Angi Inc. Reports Q2 2025 Results: Navigating Challenges Amidst Strategic Changes
Angi Inc., a prominent player in the home services sector, has released its financial report for Q2 2025, revealing a complex landscape characterized by operational challenges and strategic transformations. The report reflects a decline in revenue and profits, as the company adapts to changes in ownership structure and business strategy.
1. Company Overview
Founded through a merger in 2017, Angi Inc. serves as a platform that connects consumers with home professionals across over 500 service categories, including home repair, remodeling, cleaning, and landscaping. As of June 30, 2025, Angi reported approximately 126,000 Average Active Monthly Professionals (Pros) and facilitated around 16 million project connections for consumers over the past year. The company operates predominantly through its Domestic and International segments, leveraging multiple brands, including Angi, HomeAdvisor, and Handy.
2. Significant Corporate Changes
In a noteworthy development, IAC Inc. completed a spin-off of its ownership in Angi via a special dividend of common stock to its shareholders on March 31, 2025. This strategic move led to the conversion of all Class B Common Stock to Class A Common Stock, ultimately eliminating the Class B shares entirely. As a result, IAC no longer holds any ownership stake in Angi, with only Class A Common Stock remaining outstanding.
3. Financial Highlights
Revenue Performance
For the three months ending June 30, 2025, Angi experienced a significant drop in Domestic revenue, which decreased by $36.4 million, or 13%, compared to Q2 2024. This decline was driven by reductions in advertising revenue ($14.1 million), lead revenue ($13.4 million), services revenue ($5.3 million), and membership subscription revenue ($3.5 million). The overall revenue downturn reflects ongoing quality and efficiency improvements, including marketing optimization and workforce consolidation.
In the first half of 2025, Domestic revenue fell by $93.9 million, or 17%, while International revenue saw a modest decrease of $2.5 million, or 4%, largely due to a strategic shift in the Canadian market to align with European practices.
| Aug 2024 | Aug 2025 | |
|---|---|---|
Net Income | -8.78M | 59.87M |
Net Income to Non-controlling Interest | 726K | 202K |
Profit | -8.06M | 60.08M |
Net Income Discontinued | -10.26M | 0 |
Net Income Continuing | 2.20M | 60.10M |
Income Tax Expense | 8.72M | -13.67M |
Pretax Income | 10.88M | 46.42M |
Non-operating Income | -1.67M | -1.23M |
Operating Income | 12.55M | 47.65M |
Revenue | 1.21B | 1.08B |
Costs and Expenses | 1.19B | 1.04B |
Cost of Revenue | 15.49M | 57.08M |
Operating Expenses | 1.18B | 983.9M |
Depreciation, Depletion & Amortization | 96.79M | 60.70M |
Research & Development | 94.21M | 97.50M |
Selling, General & Administrative | 992.7M | 825.7M |
Cost of Revenue and Gross Profit
The cost of revenue for the Domestic segment saw a slight decrease of $0.8 million, or 6%, for Q2 2025, primarily due to lower payments to third-party Pros and reduced credit card processing fees. Gross profit for the quarter decreased by $35.9 million, or 12%, reflecting the decline in revenue.
4. Operating Expenses
Selling and Marketing Expenses
Domestic selling and marketing expenses fell by $18.0 million, or 12%, for the quarter, attributed to reduced compensation expenses from headcount reductions, despite increased advertising costs. Over the first six months, these expenses decreased by $54.6 million, or 19%.
General and Administrative Expenses
General and administrative expenses also saw a reduction, decreasing by $10.9 million, or 15%, for the three-month period. This decline was driven by savings in lease expenses and a significant drop in stock-based compensation related to the former CEO's forfeited stock.
Product Development and Depreciation
Product development expenses slightly decreased by $1.2 million, or 5%, for Q2, while depreciation expenses plummeted by $14.0 million, or 58%, largely due to reduced capitalized software spending and real estate footprint write-offs.
5. Adjusted EBITDA
Domestic Adjusted EBITDA decreased by $9.5 million, or 26%, for Q2, reflecting the overall decline in gross profit. In contrast, International Adjusted EBITDA showed a slight increase for the quarter but experienced a marginal decrease over the first six months.
6. Share Repurchase Activity
In the first half of 2025, Angi repurchased 5.2 million shares of its Class A Common Stock at an average price of $14.92 per share. Following the completion of a prior share repurchase authorization, a new authorization for 5.0 million shares was approved on May 5, 2025, with additional repurchases taking place in July and August.
7. Balance Sheet Overview
The balance sheet as of June 30, 2025, shows total assets of $1.78 billion, with total equity of $1 billion. Notably, the company recorded a decrease in cash, reflecting a net change of $24.08 million during the quarter.
| Aug 2024 | Aug 2025 | |
|---|---|---|
Total Assets | 1.85B | 1.78B |
Total Current Assets | 516.0M | 443.2M |
Cash and Equivalents | 384.8M | 362.4M |
Accounts Receivable | 66.32M | 44.81M |
Other Current Assets | 64.86M | 35.94M |
Total Non-current Assets | 1.33B | 1.34B |
Intangible Assets | 1.05B | 1.05B |
Non-current Deferred Tax Assets | 147.0M | 166.9M |
Net PP&E | 89.74M | 87.37M |
Other Non-current Assets | 43.95M | 32.39M |
Total Liabilities and Equity | 1.85B | 1.78B |
Other Equity and Liabilities | 47.76M | 39.81M |
Total Liabilities | 760.5M | 746.7M |
Total Current Liabilities | 260.8M | 247.9M |
Accounts Payable and Accrued Liabilities | 209.5M | 214.9M |
Current Deferred Revenue | 51.3M | 33M |
Other Current Liabilities | -5K | -48K |
Total Non-current Liabilities | 499.7M | 498.8M |
Long-term Debt | 496.4M | 497.2M |
Non-current Deferred Tax Liabilities | 3.29M | 1.60M |
Total Equity and Non-controlling Interests | 1.04B | 1.00B |
Total Equity | 1.03B | 995.8M |
Non-controlling Interests | 4.33M | 0 |
8. Conclusion
Angi Inc. faces significant hurdles as it navigates a challenging revenue environment and implements strategic adjustments to enhance operational efficiency. The company's focus on transforming its business model and optimizing its operations is crucial for regaining momentum in a competitive market. Despite the setbacks, Angi's commitment to connecting consumers with skilled professionals remains steadfast, paving the way for potential recovery and growth in the coming quarters.
