Angi Inc. Reports 19% Revenue Decline but Achieves Profitability in Q1 2025

Angi Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $245.9 million, a decrease of 19% from $305.4 million in the same period last year. The company's net earnings showed a marked improvement, reaching $15.1 million compared to a net loss of $1.6 million in the prior year. This shift in profitability was attributed to reduced operating costs, particularly in selling and marketing expenses, which decreased by 25% to $118.5 million, and general and administrative expenses, which fell by 33% to $57.3 million.

The decline in revenue was primarily driven by a 21% drop in domestic revenue, which fell to $212.6 million, largely due to decreases in lead revenue, advertising revenue, and membership subscription revenue. The company noted that these changes were part of ongoing quality and efficiency improvements, including market optimization and the consolidation of its sales force. International revenue also decreased by 6% to $33.4 million, influenced by a strategic shift in the Canadian business model to align with European operations.

Operationally, Angi reported an average of 134,000 active monthly professionals (Pros) during the quarter, a decrease of 14% from the previous year. The company facilitated approximately 16 million project connections for consumers over the past year. In a strategic move, Angi implemented a homeowner choice model, allowing consumers to select their Pros, which replaced the previous automatic matching system. This change is expected to enhance user engagement and satisfaction.

In terms of financial position, Angi's total assets decreased to $1.8 billion as of March 31, 2025, down from $1.83 billion at the end of 2024. The company reported cash and cash equivalents of $386.6 million, a decline from $416.4 million at the end of the previous year. Long-term debt remained stable at approximately $497 million. Looking ahead, Angi's management expressed confidence in its ability to navigate market challenges and improve operational efficiency, although they acknowledged potential risks related to economic conditions and competition in the home services sector. The company has also authorized a new stock repurchase program for up to 5 million shares, signaling a commitment to returning value to shareholders.