ANGI Homeservices(ANGI) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements This section presents Angi Inc.'s unaudited consolidated financial statements, including the balance sheet, statements of operations, comprehensive operations, shareholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, financial instruments, debt, segment information, income taxes, earnings per share, and related party transactions Consolidated Balance Sheet Presents the company's financial position, detailing assets, liabilities, and shareholders' equity at specific points in time | | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | ASSETS | | | | Cash and cash equivalents | $362,477 | $416,430 | | Accounts receivable, net | 44,811 | 36,670 | | Other current assets | 35,941 | 41,980 | | Total current assets | 443,229 | 495,080 | | Capitalized software, leasehold improvements and equipment, net | 87,378 | 79,560 | | Goodwill | 889,931 | 883,440 | | Intangible assets, net | 168,931 | 167,660 | | Deferred income taxes | 166,929 | 169,070 | | Other non-current assets, net | 32,392 | 35,910 | | TOTAL ASSETS | $1,788,790 | $1,830,730 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | LIABILITIES: | | | | Accounts payable | $39,804 | $18,310 | | Deferred revenue | 32,952 | 42,000 | | Accrued expenses and other current liabilities | 175,146 | 171,350 | | Total current liabilities | 247,902 | 231,670 | | Long-term debt, net | 497,248 | 496,840 | | Deferred income taxes | 1,606 | 1,500 | | Other long-term liabilities | 39,810 | 37,910 | | SHAREHOLDERS' EQUITY: | | | | Total shareholders' equity | 1,002,224 | 1,062,800 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,788,790 | $1,830,730 | Consolidated Statement of Operations Reports the company's revenues, expenses, and net earnings over specific periods, reflecting operational performance | 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 | | Cost of revenue | 13,142 | 14,152 | 26,157 | 26,649 | | Gross profit | 265,079 | 300,982 | 497,977 | 593,875 | | Total operating costs and expenses | 247,406 | 291,795 | 460,301 | 581,972 | | Operating income | 17,673 | 9,187 | 37,676 | 11,903 | | Interest expense | (5,051) | (5,041) | (10,095) | (10,079) | | Other income, net | 4,819 | 4,570 | 9,647 | 9,054 | | Earnings before income taxes | 17,441 | 8,716 | 37,228 | 10,878 | | Income tax provision | (6,544) | (4,628) | (11,225) | (8,107) | | Net earnings | 10,897 | 4,088 | 26,003 | 2,771 | | Net earnings attributable to Angi Inc. shareholders | $10,897 | $3,760 | $26,003 | $2,129 | | Basic earnings per share | $0.23 | $0.07 | $0.54 | $0.04 | | 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 Statement of Comprehensive Operations Details net earnings and other comprehensive income or loss items, providing a complete view of changes in equity from non-owner sources | 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) | | :--- | :--- | :--- | :--- | :--- | | Net earnings | $10,897 | $4,088 | $26,003 | $2,771 | | Change in foreign currency translation adjustment | 5,966 | (198) | 8,845 | (979) | | Total other comprehensive income (loss) | 5,966 | (198) | 8,845 | (979) | | Comprehensive income | 16,863 | 3,890 | 34,848 | 1,792 | | Comprehensive income attributable to Angi Inc. shareholders | $16,863 | $3,577 | $34,848 | $1,201 | Consolidated Statement of Shareholders' Equity Outlines changes in the company's equity accounts, including net earnings, stock-based compensation, and share repurchases | Item | Balance as of December 31, 2024 (In thousands) | Six Months Ended June 30, 2025 Changes (In thousands) | Balance as of June 30, 2025 (In thousands) | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | $1,062,801 | | $1,002,224 | | Net earnings | | $26,003 | | | Other comprehensive income | | $8,845 | | | Stock-based compensation expense | | $5,833 | | | Issuance of common stock pursuant to stock-based awards, net of withholding taxes | | $(6,245) | | | Purchase of treasury stock | | $(78,701) | | | Adjustment pursuant to the tax sharing agreement with IAC as part of the Distribution | | $(17,960) | | | Other | | $1,648 | | Consolidated Statement of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities, illustrating liquidity and solvency | Cash Flow Activity | Six Months Ended June 30, 2025 (In thousands) | Six Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | | 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) | | Total cash (used) provided | $(53,898) | $36,408 | | Effect of exchange rate changes on cash and cash equivalents and restricted cash | $(170) | $(207) | | Net (decrease) increase in cash and cash equivalents and restricted cash | $(54,068) | $36,201 | | Cash and cash equivalents and restricted cash at beginning of period | $416,545 | $364,301 | | Cash and cash equivalents and restricted cash at end of period | $362,477 | $400,502 | Notes to Consolidated Financial Statements Provides detailed