Debt and Financial Obligations - People Inc. has a total outstanding debt of $1.44 billion as of December 31, 2025, including a $1.04 billion Term Loan A-1 due May 14, 2030, and a Term Loan B-2 due June 16, 2032[146]. - People Inc. may not generate sufficient cash flow to meet its scheduled debt obligations, potentially forcing it to reduce or delay capital expenditures[145]. - The company may not be able to freely access cash from its subsidiaries due to restrictions, impacting its financial flexibility[147]. Spin-off and Strategic Focus - The anticipated benefits of the spin-off of Angi Inc. include improved capital structure and strategic focus, but there is no assurance these benefits will be realized[156]. - The company completed the spin-off of its full stake in Angi Inc. on March 31, 2025, through a dividend to stockholders, aiming for greater strategic focus and financial flexibility[155]. - The anticipated benefits of the spin-off include enabling each company to pursue its own capital structure and investment priorities, improving transparency, and potentially enhancing aggregate equity value[156]. - Following the spin-off, the company operates as a smaller, less diversified entity, making it more vulnerable to changing market conditions[159]. Market and Economic Risks - The market price and trading volume of IAC common stock may be volatile, influenced by various external factors beyond the company's control[151]. - Economic downturns and geopolitical risks could adversely impact consumer confidence and discretionary spending, affecting the company's financial performance[168]. - The Care.com business is particularly sensitive to economic factors that influence families' ability to pay for caregiver services[169]. - Geopolitical developments and public health events may increase economic uncertainty and disrupt consumer confidence, adversely affecting business operations[170][171]. - Economic events and trends, such as decreased consumer confidence and discretionary spending, could adversely impact the company's financial condition and results of operations[168]. Competition and Market Position - The company operates in highly competitive industries, facing challenges from competitors with better market positions and cost-effective marketing strategies[166]. - The low switching costs for consumers may lead to decreased user engagement if the company fails to innovate effectively[167]. - The company relies on maintaining and enhancing its brand reputation to differentiate from competitors and attract audiences and advertisers[172]. Cybersecurity and Compliance Risks - Cybersecurity incidents pose significant risks, potentially disrupting services and harming the company's reputation and financial condition[174]. - The company maintains cyber insurance, but coverage may be insufficient for future incidents, potentially leading to significant financial impacts[178]. - Ongoing compliance with privacy and data protection laws is costly and may hinder the development of new products and services[181]. - The company faces challenges in compliance with evolving privacy and data protection laws, which could result in significant fines and operational delays[180][181]. Management and Personnel Challenges - The company may face challenges in retaining key personnel, particularly in senior leadership and technology roles, which could disrupt operations and strategic initiatives[187]. - The company has not yet appointed a new Chief Executive Officer following Joseph Levin's departure on March 31, 2025, increasing dependency on remaining management[190]. - The loss of key executives, such as the Chairman, could adversely impact the company's strategic direction and governance[189][190]. - The company is currently evaluating its leadership structure following the departure of its CEO, increasing dependency on remaining management[190]. Strategic Initiatives and Risks - Strategic initiatives may involve risks, including potential exposure to liabilities and operational challenges that could adversely affect financial results[185]. - The company may not achieve the desired results from capital allocation actions, including share repurchases, which could impact long-term shareholder value[186]. - Ongoing investments in systems and technology are necessary to improve user experience and accommodate increases in platform traffic[184].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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]

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with digital revenue growth of 14%, driven by strong performance 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, reflecting a 10% growth [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, showcasing strong execution [14] - Licensing revenue surged by 36%, aided by engagement with content across platforms like Apple News [15] Market Data and Key Metrics Changes - Core web sessions declined by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [20] - Non-session-based revenue sources now comprise about 38% of total digital revenue, growing 37% year-over-year in Q4 [22] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and services, aiming for stronger revenue streams [6][12] - There is a significant emphasis on off-platform growth, with brands expanding their presence across social media and other platforms [5][21] - The company plans to continue investing in new products and services, with a focus on direct relationships with audiences and advertisers [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, 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 current guidance due to strong momentum [34] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [27][28] - The company has repurchased $337 million of its shares over the past 12 months, reducing the share count by 10% [30] Q&A Session Summary Question: Can you elaborate on the key drivers of non-session-based revenue growth? - Management highlighted that the growth is driven by diversifying distribution channels and aligning with audience trends, moving away from reliance on Google [36][38] Question: What are IAC's M&A aspirations? - Management indicated a cautious approach to M&A, focusing on opportunities that align with their current assets, particularly MGM and People [53][54] Question: How scalable are the new curated experiences? - Management emphasized the importance of direct relationships with audiences and advertisers, noting that new products like MyRecipes and the People app are showing strong engagement [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: How is the ad market performing? - Management rated the 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 [96]

Financial Data and Key Metrics Changes - The company reported a solid fourth quarter with $1.8 billion in revenue, of which $1.1 billion was digital revenue, reflecting a 10% year-over-year growth [15][14] - Adjusted EBITDA for the year was $331 million, with digital EBITDA margins remaining flat year-over-year at 28% [15][14] - In Q4, adjusted EBITDA grew 9% in digital, with incremental digital margins at 26% [14][15] Business Line Data and Key Metrics Changes - Digital revenue grew by 14% in Q4, driven by advertising (up 9%), performance marketing (up 17%), and licensing (up 36%) [13][14] - The print segment saw a decline of 23%, attributed to a prior period's political advertising revenue and ongoing sectoral decline [14] - Care revenue declined by 9% in Q4, with enterprise revenue down 13% due to tightened employer benefits spending [23] Market Data and Key Metrics Changes - Core web sessions decreased by 13% year-over-year, primarily due to a 50% drop in Google Search referrals over the last two years [19] - Non-session-based revenue sources now comprise about 38% of total digital revenue, growing 37% year-over-year in Q4 [21] - Off-platform views nearly doubled in the last two years, with a 43% year-over-year growth last quarter [20] Company Strategy and Development Direction - The company is focused on transforming traditional content businesses into new consumer products and services, aiming for stronger revenue streams [5][11] - There is a significant emphasis on off-platform strategies and expanding brand presence across social media and other platforms [4][20] - The company plans to continue evaluating buybacks and is optimistic about the growth potential in its People segment [12][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate AI disruptions and highlighted the strength of its brands [4][12] - The outlook for 2026 is bullish, with expectations for People to exceed conservative guidance due to strong momentum [32] - Management noted that the advertising market remains generally favorable, with specific strengths in health, pharma, and travel sectors [94] Other Important Information - The company will stop providing quarterly guidance to focus on long-term value creation, while still offering annual guidance [26] - The company expects litigation expenses related to Google AdTech litigation to impact corporate expenses significantly [27] - Corporate adjusted EBITDA was $23 million, down from the previous year, as the company continues to reduce overhead [24] Q&A Session Summary Question: Could you elaborate on the key drivers of non-session-based revenue growth? - Management highlighted that the growth is driven by diversifying traffic sources and developing new distribution channels, moving away from reliance on Google [34][36] Question: What are IAC's M&A aspirations? - Management indicated interest in finding unique opportunities like MGM but noted a lack of attractive options currently available [50] Question: How scalable are the new curated experiences at People? - Management emphasized the importance of direct relationships with audiences and advertisers, noting strong engagement metrics from new products like MyRecipes and the People app [61][62] Question: What is the outlook for the Care segment? - Management expects Care revenue to return to growth by midyear, driven by product improvements and marketing investments [23] Question: Can you provide an update on the Google litigation? - Management stated that the litigation is based on antitrust claims against Google, with expectations to recover significant damages [86][87]

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]