Angi (ANGI) Q1 2025 earnings summary

Executive summary

• First quarter as an independent public company after the IAC spin-off, with revenue down 19% year-over-year to $245.9 million, but net earnings improved to $15.1 million from a $1.6 million loss, and operating income rose to $20.0 million from $2.7 million, driven by cost reductions and operational changes including homeowner choice rollout and sales force consolidation.

• Homeowner choice implementation shifted all leads to be homeowner-selected, improving satisfaction and pro win rates, but causing a short-term revenue drop due to lower network channel lead volume.

• Board authorized a new 5 million share repurchase program, with 2.3 million shares repurchased for $32 million in Q1.

• Completed a 1-for-10 reverse stock split effective March 24, 2025.

Financial highlights

• Domestic revenue fell 21% year-over-year to $212.6 million; International revenue declined 6% to $33.4 million.

• Gross profit decreased 20% to $232.9 million, with gross margin at 95%.

• Adjusted EBITDA was $27.7 million, down 23% year-over-year, with margin at 11.3%.

• Operating income rose to $20.0 million from $2.7 million a year ago, driven by cost reductions.

• Cash and cash equivalents at quarter-end were $386.6 million; long-term debt stood at $500 million in 3.875% Senior Notes due 2028.

Outlook and guidance

• 2025 revenue expected to stabilize with network channel remaining flat year-over-year and proprietary lead volume returning to growth; revenue per lead projected to grow starting Q2 2025, supporting sequential improvements and a return to overall revenue growth in 2026.

• 2025 capital expenditures are expected to increase 15–25% over 2024, primarily for capitalized software.

• Guidance incorporates a 3-5 percentage point impact from macroeconomic headwinds observed in early April.

• High incremental margins expected as revenue grows, with no anticipated increase in fixed cost base through 2026.

• Management expects existing cash and positive cash flows to be sufficient for operating needs over the next twelve months.