What can investors expect from IAC's earnings in 2025?

**IAC's 2025 earnings are expected to reflect a company that continues to navigate its diverse portfolio and strategic investments with resilience.** Here's a detailed analysis: 1. **Diverse Portfolio Strength**: IAC's diversified portfolio, including Dotdash Meredith and Care.com, is likely to contribute to stable financial performance. These businesses are category-leading and may offer consistent revenue streams. 2. **Strategic Equity Positions**: The company's strategic equity positions in companies like MGM Resorts International and Turo Inc. indicate a broad investment strategy that could provide returns and mitigate risks. 3. **Digital Media Growth**: IAC's digital media segment, particularly Dotdash Meredith, has shown growth with digital revenue increasing by 10% to $311 million in the fourth quarter of 2024. This trend suggests a continued potential for growth in this area. 4. **Angi Spin-off Impact**: The spin-off of Angi, IAC's home services marketplace, is expected to close in the first half of 2025. The spin-off will likely affect IAC's financials, as evidenced by the decline in Angi's revenue, which fell 11% to $267.9 million in the fourth quarter. However, Angi expects revenue declines to lessen sequentially every quarter, aiming to return to growth by 2026. 5. **Non-Recurring Expenses**: IAC anticipates several non-recurring expenses in 2025, including costs related to the spin-off of Angi and the departure of CEO Joey Levin. These expenses could impact core profit but are not indicative of ongoing business performance. 6. **Analyst Expectations**: Analysts forecast IAC's quarterly earnings to be $0.09 per share, reflecting a 112.3% year-over-year increase. However, revenues are anticipated to decline to $936.4 million, indicating a 11.5% decrease from the previous year's quarter. This mixed outlook highlights the need for investors to consider both earnings and revenue trends. In conclusion, while IAC's 2025 earnings are expected to show resilience from its diversified portfolio and strategic investments, the impact of non-recurring expenses and the spin-off of Angi will be notable factors to monitor. Investors should remain cautious due to the expected revenue decline but also recognize the potential for growth in IAC's digital media segment.