explanations and additional information about the figures presented in the primary financial statements Note 1—The Company and Summary of Significant Accounting Policies Describes Angi Inc.'s business operations, key brands, and the significant accounting policies applied in preparing the financial statements - Angi Inc. connects home professionals ("Pros") with consumers across over 500 categories, operating under brands like Angi, HomeAdvisor, and Handy, facilitating approximately 16 million projects over the past 12 months with 126,000 Average Monthly Active Pros as of June 30, 2025[26] - On March 24, 2025, the Company effected a 1-for-10 reverse stock split for Class A and Class B Common Stock, with all shares and per share amounts adjusted to reflect this[30][31][32] - Following the spin-off on March 31, 2025, IAC Inc. no longer holds ownership in Angi, and Class B Common Stock is no longer outstanding, leaving Class A Common Stock as the sole outstanding class[33] - The Company realigned its operating and reportable segments into Domestic and International during the three months ended March 31, 2025, to better reflect operations and strategic priorities[34] - Deferred revenue at June 30, 2025, was $33.0 million (current) and less than $0.1 million (non-current), a decrease from $42.0 million (current) and less than $0.1 million (non-current) at December 31, 2024[42][43] Note 2—Financial Instruments and Fair Value Measurements Details the company's financial instruments and how their fair values are determined using a three-level hierarchy | Date | Level 1 (In thousands) | Level 2 (In thousands) | Level 3 (In thousands) | Total Fair Value Measurements (In thousands) | | :--- | :--- | :--- | :--- | :--- | | June 30, 2025 | $325,435 | $— | $— | $325,435 | | December 31, 2024 | $346,824 | $— | $— | $346,824 | - The fair value of outstanding long-term debt was approximately $465.0 million at June 30, 2025, and $445.0 million at December 31, 2024, estimated using Level 2 inputs (observable market prices for similar liabilities)[56] Note 3—Long-term Debt Provides information on the company's long-term debt obligations, including terms, amounts, and related covenants | Item | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | 3.875% ANGI Group Senior Notes due August 15, 2028 | $500,000 | $500,000 | | Less: unamortized debt issuance costs | $2,752 | $3,160 | | Total long-term debt, net | $497,248 | $496,840 | - The indenture governing the ANGI Group Senior Notes contains a covenant limiting the ability to incur liens for borrowed money if a default occurs or the secured leverage ratio exceeds 3.75 to 1.0, with no such limitations as of June 30, 2025, and December 31, 2024[58] Note 4—Accumulated Other Comprehensive Income Presents the components of accumulated other comprehensive income, primarily focusing on foreign currency translation adjustments | Period | Balance at Start (In thousands) | Other Comprehensive Income (Loss) (In thousands) | Balance at End (In thousands) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30, 2025 | $384 | $5,966 | $6,350 | | Three Months Ended June 30, 2024 | $442 | $(183) | $259 | | Six Months Ended June 30, 2025 | $(2,495) | $8,845 | $6,350 | | Six Months Ended June 30, 2024 | $1,187 | $(928) | $259 | Note 5—Segment Information Discloses financial data for the company's Domestic and International operating segments, reflecting their performance and strategic priorities - The Company realigned its operating and reportable segments to Domestic and International during Q1 2025, reflecting operational and strategic priorities, with the Executive Committee serving as the Chief Operating Decision Maker (CODM)[61][62] | Segment | 3 Months Ended June 30, 2025 (In thousands) | 3 Months Ended June 30, 2024 (In thousands) | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Domestic | $245,531 | $281,907 | $458,086 | $551,943 | | International | $32,690 | $33,227 | $66,048 | $68,581 | | Total | $278,221 | $315,134 | $524,134 | $620,524 | | Segment | 3 Months Ended June 30, 2025 (In thousands) | 3 Months Ended June 30, 2024 (In thousands) | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Domestic | $27,581 | $37,048 | $49,147 | $66,358 | | International | $5,424 | $5,135 | $11,522 | $11,787 | | Total Segment Adjusted EBITDA | $33,005 | $42,183 | $60,669 | $78,145 | | Segment | 3 Months Ended June 30, 2025 (In thousands) | 3 Months Ended June 30, 2024 (In thousands) | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Domestic | $12,093 | $12,646 | $24,667 | $25,428 | | International | $157 | $— | $157 | $16 | | Total | $12,250 | $12,646 | $24,824 | $25,444 | Note 6—Income Taxes Explains the company's income tax provision, effective tax rates, deferred tax assets, and unrecognized tax benefits - The Company's income tax provision is computed on an "as if standalone" basis, with differences from the tax sharing agreement