0 41.0 41.0 41.0 41.0 The dilutive securities presentation is calculated using the method and assumptions described below, which are different from those used for GAAP dilution, which is calculated based on the treasury stock method. The Company currently settles all equity awards on a net basis; therefore, the dilutive effect is presented as the net number of shares expected to be issued upon exercise or vesting, and in the case of options, assuming no proceeds are received by the Company. Any required withholding taxes are paid in cash by the Company on behalf of the employees assuming a withholding tax rate of 50%. In addition, the estimated income tax benefit from the tax deduction received upon the exercise or vesting of these awards is assumed to be used to repurchase Angi Inc. shares. Assuming all awards were exercised or vested on February 6, 2026, withholding taxes paid by the Company on behalf of the employees upon net settlement would have been $16.3 million, assuming a stock price of $11.85 and a 50% withholding rate. ANGI INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 (In thousands, except per share data) Revenue $ 240,768 $ 267,869 $1,030,535 $1,185,112 Cost of revenue (exclusive of depreciation shown separately below) 8,819 16,179 47,436 57,578 Gross profit 231,949 251,690 983,099 1,127,534 Operating costs and expenses: Selling and marketing expense 120,238 130,821 507,546 601,638 General and administrative expense 62,068 73,282 262,878 319,999 Product development expense 15,931 22,511 87,361 95,360 Depreciation 13,175 20,311 45,319 86,052 Restructuring 12,789 - 12,789 - Amortization of intangibles 1,800 2,600 1,800 2,600 Total operating costs and expenses 226,001 249,525 917,693 1,105,649 Operating income 5,948 2,165 65,406 21,885 Interest expense (5,305) (5,045) (20,469) (20,169) Other income, net 3,853 3,328 17,590 18,361 Earnings before income taxes 4,496 448 62,527 20,077 Income tax benefit (provision) 2,728 (1,734) (18,695) 16,771 Net earnings (loss) from continuing operations 7,224 (1,286) 43,832 36,848 Net earnings attributable to noncontrolling interests - - - (844) Net earnings (loss) attributable to Angi Inc. shareholders $ 7,224 $ (1,286) $ 43,832 $ 36,004 Per share information attributable to Angi Inc. shareholders: Basic earnings (loss) per share $ 0.17 $ (0.03) $ 0.96 $ 0.72 Diluted earnings (loss) per share $ 0.17 $ (0.03) $ 0.94 $ 0.71 Stock-based compensation expense by function: Selling and marketing expense $ 669 $ 1,077 $ 2,861 $ 4,605 General and administrative expense 3,878 4,224 4,651 24,533 Product development expense 1,462 1,384 7,246 5,640 Total stock-based compensation expense $ 6,009 $ 6,685 $ 14,758 $ 34,778 ANGI INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) December 31, 2025 December 31, 2024 (In tho usands) ASSETS Cash and cash equivalents $ 303,701 $ 416,434 Accounts receivable, net 33,054 36,670 Other current assets 29,627 41,981 Total current assets 366,382 495,085 Capitalized software, leasehold improvements and equipment, net 99,101 79,564 Goodwill 890,066 883,440 Intangible assets, net 167,142 167,662 Deferred income taxes 126,229 169,073 Other non-current assets, net 31,448 35,911 TOTAL ASSETS $ 1,680,368 $ 1,830,735 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Accounts payable $ 34,031 $ 18,319 Deferred revenue 22,096 42,008 Accrued expenses and other current liabilities 166,311 171,351 Total current liabilities 222,438 231,678 Long-term debt, net 497,667 496,840 Deferred income taxes 1,498 1,500 Other long-term liabilities 31,399 37,916 Commitments and contingencies SHAREHOLDERS' EQUITY: Class A common stock 538 113 Class B convertible common stock - 422 Class C common stock - - Additional paid-in