IAC Inc. Reports 9% Revenue Decline but Significant Operating Income Improvement in Q1 2025

IAC Inc. reported a decline in revenue for the first quarter of 2025, generating $570.5 million, down 9% from $624.3 million in the same period last year. The company's operating income improved significantly, reaching $35.8 million compared to a loss of $63.4 million in the prior year. This turnaround was attributed to a reduction in operating costs, which fell to $534.7 million from $687.7 million, driven by lower costs in various segments, particularly in selling and marketing expenses.

The company experienced notable changes in its business structure, most significantly the spin-off of Angi Inc. on March 31, 2025. This strategic move involved distributing all shares of Angi to IAC shareholders, resulting in Angi becoming an independent public company. The spin-off has been reflected in IAC's financial statements, with Angi's operations classified as discontinued. The impact of this spin-off was evident in the financial results, as IAC's revenue from discontinued operations was reported at $15.3 million, contrasting with a loss of $4.5 million in the previous year.

Operationally, IAC's Dotdash Meredith segment saw a slight revenue increase of 1% to $393.1 million, primarily due to a 7% rise in digital revenue, which was bolstered by new partnerships and improved performance in content syndication. However, the print segment faced challenges, with revenue declining by 7%. Care.com also reported a 4% decrease in revenue, driven by a drop in consumer subscriptions, while the Search segment experienced a significant 35% decline in revenue, attributed to reduced marketing efforts and lower traffic to its websites.

IAC's cash and cash equivalents stood at $1.2 billion as of March 31, 2025, a decrease from $1.4 billion at the end of 2024. The company repurchased 3.9 million shares during the quarter, reflecting its ongoing commitment to returning value to shareholders. Looking ahead, IAC anticipates that its existing cash reserves and expected positive cash flows will be sufficient to meet operational needs and capital expenditures for the foreseeable future, although it may seek additional financing for future investments or acquisitions.