Financial Data and Key Metrics Changes - In Q3 2025, Angi reported a double-digit increase in the estimated hire rate and a nearly 30% increase in the estimated win rate year-over-year [4] - The homeowner net promoter score improved by nearly 10 points year-over-year, with a total increase of nearly 30 points over the last two years [4] - Pro retention improved, with overall churn better by 7% year-over-year and up 26% compared to two years ago [4] - Proprietary service request growth accelerated to positive 11%, with proprietary lead growth at 16% and revenue for lead growth at 11% [5] Business Line Data and Key Metrics Changes - The network channel's contribution to leads decreased from nearly 40% a year ago to less than 10% in Q3 2025, impacting overall growth [5] - The company is generating more value with a reduced sales headcount, producing more overall lifetime margin per pro [6] Market Data and Key Metrics Changes - The company experienced a shift in the network channel, which had a win rate significantly lower than other channels, but this has improved as homeowners now choose their pros [28] - The affiliate network saw a decrease in volume due to quality issues and operational challenges, but the company is stabilizing and looking for new partners [30][31] Company Strategy and Development Direction - Angi aims to transition to a single modern global and AI-first platform by 2027, addressing significant tech debt and legacy code [7] - The company is focusing on improving customer experience through AI-enabled software and enhancing business efficiency [7] - There is a commitment to return to growth in 2026 and beyond, with a focus on branded advertising and increasing TV spend [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of homeowner demand, noting it is not as high as during COVID but not as low as during the financial crisis [61] - The company anticipates modest overall service growth in 2026, with strong performance in proprietary channels offsetting weaker network comparisons [11][12] Other Important Information - The company has authorized a new share repurchase program, allowing for the repurchase of an additional 3.2 million shares [52] - Capital expenditures are expected to be around $60 million this year and a similar amount next year, with a front-loaded spending approach [17] Q&A Session Summary Question: Update on proprietary lead growth and 2026 outlook - Management confirmed that the target for 2026 revenue growth remains mid-single-digit, with strong performance in proprietary channels offsetting network weaknesses [11] Question: Clarification on EBITDA and CapEx - EBITDA performance was influenced by contribution margin outperformance and timing of expenses, with expectations for higher capitalization rates in Q4 [16][17] Question: Response to ads migration and network channel performance - The ads migration is progressing well with positive feedback from service pros, while the network channel has decreased in lead contribution but improved in win rates [25][28] Question: Impact of AI on customer acquisition strategy - The company is actively integrating AI into customer workflows, which is expected to enhance conversion rates and improve overall efficiency [34][37] Question: Competitive environment and market position - Angi remains competitive, with a strong market position and a focus on delivering high-quality experiences to homeowners and pros [78]

Core Insights - Angi reported a revenue of $265.63 million for the quarter ended September 2025, reflecting a year-over-year decline of 10.5% and an EPS of $0.23 compared to $0.70 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $269.12 million, resulting in a surprise of -1.29%, while the EPS also missed the consensus estimate of $0.33 by -30.3% [1] Financial Performance Metrics - Total monetized transactions (leads) were 5.44 million, slightly below the average estimate of 5.45 million [4] - Leads from network channels were 495 thousand, compared to the average estimate of 603.95 thousand [4] - Leads from proprietary channels reached 4.95 million, exceeding the average estimate of 4.85 million [4] - International revenue was reported at $32.4 million, surpassing the average estimate of $31.49 million, with a year-over-year increase of 1.9% [4] - Total domestic revenue was $233.2 million, below the average estimate of $237.63 million, representing a year-over-year decline of 12% [4] Stock Performance - Over the past month, Angi's shares have returned -17.8%, contrasting with the Zacks S&P 500 composite's increase of +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Angi reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.33 per share, and showing a decline from $0.70 per share a year ago, indicating a significant earnings surprise of -30.30% [1][2] Financial Performance - The company posted revenues of $265.63 million for the quarter ended September 2025, which was 1.29% below the Zacks Consensus Estimate and a decrease from $296.72 million in the same quarter last year [2] - Over the last four quarters, Angi has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2] Stock Performance - Angi shares have declined approximately 21.4% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] - The current Zacks Rank for Angi is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $249.68 million, and for the current fiscal year, it is $1.34 on revenues of $1.04 billion [7] - The trend of estimate revisions for Angi was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Internet - Content industry, to which Angi belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Revenue Performance - For the three months ended September 30, 2025, total revenue decreased by $31.1 million, or 10%, to $265.6 million compared to $296.7 million in the same period of 2024[131]. - Domestic revenue for the three months ended September 30, 2025, decreased by $31.7 million, or 12%, primarily due to a $21.0 million decrease in advertising revenue, a $6.5 million decrease in services revenue, and a $3.5 million decrease in membership subscription revenue[132]. - International revenue for the three months ended September 30, 2025, increased by $0.6 million, or 2%, to $32.4 million compared to $31.8 million in the same period of 2024[131]. - For the nine months ended September 30, 2025, total revenue decreased by $127.5 million, or 14%, to $789.8 million compared to $917.2 million in the same period of 2024[131]. - Domestic revenue for the nine months ended September 30, 2025, decreased by $125.5 million, or 15%, primarily due to a $59.2 million decrease in lead revenue and a $40.5 million decrease in advertising revenue[132]. - For the three months ended September 30, 2025, revenue decreased by $31.1 million, or 10%, to $265.6 million compared to $296.7 million in the same period of 2024[137]. Profitability and Expenses - Gross profit for the three months ended September 30, 2025, decreased by $28.8 million, or 10%, to $253.2 million, primarily due to the decrease in revenue[137]. - Selling and marketing expenses for the three months ended September 30, 2025, decreased by $26.1 million, or 17%, to $129.3 million, representing 49% of revenue[139]. - General and administrative expenses for the three months ended September 30, 2025, decreased by $7.4 million, or 10%, to $69.4 million, maintaining 26% of revenue[143]. - Product development expenses for the three months ended September 30, 2025, decreased by $3.6 million, or 15%, to $20.7 million[147]. - Depreciation for the three months ended September 30, 2025, decreased by $5.7 million, or 32%, to $11.9 million[148]. - For the nine months ended September 30, 2025, gross profit decreased by $124.7 million, or 14%, primarily due to the decrease in revenue[138]. Operating Income and EBITDA - Operating income for the three months ended September 30, 2025, increased to $21.8 million, a 179% increase compared to the same period in 2024[150]. - Adjusted EBITDA for the three months ended September 30, 2025, increased by $4.3 million, or 12%, to $39.7 million[152]. - Adjusted EBITDA for the three months ended September 30, 2025, was $39,682,000, compared to $35,409,000 in 2024, reflecting an increase of $4,273,000[172]. Cash Flow and Liquidity - Total cash and cash equivalents as of September 30, 2025, were $340,689,000, down from $416,434,000 at December 31, 2024[175]. - Long-term debt, net as of September 30, 2025, was $497,457,000, slightly up from $496,840,000 at December 31, 2024[175]. - For the nine months ended September 30, 2025, net cash provided by operating activities was $74.989 million, a decrease from $115.904 million in 2024, reflecting changes in working capital and non-cash adjustments[176]. - The company believes its existing cash and expected positive cash flows will be sufficient to fund its normal operating requirements for the next twelve months[188]. - The company may consider additional liquidity options, including revolving credit facilities, which could impose operating and financial covenants[189]. Shareholder Returns - The company repurchased 6.7 million shares of its Class A Common Stock for $102.7 million at an average price of $15.31 per share during the nine months ended September 30, 2025[179]. - The company