Angi Inc. Reports Q3 2025 Financial Results: A Shift in Strategy Amidst Declining Revenues
Angi Inc. released its financial results for the third quarter of 2025, underscoring a challenging period for the home services provider. With a notable drop in revenues across both domestic and international segments, Angi is navigating through a phase of strategic re-evaluation aimed at enhancing profitability.
1. General Overview
As of September 30, 2025, Angi Inc. reported approximately 118,000 Average Monthly Active Pros, facilitating around 16 million projects over the past year. The company operates under prominent brands such as Angi, HomeAdvisor, and Handy, catering to a diverse range of home service categories exceeding 500.
The Spin-off from IAC Inc.
A significant corporate event impacting Angi's operations was the spin-off from IAC Inc. on March 31, 2025. This strategic move enabled IAC shareholders to receive common stock dividends in Angi, leading to a complete transition to Class A Common Stock ownership. Following this spin-off, IAC no longer holds any stake in Angi, marking a fresh chapter for the company.
2. Financial Results: Revenue Decline
Operating Results
For the three months ending September 30, 2025, Angi reported a Domestic revenue decrease of $31.7 million, or 12%, primarily driven by declines in advertising revenue by $21.0 million, services revenue by $6.5 million, and membership subscription revenue by $3.5 million. This downturn was largely attributed to ongoing profitability improvement measures, including sales force consolidation and marketing optimization.
Year-to-Date Revenue Trends
For the nine months ending September 30, 2025, the situation was similar, with domestic revenues down by $125.5 million, or 15%. Additionally, international revenue saw a slight decrease of $1.9 million, or 2%, primarily due to strategic adjustments in the Canadian business model to align with operations in Europe.
| Nov 2024 | Nov 2025 | |
|---|---|---|
Net Income | 31.73M | 35.32M |
Net Income to Non-controlling Interest | 859K | 0 |
Profit | 32.58M | 35.32M |
Net Income Discontinued | -10.26M | 0 |
Net Income Continuing | 42.85M | 35.34M |
Income Tax Expense | -11.87M | 23.12M |
Pretax Income | 30.89M | 58.47M |
Non-operating Income | 409K | -3.14M |
Operating Income | 30.48M | 61.62M |
Revenue | 1.13B | 1.05B |
Costs and Expenses | 1.10B | 996.0M |
Cost of Revenue | 1.50M | 54.79M |
Operating Expenses | 1.10B | 941.2M |
Depreciation, Depletion & Amortization | 89.13M | 55.05M |
Research & Development | 97.03M | 93.94M |
Selling, General & Administrative | 918.5M | 792.2M |
Cost of Revenue and Gross Profit
The Domestic cost of revenue decreased by $2.4 million, or 18%, for the quarter, while gross profit fell by $28.8 million, or 10%, reflecting the broader revenue decline. For the nine-month period, gross profit decreased by $124.7 million, or 14%, indicating a pressing need for Angi to reassess its operational strategies to regain profitability.
3. Operating Expenses
Selling and Marketing Expenses
Angi's efforts to control costs were evident in its Selling and Marketing Expenses, which decreased by $24.0 million, or 17%, for the third quarter. This reduction stemmed from lower compensation and advertising spend, linked to headcount reductions within the company. Internationally, selling and marketing expenses also reduced by $2.2 million, or 20%.
General and Administrative Expenses
The General and Administrative Expenses for the domestic segment decreased by $7.5 million, or 11%, driven by cuts in compensation, provision for credit losses, and software maintenance costs. Collectively, these reductions reflect Angi's commitment to tighten its financial belt amid challenging market conditions.
4. Adjusted EBITDA Performance
In terms of profitability metrics, Adjusted EBITDA for domestic operations saw a slight decrease of $0.7 million, or 2%, while international operations experienced a substantial increase of $5.0 million, or 135%. This divergence highlights the differing operational dynamics within Angi’s business segments.
5. Financial Position and Liquidity
As of September 30, 2025, Angi reported total assets of $1.74 billion and total liabilities of $713.7 million. The company’s liquidity position remains stable, with sufficient cash flows to meet its operational needs over the next twelve months despite decreased demand for its services.
| Nov 2024 | Nov 2025 | |
|---|---|---|
Total Assets | 1.85B | 1.74B |
Total Current Assets | 499.5M | 407.3M |
Cash and Equivalents | 395.2M | 340.6M |
Accounts Receivable | 52.40M | 38.35M |
Other Current Assets | 51.88M | 28.32M |
Total Non-current Assets | 1.35B | 1.34B |
Intangible Assets | 1.05B | 1.05B |
Non-current Deferred Tax Assets | 172.0M | 157.2M |
Net PP&E | 85.59M | 93.09M |
Other Non-current Assets | 39.58M | 31.14M |
Total Liabilities and Equity | 1.85B | 1.74B |
Other Equity and Liabilities | 44.21M | 39.60M |
Total Liabilities | 742.2M | 713.7M |
Total Current Liabilities | 243.6M | 215.2M |
Accounts Payable and Accrued Liabilities | 193.4M | 185.2M |
Current Deferred Revenue | 50.2M | 29.9M |
Other Current Liabilities | -5K | 37K |
Total Non-current Liabilities | 498.6M | 498.4M |
Long-term Debt | 496.6M | 497.4M |
Non-current Deferred Tax Liabilities | 2.04M | 1.02M |
Total Equity and Non-controlling Interests | 1.06B | 994.0M |
Total Equity | 1.06B | 988.2M |
Share Repurchase Activity
During the nine months ending September 30, 2025, Angi repurchased 6.7 million shares of its Class A Common Stock at an average price of $15.31 per share. The board of directors has also approved new share repurchase authorizations, indicating confidence in the company's long-term value.
6. Conclusion: Navigating Challenges Ahead
Angi Inc. faces a pivotal moment as it grapples with declining revenues while striving to optimize its operational efficiency. The recent spin-off from IAC Inc. and the strategic measures in place may help the company realign its focus and return to a growth trajectory. As the home services market continues to evolve, Angi's adaptability in strategy and execution will be critical for its future success.
With expectations of increased capital expenditures in 2025—primarily aimed at enhancing capitalized software investments—Angi is positioning itself to leverage technology in improving service delivery and operational efficiency. The road ahead may be challenging, but with the right strategies, Angi can emerge stronger in the competitive home services landscape.