with IAC reflected as adjustments to additional paid-in capital and financing cash flows[77] | Period | Income Tax Provision (In thousands) | Effective Income Tax Rate | Statutory Rate | Primary Drivers (2025) | Primary Drivers (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30, 2025 | $(6,544) | 38% | 21% | Foreign income, state taxes, offset by research credits | Stock-based awards, unbenefited losses, offset by research credits | | Six Months Ended June 30, 2025 | $(11,225) | 30% | 21% | Foreign income, tax shortfalls from stock-based awards, state taxes, offset by research credits | Stock-based awards, unbenefited losses, offset by research credits | - As of June 30, 2025, the Company has unrecognized tax benefits of $11.6 million, which, if recognized, would reduce the income tax provision by $10.9 million, with a reasonable possibility of decreasing by $0.7 million by June 30, 2026[86] - The Company has a U.S. gross deferred tax asset of $198.0 million at June 30, 2025, with $175.8 million expected to be utilized based on forecasts of future taxable income, including $60.7 million in U.S. federal net operating loss (NOL) carryforwards[87] Note 7—Earnings (Loss) Per Share Details the calculation of basic and diluted earnings per share, including the impact of potentially dilutive securities | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net earnings attributable to Angi Inc. shareholders (In thousands) | $10,897 | $3,760 | $26,003 | $2,129 | | Weighted average basic shares outstanding (In thousands) | 47,224 | 50,159 | 48,494 | 50,211 | | Dilutive securities (In thousands) | 456 | 539 | 571 | 579 | | Basic earnings per share | $0.23 | $0.07 | $0.54 | $0.04 | | Diluted earnings per share | $0.23 | $0.07 | $0.53 | $0.04 | - For both periods, 1.5 million and 1.6 million potentially dilutive securities (for 3M and 6M 2025 vs 2024 respectively) were excluded from diluted EPS calculations because their inclusion would have been anti-dilutive[90] Note 8—Financial Statement Details Offers supplementary details for various balance sheet and income statement accounts, such as cash, accounts receivable, and fixed assets | Item | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | June 30, 2024 (In thousands) | December 31, 2023 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $362,477 | $416,434 | $384,895 | $364,044 | | Restricted cash included in other current assets | $— | $— | $15,358 | $— | | Restricted cash included in other non-current assets | $— | $111 | $249 | $257 | | Total cash and cash equivalents, and restricted cash | $362,477 | $416,545 | $400,502 | $364,301 | | Item | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | | Balance at January 1 | $20,504 | $24,684 | | Current period provision for credit losses | $24,043 | $28,883 | | Write-offs charged against the allowance | $(26,029) | $(38,463) | | Recoveries collected | $2,254 | $2,339 | | Other | $508 | $(38) | | Balance at June 30 | $21,280 | $17,405 | | Asset Category | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | Capitalized software, leasehold improvements, and equipment | $235,617 | $241,448 | | Intangible assets | $89,862 | $89,229 | Note 9—Contingencies Discusses potential liabilities arising from lawsuits and other contingent matters, assessing their probable financial impact - The Company is subject to various lawsuits and contingent matters in the ordinary course of business, with management believing current claims will not materially impact liquidity, results, or financial condition, though outcomes are inherently unpredictable[99] Note 10—Related Party Transactions Describes transactions and relationships with related parties, including the impact of the IAC spin-off and executive compensation - Joseph Levin, former CEO of IAC and current Executive Chairman of Angi, forfeited 3.0 million shares of IAC restricted stock, leading to a reversal of $10.2 million in previously recognized stock-based compensation expense for Angi in the six months ended June 30, 2025[100] - Following the Distribution, IAC is no longer considered a related party, with the relationship between Angi and IAC now governed by several agreements, including a contribution agreement, tax sharing agreement, services agreement, and employee matters agreement[106] - Angi will continue to participate in IAC's U.S. health and welfare plans, 401(k) plan, and flexible benefits plan until January 1, 2026, under the services agreement[107] Note 11—Subsequent Events Reports significant events that occurred after the balance sheet date but before the financial statements were issued - On July 4, 2025, the United States enacted tax reform legislation (One Big Beautiful Bill Act - OBBBA) allowing immediate expensing of domestic R&D expenses and certain capital expenditures, with the Company assessing the impact for Q3 2025 financial statements[110] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Angi