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
PROPRIETARY AND NETWORK CHANNEL METRICSAcquired Pros
20
27
-27%
Average Monthly Active Pros
111
143
-23%
Average Monthly Churn
-6.0%
-6.5%
8%
LIQUIDITY AND CAPITAL RESOURCES(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 %
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 CALLAngi 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 SECURITIESAngi 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 |
(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 |
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 |
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 revenueU.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% | |||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
Three Months Ended December 31, 2025Operating 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) | |||||
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 |