Angi (ANGI) Q1 2026 earnings summary

Executive summary

• Announced a strategic pivot to accelerate transition from legacy technology to an AI-native platform, aligning product and development with long-term growth priorities and enhancing customer and pro experiences.

• Emphasized leveraging 30 years of brand equity, a network of nearly 200,000 active pros, and a leading customer acquisition engine to capitalize on new opportunities.

• Implemented a restructuring plan, reducing global workforce by about 350 employees to optimize costs and support long-term growth, resulting in a $14.9 million restructuring charge.

• Service Requests returned to growth, up 5% year-over-year, driven by 17% growth in Proprietary channels.

• Promoted Michael Wanderer to Chief Operating Officer, effective May 4, 2026.

Financial highlights

• Q1 2026 revenue declined 3% year-over-year to $238.2 million, mainly due to a 56% drop in Network Revenue, partially offset by 7% growth in Proprietary and International Revenue.

• Adjusted EBITDA was $22.9 million, down 17% from $27.7 million in Q1 2025, but exceeded the $10–$15 million guidance range.

• Operating loss was $9.5 million, compared to operating income of $20.0 million in the prior year, with a net loss of $9.0 million.

• Gross profit was $228.5 million, with gross margin improving to 96% from 95% year-over-year.

• Revenue per Lead decreased 5% year-over-year due to delivering additional Leads to subscription Pros beyond contract values.

Outlook and guidance

• Withdrew formal revenue and EBITDA guidance to focus on long-term opportunities rather than quarterly targets.

• Strategic focus on AI-native platform expected to drive long-term growth, with anticipated revenue acceleration in 2027 as new AI products roll out.

• Capital expenditures for 2026 are expected to be consistent with 2025 levels ($59.6 million).

• Management believes existing liquidity and cash flows will be sufficient to fund operations and commitments for the next twelve months.

• Plans to maintain solid operating cash flow, targeting a cash flow cushion of around $50 million annually (Adjusted EBITDA minus CapEx), but not as a formal commitment.