Inc.'s financial condition and results of operations for the three and six months ended June 30, 2025, compared to the prior year. It covers revenue, expenses, operating income, Adjusted EBITDA, and liquidity, highlighting key drivers and strategic changes General Overview Provides an introduction to Angi Inc.'s business model, key operating metrics, and recent corporate structural changes like the IAC spin-off - Angi Inc. connects approximately 126,000 Average Monthly Active Pros with consumers for about 16 million projects annually across over 500 categories, operating under brands like Angi, HomeAdvisor, and Handy in Domestic and International segments[113][114] - IAC Inc. completed the spin-off of its ownership in Angi Inc. on March 31, 2025, resulting in IAC having no ownership and Class B Common Stock no longer being outstanding[117] - Key operating metrics include Domestic Revenue, International Revenue, Service Requests (from Proprietary and Network Channels), Leads (connections between consumers and Pros), Acquired Pros, and Average Monthly Active Pros[118][123] Components of Results of Operations Explains the primary categories of revenue, cost of revenue, and operating expenses that constitute the company's financial performance - Cost of revenue primarily includes credit card processing fees, hosting fees, and payments to third-party Pros, with gross profit defined as revenue less cost of revenue[119][120] - Operating costs and expenses are categorized into Selling and marketing, General and administrative, and Product development[121][124] - Adjusted EBITDA is a non-GAAP financial measure used as the primary segment measure of profitability, excluding stock-based compensation, depreciation, and acquisition-related items[122] Results of Operations Comparison Compares the company's financial performance metrics, including revenue, expenses, and income, across different reporting periods Revenue Analyzes the changes in revenue for both Domestic and International segments, identifying key drivers for increases or decreases | Segment | 3 Months Ended June 30, 2025 (In thousands) | 3 Months Ended June 30, 2024 (In thousands) | % Change (3M) | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | % Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | $245,531 | $281,907 | (13)% | $458,086 | $551,943 | (17)% | | International | $32,690 | $33,227 | (2)% | $66,048 | $68,581 | (4)% | | Total Revenue | $278,221 | $315,134 | (12)% | $524,134 | $620,524 | (16)% | - Domestic revenue decreased by 13% for the three months and 17% for the six months ended June 30, 2025, primarily due to decreases in advertising, lead, services, and membership subscription revenue, driven by quality and efficiency improvements[126][127][128] - International revenue decreased by 2% for the three months and 4% for the six months ended June 30, 2025, mainly due to a management decision to change the Canadian business model to a more profitable self-serve platform[126][129] Cost of Revenue Examines the fluctuations in the cost of revenue, detailing the factors contributing to changes in direct costs | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $13,142 | $14,152 | $(1,010) | (7)% | | Six Months Ended June 30 | $26,157 | $26,649 | $(492) | (2)% | - Domestic cost of revenue decreased by $0.8 million (6%) for the three months, mainly due to lower payments to third-party service providers and credit card processing fees, partially offset by higher hosting fees[130] - International cost of revenue decreased by $0.2 million (20%) for the three months, primarily due to a decrease in content costs[131] Gross Profit Discusses the company's gross profit and gross margin trends, linking them to changes in revenue and cost of revenue | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | Gross Margin (2025) | Gross Margin (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $265,079 | $300,982 | $(35,903) | (12)% | 95% | 96% | | Six Months Ended June 30 | $497,977 | $593,875 | $(95,898) | (16)% | 95% | 96% | - Gross profit decreased by $35.9 million (12%) for the three months and $95.9 million (16%) for the six months ended June 30, 2025, primarily due to the overall decrease in revenue[133][134] Selling and Marketing Expense Reviews the changes in selling and marketing expenses, highlighting the impact of advertising spend and compensation adjustments | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | As % of Revenue (2025) | As % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $139,453 | $158,323 | $(18,870) | (12)% | 50% | 50% | | Six Months Ended June 30 | $257,994 | $315,374 | $(57,380) | (18)% | 49% | 51% | - Domestic selling and marketing expense decreased by $18.0 million (12%) for the three months, driven by a $22.7 million decrease in compensation expense (due to headcount reduction), partially offset by a $5.3 million increase in online