IAC Inc. Q2 Sales Disappoint, Analysts Lower Forecasts

IAC Inc. reported Q2 earnings of $2.57 per share, beating estimates of a loss of 27 cents per share, but missing sales expectations of $601.28 million with $586.9 million. Shares fell 13% to $34.38. Analysts at Oppenheimer and Truist Securities maintained their "Outperform" and "Buy" ratings, respectively, but lowered their price targets to $55 and $57.

IAC Inc. (IAC) reported its Q2 2025 earnings, delivering an EPS of $2.57 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.27 per share [1]. The company's revenue, however, fell short of expectations, coming in at $586.9 million compared to the forecasted $601.35 million [1]. Despite the earnings surprise, IAC's stock price dropped 13.41% to $37.2 in after-hours trading, reflecting investor concerns over the revenue miss and broader market conditions [2].

Key Takeaways
IAC's EPS of $2.57 was a substantial positive surprise compared to the forecast of a negative $0.2927. However, revenue came in at $586.9 million, missing the forecast by 2.4%. This mixed result reflects both operational strengths and market challenges. The company's digital revenue grew by 9%, driven by advertising and performance marketing, while it reduced its dependency on Google traffic from 52% to 28% [2].

Market Reaction
Following the earnings announcement, IAC's stock fell by 13.41% to $37.2. This decline suggests that investors are concerned about the revenue miss and broader market conditions, despite the positive EPS surprise. The stock remains within its 52-week range of $32.05 to $55.4 [2].

Analyst Ratings
Analysts at Oppenheimer and Truist Securities maintained their "Outperform" and "Buy" ratings, respectively, but lowered their price targets to $55 and $57 [1].

Outlook
IAC has tightened its full-year EBITDA guidance to a range of $247 million to $285 million. The company is targeting long-term digital revenue growth of 10% and plans to expand its Decipher Plus platform significantly. Continued investment in Care.com and exploring CTV advertising opportunities are key strategic focuses [2].

References:
[1] https://www.nasdaq.com/articles/iac-iac-q2-earnings-beat-estimates
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-iacs-q2-2025-eps-surprises-stock-falls-13-93CH-4170868