Angi's Q3 Revenue Plunges 10.5%, Net Income Down 70%

Ticker: ANGI · Form: 10-Q · Filed: 2025-11-04T00:00:00.000Z

Sentiment: bearish

Topics: Home Services, Digital Marketplace, Revenue Decline, Net Income Drop, Reverse Stock Split, Spin-off, Cash Flow, Operating Costs

Related Tickers: ANGI, IAC

TL;DR

**Angi's Q3 numbers are a disaster, showing deep cracks in their business model post-IAC spin-off; steer clear.**

AI Summary

Angi Inc. reported a significant decline in revenue for the three months ended September 30, 2025, falling to $265.6 million from $296.7 million in the prior year, a decrease of 10.5%. Net earnings attributable to Angi Inc. shareholders also saw a substantial drop, decreasing to $10.6 million from $35.2 million in the same period, representing a 69.8% decline. Despite the revenue decrease, operating income improved to $21.8 million from $7.8 million year-over-year, driven by a reduction in total operating costs and expenses from $274.2 million to $231.4 million. For the nine months ended September 30, 2025, revenue was $789.8 million, down from $917.2 million in 2024, a 13.9% decrease. Net earnings for the nine-month period were $36.6 million, a slight decrease from $37.3 million in the prior year. Key strategic changes include a 1-for-10 reverse stock split effective March 24, 2025, and IAC Inc.'s spin-off of its ownership in Angi Inc. on March 31, 2025, resulting in no outstanding Class B Common Stock. The company also realigned its operating segments into Domestic and International during the three months ended March 31, 2025. Cash and cash equivalents decreased to $340.7 million as of September 30, 2025, from $416.4 million at December 31, 2024, primarily due to $102.7 million in treasury stock purchases.

Why It Matters

Angi's substantial revenue and net income declines signal significant challenges in its core business, impacting investor confidence and potentially leading to further stock price volatility. The spin-off from IAC Inc. and the reverse stock split were attempts to streamline operations and improve market perception, but the financial results suggest these efforts have not yet translated into improved performance. For employees, continued revenue pressure could lead to cost-cutting measures. Customers might see changes in service offerings or pricing as Angi navigates its competitive landscape, which includes local service providers and other digital marketplaces. The broader market will watch if Angi can stabilize its business model in a competitive home services sector.

Risk Assessment

Risk Level: high — The risk level is high due to significant financial deterioration. Revenue for the three months ended September 30, 2025, decreased by 10.5% to $265.6 million from $296.7 million, and net earnings attributable to Angi Inc. shareholders plummeted by 69.8% to $10.6 million from $35.2 million. Furthermore, cash and cash equivalents declined by $75.7 million from December 31, 2024, to September 30, 2025, indicating a weakening liquidity position.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to ANGI given the sharp declines in revenue and net income, coupled with significant cash outflows for treasury stock purchases. Monitor future filings closely for signs of revenue stabilization and improved profitability, as the current trend suggests ongoing operational challenges.

Financial Highlights

debt To Equity
0.50
revenue
$265.6M
operating Margin
8.2%
total Assets
$1,747.4M
total Debt
$497.5M
net Income
$10.6M
eps
$0.02
gross Margin
95.3%
cash Position
$340.7M
revenue Growth
-10.5%

Revenue Breakdown

SegmentRevenueGrowth
Domestic$250.1M-10.5%
International$15.5M-10.5%

Key Numbers

Key Players & Entities

FAQ

What were Angi Inc.'s revenues for the three months ended September 30, 2025?

Angi Inc.'s revenues for the three months ended September 30, 2025, were $265.6 million, a decrease from $296.7 million in the same period of 2024.

How did Angi Inc.'s net earnings attributable to shareholders change in Q3 2025?

Net earnings attributable to Angi Inc. shareholders decreased significantly to $10.6 million for the three months ended September 30, 2025, down from $35.2 million in the prior year, representing a 69.8% decline.

What was the impact of the reverse stock split on Angi Inc. shares?

