ANGI Homeservices(US:ANGI)2025-11-04 21:37Revenue 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].