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Jun 30, 2025
IAC Q2 2025 Earnings Report
IAC reported a return to profitability in Q2 2025 with positive net income and operating income, driven by growth in digital revenue at People Inc. and improved performance at Care.com.
Key Takeaways
IAC delivered solid Q2 2025 results with $587 million in revenue and a net income of $211 million, reversing last year's loss. Operating income was slightly positive, driven by People Inc.'s digital growth and a strong gain from its MGM investment.
Revenue declined 7% YoY to $586.9 million.
Net income reached $211.5 million, boosted by a $307.4 million unrealized gain from MGM investment.
People Inc. digital revenue rose 9% to $260.4 million, while print revenue fell 9%.
Adjusted EBITDA increased 15% YoY to $51.4 million.
Revenue by Segment
Forward Guidance
IAC reaffirmed its FY 2025 guidance with an expected operating income of $82–$140 million and Adjusted EBITDA of $247–$285 million.
Positive Outlook
- People Inc. expected to deliver $330–$340 million in Adjusted EBITDA for FY 2025.
- Search and Emerging & Other forecast improved Adjusted EBITDA over H1 levels.
- Q3 2025 guidance includes $68–$73 million Adjusted EBITDA from People Inc.
- Continued growth in People Inc.'s digital segment anticipated.
- Refinancing activity at People Inc. improved capital structure and extended debt maturities.
Challenges Ahead
- Care.com revenue expected to decline 4–7% in Q3 2025.
- Macro-economic uncertainty may affect digital advertising performance.
- Free cash flow declined to –$11.8 million YTD due to lease termination payments and capex.
- Print revenue continues to decline with ongoing portfolio optimization.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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