Angi Inc. effected a 1-for-10 reverse stock split on March 24, 2025, which combined every 10 shares of Class A and Class B Common Stock into one share, adjusting per-share amounts proportionally.

What happened with IAC Inc.'s ownership in Angi Inc.?

On March 31, 2025, IAC Inc. completed the spin-off of its ownership in Angi Inc. through a special dividend, resulting in IAC having no ownership and no Class B Common Stock of Angi Inc. outstanding.

How much cash and cash equivalents did Angi Inc. have as of September 30, 2025?

As of September 30, 2025, Angi Inc. reported cash and cash equivalents of $340.7 million, a decrease from $416.4 million at December 31, 2024.

What were Angi Inc.'s total operating costs and expenses for Q3 2025?

Total operating costs and expenses for Angi Inc. were $231.4 million for the three months ended September 30, 2025, a reduction from $274.2 million in the same period of 2024.

What are Angi Inc.'s main operating segments?

Angi Inc. now has two reportable operating segments: Domestic and International, a realignment that occurred during the three months ended March 31, 2025, to better reflect strategic priorities.

What was the change in Angi Inc.'s deferred revenue?

Angi Inc.'s deferred revenue decreased to $29.9 million as of September 30, 2025, from $42.0 million at December 31, 2024. The company recognized $40.6 million of revenue from the December 31, 2024, balance during the nine months ended September 30, 2025.

What is the primary risk factor highlighted by Angi Inc.'s Q3 2025 performance?

The primary risk factor is the significant decline in core business performance, evidenced by a 10.5% revenue decrease and a 69.8% net earnings drop in Q3 2025, indicating challenges in market demand and profitability.

How many Average Monthly Active Pros did Angi Inc. have in Q3 2025?

Angi Inc. reported approximately 118,000 Average Monthly Active Pros actively seeking consumer matches, completing jobs, or advertising work through its platforms during the three months ended September 30, 2025.

Risk Factors

Industry Context

Angi operates in the competitive home services marketplace, connecting consumers with professionals across various categories. The industry is characterized by fragmentation and a reliance on technology platforms to facilitate transactions. Trends include increasing consumer demand for convenience, transparency, and quality assurance in home services, alongside evolving labor regulations impacting the gig economy.

Regulatory Implications

Angi faces regulatory scrutiny related to its classification of service providers (Pros) as independent contractors, particularly in light of evolving labor laws in various jurisdictions. Compliance with consumer protection regulations and data privacy laws is also critical for maintaining trust and avoiding penalties.

What Investors Should Do

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Key Dates

Glossary

Reverse Stock Split
A corporate action where a company reduces the total number of its outstanding shares by consolidating existing shares into fewer, proportionally more valuable shares. Angi executed a 1-for-10 split. (Affects the number of shares outstanding and can influence per-share financial metrics and stock price.)
Treasury Stock
Shares of a company's own stock that it has repurchased from the open market. These shares are no longer outstanding and do not have voting rights. Angi spent $102.7 million on treasury stock purchases in the first nine months of 2025. (Indicates a capital allocation strategy and reduces the number of shares outstanding, impacting EPS calculations.)
Operating Income
A measure of a company's profit after deducting operating expenses from revenue. Angi's operating income increased to $21.8 million in Q3 2025 from $7.8 million in Q3 2024. (Shows the profitability of the core business operations before considering interest and taxes.)
Deferred Revenue
Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. Angi's deferred revenue decreased to $29.9 million at September 30, 2025, from $42.0 million at December 31, 2024. (Represents future revenue obligations and can impact cash flow and revenue recognition timing.)
Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. Angi has $889.7 million in goodwill as of September 30, 2025. (Represents a significant portion of Angi's assets and is subject to impairment testing, which could lead to future write-downs.)
Segment Information
Financial reporting that breaks down a company's revenue, profit, and other metrics by its different business units or geographical regions. Angi now reports on Domestic and International segments. (Provides insight into the performance of different parts of the business and how they contribute to the overall results.)

