Angi 2025 Q1 Earnings Net Income Soars 1247%

Angi (ANGI) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Angi's results surpassed expectations with a notable return to profitability, achieving an EPS of $0.30 compared to an anticipated loss. The company’s guidance remains in-line, with a focus on strategic priorities to drive future growth. The management's confidence is evident in their newly approved share repurchase program, further emphasizing their commitment to enhancing shareholder value.

Revenue
The total revenue of Angi decreased by 19.5% to $245.91 million in 2025 Q1, down from $305.39 million in 2024 Q1.

Earnings/Net Income
Angi returned to profitability with EPS of $0.30 in 2025 Q1, reversing from a loss of $0.03 per share in 2024 Q1 (1100.0% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $15.11 million in 2025 Q1, representing a 1247.0% positive swing from the net loss of $-1.32 million in 2024 Q1. The EPS reflects a strong recovery from the prior year's loss.

Price Action
The stock price of Angi has edged up 0.81% during the latest trading day, has dropped 5.38% during the most recent full trading week, and has tumbled 14.12% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Angi (ANGI) shares after a revenue raise quarter-over-quarter and holding for 30 days resulted in a 12.03% return over the past 5 years, significantly underperforming the benchmark return of 83.12%. This strategy’s compound annual growth rate (CAGR) was recorded at 2.32%, accompanied by a maximum drawdown of -5.50% and a Sharpe ratio of 0.44, reflecting moderate risk and return characteristics. Overall, the strategy indicates a need for reevaluation given its underperformance against the benchmark. Investors should consider these factors and align their expectations accordingly when evaluating Angi's stock performance post-earnings.

CEO Commentary
Jeff Kip, Chief Executive Officer of Angi Inc., highlighted the challenges faced in Q1 2025, with revenue declining 19% year-over-year to $245.9 million due to ongoing quality and efficiency improvements. Despite these challenges, operating income significantly increased to $20.0 million, up from $2.7 million in the prior year, reflecting the benefits of recent strategic changes such as sales force consolidation and the implementation of homeowner choice. Kip expressed confidence in the company's direction, emphasizing that these adjustments are designed to optimize long-term profitability and enhance market positioning.

Guidance
The company anticipates continued challenges but remains focused on its strategic priorities. Angi Inc. expects to leverage its new homeowner choice model to drive future growth and improve customer engagement. The management projects that the streamlined operations and cost reductions will position the company favorably for profitability in subsequent quarters. The Board's approval of a new 5 million share repurchase authorization reflects strong confidence in the company's future performance and strategic direction.

Additional News
Within three weeks of May 6th, 2025, Angi Inc. announced a new share repurchase program, authorizing the repurchase of up to 5 million shares, demonstrating strong confidence in its future performance. Additionally, the company has undergone a strategic consolidation of its sales force, aimed at enhancing operational efficiency. This move aligns with their broader strategy to optimize resources and bolster long-term profitability. These steps are indicative of Angi's focus on strengthening its market position and delivering value to shareholders, amidst ongoing market challenges.