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Core Insights - The company is experiencing a significant shift in its web ecosystem, with a 13% year-over-year decline in core web sessions, primarily due to a 50% drop in Google Search referrals over the past two years [1][6] - Digital revenue growth of 14% in the quarter was driven by advertising, performance marketing, and licensing, despite a 23% decline in print revenue [2][6][3] - The company is focusing on off-platform distribution, with off-platform views nearly doubling over two years and non-session-based revenue growing 37% year-over-year, now representing about 38% of total digital revenue [6][7] Financial Performance - Print revenue fell by 23%, attributed to a lack of political advertising compared to the previous year and ongoing declines in the print sector [2] - Licensing revenue increased by 36%, supported by partnerships with Apple News and Meta, while performance marketing grew by 17% during the holiday period [2][3] - The company reported adjusted EBITDA guidance for People Inc. of $310 million to $340 million, with expectations of mid- to high-single-digit growth in digital revenue and digital adjusted EBITDA [5][15] Strategic Initiatives - The company is shifting towards a strategy that includes developing standalone products and services to mitigate risks from AI-driven disintermediation, leveraging iconic content brands [8] - New initiatives include a "recipe locker" with 3 million registered users and a relaunched People app with 300,000 downloads, focusing on user engagement [19] - The company has increased its stake in MGM to 25% and repurchased $337 million of its shares, reducing the share count by approximately 10% [5][18] Guidance and Future Outlook - IAC will cease providing quarterly guidance, opting for annual targets instead, citing volatility in the industry [5][14] - The company anticipates approximately $15 million in litigation costs related to Google AdTech in 2026, which will impact corporate expenses [15] - IAC expects over 50% EBITDA-to-free-cash-flow conversion in 2026, supported by low capital expenditures and minimal cash taxes [17]

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with digital revenue growth of 14%, driven by strong execution across advertising, performance marketing, and licensing [5][14] - Adjusted EBITDA for the quarter grew 9% in digital, with digital margins at 26% [16] - For the full year, total revenue reached $1.8 billion, with digital revenue accounting for $1.1 billion and growing 10% year-over-year [17] Business Line Data and Key Metrics Changes - Advertising revenue grew by 9% despite a 13% decline in core sessions, indicating success in the off-platform strategy [14] - Performance marketing saw a 17% increase during the holiday period, reflecting strong consumer engagement [14] - Licensing revenue surged by 36%, aided by partnerships with Apple News and Meta [15] Market Data and Key Metrics Changes - The print segment experienced a decline of 23%, attributed to a prior period's political advertising revenue and ongoing sectoral declines [16] - Core web sessions fell by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [20] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and revenue streams that are less susceptible to disintermediation [6][12] - New product initiatives include Southern Living and Food & Wine, aimed at creating unique consumer experiences and leveraging existing brand strengths [6][8] - The strategy emphasizes off-platform audience engagement, with non-session-based revenue now comprising about 38% of total digital revenue and growing 37% year-over-year [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly in the face of AI disruption, and highlighted the strength of their brands [5][12] - The outlook for 2026 is optimistic, with expectations for People Inc to exceed conservative guidance due to strong momentum [34] - The company plans to continue evaluating buybacks and is mindful of the current undervaluation of IAC [13] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [27] - The expected litigation expenses related to Google AdTech litigation are projected at approximately $15 million for the year [28] Q&A Session Summary Question: Can you elaborate on the key drivers of non-session-based revenue growth? - Management indicated that the growth is driven by diversifying traffic sources and developing new distribution channels, moving away from reliance on Google [36][38] Question: What are IAC's M&A aspirations? - Management expressed interest in finding unique opportunities but noted that currently, there are no exciting prospects on the horizon [51][53] Question: How scalable are the new curated experiences? - Management emphasized the importance of direct relationships with audiences and advertisers, highlighting successful new initiatives like MyRecipes and the People app [64][66] Question: What is the outlook for the Care segment? - The Care segment is expected to return to growth by midyear, with ongoing improvements in product offerings and marketing investments [25] Question: Can you provide insights on the ad market? - Management rated the current ad market as a six out of ten, noting solid performance in health, pharma, and travel sectors, while some macro-exposed sectors are facing challenges [95]

IAC (NasdaqGS:IAC) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsBarry Diller - Chairman and Senior ExecutiveChristopher Halpin - EVP, COO and CFOEric Sheridan - Managing Director and co-leader of the Technology, Media, and Telecommunications (TMT) groupJason Helfstein - Managing Director and Head of Internet ResearchNeil Vogel - CEOConference Call ParticipantsCorey Carpenter - Executive Director and Senior Equity Research AnalystJames Heaney - Senior Vice President and Lead Analys ...

