Angi misses Q4 revenue estimates on weakness in network revenue

Overview

• Home services platform's Q4 revenue fell 10%, missing analyst expectations

• Adjusted EBITDA for Q4 grew 25%, beating analyst estimates

• Company repurchased 19.9% of shares since IAC spin-off

Outlook

• Angi expects to return to revenue growth for fiscal year 2026

Result Drivers

• NETWORK REVENUE DECLINE - Revenue decreased 10% primarily due to a 79% drop in Network Revenue following the implementation of homeowner choice

• PROPRIETARY REVENUE GROWTH - Proprietary Revenue increased 23% driven by strong execution in paid marketing channels

• COST REDUCTIONS - Operating income increased due to a $12.8 mln restructuring expense, lower depreciation, and reduced stock-based compensation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for Angi Inc is $18.00, about 54% above its February 9 closing price of $11.69

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.