Angi Inc.

Angi Inc. operates in the home services industry, connecting quality home professionals ("Pros") with consumers across over 500 categories, including home repair, remodeling, cleaning, and landscaping. The company reported approximately 111,000 Average Monthly Active Pros during the three months ended December 31, 2025 ¹, and facilitated approximately 16 million projects for consumers during the twelve months ended December 31, 2025 ². The home services industry is described as highly competitive and fragmented, with competition arising from search engines, online directories, home/local services platforms, consumer ratings/reviews providers, traditional offline advertising, and retailers offering installation services. The primary competition is believed to come from traditional word-of-mouth and referral methods.

The company's core business model revolves around generating revenue by connecting Pros with consumers. This includes lead revenue for consumer matches, advertising revenue from Pros, membership subscription revenue from both Pros and consumers, and revenue from pre-priced offerings where the company connects consumers with Pros to perform services. Lead revenue varies based on service requested, product experience, and geographic location. The company provides matching services, booking of pre-priced services, and related tools and directories to consumers free of charge upon registration. Consumers can also pay directly on the Angi platform for services and access features like the True Cost Guide, ratings, reviews, promotions, and home services content. Pros pay fees for consumer referrals, with no charge to enroll or view/select requested services once enrolled. Membership subscriptions are sold to approved Pros, offering access to consumer referrals and listings in online directories.

The company operates through two main segments: U.S. and International. The U.S. segment provides Pros with tools for customer engagement, quoting, and invoicing, and offers consumers resources to find local, pre-screened, and customer-rated Pros for home repair, maintenance, and improvement projects. Consumers can also request household services directly through the Angi platform, fulfilled by independent Pros. In 2025, U.S. Pros participated in full-priced leads within a monthly budget, discounted leads in a subscription package, double opt-in leads on an a-la-carte basis, and pre-priced offerings. The International segment consists of businesses in Europe and Canada, including HomeStars, MyBuilder, MyHammer, Travaux, and Werkspot, which are home services marketplaces in Canada, the United Kingdom, Germany, France, and the Netherlands, respectively, along with Austrian operations of MyHammer and Italian operations of Werkspot. International revenue primarily comprises leads revenue for consumer matches and membership subscription revenue from Pros. In the fourth quarter of 2025, the company deprecated the advertising offering in the U.S. and migrated Pros under contract for advertising to a subscription offering based on consumer matches, with future advertising revenue expected to be de minimis.

For the fiscal year ended December 31, 2025, Angi Inc. reported total revenue of $1,030,535 thousand ³, a decrease of $154,577 thousand ⁴ or 13% ⁵ from $1,185,112 thousand ⁶ in 2024. Gross profit for 2025 was $983,099 thousand ⁷, down $144,435 thousand ⁸ or 13% ⁹ from $1,127,534 thousand ¹⁰ in 2024. The gross margin remained constant at 95% ¹¹ in both 2025 and 2024. Operating income increased significantly to $65,406 thousand ¹² in 2025, up 199% ¹³ from $21,885 thousand ¹⁴ in 2024, with an operating margin of 6% ¹⁵ in 2025 compared to 2% ¹⁶ in 2024. Net earnings attributable to Angi Inc. shareholders were $43,832 thousand ¹⁷ in 2025, an increase from $36,004 thousand ¹⁸ in 2024. Diluted EPS for 2025 was $0.94 ¹⁹, up from $0.71 ²⁰ in 2024. Cash and cash equivalents totaled $303,701 thousand ²¹ as of December 31, 2025, down from $416,434 thousand ²² at December 31, 2024. Total long-term debt, net, was $497,667 thousand ²³ at December 31, 2025, compared to $496,840 thousand ²⁴ at December 31, 2024. Net cash provided by operating activities was $105,073 thousand ²⁵ in 2025, a decrease from $155,941 thousand ²⁶ in 2024.

