Angi 2025 Q3 Earnings Sharp Net Income Decline of 70%

Angi (ANGI) reported mixed results for fiscal 2025 Q3, with revenue declining 10.5% year-over-year to $265.63 million, missing analyst estimates by $3.36 million. While operating income surged 179% to $21.8 million, the company’s net income fell 70% to $10.61 million, reflecting structural challenges. CEO Jeff Kip emphasized cost discipline and share repurchases but provided no near-term revenue guidance, leaving investors with uncertainty.

Revenue

The company’s total revenue slid 10.5% to $265.63 million in 2025 Q3, falling short of expectations. Lead services led the revenue mix with $183.25 million, while advertising contributed $57.82 million. Services and membership subscription accounted for $17.19 million and $6.93 million, respectively, with other revenue rounding out the total at $447,000. The decline was attributed to lower network service requests post-full implementation of homeowner choice policies.

Earnings/Net Income

Angi’s EPS plummeted 66.2% to $0.24, and net income dropped 70% to $10.61 million, marking a significant underperformance compared to 2024 Q3. The sharp declines underscored structural headwinds despite cost-cutting efforts.

Post-Earnings Price Action Review

Angi’s stock edged up 0.08% in the latest trading day but fell 5.78% over the past week and 21.14% month-to-date, reflecting investor caution. The mixed earnings report—highlighting both improved profitability and declining revenue—left the stock vulnerable to volatility as analysts remain split on its near-term outlook.

CEO Commentary

Jeff Kip highlighted 11% growth in proprietary service requests and 16% lead growth, driven by improved customer experience and SEM performance. He noted 179% higher operating income and 12% Adjusted EBITDA growth, attributing gains to reduced acquisition costs and fixed expenses. Kip emphasized long-term profitability through cost management and share repurchases, with 14.7% of shares repurchased year-to-date and a new $20.1 million authorization.

Guidance

Angi outlined priorities including sales headcount optimization and cost controls, but did not provide specific revenue or margin guidance. The CEO reiterated a focus on proprietary channel performance and managing 5.9% trailing churn. A new 3.2 million share repurchase authorization signaled confidence in capital allocation, though explicit targets for future periods remain absent.

Additional News

1. Share Repurchase Expansion: Angi announced a new $20.1 million repurchase authorization, reflecting confidence in capital allocation and underscoring its focus on shareholder returns.


2. Cost Discipline: Operating income surged 179% to $21.8 million due to reduced depreciation and stock-based compensation expenses, highlighting management’s emphasis on cost control.


3. Analyst Sentiment: While three analysts issued “buy” ratings, six advised a “hold,” reflecting uncertainty over Angi’s ability to reverse its 10% revenue decline and reignite growth.

The company’s shares closed at $13.05, trading at 9 times forward earnings—a 40% discount from 15 times a few months ago—suggesting emerging value for long-term investors.