Angi's Q2 2025 Earnings: Navigating Short-Term Pressures While Building Long-Term Resilience

Angi Inc. (ANGI) delivered a mixed Q2 2025 earnings report, reflecting the tension between short-term operational challenges and long-term strategic progress. While revenue declined 12% year-over-year to $278.2 million, the company's net earnings surged 190% to $10.9 million, and EPS jumped to $0.23 from $0.07. This divergence highlights a critical question for investors: Can Angi's operational strengths offset near-term headwinds, and is the company positioned to capitalize on the evolving home services market?

Operational Strengths: Strategic Shifts and Efficiency Gains

Angi's Q2 results underscore its pivot toward non-discretionary services like HVAC and plumbing, which now account for two-thirds of its business. This shift aligns with the "stay-put" housing market, where homeowners prioritize essential repairs over discretionary upgrades. The company's "Homeowner Choice" initiative—allowing customers to directly select service professionals—has driven a 10% increase in pro win rates and a dramatic improvement in Net Promoter Score (NPS), rising from below -30 to nearly positive.

Cost discipline is another pillar of Angi's strategy. Overhead has been reduced by $100 million since 2022, while maintaining investments in AI-driven job matching and digital tools. The gross profit margin of 95.2% remains a standout metric, reflecting strong pricing power and operational efficiency. Additionally, proprietary service requests grew 7% year-over-year, and leads increased 16%, signaling a rebound in core business performance.

Short-Term Earnings Pressures: Revenue Declines and EBITDA Woes

Despite these strengths, Angi faces immediate challenges. Revenue fell 12% to $278.2 million, driven by marketing optimization and sales force consolidation. Adjusted EBITDA dropped 22% to $33.0 million, reflecting lower revenue and higher marketing expenses. Network channel performance remains a drag, with service requests and leads declining 59% and 76%, respectively, due to the "Homeowner Choice" shift.

The company's focus on quality over quantity has also led to short-term friction. For example, the 33% drop in network service requests in earlier quarters, while improving customer satisfaction, created a void in lead volume. This trade-off between immediate revenue and long-term platform health is a double-edged sword.

Long-Term Growth Resilience: A Path to Sustainable Value

Angi's long-term prospects hinge on its ability to monetize proprietary lead growth and AI-driven efficiencies. Analysts project a 2026 rebound, with revenue per lead and proprietary volume set to rise. The company's 8–16% improvement in pro retention and 150% higher value generation from newly acquired professionals suggest a more stable and productive network.

Moreover, Angi is leveraging macroeconomic trends. With 71% of homeowners delaying major projects due to inflation, demand for preventative maintenance and cost-conscious solutions is surging. Angi's focus on bundled services, affordable materials, and early planning positions it to capture this demand.

Investment Implications: Balancing Risks and Rewards

For investors, Angi's Q2 results present a nuanced picture. The stock's current P/E ratio of 15.92 and EV/EBITDA multiple of 6.04x suggest undervaluation relative to its growth potential. However, the revenue decline and EBITDA contraction highlight execution risks.

A cautious "Hold" recommendation makes sense here. The company's strategic initiatives—AI integration, cost discipline, and focus on non-discretionary services—position it for long-term resilience. Yet, short-term volatility remains a concern. Investors should monitor Q3 2025 results for signs of sustained revenue recovery and continued EPS growth.

Historically, ANGI has experienced 13 earnings release dates from 2022 to the present, with the latest on August 5, 2025. These events provide a lens to evaluate how the stock has historically reacted to earnings surprises and strategic updates, offering context for future decision-making.

In conclusion, Angi's Q2 2025 earnings reflect a company in transition. While near-term pressures persist, the operational and strategic foundations laid in 2025 could drive a meaningful rebound in 2026. For patient investors, this divergence between short-term pain and long-term gain may present an attractive entry point.