repurchased an additional 0.6 million shares at an average price of $14.51 per share from October 1, 2025, to October 31, 2025[184]. Tax and Interest - The effective income tax rate for the three months ended September 30, 2025, was 49%, significantly higher than the statutory rate of 21% due to changes in tax laws and state taxes[161]. - Interest expense for the three months ended September 30, 2025, was $5,069,000, showing no significant change from $5,045,000 in 2024[157]. - Interest income included in other income for the three months ended September 30, 2025, was $3,800,000, down from $5,100,000 in 2024[159]. - The company reported a net income tax provision of $10,198,000 for the three months ended September 30, 2025, compared to a benefit of $26,612,000 in 2024[160]. Market and Operational Metrics - Average Monthly Active Pros decreased by 34, or 22%, to 118 in the three months ended September 30, 2025, compared to 152 in the same period of 2024[131]. - The number of Service Requests decreased by 346, or 8%, to 4,144 in the three months ended September 30, 2025, compared to 4,490 in the same period of 2024[131]. - The number of Acquired Pros decreased by 12, or 35%, to 22 in the three months ended September 30, 2025, compared to 34 in the same period of 2024[131]. Future Commitments - The company entered into a three-year cloud computing contract with expected payments of $19.5 million within the next twelve months and approximately $44.5 million by September 2028[185]. - Capital expenditures for 2025 are expected to increase by approximately 20% compared to 2024, which had capital expenditures of $50.5 million[186]. Other Income - Other income, net for the three months ended September 30, 2025, increased to $13,737,000 from $4,090,000 in 2024, representing a $9,647,000 increase[158]. - The company reported a provision for credit losses of $37.3 million and depreciation of $32.1 million for the nine months ended September 30, 2025[177]. Risk Management - There have been no material changes to the company's instruments or positions sensitive to market risk since the last annual report[194].

Financial Performance - Revenue for Q3 2025 was $296.7 million, a decrease of 10% compared to Q3 2024[3] - Net earnings for Q3 2025 were $35.2 million, down 70% from $10.6 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $39.7 million, up from $35.4 million in Q3 2024, reflecting a 12% increase[4] - Operating income increased to $21.8 million, up 179% from $7.8 million in Q3 2024[4] - Basic earnings per share for the three months ended September 30, 2025, was $0.24, compared to $0.71 in the same period of 2024, indicating a decrease of 66.0%[24] - Total revenue for the three months ended September 30, 2025, was $265.6 million, a decrease of 10% compared to $296.7 million in the same period of 2024[31] - Net earnings attributable to Angi Inc. shareholders for the three months ended September 30, 2025, were $10.6 million, compared to $35.2 million in 2024[33] Revenue Breakdown - Proprietary Service Requests grew by 11% year-over-year, while Network Service Requests declined by 67%[4] - Proprietary Leads increased by 16% year-over-year, whereas Network Leads fell by 81%[12] - Domestic revenue for the nine months ended September 30, 2025, was $691.3 million, down 15% from $816.9 million in 2024[31] - International revenue for the three months ended September 30, 2025, was $32.4 million, a 2% increase from $31.8 million in 2024[31] Expenses and Liabilities - Total expenses for the nine months ended September 30, 2025, were $689,609, down from $803,691 in 2024, reflecting a decrease of 14.2%[30] - Total current assets decreased to $407,363 as of September 30, 2025, from $495,085 at the end of 2024, a decline of 17.7%[26] - Total liabilities decreased to $215,235 as of September 30, 2025, compared to $231,678 at the end of 2024, a reduction of 7.1%[26] - Cash and cash equivalents at the end of the period were $340,689, down from $416,434 at the end of 2024, a decrease of 18.2%[26] Shareholder Actions - The company repurchased 1.3 million shares for $20.1 million between August 4, 2025, and October 31, 2025[4] - Future capital allocation strategies and potential share repurchases are being considered to enhance shareholder value[59] Market and Growth Insights - The Company anticipates continued growth in the home services market, driven by the ongoing migration of services online and effective marketing strategies[59] - The Company is focused on expanding its pre-priced offerings while maintaining a balanced mix of service requests and directory services[59] - Ongoing investments in technology