ANGI Homeservices(ANGI) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview Angi Inc. reported decreased revenue but increased operating income and net earnings in Q2 2025, driven by efficiency improvements Q2 2025 Summary Results Angi Inc. reported a 12% revenue decrease to $278.2 million in Q2 2025, with operating income up 92% and net earnings up 190% Key Financial Metrics | Metric | Q2 2025 ($ in millions) | Q2 2024 ($ in millions) | Growth (%) | | :---------------------- | :---------------------- | :---------------------- | :--------- | | Revenue | 278.2 | 315.1 | -12 | | Operating income | 17.7 | 9.2 | 92 | | Net earnings | 10.9 | 3.8 | 190 | | Diluted earnings per share | 0.23 | 0.07 | 229 | | Adjusted EBITDA | 33.0 | 42.2 | -22 | Key Performance Updates Proprietary Service Requests and Leads grew for the first time since Q1 2021, despite revenue decline from efficiency initiatives - Proprietary Service Requests increased 7% year-over-year and Proprietary Leads increased 16% year-over-year, marking the first growth since Q1 2021[2][4] - Revenue was $278.2 million, down 12% from the prior year, driven by ongoing quality and efficiency improvements, including marketing optimization, sales force consolidation, and full implementation of homeowner choice[4] - Operating income was $17.7 million, up from $9.2 million in Q2 2024, reflecting a $14.0 million decrease in depreciation[4] - Adjusted EBITDA was $33.0 million, down from $42.2 million in Q2 2024, primarily due to lower revenue and higher Consumer marketing expense, partially offset by lower Pro acquisition and Fixed expenses[4] - The Company repurchased 3.7 million common shares for an aggregate of $59.9 million between May 6, 2025, and August 1, 2025[4] Operating Metrics Angi Inc. saw declines in Acquired Pros and Average Monthly Active Pros, but improved Pro retention, reflecting strategic optimization Quarterly Pro Metrics In Q2 2025, Acquired Pros decreased by 39% to 24,000, and Average Monthly Active Pros declined by 20% to 126,000, reflecting strategic reductions Quarterly Professional Metrics | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Growth (%) | | :------------------------- | :--------------------- | :--------------------- | :--------- | | Acquired Pros | 24 | 39 | -39 | | Average Monthly Active Pros | 126 | 157 | -20 | Trailing Twelve Month Pro Metrics Trailing twelve-month Acquired Pros decreased by 38% and Average Monthly Active Pros by 14%, while Pro retention improved due to enhanced customer experience - Over the trailing twelve months ending Q2 2025, Acquired Pros were 109,000, down 38% year-over-year[9][10] - Average Monthly Active Pros over the trailing twelve months were 139,000, down 14% year-over-year, driven by lower Pro acquisition, partially offset by improved Pro retention[10] - Retention of Pros acquired last year (Q3 2023 - Q2 2024) was 76% for Average Monthly Active Pros, compared to 75% in the prior year[10] - Retention of Base Pros (acquired in Q2 2023 and prior) was 67% for Average Monthly Active Pros, compared to 65% in the prior year, driven by improved customer experience, sales tactics, and prospect quality[10] Service Requests and Leads Total Service Requests decreased by 8% and Total Leads by 17% in Q2 2025, driven by Network Channel declines offset by Proprietary Channel growth Service Requests and Leads by Channel | Metric (in thousands) | Q2 2025 | Q2 2024 | Growth (%) | | :-------------------- | :------ | :------ | :--------- | | Service Requests | | | | | Proprietary Channels | 4,118 | 3,848 | 7 | | Network Channels | 444 | 1,091 | -59 | | Total | 4,562 | 4,939 | -8 | | Leads | | | | | Proprietary Channels | 4,980 | 4,309 | 16 | | Network Channels | 597 | 2,439 | -76 | | Total | 5,577 | 6,749 | -17 | - Service Requests were down 8% year-over-year, driven by a 59% decline in Network Channels, partially offset by a 7% increase in Proprietary Channels[12] - Leads were down 17% year-over-year, driven by a 76% decline in Network Channels, partially offset by a 16% increase