capital 1,427,693 1,465,640 Accumulated deficit (150,880) (195,015) Accumulated other comprehensive income (loss) 5,938 (2,495) Treasury stock (355,923) (205,864) Total shareholders' equity 927,366 1,062,801 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,680,368 $ 1,830,735 ANGI INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Years Ended December 31, 2025 2024 (In thousands) Cash flows from operating activities: Net earnings $ 43,832 $ 36,848 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 45,319 86,052 Provision for credit losses 48,491 57,261 Stock-based compensation expense 14,758 34,778 Non-cash lease expense (including impairment of right-of-use assets) 7,366 16,010 Amortization of intangibles 1,800 2,600 Deferred income taxes 13,166 (23,951) Other adjustments, net (1,190) (433) Changes in assets and liabilities: Accounts receivable (43,754) (45,385) Other assets 13,391 28,932 Accounts payable and other liabilities (3,825) (601) Operating lease liabilities (13,070) (19,376) Income taxes payable and receivable (1,170) (9,070) Deferred revenue (20,041) (7,724) Net cash provided by operating activities 105,073 155,941 Cash flows from investing activities: Capital expenditures (59,600) (50,492) Proceeds from sales of fixed assets 145 81 Net cash used in investing activities (59,455) (50,411) Cash flows from financing activities: Debt issuance costs (1,684) - Purchases of treasury stock (148,676) (28,605) Purchase of noncontrolling interests - (16,019) Withholding taxes paid on behalf of employees on net settled stock-based awards (7,982) (7,578) Distribution from IAC pursuant to the tax sharing agreement - (1,548) Other, net - (9) Net cash used in financing activities (158,342) (53,759) Total cash (used) provided (112,724) 51,771 Effect of exchange rate changes on cash and cash equivalents and restricted cash (120) 473 Net (decrease) increase in cash and cash equivalents and restricted cash (112,844) 52,244 Cash and cash equivalents and restricted cash at beginning of period 416,545 364,301 Cash and cash equivalents and restricted cash at end of period $ 303,701 $ 416,545 Significant Expenses The following tables present the significant expenses included in the Company's segment reporting performance measure, Segment Adjusted EBITDA, that are regularly provided to the Chief Operating Decision Maker (CODM): Three Months Ended December 31, 2025 2024 2025 2024 (In thousands) As a percentage of revenue U.S. * Cost of revenue $ 7,323 $ 14,693 3% 6% Consumer marketing expense 80,471 63,165 38% 26% Variable expense 23,864 29,783 11% 12% Pro acquisition expense 31,558 47,189 15% 20% Fixed expense 36,912 53,153 17% 22% Total U.S. expenses $ 180,128 $ 207,983 85% 87% International Cost of revenue $ 1,496 $ 1,485 5% 5% Consumer marketing expense 3,090 2,977 11% 10% Variable expense 4,522 6,829 16% 24% Pro acquisition expense 3,025 4,508 11% 16% Fixed expense 8,592 12,329 31% 43% Total International expenses $ 20,725 $ 28,128 74% 98% Consolidated Cost of revenue $ 8,819 $ 16,178 4% 6% Consumer marketing expense 83,561 66,142 35% 25% Variable expense 28,386 36,612 12% 14% Pro acquisition expense 34,583 51,697 14% 19% Fixed expense 45,504 65,482 19% 24% Total expenses $ 200,853 $ 236,111 83% 88% * During the fourth quarter of 2025, the Company changed the name of its "Domestic" segment to "U.S." segment. The change reflects an updated naming convention and did not result in any change to the composition of the segment or how the Company evaluates its performance in the current year as well as prior periods. As a result of this updates, the Company now has the following two operating segments: (i) U.S. and (ii) International (consisting of businesses in Europe and Canada). Pro