IAC (NasdaqGS:IAC) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Speaker3Please note this event is being recorded. I would now like to turn the conference over to Christopher Halpin, COO and CFO. Please go ahead.Speaker1Thank you. Good morning, everyone. Christopher Halpin here, and welcome to the IAC fourth quarter earnings call. Joining me today are Barry Diller, the Chairman and Senior Executive of IAC, and Neil Vogel, CEO of People Inc. IAC has published a presentation on the investor relations se ...

Q4'25 Investor Presentation February 3, 2026 NON-GAAP FINANCIAL MEASURES This presentation contains references to non-GAAP measures. Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on ...

Group 1 - The company reported total sales of MSEK 38,422 for Q4 2025, a decrease from MSEK 41,794 in the same period of the previous year [1] - Organic sales growth for Q4 2025 was 3 percent, down from 4 percent year-over-year, while adjusted organic sales growth remained at 4 percent [1] - Operating income before amortization for Q4 2025 was MSEK 3,063, slightly up from MSEK 3,036, resulting in an operating margin of 8.0 percent compared to 7.3 percent in Q4 2024 [1] Group 2 - For the full year 2025, total sales were MSEK 155,113, down from MSEK 161,921 in 2024, with organic sales growth at 4 percent, a decline from 5 percent [1] - The operating income before amortization for 2025 was MSEK 11,493, an increase from MSEK 11,200, leading to an operating margin of 7.4 percent, up from 6.9 percent [1] - The company proposed a dividend of SEK 5.30 per share for 2025, an increase from SEK 4.50 per share in the previous year [1]

Core Insights - IAC reported a revenue of $645.98 million for Q4 2025, reflecting a year-over-year decline of 34.7% and an EPS of -$0.99, compared to -$2.39 a year ago, with a revenue surprise of +0.83% over the Zacks Consensus Estimate of $640.68 million and an EPS surprise of -248.32% compared to the consensus estimate of $0.67 [1] Revenue Performance - Digital Revenue for People Inc was $354.8 million, exceeding the average estimate of $336.95 million by four analysts, representing a year-over-year increase of +14.2% [4] - Revenue from Emerging & Other was $19.6 million, surpassing the average estimate of $15.86 million by four analysts, with a year-over-year increase of +18.1% [4] - People Inc revenue was reported at $511.8 million, slightly below the average estimate of $498.89 million, indicating a year-over-year decline of -2% [4] - Care.com generated $85.7 million in revenue, close to the average estimate of $85.89 million by four analysts [4] - Search revenue was $29 million, significantly below the average estimate of $40.24 million, showing a year-over-year decline of -67.5% [4] - Print Revenue for People Inc was $168.5 million, slightly below the average estimate of $169.44 million, reflecting a year-over-year decline of -22.7% [4] - Intersegment eliminations reported a revenue of -$11.4 million, worse than the average estimate of -$7.23 million, with a year-over-year increase of +75.4% [4] - Desktop Search revenue was $7.4 million, slightly below the average estimate of $7.63 million, with a year-over-year decline of -51.3% [4] - Ask Media Group Search revenue was $21.6 million, significantly below the average estimate of $32.81 million, indicating a year-over-year decline of -70.8% [4] Adjusted EBITDA - Adjusted EBITDA for People Inc was $142.2 million, close to the average estimate of $142.57 million by four analysts [4] - Adjusted EBITDA for Care.com was $18.6 million, slightly above the average estimate of $17.98 million by four analysts [4] Stock Performance - IAC shares have returned -4.9% over the past month, contrasting with the Zacks S&P 500 composite's +1.8% change, and the stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [3]

