IAC (IAC) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a transition to a streamlined structure, consolidating around People Inc. and MGM, with a planned rebrand to People Incorporated and expected $40 million in annual operating expense savings.

• The company completed the sale of Care.com for $296 million, closed its search segment, and is consolidating corporate functions, including leadership changes and a new CEO and CFO.

• Digital revenue at People Inc. grew 8% year-over-year, with digital adjusted EBITDA margins expanding to 20% from 18%.

• Non-session-based revenue grew 24% year-over-year, now representing 41% of digital revenue.

• Major restructuring underway, with total expected restructuring costs of $63 million and significant cost savings anticipated.

Financial highlights

• Q1 2026 revenue declined 12% year-over-year to $422.9 million; digital revenue was $253 million (+8%), print revenue fell 16%.

• Adjusted EBITDA for Q1 2026 was $39.5 million, down from $78.8 million in Q1 2025; digital Adjusted EBITDA rose 20% to $50 million, while print fell 55%.

• Free cash flow for Q1 2026 was $48 million, with net debt at $1.1 billion and cash/cash equivalents at $1.1 billion.

• Repurchased 2.9–3.3 million shares for $111–$123.6 million in Q1 2026; 13% of shares repurchased since 2025.

• Sale of Care.com generated $295.7–$296 million in net proceeds; search segment closure incurred $7 million in one-time costs.

Outlook and guidance

• FY 2026 Adjusted EBITDA guidance for People Inc. is $310–$340 million; total company Adjusted EBITDA expected at $210–$260 million.

• Digital revenue and Adjusted EBITDA for People Inc. projected to grow mid- to high-single digits in 2026.

• Corporate expense guidance raised to $95–$105 million due to severance and one-time charges.

• Annual run rate operating expense savings of $40 million and stock-based compensation reduction of $20–$25 million expected post-consolidation.

• Search segment to be presented as discontinued operations from Q2 2026.