and consumer data protection are critical to sustaining growth and maintaining trust with users[59] Operational Metrics - Average Monthly Active Pros decreased by 17% year-over-year to 131,000 in Q3 2025[13] - Average Monthly Active Pros increased, reflecting a growing network of service professionals available to consumers[56] - Revenue per Lead was calculated by dividing Domestic Revenue by the number of Leads, providing a clear metric for performance evaluation[57] - The introduction of new metrics in Q1 2025, including Proprietary Channels and Average Monthly Active Pros, aims to provide clearer insights into performance[51] - The Company recorded a notable number of Service Requests, which include pre-priced offerings and connections with Pros, indicating strong consumer engagement[53]

Group 1 - Angi Inc. (NASDAQ: ANGI) shares have sharply declined over the past month despite an initial jump following the Q2 earnings release [1] - The company has previously remained cautious due to declining revenue [1] Group 2 - An individual investor focuses on undercovered companies, with a watchlist of up to 100 companies, primarily in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience across a broad range of global companies [1] - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns [1]

Core Insights - Shares of Angi (NASDAQ: ANGI) have experienced a significant decline over the past month, despite an initial surge following the company's Q2 earnings release [1] - The company has been facing a declining revenue trend, which has led to cautious sentiment among investors [1] Company Analysis - Angi's stock performance has been volatile, with a sharp decline observed after a brief increase post-earnings report [1] - The company's revenue trend is a critical factor influencing investor sentiment and stock performance [1] Investor Perspective - The analysis highlights the importance of understanding the underlying revenue trends when evaluating investment opportunities in companies like Angi [1]

Core Viewpoint - Angi Inc. is set to release its third quarter results on November 4, 2025, followed by a conference call on November 5, 2025, to discuss the results and address shareholder questions [1][2]. Company Overview - Angi Inc. (NASDAQ: ANGI) has been operational since 1995, focusing on connecting homeowners with skilled local home service professionals for various projects [3]. - The company has facilitated over 300 million projects, evolving its services to include finding, booking, and hiring professionals, as well as researching costs and project inspiration [3].

Core Viewpoint - Angi (ANGI) is showing potential for short-term gains as it has recently reached a key support level and surpassed the 20-day moving average, indicating a bullish trend [1][4]. Technical Analysis - ANGI has recently overtaken the 20-day simple moving average, which is a positive indicator for short-term traders as it smooths out price trends and signals potential trend reversals [1][2]. - The stock has gained 7.6% over the past four weeks, reinforcing its positive momentum [4]. Earnings Estimates - There have been two upward revisions in earnings estimates for the current fiscal year, with no downward revisions, suggesting a positive outlook for the company [4]. - The consensus earnings estimate has also increased, further supporting the bullish case for ANGI [4][5]. Investment Outlook - The combination of positive earnings estimate revisions and the stock hitting a key technical level suggests that investors should monitor ANGI for potential gains in the near future [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Angi (ANGI) as a potentially undervalued stock with strong earnings outlook and favorable valuation metrics [2][4][6]. Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market, relying on traditional analysis of key valuation metrics [2]. - The Zacks Rank system is utilized to find winning stocks based on earnings estimates and revisions, while the Style Scores system helps investors find stocks with specific traits, particularly in the "Value" category [1][3]. Group 2: Angi (ANGI) Stock Metrics - Angi (ANGI) currently has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 15.12, significantly lower than the industry average P/E of 22.47, suggesting it may be undervalued [4]. - Angi's P/S ratio stands at 0.83, compared to the industry's average P/S of 1.27, further supporting the notion of undervaluation [5]. - Over the past 52 weeks, Angi's Forward P/E has fluctuated between 12.42 and 112.61, with a median of 32.71, indicating volatility but also potential for value [4].