advertising[136] - International selling and marketing expense decreased by $0.9 million (10%) for the three months, due to a $1.5 million decrease in compensation expense (headcount reduction from Canadian business model change), partially offset by a $0.9 million increase in online advertising[137] General and Administrative Expense Analyzes the variations in general and administrative expenses, including factors like lease costs, credit losses, and compensation | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | As % of Revenue (2025) | As % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $74,081 | $84,369 | $(10,288) | (12)% | 27% | 27% | | Six Months Ended June 30 | $131,400 | $169,890 | $(38,490) | (23)% | 25% | 27% | - Domestic G&A expense decreased by $10.9 million (15%) for the three months, driven by decreases in lease expense ($6.1 million), provision for credit losses ($2.8 million), and software license/maintenance costs ($2.3 million)[141] - Domestic G&A expense decreased by $39.2 million (26%) for the six months, primarily due to decreases in compensation expense ($13.2 million, including a $10.2 million reversal related to Joseph Levin's forfeited stock), lease expense ($9.1 million), provision for credit losses ($8.0 million), and software license/maintenance costs ($4.5 million)[142] Product Development Expense Details the trends in product development expenses, reflecting investments in new features and technological improvements | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | As % of Revenue (2025) | As % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $23,594 | $24,779 | $(1,185) | (5)% | 8% | 8% | | Six Months Ended June 30 | $50,681 | $48,535 | $2,146 | 4% | 10% | 8% | Depreciation Explains the changes in depreciation expense, primarily attributing them to capitalized software spending and asset write-offs | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | As % of Revenue (2025) | As % of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $10,278 | $24,324 | $(14,046) | (58)% | 4% | 8% | | Six Months Ended June 30 | $20,226 | $48,173 | $(27,947) | (58)% | 4% | 8% | - Depreciation decreased by 58% for both the three and six months ended June 30, 2025, primarily due to reduced capitalized software spending and the write-off of certain leasehold improvements and furniture/fixtures in 2024[145][146] Operating Income Reports the company's operating income performance, summarizing the combined effects of revenue and operating expenses | Segment | 3 Months Ended June 30, 2025 (In thousands) | 3 Months Ended June 30, 2024 (In thousands) | $ Change (3M) | % Change (3M) | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | $ Change (6M) | % Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | $12,706 | $5,127 | $7,579 | 148% | $26,663 | $2,330 | $24,333 | 1,044% | | International | $4,967 | $4,060 | $907 | 22% | $11,013 | $9,573 | $1,440 | 15% | | Total | $17,673 | $9,187 | $8,486 | 92% | $37,676 | $11,903 | $25,773 | 217% | - Total operating income increased by 92% for the three months and 217% for the six months ended June 30, 2025, driven by factors discussed in cost of revenue, selling and marketing, general and administrative, and depreciation expense sections[147] Adjusted EBITDA Presents the Adjusted EBITDA for each segment, explaining the drivers behind its changes as a key profitability measure | Segment | 3 Months Ended June 30, 2025 (In thousands) | 3 Months Ended June 30, 2024 (In thousands) | $ Change (3M) | % Change (3M) | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | $ Change (6M) | % Change (6M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | $27,581 | $37,048 | $(9,467) | (26)% | $49,147 | $66,358 | $(17,211) | (26)% | | International | $5,424 | $5,135 | $289 | 6% | $11,522 | $11,787 | $(265) | (2)% | | Total | $33,005 | $42,183 | $(9,178) | (22)% | $60,669 | $78,145 | $(17,476) | (22)% | - Domestic Adjusted EBITDA decreased by 26% for both the three and six months ended June 30, 2025, primarily due to lower gross profit from decreased revenue, partially offset by lower selling and marketing and general and administrative expenses[150][152] - International Adjusted EBITDA increased by 6% for the three months ended June 30, 2025, driven by lower selling and marketing expense and lower cost of revenue, but decreased by 2% for the six months due to lower gross profit[151][153] Interest Expense Discusses the company's interest expense, primarily related to its long-term debt obligations | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $(5,051) | $(5,041) | $10 | —% | | Six Months Ended June 30 | $(10,095) | $(10,079) | $16 | —% | - Interest expense remained constant for both the three and six months ended June 30, 2025, compared to the prior year periods, primarily related to the ANGI Group Senior Notes[154] Other Income, Net Details the components of other income, net, primarily driven by interest