Core Viewpoint - IAC reported a quarterly loss of $0.99 per share, significantly worse than the Zacks Consensus Estimate of $0.67, marking an earnings surprise of -248.32% [1] Financial Performance - IAC's revenues for the quarter ended December 2025 were $645.98 million, exceeding the Zacks Consensus Estimate by 0.83%, but down from $989.31 million a year ago [2] - Over the last four quarters, IAC has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - IAC shares have declined approximately 5.3% since the beginning of the year, while the S&P 500 has gained 1.9% [3] Future Outlook - The company's earnings outlook will be crucial for stock performance, with current consensus EPS estimates at -$0.27 for the coming quarter and $0.45 for the current fiscal year [7] - The Zacks Rank for IAC is currently 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Context - The Diversified Operations industry, to which IAC belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Revenue Performance - Q4 2025 revenue decreased by 10% to $646.0 million compared to $721.4 million in Q4 2024[3] - For the twelve months ended December 31, 2025, IAC reported total revenue of $2,393.2 million, a decrease of 8.7% from $2,622.1 million in 2024[36] - In Q4 2025, total revenue was $511.8 million, down 2% from $522.1 million in Q4 2024[30] - Care.com revenue decreased by 9% to $86 million, primarily due to a decline in Enterprise[7] - Digital revenue in Q4 2025 increased by 14% to $354.8 million compared to $310.6 million in Q4 2024[30] - Advertising revenue grew by 9% to $209.9 million in Q4 2025, up from $191.8 million in Q4 2024[30] Profitability and Loss - IAC's net loss improved by 61% to $76.8 million from a loss of $199.0 million in Q4 2024[3] - The net loss attributable to IAC shareholders for the year was $104.0 million, compared to a loss of $539.9 million in 2024[36] - Basic loss per share for the year was $1.46, compared to $6.89 in 2024[36] - Net loss attributable to continuing operations for 2025 was $116.8 million, compared to a loss of $573.2 million in 2024, representing a significant improvement[38] Cash Flow and Financial Position - Free Cash Flow decreased by $132.6 million to $44.8 million for the twelve months ended December 31, 2025[21] - Cash and cash equivalents at the end of the period decreased to $986.8 million from $1,807.3 million, a decline of approximately 45.5%[38] - IAC's long-term debt stood at $1.4 billion, with a weighted average maturity of 6.0 years and a borrowing cost of 7.1%[28] - Total current liabilities decreased from $886.2 million in 2024 to $560.9 million in 2025, a reduction of approximately 36.7%[37] Adjusted EBITDA - Adjusted EBITDA for Q4 2025 increased by 29% to $141.6 million compared to $109.9 million in Q4 2024[3] - For the three months ended December 31, 2025, total Adjusted EBITDA was $141.6 million, compared to $109.9 million for the same period in 2024, representing a 28.9% increase[44] - For the twelve months ended December 31, 2025, total Adjusted EBITDA was $273.0 million, compared to $231.8 million for the same period in 2024, marking an increase of 17.7%[45] - The Digital segment's Adjusted EBITDA for the twelve months ended December 31, 2025, was $307.2 million, up from $289.4 million in 2024, which is a growth of 6.1%[45] - Care.com reported an Adjusted EBITDA of $18.6 million for the three months ended December 31, 2025, compared to $7.9 million in the same period of 2024, indicating a significant increase of 135.4%[44] - The Corporate segment reported an Adjusted EBITDA loss of $113.4 million for the twelve months ended December 31, 2025, compared to a loss of $90.3 million in 2024, indicating a deterioration of 25.6%[45] Strategic Initiatives and Outlook - The company expects total adjusted EBITDA for FY 2026 to be between $260 million and $335 million, with People Inc. contributing $310 million to $340 million[40] - Care.com is projected to return to revenue growth in 2026, indicating a positive outlook for this segment[41] - Corporate expenses are expected to exceed Print Adjusted EBITDA by $15 million due to estimated Google litigation expenses[41] - The company will no longer provide quarterly earnings guidance, focusing instead on long-term strategic priorities[39] Investments and Share Repurchase - IAC repurchased 1.0 million shares for $37 million in Q4 2025, totaling 8.2 million shares repurchased for $337 million over the past year[7] - The company repurchased 1.0 million common shares for $37.0 million between November 1, 2025, and February 2, 2026[26] - IAC's investment in MGM now totals 65.8 million shares, valued at $2.2 billion as of February 2, 2026[17] Challenges and Risks - IAC's future financial performance and business prospects are subject to various risks, including competition from AI technology and unstable market conditions[66] - The company faces challenges related to advertising spending levels and consumer confidence[66] - IAC's ability to market its products effectively and maintain relationships with key partners is critical for its success[66] - The company is committed to protecting user data and ensuring the integrity of its systems against cyber threats[66] Company Overview - IAC is focused on building companies and has evolved into 10 independent, publicly traded companies over nearly three decades[67] - The company holds strategic equity positions in MGM Resorts International and Turo Inc[67] - IAC emphasizes financially-disciplined opportunism as a core principle in its operations[67] - The company is guided by curiosity and a desire to invent or acquire new products and brands[67] - IAC's businesses include category leaders such as People Inc. and Care.com[67] - The company is headquartered in New York City[67]