U.S. revenue decreased by 14% ²⁷ in 2025, primarily due to a 72% ²⁸ decrease in Network revenue, which was a result of the implementation of homeowner choice in January 2025. This was partially offset by a 17% ²⁹ increase in Proprietary revenue, driven by strong execution in paid marketing in Proprietary channels. International revenue decreased by $2.5 million ³⁰, or 2% ³¹, mainly due to a management decision to change the business model of the Canadian business when migrating it onto the European platform, aiming for a more profitable self-serve platform with fewer manual sales. U.S. operating income increased by 313% ³² to $41,910 thousand ³³, while International operating income increased by 100% ³⁴ to $23,496 thousand ³⁵. Selling and marketing expense decreased by $94,092 thousand ³⁶ or 16% ³⁷ to $507,546 thousand ³⁸ in 2025, and general and administrative expense decreased by $57,121 thousand ³⁹ or 18% ⁴⁰ to $262,878 thousand ⁴¹. Depreciation decreased by $40,733 thousand ⁴² or 47% ⁴³ to $45,319 thousand ⁴⁴, primarily due to reduced capitalized software spend and the write-off of certain leasehold improvements and furniture/fixtures in connection with real estate footprint reduction in 2024.

During the first quarter of 2025, the company updated its segment reporting structure from "Ads and Leads," "Services," and "International" to "Domestic" and "International," with "Domestic" later renamed "U.S." in the fourth quarter of 2025. On March 31, 2025, IAC Inc. completed the spin-off of its ownership in Angi Inc. through a special dividend, resulting in IAC having no ownership in Angi Inc. and no Class B Common Stock outstanding. In January 2026, the company announced a reduction of its global workforce by approximately 350 employees ⁴⁵ to reduce operating expenses and optimize organizational structure, anticipating $22.0 million to $30.0 million ⁴⁶ in total restructuring charges, of which $12.8 million ⁴⁷ was recorded in the fourth quarter of 2025. The company also launched a new online acquisition funnel for Pros in the U.S. in the second half of 2025, which is being optimized for Pro capacity growth in 2026.

The company expects its 2026 capital expenditures to be lower than the 2025 figure of $59.6 million ⁴⁸ by approximately 5% to 10% ⁴⁹, primarily due to a reduction in capitalized software. Management believes its existing cash, cash equivalents, expected positive cash flows from operations, and borrowing capacity under the Revolving Facility will be sufficient to fund normal operating requirements, including capital expenditures, debt service, withholding taxes on net-settled stock-based awards, and other commitments for the next twelve months.

A major growth area for the company is the optimization of its new online acquisition funnel for Pros in the U.S., which was launched in the second half of 2025. This initiative is expected to establish a new channel for Pro capacity growth in 2026. The company also aims to continue to attract, retain, and grow the number of skilled and reliable Pros across its platforms by offering innovative products and services and providing an attractive return on their marketing and advertising investments.

Operationally, the company is focused on reducing operating expenses and optimizing its organizational structure. This includes a global workforce reduction of approximately 350 employees ⁵⁰, which is expected to incur $22.0 million to $30.0 million ⁵¹ in restructuring charges, with $12.8 million ⁵² already recorded in the fourth quarter of 2025. The company is also working to expand and enhance the efficiency and scalability of its systems, technology, and infrastructure to improve the consumer and Pro experience, accommodate increased visitor numbers, ensure acceptable load times, and keep pace with technological changes. Current efforts include consolidating onto a single global platform, which requires significant operational focus and care.

The company's planned capital allocation includes continued investments in capitalized software to support its products and services, although capital expenditures are projected to decrease by 5% to 10% ⁵³ in 2026 compared to 2025. The company repurchased 10.5 million ⁵⁴ shares of its Class A Common Stock in 2025 for an aggregate of $148.7 million ⁵⁵, exhausting its May 2025 Share Authorization of 5.0 million ⁵⁶ shares and September 2025 Share Authorization of approximately 3.2 million ⁵⁷ shares. As of December 31, 2025, there were no shares remaining for repurchase under any of the Share Repurchase Programs. The company does not expect to declare any regular cash dividends in the foreseeable future, with future earnings anticipated to be retained for operations and business growth.