in Proprietary Channels[13] Liquidity and Capital Resources Angi Inc. maintained a strong liquidity position with $362.5 million in cash and actively repurchased shares Current Liquidity Position As of June 30, 2025, Angi Inc. held $362.5 million in cash and cash equivalents, with 45.1 million Class A common shares outstanding - As of June 30, 2025, Angi Inc. had $362.5 million in cash and cash equivalents[18] - Angi Inc. had 45.1 million shares of Class A common stock outstanding and no Class B common stock outstanding[18] - ANGI Group, LLC had $500 million of 3.875% Senior Notes due August 15, 2028[18] Share Repurchase Program Angi Inc. repurchased 3.7 million common shares for $59.9 million, with 1.3 million shares remaining under its authorization as of August 1, 2025 - As of August 1, 2025, Angi Inc. had 1.3 million shares remaining of its 5 million stock repurchase authorization[15] - Between May 6, 2025, and August 1, 2025, the Company repurchased 3.7 million common shares for an aggregate of $59.9 million[4] Dilutive Securities Angi Inc. reported 45.1 million total diluted shares outstanding as of August 1, 2025, with a 1.7% dilution primarily from RSUs and MSUs Diluted Shares Outstanding | Share Price | Absolute Shares as of 8/1/25 (millions) | SARs and Options (millions) | RSUs and MSUs (millions) | Total Dilution (millions) | % Dilution | Total Diluted Shares Outstanding (millions) | | :---------- | :-------------------------------------- | :-------------------------- | :----------------------- | :------------------------ | :--------- | :------------------------------------------ | | $15.86 | 44.3 | 0.0 | 0.8 | 0.8 | 1.7 % | 45.1 | | $16.00 | 44.3 | 0.0 | 0.8 | 0.8 | 1.7 % | 45.1 | | $17.00 | 44.3 | 0.0 | 0.8 | 0.8 | 1.7 % | 45.1 | | $18.00 | 44.3 | 0.0 | 0.8 | 0.8 | 1.7 % | 45.1 | | $19.00 | 44.3 | 0.0 | 0.8 | 0.8 | 1.7 % | 45.1 | - The Company currently settles all equity awards on a net basis; estimated withholding taxes paid by the Company on behalf of employees upon net settlement would have been $20.8 million, assuming a stock price of $15.86 and a 50% withholding rate[22] Consolidated Financial Statements Angi Inc.'s Q2 2025 financial statements show decreased revenue but improved operating income and net earnings, with a decline in cash from operations Consolidated Statement of Operations For Q2 2025, Angi Inc. reported a 12% revenue decrease to $278.2 million, while operating income rose 92.4% and net earnings surged 190.9% Consolidated Statement of Operations Summary | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenue | 278,221 | 315,134 | 524,134 | 620,524 | | Gross profit | 265,079 | 300,982 | 497,977 | 593,875 | | Operating income | 17,673 | 9,187 | 37,676 | 11,903 | | Net earnings attributable to Angi Inc. shareholders | 10,897 | 3,760 | 26,003 | 2,129 | | Diluted earnings per share | 0.23 | 0.07 | 0.53 | 0.04 | | Total stock-based compensation expense | 5,054 | 8,672 | 2,767 | 18,069 | Consolidated Balance Sheet As of June 30, 2025, total assets decreased to $1,788.8 million, with a decline in cash and shareholders' equity due to treasury stock purchases Consolidated Balance Sheet Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | 362,477 | 416,434 | | Total current assets | 443,229 | 495,085 | | TOTAL ASSETS | 1,788,790 | 1,830,735 | | Total current liabilities | 247,902 | 231,678 | | Long-term debt, net | 497,248 | 496,840 | | Total shareholders' equity | 1,002,224 | 1,062,801 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,788,790 | 1,830,735 | Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities decreased to $54.0 million, with a significant increase in cash used for financing activities Consolidated Statement of Cash Flows Summary | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 54,008 | 84,988 | | Net cash used in investing activities | (24,749) | (25,438) | | Net cash used in financing activities | (83,157) | (23,142) | | Net (decrease) increase in cash and cash equivalents | (54,068) | 36,201 | | Cash and cash equivalents