IAC Inc. (IAC)

In early February 2026, IAC's stock experienced a decline following the release of its fourth-quarter and full-year 2025 financial results. While the company reported a revenue beat for Q4 2025, its GAAP loss per share missed consensus estimates significantly. The stock initially rallied in pre-market trading on the revenue beat but reversed gains after IAC issued 2026 guidance that trailed analyst expectations for consolidated EBITDA. IAC projected 2026 Adjusted EBITDA at a midpoint of $297.5 million, below the $319 million analyst consensus, and anticipated $15 million in litigation expenses related to Google antitrust matters in 2026. The digital segment of People Inc. showed strength with 14% digital revenue growth in Q4 2025, driven by advertising, performance marketing, and licensing, even as print revenue fell. Management highlighted a strategic shift towards off-platform distribution and non-session-based revenue to mitigate declining Google search referral traffic, which has dropped 50% since 2023. IAC also repurchased $337 million of its stock, reducing its share count by approximately 10%, and increased its stake in MGM Resorts International to 25%.

Demand seasonality for IAC's products and services varies across its diverse portfolio. Angi's core business is subject to seasonal and economic factors that impact home improvement and repair spending. IAC's digital revenue growth in Q4 2025 was driven in part by performance marketing during the important holiday period, suggesting some seasonal uplift in that area.

IAC Inc. is a diversified internet and media holding company that builds and operates a portfolio of digital businesses, acquiring, nurturing, and scaling various digital and internet brands, often spinning them off to unlock shareholder value. IAC operates primarily within the Communication Services sector and the Interactive Media industry, focusing on digital platforms like publishing and care services. Its core operations are centered on People Inc. and Care.com, and it holds a significant minority equity stake in MGM Resorts International. The company generates revenue primarily through digital advertising, performance marketing, and subscription services across its publishing and marketplace platforms. People Inc. encompasses digital and print businesses, providing original digital content and publishing approximately 17 magazines and over 400 special interest publications. Care.com is a marketplace platform connecting individuals with care services. The Search segment includes various search-related businesses, and the Emerging & Other segment includes ventures like The Daily Beast, IAC Films, Mosaic Group, Newco, and Vivian Health.

IAC Inc. owns brands worldwide, primarily in media and the internet. The company's operations span North America and parts of Europe, reaching millions of visitors each month. IAC is headquartered in New York City, with business locations globally.

In the past year, IAC's brand reputation has been influenced by its strategic pivot and performance in a challenging digital landscape. The company's digital brands have shown strong growth in non-session-based revenue streams, which has positively contributed to its reputation for innovation and adaptability. IAC's focus on developing ad and search alternatives to reduce reliance on major platforms like Google is also seen as a strategic shift. However, the company has faced challenges, including a significant drop in Google search referrals, leading to ongoing litigation with Google, with anticipated expenses of $15 million in 2026. Management has emphasized the success of its off-platform strategy and the strength of People Inc.'s brands amidst AI disruption.

Major institutional owners of IAC Inc. include BlackRock, Inc., Vanguard Group Inc., JPMorgan Chase & Co. / JPMorgan Investment Management, Inc., HighSage Ventures LLC, Aristeia Capital Llc, Corvex Management LP, Southeastern Asset Management Inc/tn/, IJR - iShares Core S&P Small-Cap ETF, Burgundy Asset Management Ltd., and State Street Corp. Barry Diller is the Chairman and Senior Executive of IAC.