Year-Over-Year Comparison

Compared to the prior year, Angi Inc. reported a significant 10.5% decrease in Q3 2025 revenue ($265.6M vs $296.7M) and a substantial 69.8% drop in net earnings ($10.6M vs $35.2M). Despite the revenue decline, operating income improved considerably due to a reduction in total operating costs and expenses, which fell from $274.2M to $231.4M in Q3. The company also underwent a 1-for-10 reverse stock split and IAC's spin-off, leading to a simplified capital structure. Cash reserves decreased, largely driven by treasury stock purchases, while long-term debt remained relatively stable.

Filing Stats: 4,794 words · 19 min read · ~16 pages · Grade level 15.5 · Accepted 2025-11-04 16:37:22

Key Financial Figures

Filing Documents

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 1—The Company and Summary of Significant Accounting Policies 9 Note 2—Financial Instruments and Fair Value Measurements 12 Note 3—Long-term Debt 13 Note 4—Accumulated Other Comprehensive Income 14 Note 5—Segment Information 15 Note 6—Income Taxes 18 Note 7—Earnings Per Share 19 Note 8—Financial Statement Details 21 Note 9—Contingencies 22 Note 10—Related Party Transactions 22 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 5. Other Information 43 Item 6. Exhibits 44

Signatures

Signatures 46 2 Table of Contents PART I FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements ANGI INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) September 30, 2025 December 31, 2024 (In thousands, except par value amounts) ASSETS Cash and cash equivalents $ 340,689 $ 416,434 Accounts receivable, net 38,354 36,670 Other current assets 28,320 41,981 Total current assets 407,363 495,085 Capitalized software, leasehold improvements and equipment, net 93,094 79,564 Goodwill 889,662 883,440 Intangible assets, net 168,855 167,662 Deferred income taxes 157,276 169,073 Other non-current assets, net 31,141 35,911 TOTAL ASSETS $ 1,747,391 $ 1,830,735 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Accounts payable $ 38,897 $ 18,319 Deferred revenue 29,937 42,008 Accrued expenses and other current liabilities 146,401 171,351 Total current liabilities 215,235 231,678 Long-term debt, net 497,457 496,840 Deferred income taxes 1,023 1,500 Other long-term liabilities 39,606 37,916 Commitments and contingencies SHAREHOLDERS' EQUITY: Class A common stock, $ 0.001 par value; authorized 2,000,000 shares; issued 54,140 and 11,295 shares, respectively, and outstanding 43,687 and 7,579 , respectively 537 113 Class B convertible common stock, $ 0.001 par value; authorized 1,500,000 shares; no shares and 42,202 shares issued and outstanding, respectively — 422 Class C common stock, $ 0.001 par value; authorized 1,500,000 shares; no shares issued and outstanding — — Additional paid-in capital 1,455,785 1,465,640 Accumulated deficit ( 158,104 ) ( 195,015 ) Accumulated other comprehensive income (loss) 5,816 ( 2,495 ) Treasury stock, 10,453 and 3,716 shares, respectively ( 309,964 ) ( 205,864 ) Total shareholders' equity 994,070 1,062,801 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,747,391 $ 1,830,735 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 3 ANGI INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1— THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Angi Inc. connects quality home professionals ("Pros") with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. Approximately 118,000 Average Monthly Active Pros actively sought consumer matches, completed jobs, or advertised work through Angi Inc. platforms during the three months ended September 30, 2025. Additionally, consumers turned to at least one of our businesses to find a Pro for approximately 16 million projects during the twelve months ended September 30, 2025. The Company has two operating segments: (i) Domestic and (ii) International (consisting of businesses in Europe and Canada) and operates under multiple brands including Angi, HomeAdvisor, and Handy. In the United States, the Company provides Pros the capability to engage with potential customers, including quoting and invoicing services, and provides consumers with tools and resources to help them find local, pre-screened and customer-rated Pros nationwide for home repair, maintenance and improvement projects. Consumers can also request household services directly through the Angi platform, and such requests are fulfilled by independently established Pros engaged in a trade, occupation and/or business that customarily provides such services. Matching service, booking of pre-priced services, and related tools and directories are provided to consumers free of charge upon registration. The Company also owns marketplaces in Austria, Canada, France, Germany, Italy, the Netherlands, and the UK which provide Pros the ability to engage with potential customers and consumers the ability to engage with the Pros they need. As used herein, "Angi," the "Company," "we," "our," "us," and similar terms refer to Angi Inc. and its subsidiaries (unless the context requires otherwise). Reverse Stock Spli