income | Period | 2025 (In thousands) | 2024 (In thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $4,819 | $4,570 | $249 | 5% | | Six Months Ended June 30 | $9,647 | $9,054 | $593 | 7% | - Other income, net, increased by 5% for the three months and 7% for the six months ended June 30, 2025, compared to the prior year, primarily driven by interest income[155][156] Income Tax Provision Explains the company's income tax provision and effective tax rate, including factors influencing deviations from the statutory rate | Period | Income Tax Provision (In thousands) | Effective Income Tax Rate (2025) | Effective Income Tax Rate (2024) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $(6,544) | 38% | 53% | | Six Months Ended June 30 | $(11,225) | 30% | 75% | - The effective income tax rate for the three and six months ended June 30, 2025, was 38% and 30% respectively, higher than the statutory rate of 21% due to foreign income taxed at different rates, state taxes, and tax shortfalls from stock-based awards (for 6M), partially offset by research credits[158][159] Principles of Financial Reporting Outlines the non-GAAP financial measures used by management, particularly Adjusted EBITDA, and their reconciliation to GAAP measures - Adjusted EBITDA is a non-GAAP financial measure used as the primary segment measure of profitability, excluding stock-based compensation, depreciation, and acquisition-related items (amortization of intangible assets and impairments of goodwill/intangible assets)[162][163] - Non-cash expenses excluded from Adjusted EBITDA include stock-based compensation (viewed as dilution to share base), depreciation (non-cash allocation of asset costs), and amortization/impairments of intangible assets and goodwill (costs incurred by acquired companies prior to acquisition)[164][165][166] | Item | 3 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2025 (In thousands) | | :--- | :--- | :--- | | Total Segment Adjusted EBITDA | $33,005 | $60,669 | | Stock-based compensation expense | $(5,054) | $(2,767) | | Depreciation | $(10,278) | $(20,226) | | Interest expense | $(5,051) | $(10,095) | | Other income, net | $4,819 | $9,647 | | Earnings before income taxes | $17,441 | $37,228 | Financial Position, Liquidity, and Capital Resources Provides an overview of the company's balance sheet, cash position, and long-term debt Financial Position Summarizes the company's financial health by detailing its cash and cash equivalents and long-term debt | Item | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | Total cash and cash equivalents | $362,477 | $416,434 | | Total long-term debt, net | $497,248 | $496,840 | - All of the Company's international cash can be repatriated without significant consequences[171] Cash Flow Information Analyzes the cash flows from operating, investing, and financing activities, highlighting significant changes and their causes | Activity | 6 Months Ended June 30, 2025 (In thousands) | 6 Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | | Operating activities | $54,008 | $84,988 | | Investing activities | $(24,749) | $(25,438) | | Financing activities | $(83,157) | $(23,142) | - Net cash provided by operating activities decreased from $84.9 million in 2024 to $54.0 million in 2025, primarily due to an increase in accounts receivable, decrease in deferred revenue, and decrease in operating lease liabilities, partially offset by an increase in accounts payable and other liabilities[172][173] - Net cash used in financing activities significantly increased from $23.1 million in 2024 to $83.2 million in 2025, mainly due to $76.4 million for share repurchases (5.1 million shares at $14.91/share) and $6.8 million for withholding taxes on stock-based awards[172][175] Liquidity and Capital Resources Discusses the company's ability to meet its short-term and long-term financial obligations, including capital expenditure plans and share repurchases - During the six months ended June 30, 2025, the Company repurchased 5.2 million shares of Class A Common Stock for $78.0 million at an average price of $14.92 per share[179] - On May 5, 2025, the board approved a new stock repurchase authorization for 5.0 million shares of Class A Common Stock, with 1.3 million shares remaining available as of August 1, 2025, after an additional 0.8 million shares were repurchased from July 1 to August 1, 2025[179][204][205] - The Company expects 2025 capital expenditures to be 15% to 25% higher than 2024's $50.5 million, driven by increased capitalized software investments[181] - Management believes existing cash, cash equivalents, and expected positive cash flows from operations will be sufficient to fund normal operating requirements for the next twelve months[183] Critical Accounting Policies and Estimates Identifies the accounting policies that require significant management judgment and estimates in financial reporting - Management makes