IAC(US:IAC)2025-11-03 21:12Financial Performance - IAC's total revenue for Q3 2025 was $642 million, a decrease of 8% compared to Q3 2024[3]. - The operating loss for IAC in Q3 2025 was $20.4 million, compared to an operating income of $8.1 million in Q3 2024[3]. - Adjusted EBITDA for IAC decreased by 59% to $29.1 million in Q3 2025[3]. - Total revenue for Q3 2025 was $429.8 million, a decline of 2% from $439.5 million in Q3 2024[29]. - Digital revenue increased by 9% to $269.0 million in Q3 2025, compared to $246.4 million in Q3 2024[29]. - Advertising revenue decreased by 3% to $161.2 million in Q3 2025, while performance marketing revenue increased by 38% to $72.4 million[29]. - The net loss attributable to IAC shareholders for the nine months ended September 30, 2025, was $27.2 million, compared to a loss of $340.9 million for the same period in 2024[35]. - The company reported a total operating loss of $20.4 million for Q3 2025, primarily due to corporate expenses[47]. - Total adjusted EBITDA for the nine months ended September 30, 2025, was $131.4 million, compared to $121.9 million for the same period in 2024[46]. Cash Flow and Debt - For the nine months ended September 30, 2025, net cash provided by operating activities was $27.5 million, a decrease of $96.8 million compared to $124.2 million for the same period in 2024[21]. - Free Cash Flow decreased by $101.0 million to $13.5 million, primarily due to unfavorable working capital and higher capital expenditures[20]. - As of September 30, 2025, IAC had $1.0 billion in cash and cash equivalents, with $725 million held by IAC and $280 million by People Inc.[27]. - Long-term debt stood at $1.45 billion, with a weighted average maturity of 6.2 years and a borrowing cost of 7.4%[27]. - The company recorded a net cash used in financing activities attributable to continuing operations of $419,134 thousand for the nine months ended September 30, 2025[39]. Share Repurchase and Equity - IAC repurchased 2.8 million shares for an aggregate of $100 million between August 6, 2025, and October 31, 2025[4]. - As of October 31, 2025, IAC had 6.4 million shares remaining in its share repurchase authorization[26]. - Total shareholders' equity decreased from $6,278,973 thousand to $4,818,414 thousand, a decline of about 23.3%[38]. Business Segments and Performance - People Inc. reported a 9% increase in digital revenue to $269 million, driven by performance marketing and licensing growth[6]. - People Inc. achieved an operating income of $29 million and Adjusted EBITDA of $65 million, reflecting severance-related costs[6]. - Care.com revenue decreased by 5% to $90.8 million, with a 67% drop in operating income to $5 million[13]. - MGM Resorts International, in which IAC holds a 24% stake, reported strong digital and international growth[3]. - IAC's unrealized loss on investment in MGM was $346.3 million in Q3 2025[3]. - Care.com generated $28.2 million in adjusted EBITDA for the nine months ended September 30, 2025, compared to $37.2 million in the same period of 2024[46]. Future Outlook - The company provided FY 2025 operating income guidance of $180-$200 million and Adjusted EBITDA guidance of $325-$340 million[1]. - The full year 2025 outlook for total adjusted EBITDA is projected to be between $234 million and $258 million[40]. - People Inc. is expected to generate adjusted EBITDA of $325 million to $340 million in FY 2025[44]. - Care.com anticipates revenue declines of 7%-9% in Q4 2025, reflecting enterprise headwinds[42]. - Search segment revenue is expected to be between $35 million and $45 million in Q4 2025[42]. Strategic Focus and Risks - IAC generates revenue primarily from advertising, including paid listings and display advertisements on its websites[65]. - The company has strategic equity positions in MGM Resorts International and Turo Inc.[68]. - IAC's business model emphasizes financially-disciplined opportunism, evolving while maintaining core principles[68]. - The company faces risks from competition with generative AI technology and unstable market conditions affecting advertising spending[67]. - IAC's future financial performance is uncertain due to various factors, including changes in relationships with Google and market migration to online services[67]. - The company is focused on expanding its digital reach and monetizing products across various platforms[67]. - IAC's Print business is experiencing declining revenue and increased costs, which poses additional risks[67]. - The company emphasizes the importance of protecting user data and maintaining relationships with caregivers[67]. - IAC's leadership transitions and changes in capital deployment strategy could impact its operations[67].