IAC Reports Q2 Earnings Decline, Revenue Down to $586.9 Million

IAC has reported Q2 earnings of $2.57 per share, beating the estimated loss of $0.33. Revenue declined to $586.9 million, below the estimated $601 million. The company's core profit rose due to strength in its digital media segment. IAC has also completed the spinoff of Angi, which is now an independent company.

IAC/InterActiveCorp (NASDAQ: IAC) reported its Q2 2025 earnings on July 2, 2025, with the company posting earnings per share (EPS) of $2.57, surpassing the estimated loss of $0.33. Revenue declined to $586.9 million, falling short of the expected $601 million. The company's core profit rose due to the strength in its digital media segment. Additionally, IAC has completed the spinoff of Angi, which is now an independent company.

The company's digital media segment, now known as People Inc., reported digital revenue of $260 million, representing a 9% year-over-year growth compared to $238 million in Q2 2024. This growth is attributed to a diversification of traffic sources and an increase in off-platform views, which grew by 24% CAGR from Q2 2023 to Q2 2025. People Inc. is expected to achieve 7-9% digital revenue growth in Q3 2025, with Digital Adjusted EBITDA projected to be between $68-73 million [1].

Despite the decline in revenue, IAC's core profit rose due to the performance of its digital media segment. The company's capital allocation strategy includes share repurchases and strategic acquisitions, with a focus on optimizing assets and unlocking shareholder value. IAC has repurchased 4.5% of its shares year-to-date, representing approximately $200 million, and has authorized a new 10 million share repurchase program [1].

The spinoff of Angi, which was completed in Q2 2025, is expected to help IAC focus on its core businesses and improve its financial performance. The company's full-year 2025 Adjusted EBITDA guidance is $247-$285 million, with People Inc. projected to contribute $330-$340 million in Adjusted EBITDA, and Care.com expected to deliver $45-55 million [1].

IAC's stock closed at $38.83 prior to the presentation, with shares rising 1.08% to $39.25 in after-hours trading following the Q2 2025 earnings report. The company's stock is currently trading at $39.51, reflecting the market's response to the earnings report and the spinoff of Angi [2].

References:
[1] https://www.investing.com/news/company-news/iac-q2-2025-slides-reveal-15-ebitda-growth-claims-shares-trading-at-substantial-discount-93CH-4168916
[2] https://www.investing.com/equities/iac-interactivecorp