estimates, judgments, and assumptions in preparing financial statements, which impact reported amounts, with no material changes to critical accounting estimates since the Annual Report[186] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section addresses the Company's exposure to market risks, such as interest rate risk, foreign currency exchange risk, and commodity price risk, and how these risks are managed - There have been no material changes to the Company's instruments or positions sensitive to market risk during the six months ended June 30, 2025, since the disclosure in the Annual Report[188] Item 4. Controls and Procedures This section details the effectiveness of the Company's disclosure controls and procedures and internal control over financial reporting, as evaluated by management, including the CEO and CFO - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[189] - No changes to internal control over financial reporting materially affected, or are reasonably likely to materially affect, the Company's internal control during the three months ended June 30, 2025[191] - Management acknowledges that control systems provide only reasonable, not absolute, assurance against all errors and fraud due to inherent limitations[192] PART II - OTHER INFORMATION Item 1. Legal Proceedings This section outlines the Company's involvement in various legal proceedings and contingent matters, asserting that no current litigation is expected to have a material adverse effect on its financial condition or operations - The Company is subject to various lawsuits and contingent matters in the ordinary course of business, with management believing no current legal proceedings would individually or in aggregate have a material adverse effect on the business, financial condition, or results of operations[195] - SEC rules advise against describing proceedings primarily involving damages claims not exceeding 10% of current assets; management judges none of the pending litigation meets this threshold[196] Item 1A. Risk Factors This section highlights potential risks and uncertainties that could materially affect Angi Inc.'s business, financial condition, and operating results, including market dynamics, operational challenges, and post-spin-off relationships - The report contains forward-looking statements subject to uncertainties and risks that could cause actual results to differ materially[197] - Key risks include the migration of the home services market online, marketing effectiveness, ability to expand pre-priced offerings, maintaining Pro relationships, developing mobile products, data privacy, competition, economic trends, brand maintenance, cybersecurity, data breaches, system integrity, key personnel changes, relationship with IAC post-Distribution, ability to service indebtedness, and risks related to Class A Common Stock ownership[198] - There have been no material changes to the risk factors disclosed in the Company's Annual Report[201] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section details the Company's equity security transactions, specifically focusing on share repurchases and confirming no unregistered sales during the reporting period - The Company did not issue or sell any shares of common stock or other equity securities in unregistered transactions during the three months ended June 30, 2025[202] | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under Publicly Announced Plans or Programs | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 1,662,118 | $12.57 | 1,662,118 | — | | May 2025 | 1,525,741 | $16.11 | 1,525,741 | 3,474,259 | | June 2025 | 1,393,258 | $15.71 | 1,393,258 | 2,081,001 | | Total | 4,581,117 | $14.70 | 4,581,117 | 2,081,001 | - On May 5, 2025, the board approved a new stock repurchase authorization for 5.0 million shares, with approximately 1.3 million shares remaining available under this authorization after an additional 815,935 shares were repurchased from July 1 to August 1, 2025[204][205] Item 5. Other Information This section provides additional information not covered elsewhere, specifically regarding Rule 10b5-1 trading plans - No director or officer adopted or terminated a Rule 10b5-1 trading plan or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[207] Item 6. Exhibits This section lists all documents filed as exhibits to the Form 10-Q, including corporate governance documents, certifications, and XBRL data files - The section lists various exhibits filed with the report, including Amended and Restated Certificates of Incorporation and Bylaws, Director Compensation arrangements, CEO/CFO certifications (302 and 906), and Inline XBRL Taxonomy Extensions[208][209] Signatures This section contains the official signatures, certifying the filing of the quarterly report on behalf of Angi Inc - The report was signed on behalf of Angi Inc. by Andrew Russakoff, Chief Financial Officer, on August 5, 2025[213]