Management has flagged several structural headwinds and execution risks. The continued migration of the home services market online is crucial, and a failure or delay in this shift by consumers and/or Pros could adversely affect the business. Marketing efforts may not be successful or cost-effective, and the company's ability to market on third-party platforms is subject to their policies, which could limit advertising or channels. Changes in search engine algorithms and the continued development of AI technology could negatively impact traffic to the company's platforms. Evolving consumer behavior towards digital media consumption also presents challenges in identifying profitable marketing opportunities. The company's reliance on Internet search engines to drive traffic means that if links to its websites are not displayed prominently, traffic could decline, increasing marketing spend. Balancing various Pro offerings, particularly the pre-priced model, is a risk, as increased participation in pre-priced offerings could reduce participation in other offerings like membership subscriptions. The ability to establish and maintain relationships with quality and trustworthy Pros is critical, and inappropriate behavior by Pros or claims against the company could damage its reputation. The company's success also depends on its ability to develop and monetize products and services for mobile and other digital devices, including adapting to AI evolution and maintaining interoperability with third-party systems. Limitations on accessing, collecting, and using personal data about consumers from platforms like Google, Apple, Meta, and TikTok, or users opting out of sharing identifiers, could adversely impact customer relationship management and marketing efficiency. A significant erosion in the ability to communicate with consumers and Pros via email, due to declining usage or deliverability restrictions, could negatively affect user experience and conversion rates. Changes to requirements for communicating with consumers via phone and text, aimed at reducing robocalls and robotexts, could decrease leads generated. The company is particularly sensitive to worker classification laws, as reclassifying independent contractors as employees could lead to significant liabilities and additional costs.

The company faces several material risks, including macroeconomic and geopolitical factors that can adversely impact consumer confidence and spending behavior, such as recessionary concerns, rising interest rates, increased inflation, and geopolitical tensions, which could lead to decreased traffic and service requests. Competition in the home services industry is intense and evolving, with new products, services, and entrants, including search engines and online marketplaces that may have better competitive positions or marketing capabilities. Regulatory risks include laws affecting online businesses, privacy, data protection (such as the Digital Services Act in Europe, which could impose fines up to 6% of annual worldwide turnover ⁵⁸ for non-compliance, and the UK's Online Safety Act 2023), marketing and advertising activities (like the TCPA), consumer protection, and worker classification laws that could require reclassifying independent contractors as employees, leading to significant liabilities and costs. Operational risks include the potential for cyberattacks and data security breaches, which could damage systems, compromise data integrity, harm reputation, and incur costly remedies, with the company's cyber insurance potentially insufficient to cover losses. The company's reliance on third-party systems and infrastructure also exposes it to risks of service interruptions and data loss if these providers fail or experience security incidents. Furthermore, the company's use of AI and machine learning technologies introduces new and evolving risks related to ineffective development or deployment practices, potential service disruptions, biased or inaccurate outputs, and an uncertain legal and regulatory environment that may impose significant operational costs or legal liability.

Management's message to shareholders emphasizes the company's role in connecting quality home professionals with consumers across a wide range of categories. They highlight the recent spin-off from IAC Inc. on March 31, 2025, which has made Angi Inc. an independent public company with no Class B Common Stock outstanding. A key strategic priority is the optimization of the new online acquisition funnel for Pros in the U.S., launched in the second half of 2025, with the expectation of establishing a new channel for Pro capacity growth in 2026. Another priority is the ongoing effort to reduce operating expenses and optimize the organizational structure, evidenced by the announced global workforce reduction of approximately 350 employees ⁵⁹ in January 2026, which is expected to result in $22.0 million to $30.0 million ⁶⁰ in restructuring charges, with $12.8 million ⁶¹ already recorded in the fourth quarter of 2025. Management also focuses on maintaining and enhancing the efficiency and scalability of its systems, technology, and infrastructure to improve user experience and accommodate growth, including the consolidation onto a single global platform. The company anticipates 2026 capital expenditures to be lower than 2025's $59.6 million ⁶² by approximately 5% to 10% ⁶³.