at end of period | 362,477 | 400,502 | - Purchases of treasury stock increased significantly to $76.4 million for the six months ended June 30, 2025, compared to $18.2 million in the prior year[28] Significant Expenses and Segment Revenue Consolidated total expenses decreased by 10.2% in Q2 2025, driven by reduced Pro acquisition and fixed expenses, while total revenue declined by 12% Significant Expenses by Segment Consolidated total expenses decreased by 10.2% to $245.2 million in Q2 2025, with Pro acquisition expense down 42.6% and consumer marketing up 12.9% Consolidated Expenses (Three Months Ended June 30): | Expense | 2025 (in thousands) | 2024 (in thousands) | Growth (%) | 2025 (% of revenue) | 2024 (% of revenue) | | :---------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | | Cost of revenue | 13,142 | 14,152 | -7.1 | 5 | 4 | | Consumer marketing expense | 97,580 | 86,427 | 12.9 | 35 | 27 | | Variable expense | 34,017 | 34,736 | -2.1 | 12 | 11 | | Pro acquisition expense | 38,958 | 67,810 | -42.6 | 14 | 22 | | Fixed expense | 61,519 | 69,826 | -12.0 | 22 | 22 | | Total expenses | 245,216 | 272,951 | -10.2 | 88 | 87 | Domestic Expenses (Three Months Ended June 30): | Expense | 2025 (in thousands) | 2024 (in thousands) | Growth (%) | 2025 (% of revenue) | 2024 (% of revenue) | | :---------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | | Consumer marketing expense | 92,854 | 82,024 | 13.2 | 38 | 29 | | Pro acquisition expense | 35,131 | 62,951 | -44.2 | 14 | 22 | | Fixed expense | 49,633 | 55,253 | -10.2 | 20 | 20 | International Expenses (Three Months Ended June 30): | Expense | 2025 (in thousands) | 2024 (in thousands) | Growth (%) | 2025 (% of revenue) | 2024 (% of revenue) | | :---------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | | Consumer marketing expense | 4,726 | 4,403 | 7.3 | 14 | 13 | | Pro acquisition expense | 3,827 | 4,859 | -21.3 | 12 | 15 | | Fixed expense | 11,886 | 14,573 | -18.4 | 36 | 44 | - Pro acquisition expense for Q2 2025 excludes $2.4 million of capitalized commissions and includes $7.8 million of amortized capitalized commissions from prior periods[29] Revenue by Segment Total revenue for Q2 2025 decreased by 12% to $278.2 million, with Domestic revenue down 13% and International revenue down 2% Revenue by Segment | Segment | Q2 2025 ($ in millions) | Q2 2024 ($ in millions) | Growth (%) | Six Months 2025 ($ in millions) | Six Months 2024 ($ in millions) | Growth (%) | | :-------------- | :---------------------- | :---------------------- | :--------- | :------------------------------ | :------------------------------ | :--------- | | Domestic | 245.5 | 281.9 | -13 | 458.1 | 551.9 | -17 | | International | 32.7 | 33.2 | -2 | 66.0 | 68.6 | -4 | | Total Revenue | 278.2 | 315.1 | -12 | 524.1 | 620.5 | -16 | Reconciliations of GAAP to Non-GAAP Measures Angi Inc. provides reconciliations for Adjusted EBITDA and Free Cash Flow, key non-GAAP metrics used for internal management and compensation Reconciliation of Net Income (Loss) to Adjusted EBITDA Consolidated Adjusted EBITDA decreased by 22% to $33.0 million in Q2 2025, with Domestic Adjusted EBITDA down 25.4% and International up 5.9% Adjusted EBITDA Reconciliation Three Months Ended June 30, 2025: | Segment | Operating Income ($ in millions) | Stock-Based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Adjusted EBITDA ($ in millions) | | :------------ | :------------------------------- | :----------------------------------------------- | :--------------------------- | :------------------------------ | | Domestic | 12.7 | 4.6 | 10.2 | 27.6 | | International | 5.0 | 0.4 | 0.1 | 5.4 | | Total | 17.7 | 5.1 | 10.3 | 33.0 | Three Months Ended June 30, 2024: | Segment | Operating Income ($ in millions) | Stock-Based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Adjusted EBITDA ($ in millions) | | :------------ | :------------------------------- | :----------------------------------------------- | :--------------------------- | :------------------------------ | | Domestic | 5.1 | 8.4 | 23.6 | 37.0 | | International | 4.1 | 0.3 | 0.8 | 5.1 | | Total | 9.2 | 8.7 | 24.3 | 42.2 | Six Months Ended June 30, 2025: | Segment | Operating Income ($ in millions) | Stock-Based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Adjusted EBITDA ($ in millions) | | :------------ | :------------------------------- | :----------------------------------------------- | :--------------------------- | :------------------------------ | | Domestic | 26.7 | 2.4 | 20.1 | 49.1 | | International | 11.0 | 0.4 | 0.1 | 11.5 | | Total | 37.7 | 2.8 | 20.2 | 60.7 | Six Months Ended June 30, 2024: | Segment | Operating Income ($ in millions) | Stock-Based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Adjusted EBITDA ($ in millions) | | :------------ | :------------------------------- | :----------------------------------------------- | :--------------------------- | :------------------------------ | | Domestic | 2.3 | 17.4 | 46.6 | 66.4 | | International | 9.6 | 0.7 | 1.6 | 11.8 | | Total | 11.9 | 18.1 | 48.2 | 78.1 | Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Free Cash Flow decreased to $29.2 million for the six months ended June 30, 2025, primarily due to reduced net cash from operating activities Free Cash Flow Reconciliation | Metric ($ in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 54.0 | 85.0 | | Capital expenditures | (24.8) | (25.4) | | Free Cash Flow | 29.2 | 59.5 | Reconciliation of Total Operating Costs and Expenses to Significant Expenses Total operating costs and expenses for Q2 2025 were $247.4 million, reconciling to $232.1 million in significant expenses after non-cash adjustments Significant Expenses Reconciliation Three Months Ended June 30, 2025: | Segment | Total Operating Costs and Expenses ($ in millions) | Stock-based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Total Significant Expenses (Excluding Cost of Revenue) ($ in millions) | | :------------ | :----------------------------------------------- | :----------------------------------------------- | :--------------------------- | :--------------------------------------------------------------------- | | Domestic | 220.5 | (4.6) | (10.2) | 205.6 | | International | 26.9 | (0.4) | (0.1) | 26.5 | | Total | 247.4 | (5.1) | (10.3) | 232.1 | Three Months Ended June 30, 2024: | Segment | Total Operating Costs and Expenses ($ in millions) | Stock-based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Total Significant Expenses (Excluding Cost of Revenue) ($ in millions) | | :------------ | :----------------------------------------------- | :----------------------------------------------- | :--------------------------- | :--------------------------------------------------------------------- | | Domestic | 263.6 | (8.4) | (23.6) | 231.7 | | International | 28.2 | (0.3) | (0.8) | 27.1 | | Total | 291.8 | (8.7) | (24.3) | 258.8 | Six Months Ended June 30, 2025: | Segment | Total Operating Costs and Expenses ($ in millions) | Stock-based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Total Significant Expenses (Excluding Cost of Revenue) ($ in millions) | | :------------ | :----------------------------------------------- | :----------------------------------------------- | :--------------------------- | :--------------------------------------------------------------------- | | Domestic | 407.1 | (2.4) | (20.1) | 384.6 | | International | 53.2 | (0.4) | (0.1) | 52.7 | | Total | 460.3 | (2.8) | (20.2) | 437.3 | Six Months Ended June 30, 2024: | Segment | Total Operating Costs and Expenses ($ in millions) | Stock-based Compensation Expense ($ in millions) | Depreciation ($ in millions) | Total Significant Expenses (Excluding Cost of Revenue) ($ in millions) | | :------------ | :----------------------------------------------- | :----------------------------------------------- | :--------------------------- | :--------------------------------------------------------------------- | | Domestic | 524.9 | (17.4) | (46.6) | 460.8 | | International | 57.1 | (0.7) | (1.6) | 54.9 | | Total | 582.0 | (18.1) | (48.2) | 515.7 | Principles of Financial Reporting and Non-GAAP Definitions Angi Inc. uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow for internal management, with detailed definitions provided for key expenses - Adjusted EBITDA is defined as operating income excluding stock-based compensation expense, depreciation, and acquisition-related items (amortization of intangible assets and impairments of goodwill and intangible assets)[40] - Free Cash Flow is defined as net cash provided by operating activities attributable to continuing operations, less capital expenditures[41] - Significant expenses include Consumer Marketing Expense, Pro Acquisition Expense, Fixed Expense, and Variable Expense, with detailed breakdowns of their components[42][43][44][45] - Non-cash expenses excluded from Adjusted EBITDA include stock-based compensation, depreciation, and amortization/impairments of intangible assets and goodwill[46][47][48][49] Metric Definitions Angi Inc. introduced new metrics and revised terminology in Q1 2025 to provide clearer insights into core business activities and unit economics - New metrics introduced in Q1 2025 include Proprietary Channels, Network Channels, Acquired Pros, and Average Monthly Active Pros[50][56] - Terminology for Service Requests and Leads (formerly Monetized Transactions) was updated for intuition, but the data and definitions remain unchanged[56] - Definitions provided for Domestic Revenue, International Revenue, Service Requests, Leads, Proprietary Channels, Network Channels, Acquired Pros, and Average Monthly Active Pros[51][52][53][54][55] Other Information This section provides details on the Q2 2025 conference call, safe harbor statement, company overview, and contact information Conference Call Angi Inc. hosted a conference call on August 6, 2025, to discuss Q2 results, including forward-looking information, with a recording available online - Angi Inc. hosted a conference call on Wednesday, August 6, 2025, at 8:30 a.m. Eastern Time to discuss Q2 results[17] - The conference call included disclosure of forward-looking information and was accessible at ir.angi.com, with a recording available at the same location[17] Safe Harbor Statement The press release and conference call contain forward-looking statements subject to various risks and uncertainties, and the company undertakes no obligation to update them - The press release and conference call contain forward-looking statements identified by words such as 'may,' 'will,' 'should,' 'could,' 'intend,' 'target,' 'project,' 'continue,' 'anticipates,' 'estimates,' 'expects,' 'plans,' and 'believes,' and 'potential'[58] - Actual results could differ materially due to factors including market migration, marketing effectiveness, expansion of pre-priced offerings, Pro relationships, mobile monetization, data protection, competition, economic conditions, brand maintenance, cybersecurity, data breaches, changes in key personnel, and risks related to IAC relationship and indebtedness[58] - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements[58] About Angi Inc. Angi Inc. (NASDAQ: ANGI), founded in 1995, connects homeowners with skilled home service professionals for over 300 million projects - Angi (NASDAQ: ANGI) helps homeowners get home projects done well and helps home service professionals grow their business[59] - Founded in 1995, Angi has evolved to help people with everything from finding, booking and hiring a skilled pro, to researching costs and finding project inspiration[59] - Homeowners have turned to Angi for help with more than 300 million projects[59] Contact Us Contact information for Angi Inc. Investor Relations and Corporate Communications is provided, including phone numbers, email addresses, and corporate details - Angi Inc. Investor Relations contact: (720) 282-1958, ir@angi.com[60] - Angi Inc. Corporate Communications contact: Emily Do, (303) 963-8352[60] - Corporate address: 3601 Walnut Street, Denver, CO 80205. Website: http://www.angi.com[60](index=60&type=chunk)