acquisition expense for the three months ended December 31, 2025 excludes $2.3 million of commissions capitalized in the three months ended December 31, 2025 and includes $4.8 million of capitalized commissions amortized from prior periods. Pro acquisition expense for the three months ended December 31, 2024 excludes $5.8 million of commissions capitalized in the three months ended December 31, 2024 and includes $10.3 million of capitalized commissions amortized from prior periods. Years Ended December 31, 2025 2024 2025 2024 (In thousands) As a percentage of revenue U.S. Cost of revenue $ 42,942 $ 53,139 5% 5% Consumer marketing expense 323,470 309,139 36% 29% Variable expense 105,371 124,150 12% 12% Pro acquisition expense 139,801 233,645 15% 22% Fixed expense 179,673 206,687 20% 20% Total U.S. expenses $ 791,257 $ 926,760 88% 88% International Cost of revenue $ 4,494 $ 4,439 4% 3% Consumer marketing expense 16,861 15,346 13% 12% Variable expense 21,018 19,533 17% 15% Pro acquisition expense 13,454 22,326 11% 17% Fixed expense 43,378 51,393 34% 40% Total International expenses $ 99,205 $ 113,037 78% 88% Consolidated Cost of revenue $ 47,436 $ 57,578 5% 5% Consumer marketing expense 340,331 324,485 33% 27% Variable expense 126,389 143,683 12% 12% Pro acquisition expense 153,255 255,971 15% 22% Fixed expense 223,051 258,080 22% 22% Total expenses $ 890,462 $ 1,039,797 86% 88% Pro acquisition expense for the year ended December 31, 2025 excludes $10.0 million of commissions capitalized in the year ended December 31, 2025 and includes $28.2 million of capitalized commissions amortized from prior periods. Pro acquisition expense for the year ended December 31, 2024 excludes $39.5 million of commissions capitalized in the year ended December 31, 2024 and includes $49.2 million of capitalized commissions amortized from prior periods. Revenue by Segment Three Months Ended December 31, Years Ended December 31, 2025 2024 % Change 2025 2024 % Change ($ in millions; rounding differences may occur) U.S. $ 212.7 $ 239.2 -11% $ 904.1 $ 1,056.1 -15% International 28.0 28.6 -2% 126.5 129.0 -2% Total Revenue $ 240.8 $ 267.9 -10% $ 1,030.5 $ 1,185.1 -13% ‌RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES AND SIGNIFICANT EXPENSES ($ in millions; rounding differences may occur) RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Ended December 31, 2025 Operating Income Stock-Based Compensation Expense Depreciation Amortization of Intangibles Restructuring Adjusted EBITDA U.S. $ 1.5 $ 5.3 $ 13.0 $ 1.8 $ 11.0 $ 32.6 International 4.5 0.7 0.1 - 1.8 7.1 Total $ 5.9 $ 6.0 $ 13.2 $ 1.8 $ 12.8 $ 39.7 Interest expense (5.3) Other income, net 3.9 Earnings before income taxes 4.5 Income tax benefit 2.7 Net earnings attributable to Angi Inc. shareholders $ 7.2 Three Months Ended December 31, 2024 Operating Stock-Based Compensation Amortization Adjusted Income Expense Depreciation of Intangibles Restructuring EBITDA U.S. $ 2.7 $ 6.4 $ 19.6 $ 2.6 $ - $ 31.3 International (0.6) 0.3 0.8 - - 0.5 Total $ 2.2 $ 6.7 $ 20.3 $ 2.6 $ - $ 31.8 Interest expense (5.0) Other income, net 3.3 Earnings before income taxes 0.4 Income tax provision (1.7) Net loss attributable to Angi Inc. shareholders $ (1.3) Twelve Months Ended December 31, 2025 Operating Income Stock-Based Compensation Expense Depreciation Amortization of Intangibles Restructuring Adjusted EBITDA U.S. $ 41.9 $ 13.1 $ 45.0 $ 1.8 $ 11.0 $ 112.8 International 23.5 1.7 0.3 - 1.8 27.3 Total $ 65.4 $ 14.8 $ 45.3 $ 1.8 $ 12.8 $ 140.1 Interest expense (20.5) Other income, net 17.6 Earnings before income taxes 62.5 Income tax provision (18.7) Net earnings attributable to Angi Inc. shareholders $ 43.8

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