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Distribution On March 31, 2025, IAC Inc. ("IAC") completed the spin-off of its ownership in the Company through a special dividend of the common stock of the Company owned by IAC to the holders of IAC common stock and IAC Class B common stock (the "Distribution"). Prior to the effective time of the Distribution, IAC voluntarily converted all of the shares of our Class B Common Stock that it owned to shares of Class A Common Stock. As a result of this conversion, there are no longer any shares of our Class B Common Stock outstanding. After completion of the Distribution, IAC has no ownership in the Company, there are no shares of Class B Common Stock outstanding, and the only class of Angi capital stock with shares outstanding is Class A Common Stock. Segment Change During the three months ended March 31, 2025, management determined that a realignment of the Company's operating and reportable segments was necessary to better reflect the operations and strategic priorities of the organization and align more closely with how the Chief Operating Decision Maker ("CODM") assesses performance and allocates resources. The Company now has two reportable segments: Domestic and International. Our financial information for prior periods has been recast to conform to the current period presentation. Basis of Presentation and Consolidation The Company prepares its consolidated financial statements (referred to herein as "financial statements") in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). The financial statements include all accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. All intercompany transactions and balances between and among the Company and its subsidiaries have been eliminated. The unaudited interim financial statements have been prepared in accordance with GAAP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) General Revenue Recognition The Company accounts for a contract with a customer when it has approval and commitment from all authorized parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to the Company's customers and in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or goods. The Company's disaggregated revenue disclosures are presented in " Note 5—Segment Information ." Deferred Revenue Deferred revenue consists of payments that are received or are contractually due in advance of the Company's performance obligation. The Company's deferred revenue is reported on a contract-by-contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the remaining term or expected completion of its performance obligation is one year or less. At December 31, 2024, the current and non-current deferred revenue balances were $ 42.0 million and less than $ 0.1 million, respectively, and during the nine months ended September 30, 2025, the Company recognized $ 40.6 million of revenue that was included in the deferred revenue balance as of December 31, 2024. At December 31, 2023, the current and non-current deferred revenue balances were $ 49.9 million and $ 0.1 million, respectively, and during the nine months ended September 30, 2024, the Company recognized $ 43.1 million of revenue that was included in the deferred revenue balance as of December 31, 2023. The current and non-current deferred revenue balances at September 30, 2025 are $ 29.9 million and less than $ 0.1 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the balance sheet. Practical Expedients and Exemptions For

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Recent Accounting Pronouncements Not Yet Adopted by the Company ASU No. 2023-09— Income Taxes (Topic 740)— Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, which establishes required categories and a quantitative threshold to the annual tabular rate reconciliation disclosure and disaggregated jurisdictional disclosures of income taxes paid. The guidance's annual requirements are effective for the Company beginning with the reporting period for the fiscal year ending December 31, 2025. Early adoption is permitted and ASU No. 2023-09 may be applied either prospectively or retrospectively. The Company is currently assessing ASU No. 2023-09, its impact on its income tax disclosures, and the method of adoption. ASU No. 2023-09 does not affect the Company's results of operations, financial condition or cash flows. The Company does not plan to adopt ASU No. 2023-09 early. ASU No. 2024-03— Income Statement-Reporting Comprehensive Income— Expense Disaggregation Disclosures (Subtopic 220-40)— Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03, which is intended to provide users of financial statements with more decision-useful information about expenses of a public business entity, primarily through enhanced disclosures of certain components of expenses commonly presented within captions on the statement of operations, such as purchases of inventory, employee compensation, depreciation and amortization, as well as a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU No. 2024-03 also requires disclosure of the total amount of selling expenses and, in annual reporting periods, the definition of selling expenses. ASU No. 2024-03 is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027. Ea

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