Financial Data and Key Metrics Changes - In Q3 2025, Angi reported a double-digit increase in the estimated hire rate and a nearly 30% increase in the estimated win rate year-over-year [4] - The homeowner net promoter score improved by nearly 10 points year-over-year, with a total increase of nearly 30 points over the last two years [4] - Pro retention improved, with overall churn better by 7% year-over-year and up 26% compared to two years ago [4] - Proprietary service request growth accelerated to positive 11%, with proprietary lead growth at 16% and revenue for lead growth at 11% [5] Business Line Data and Key Metrics Changes - The network channel's contribution to leads decreased from nearly 40% a year ago to less than 10% in Q3 2025, impacting overall growth [5] - The company is generating more value with a reduced sales headcount, producing more overall lifetime margin per pro [6] Market Data and Key Metrics Changes - The company experienced a shift in the network channel, which had a win rate significantly lower than other channels, but this has improved as homeowners now choose their pros [28] - The affiliate network saw a decrease in volume due to quality issues and operational challenges, but the company is stabilizing and looking for new partners [30][31] Company Strategy and Development Direction - Angi aims to transition to a single modern global and AI-first platform by 2027, addressing significant tech debt and legacy code [7] - The company is focusing on improving customer experience through AI-enabled software and enhancing business efficiency [7] - There is a commitment to return to growth in 2026 and beyond, with a focus on branded advertising and increasing TV spend [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of homeowner demand, noting it is not as high as during COVID but not as low as during the financial crisis [61] - The company anticipates modest overall service growth in 2026, with strong performance in proprietary channels offsetting weaker network comparisons [11][12] Other Important Information - The company has authorized a new share repurchase program, allowing for the repurchase of an additional 3.2 million shares [52] - Capital expenditures are expected to be around $60 million this year and a similar amount next year, with a front-loaded spending approach [17] Q&A Session Summary Question: Update on proprietary lead growth and 2026 outlook - Management confirmed that the target for 2026 revenue growth remains mid-single-digit, with strong performance in proprietary channels offsetting network weaknesses [11] Question: Clarification on EBITDA and CapEx - EBITDA performance was influenced by contribution margin outperformance and timing of expenses, with expectations for higher capitalization rates in Q4 [16][17] Question: Response to ads migration and network channel performance - The ads migration is progressing well with positive feedback from service pros, while the network channel has decreased in lead contribution but improved in win rates [25][28] Question: Impact of AI on customer acquisition strategy - The company is actively integrating AI into customer workflows, which is expected to enhance conversion rates and improve overall efficiency [34][37] Question: Competitive environment and market position - Angi remains competitive, with a strong market position and a focus on delivering high-quality experiences to homeowners and pros [78]

Core Insights - Angi is launching an "AI Helper" to enhance the service request experience for homeowners, coinciding with its 30th anniversary, aimed at simplifying connections with service professionals and meeting the demand for smarter home improvement solutions [1][5] Technology Enhancement - The new AI system utilizes advanced large language models (LLMs) and job assessment questions developed with service professionals to create more accurate service requests, allowing homeowners to describe their needs in their own words [2][4] - The AI improves match accuracy by approximately 30% compared to traditional methods, ensuring precise recommendations and quicker quotes from qualified professionals [4] Market Insights - Angi's State of Home Spending report indicates that 45% of homeowners experience stress and anxiety due to a lack of knowledge about repairs, highlighting a significant market need for improved service matching [3] - The company has evolved significantly since its founding in 1995, with key milestones including its IPO in 2011 and strategic mergers, reinforcing its position as a leading home services platform [5][6] Commitment to Innovation - Angi's continuous training of its AI system using historical data and real-world interactions has led to significant improvements in service match accuracy and quality, demonstrating the company's commitment to enhancing user experience [5] - The introduction of the AI-powered feature reflects Angi's dedication to evolving with community needs and streamlining the home improvement process [4]