IAC Inc. (IAC) Earnings History

IAC Inc. - Q4 FY2025 Earnings

Filed at: Feb 3, 2026, 4:06 PM EST|Read from source

EXECUTIVE SUMMARY

IAC reported a challenging Q4 2025 with a significant revenue decline, primarily driven by weakness in its Search and Print segments. While People Inc. showed some digital growth, this was offset by broader segment declines and a substantial goodwill impairment at Care.com. The company is focusing on long-term strategic priorities and capital allocation, including share repurchases and an investment in MGM.

POSITIVE HIGHLIGHTS

  • •

    People Inc. Digital revenue increased 14% to $355 million, marking the highest growth in five quarters.

    positive
  • •

    People Inc. full-year Digital revenue increased 10% to $1.1 billion.

    positive
  • •

    Adjusted EBITDA increased 29% to $141.6 million in Q4 2025.

    positive
  • •

    IAC returned capital through share repurchases of 1.0 million shares for $37 million since Q3 2025 earnings.

    positive

CONCERNS & RISKS

  • •

    Total revenue decreased 10% to $646.0 million in Q4 2025 compared to $721.4 million in Q4 2024.

    negative
  • •

    Operating loss was $113.4 million in Q4 2025, a significant deterioration from an operating income of $48.1 million in Q4 2024.

    negative
  • •

    Care.com revenue decreased 9% to $85.7 million, driven by softness in Enterprise.

    negative
  • •

    Care.com reported an operating loss of $191.1 million, including a $207.5 million non-cash goodwill impairment.

    negative
  • •

    Search segment revenue decreased 68% to $29.0 million due to frequent Google algorithm changes and policy updates.

    negative
  • •

    Print revenue declined 23% due to the benefit of political advertising in Q4 2024 and ongoing portfolio optimization.

    negative
  • •

    Free Cash Flow decreased $132.6 million to $44.8 million for the twelve months ended December 31, 2025, compared to $177.4 million in the prior year.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$646.00M
-10.0%
Prior year: $721.40M
Annual (YTD)
$2.39B
N/A
Prior year: $2.62B
Net Income
Quarterly
$-76.79M
+61.4%
Prior year: $-198.98M
Annual (YTD)
$-104.03M
N/A
Prior year: $-539.90M
EPS (Diluted)
Quarterly
$-0.99
+59.1%
Prior year: $-2.42
Annual (YTD)
$-1.30
N/A
Prior year: $-6.49
Operating Income
Quarterly
$-113.37M
-335.7%
Prior year: $48.09M
Annual (YTD)
$-97.42M
N/A
Prior year: $-28.68M
EPS (Basic)
Quarterly
$-0.99
+59.1%
Prior year: $-2.42
Annual (YTD)
$-1.30
N/A
Prior year: $-6.49

MARGIN ANALYSIS

Operating Margin
Current Quarter
-17.6%
Prior Year
6.7%
YoY Change
-2422 bps
Net Margin
Current Quarter
-11.9%
Prior Year
-27.6%
YoY Change
+1569 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
People Inc.(2 segments)
0.0%
N/A
Care.com(1 segment)
0.0%
N/A
Search
0.0%
N/A
Emerging & Other
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
People Inc.
N/A———
Care.com
N/A———
Search
N/A———
Emerging & Other
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

Adjusted EBITDA
260,000,000—335,000,000
Mid-point: 297,500,000
"Total Adjusted EBITDA expected to be between $260-$335 million."
Operating Income
95,000,000—190,000,000
Mid-point: 142,500,000
"Total Operating income expected to be between $95-$190 million."
People Inc. Adjusted EBITDA
310,000,000—340,000,000
Mid-point: 325,000,000
"Guiding to $310-$340 million of consolidated People Inc. Adjusted EBITDA."
People Inc. Digital Revenue
"Expect Digital revenue to grow mid-to-high single-digits in 2026."
People Inc. Digital Adjusted EBITDA
"Expect Digital Adjusted EBITDA to grow mid-to-high single-digits in 2026."
Care.com Revenue
"Return to revenue growth in 2026."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Goodwill impairment at Care.com
Non-cash goodwill impairment based on Q4 2025 estimate of fair value.
+$207.5M
Q4 2025
Gain related to the sale of an aircraft
Included in 'Other' operating income for People Inc.
+$4M
Q4 2025
Google litigation costs
Included in 'Other' operating income for People Inc.
Q4 2025
Reduction in non-operating loss related to disputed gain on real estate transaction
Follows court ruling that plaintiffs are not entitled to statutory prejudgment interest.
+$13.4M
Total Impact
+$224.9M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

The fourth quarter capped a year of disciplined execution and solid performance across IAC.

— IAC Inc., Q4 FY2025 2025 Earnings Call

People Inc. drove the fastest digital revenue growth we’ve seen in over a year, even amidst AI-driven disruption.

— IAC Inc., Q4 FY2025 2025 Earnings Call

We’re doing what we set out to do—over the past year we deployed $337 million back into our Company and increased our ownership in MGM, a business that we believe will never be disintermediated.

— IAC Inc., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Ask Media Group Revenue (Search)
21.6M
-70.8% YoY
Prior year: 74.0M
dollars
Consumer Revenue (Care.com)
43.2M
-4.0% YoY
Prior year: 45.0M
dollars
Core Sessions (People Inc.)
2021.0M
-13.1% YoY
Prior year: 2327.0M
sessions
Desktop Revenue (Search)
7.4M
-51.3% YoY
Prior year: 15.2M
dollars
Enterprise Revenue (Care.com)
42.5M
-12.6% YoY
Prior year: 48.6M
dollars
Total Sessions (People Inc.)
2241.0M
-15.9% YoY
Prior year: 2666.0M
sessions

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.