Angi 2025 Q2 Earnings Strong Earnings Growth Amid Revenue Decline

Angi reported its fiscal 2025 Q2 earnings on August 6, 2025, showing a sharp rise in earnings despite a revenue decline. The company posted a 228.6% increase in EPS to $0.23, and a 166.6% increase in net income to $10.90 million. The results exceeded profit expectations, though revenue fell 11.7% year-over-year.

Revenue

Angi’s total revenue for Q2 2025 decreased by 11.7% to $278.22 million, compared to $315.13 million in the same period last year. Lead services remained the largest revenue contributor, generating $186.51 million, followed by advertising revenue of $64.25 million. Services revenue stood at $19.30 million, while membership subscription revenue totaled $7.71 million. Additional revenue streams included $445,000 from other sources, rounding out the total revenue for the quarter.

Earnings/Net Income

The company’s earnings performance showed significant improvement, with EPS rising sharply to $0.23 from $0.07 in the prior-year period, and net income growing to $10.90 million from $4.09 million. This substantial increase in profitability indicates improved cost controls and operational efficiencies, despite the revenue contraction.

Price Action

Following the earnings report, Angi’s stock price dropped 3.60% during the latest trading day, edged down 1.76% during the most recent full trading week, and declined 6.39% month-to-date. The post-earnings price action did not align with positive results, indicating mixed investor sentiment.

Post-Earnings Price Action Review

Despite the strong earnings report, the historical strategy of buying Angi shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days has underperformed significantly. Over the past three years, this approach delivered a return of -73.92%, vastly underperforming the benchmark return of 48.58%. The strategy’s Sharpe ratio of -0.54 indicates substantial risk aversion, while the maximum drawdown of 0% suggests the strategy avoided losses during the backtest period.

CEO Commentary

Jeffrey W. Kip, CEO & Director, attributed the company’s performance to a focus on shedding low-quality revenue and unprofitable expenses, which contributed to stronger EBITDA and free cash flow. He highlighted a 30-point improvement in the Net Promoter Score and 20% growth in Pro retention over two years as key indicators of progress. Kip emphasized the importance of platform modernization and improved matching between homeowners and Pros as part of the company’s long-term strategy.

Guidance

Looking ahead, Kip expects stabilization of network volume at current exit rates and continued growth in proprietary service request (SR) volumes. The company anticipates increased revenue per lead due to price optimization and platform transitions, with no significant changes in contribution margins expected for Q3 and Q4. Operating margins are expected to see modest leverage in 2026, and the company forecasts mid-single-digit revenue growth for 2025, supported by improved Pro network dynamics and stable contribution margins.

Additional News

Angi (ANGI) surged 20.23% intraday, reaching $18.84, driven by its Q2 earnings release and shareholder letter. The stock's rally coincided with the CEO’s strategic updates and a scheduled conference call, intensifying short-term volatility. The options chain showed elevated activity, with 27,344 contracts traded on August 15 expirations. The ANGI20250815C17.5 call stood out for its high liquidity and potential upside, while the ANGI20250815P17.5 put offered a hedge against downside risk. However, backtesting indicated mixed long-term performance, with negative returns over 30 days following a 20% surge. Investors are advised to monitor the August 6 conference call for guidance and strategic direction.