Angi Inc. Reports Q2 2025 Earnings, Aims for Profitable Growth by 2026

Angi Inc. reported Q2 2025 earnings, highlighting its focus on returning to profitable growth by 2026. Despite revenue declines, the company achieved a 7% increase in proprietary service requests and a 16% rise in leads year over year. Angi is optimizing its bidding and matching processes, improving customer satisfaction and pro acquisition efforts. The company expects moderated revenue declines for the remainder of 2025 and a return to growth in 2026.

Angi Inc. (ANGI) reported its Q2 2025 earnings, showcasing a strategic shift towards profitability and growth. Despite a revenue decline of 11.7% to $278.22 million, the company achieved a significant 228.6% increase in earnings per share (EPS) to $0.23 and a 166.6% increase in net income to $10.90 million [1]. These results highlight Angi’s focus on operational efficiency and cost discipline.

Lead services and advertising revenue drove the total revenue, contributing $186.51 million and $64.25 million, respectively. However, the company’s stock price fell by 3.6% post-earnings, reflecting mixed investor sentiment [1]. CEO Jeffrey W. Kip attributed the strong earnings performance to a focus on shedding low-quality revenue and unprofitable expenses, which contributed to stronger EBITDA and free cash flow. He also noted a 30-point improvement in the Net Promoter Score (NPS) and 20% growth in Pro retention over two years as key indicators of progress [1].

Angi 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 [1].

UBS recently raised its price target on ANGI to $22.00 from $20.00, maintaining a Neutral rating following the company’s second-quarter 2025 performance [2]. The firm highlighted that ANGI’s proprietary Service Requests grew 7% year-over-year while Leads increased 16% during the same period. This growth stems from ANGI’s investments in onboarding high-quality service professionals, contributing to the company’s impressive 94.8% gross profit margin.

Angi’s strategic turnaround is gaining momentum, with a focus on proprietary channels and customer satisfaction. The company expects moderated revenue declines for the remainder of 2025 and a return to growth in 2026 [3]. Analysts remain cautiously optimistic, with a $21.57 average price target and upgraded 2026 EPS forecasts, though risks include 2025 revenue contraction and macroeconomic headwinds.

References:
[1] https://www.ainvest.com/news/angi-2025-q2-earnings-strong-earnings-growth-revenue-decline-2508/
[2] https://za.investing.com/news/analyst-ratings/angi-stock-price-target-raised-to-22-from-20-at-ubs-on-growth-signs-93CH-3825286
[3] https://www.ainvest.com/news/angi-strategic-turnaround-gains-momentum-closer-q2-earnings-future-potential-2508/