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IAC Q1 2025 Earnings Report
IAC reported a strong first quarter in 2025, with significant growth in Adjusted EBITDA and a strategic spin-off of Angi Inc.
Key Takeaways
IAC delivered a strong Q1 2025, with total revenue of $570.5 million and a significant increase in Adjusted EBITDA to $50.9 million, up 818% year-over-year. The company completed the spin-off of Angi Inc. and repurchased $200 million in common shares, demonstrating a focus on capital allocation and value creation. Dotdash Meredith (DDM) saw digital revenue growth and a substantial increase in operating income.
IAC completed the spin-off of Angi Inc. on March 31, 2025, with Angi's results now reflected as discontinued operations.
The company repurchased 4.5 million common shares for $200 million between February 12, 2025, and May 2, 2025.
Dotdash Meredith (DDM) Digital revenue increased 7% to $224 million, and total operating income increased by $64 million.
Adjusted EBITDA surged by 818% to $50.9 million in Q1 2025, compared to $5.5 million in Q1 2024.
Revenue by Segment
Forward Guidance
For the full year 2025, IAC expects total Adjusted EBITDA to be between $240 million and $295 million, with Digital revenue growth for DDM between 7%-10%.
Positive Outlook
- DDM Digital revenue is expected to grow 7%-10% for the full year 2025.
- DDM Adjusted EBITDA is projected to be between $330 million and $350 million for FY 2025.
- Search Adjusted EBITDA is expected to be between $10 million and $15 million for FY 2025.
- The company continues to evaluate investment opportunities and deploy capital strategically.
- The full year 2025 guidance for all businesses was reiterated.
Challenges Ahead
- Care.com revenue is expected to decline by 5%-8% in Q2 2025.
- Emerging & Other is projected to have Adjusted EBITDA losses between $25 million and $15 million for FY 2025.
- Corporate Adjusted EBITDA losses are expected to be between $120 million and $110 million for FY 2025, including non-recurring expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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