Angi Inc. Reports Q1 2026: A Mixed Bag of Results Amidst Operational Shifts
Angi Inc., a prominent player in the home services industry, has released its financial results for the first quarter of 2026. The report reveals a company undergoing significant transitions, marked by both challenges and strategic adjustments as it navigates the evolving landscape of consumer needs and operational efficiency.
1. Key Performance Indicators
As of March 31, 2026, Angi reported approximately 105,000 Average Monthly Active Pros in the U.S., with consumers utilizing the platform for approximately 16 million projects over the past year. This robust engagement underscores the company's foundational strength, even as it grapples with revenue fluctuations and strategic shifts.
| May 2025 | May 2026 | |
|---|---|---|
Net Income | 52.74M | 19.73M |
Net Income to Non-controlling Interest | 530K | 0 |
Profit | 53.27M | 19.73M |
Net Income Continuing | 53.25M | 19.75M |
Income Tax Expense | -15.57M | 13.29M |
Pretax Income | 37.70M | 33.04M |
Non-operating Income | -1.47M | -2.89M |
Operating Income | 39.17M | 35.93M |
Revenue | 1.12B | 1.02B |
Costs and Expenses | 1.08B | 986.8M |
Cost of Revenue | 58.09M | 44.11M |
Operating Expenses | 1.02B | 942.7M |
Depreciation, Depletion & Amortization | 74.75M | 51.86M |
Research & Development | 98.69M | 70.71M |
Restructuring Charge | 0 | 27.71M |
Selling, General & Administrative | 854.9M | 792.4M |
Revenue Overview
In Q1 2026, Angi's U.S. revenue fell by 5% year-over-year, totaling $238.1 million. This decline was primarily driven by a staggering 56% decrease in Network Revenue, influenced by a shift in consumer traffic following a homeowner choice transition initiated in January 2025. This downturn was somewhat cushioned by a 7% rise in Proprietary Revenue, thanks to increased investments in paid marketing channels.
Internationally, Angi experienced a 7% revenue growth, buoyed by favorable foreign exchange rates for the Euro and British Pound against the U.S. Dollar, contributing to the company’s overall resilience.
Cost and Profit Analysis
The cost of revenue in the U.S. decreased by $3.8 million (31%), reflecting effective cost management strategies that resulted in a 2% reduction in costs as a percentage of revenue. However, gross profit dipped by $4.4 million (2%), primarily due to the overall revenue decline.
Operating Expenses Breakdown
Angi's operating expenses revealed a mixed performance:
- Selling and Marketing Expenses: Increased by $16.1 million (15%) in the U.S., primarily driven by a $30.4 million rise in advertising aimed at boosting service request volumes.
- General and Administrative Expenses: Rose by $0.6 million (1%), mainly due to increased compensation expenses.
- Product Development Expenses: Experienced a significant decline of $16.6 million (61%), attributed to a workforce reduction of approximately 350 employees.
- Restructuring Costs: Increased by $14.9 million, reflecting the costs associated with the aforementioned workforce reduction.
Adjusted EBITDA and Net Income
Angi’s Adjusted EBITDA for the U.S. segment dropped by $6.5 million (30%) to $15.1 million. Despite these challenges, the International segment saw a positive trajectory, with an increase in Adjusted EBITDA by $1.7 million (28%) to $7.8 million, driven by revenue growth and lower product development costs.
The company reported a net loss of $8.99 million for the quarter, a stark contrast to the $15.10 million profit recorded in Q1 2025.
| May 2025 | May 2026 | |
|---|---|---|
Total Assets | 1.80B | 1.62B |
Total Current Assets | 465.2M | 313.3M |
Cash and Equivalents | 386.5M | 244.5M |
Accounts Receivable | 40.47M | 37.36M |
Other Current Assets | 38.17M | 31.35M |
Total Non-current Assets | 1.34B | 1.31B |
Intangible Assets | 1.05B | 1.05B |
Non-current Deferred Tax Assets | 169.6M | 125.3M |
Net PP&E | 83.88M | 101.3M |
Other Non-current Assets | 33.17M | 29.07M |
Total Liabilities and Equity | 1.80B | 1.62B |
Other Equity and Liabilities | 41.86M | 28.49M |
Total Liabilities | 714.6M | 682.0M |
Total Current Liabilities | 216.0M | 209.1M |
Accounts Payable and Accrued Liabilities | 180.7M | 188.2M |
Current Deferred Revenue | 35.3M | 21M |
Other Current Liabilities | 41K | -4K |
Total Non-current Liabilities | 498.5M | 472.8M |
Long-term Debt | 497.0M | 471.3M |
Non-current Deferred Tax Liabilities | 1.53M | 1.45M |
Total Equity and Non-controlling Interests | 1.04B | 914.7M |
Total Equity | 1.04B | 908.9M |
2. Balance Sheet and Cash Flow Position
As of March 31, 2026, Angi's total assets stood at $1.62 billion, with notable changes in its cash position and liabilities:
- Cash and Cash Equivalents: Decreased to $244.5 million.
- Total Liabilities: Reported at $682.0 million.
- Equity: Total equity decreased to $914.7 million, including retained earnings of -$159.8 million.
In terms of cash flow, Angi reported a net change in cash of -$59.12 million for the quarter. Notably, net cash used in financing activities included a repurchase of $26.6 million of senior notes, leading to a net gain on debt extinguishment, despite the overall negative cash position.
| May 2025 | May 2026 | |
|---|---|---|
Net Change in Cash | 22.97M | -141.9M |
Effect of Exchange Rate Changes | 588K | -77K |
Net Cash from Operating Activities | 130.5M | 90.28M |
Operating Profit | 38.16M | 34.85M |
Adjustment to Operating Profit | 66.39M | 81.39M |
Net Cash from Investing Activities | -50.11M | -62.64M |
Productive Assets | 50.11M | 62.64M |
Net Cash from Financing Activities | -58.02M | -169.5M |
Debt | 0 | -23.74M |
Equity Issuance/Repurchase | -31.54M | -138.8M |
Other Financing Activities | -26.48M | -6.92M |
3. Strategic Initiatives and Future Outlook
The quarter was also marked by strategic initiatives, including the launch of the Angi app in ChatGPT and the appointment of Julie Hoarau as the new Chief Financial Officer. These moves are part of Angi's broader strategy to innovate and enhance customer engagement through technology.
Conclusion
Angi Inc. is navigating a complex landscape characterized by both operational challenges and strategic initiatives aimed at enhancing its market position. As the company adjusts to shifts in consumer behavior and refines its operational efficiency, stakeholders will be keen to observe how these changes impact future performance. With a focus on enhancing its digital presence and streamlining operations, Angi aims to position itself for recovery and growth amidst a changing economic climate.
