IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.96B
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -29.40%
• EPS Growth: -529.81%
• Country: US
• Employees: 9,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.99
• Shares Outstanding: 71,118,460
• 10 Day Avg. Volume: 1,039,602
• 30 Day Avg. Volume: 1,217,898
• PEG Ratio: 0.36
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 67.65
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 20.44
• 1Y Price Target: $47.00
• Price Target Upside: 21.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.44
• Revenue Forecast (FY): $2.28B

• Rating: 51 Neutral
• Price Target: $38.00 ▼(-1.38% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and uneven cash generation). It is partially supported by neutral-to-mildly positive technicals and a reasonably managed balance sheet, plus a moderately constructive earnings outlook driven by People’s digital momentum and ongoing buybacks—tempered by traffic declines from Google, litigation costs, and cautious 2026 guidance.

Positive Factors

Digital Revenue Momentum

Sustained double-digit digital growth at People demonstrates durable product-market fit and scalable monetization. Continued user engagement and new product adoption expand higher-margin revenue streams, reducing reliance on legacy print and supporting reinvestment in content and distribution over the medium term.

Strong Digital Margins

Consistently high digital EBITDA margins (~28%) reflect a scalable content and licensing model with favorable incremental economics. Solid margin structure means future digital revenue growth should more directly translate into operating profits, aiding durable earnings improvement and cash conversion.

Portfolio Simplification & Capital Flexibility

Selling Care.com for cash simplifies the portfolio and reallocates capital toward core growth assets like People and MGM exposure. Combined with manageable leverage (debt/equity ~0.30), this improves strategic optionality for buybacks, investments, or debt reduction over the next several quarters.

Negative Factors

Multi-year Revenue Decline

Three consecutive years of top-line decline signal structural challenges across parts of the portfolio. Persistent revenue erosion constrains scale benefits, reduces absolute gross profit dollars available to fund growth initiatives, and increases dependence on disposals and buybacks to sustain shareholder returns.

Traffic Reliance on Google

A steep fall in Google referrals and session declines create structural traffic risk for ad‑driven revenue. Reliance on search referrals exposes IAC to external algorithm and partner changes; replacing lost session-based monetization requires durable off‑platform and licensing growth that may take time to scale.

Volatile Cash Generation

A sharp step-down in free cash flow and an uneven multi-year cash record reduce predictability for capex, M&A, and sustained buybacks. Volatile FCF increases execution risk for strategic investments and heightens sensitivity to working capital swings and one‑time cash items.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC HOLDINGS, INC. IAC/InterActiveCorp is headquartered in New York, New York.

How the Company Makes Money

IAC makes money primarily through the operating revenues and cash flows generated by the businesses it controls, supplemented at times by proceeds from strategic transactions (e.g., asset sales or spin-offs) and investment activity. The company’s revenue model varies by subsidiary but is generally concentrated in: (1) digital advertising and sponsorships: monetization of owned-and-operated media properties through display/video ads, programmatic advertising, branded content, and sponsorships; (2) subscription and membership fees: recurring revenues where certain properties offer paid tiers, premium content, or subscription-based access (specific product-level details: null); (3) transaction and service fees: revenue tied to facilitating consumer actions or providing services through its platforms (e.g., fees from leads, referrals, or service fulfillment depending on the business; specific fee structures: null); and (4) licensing/other: ancillary revenue from content distribution or technology-related arrangements where applicable (specific licensing arrangements: null). At the corporate level, IAC’s consolidated results also reflect intercompany management of capital—allocating funding to operating subsidiaries, capturing earnings from controlled entities, and realizing gains or losses when it exits investments or divests businesses. Significant partnerships or customer concentration details affecting earnings: null.

IAC/InteractiveCorp. Financial Statement Overview

Summary

Financials are pressured by a multi-year revenue decline and recurring operating losses, with only a modest improvement in 2025 profitability (positive EBITDA and narrower net loss). Balance-sheet leverage appears manageable (debt-to-equity ~0.30), but returns remain negative and free cash flow has been volatile with a sharp step-down in 2025 versus 2024.

Income Statement

Profitability is inconsistent and currently pressured. Revenue has declined for three straight years (2023: -16.6%, 2024: ~-0.1%, 2025: -12.5%), signaling a shrinking top line. Gross margins remain strong (roughly mid-60% to low-70%), but operating results are weak with losses at the EBIT line in most years and a negative net margin in 2024 and 2025 (2025 net margin ~-4.3% improved from 2024 ~-14.2%). EBITDA turned positive in 2025 (vs. negative in 2024), which is a constructive swing, but the business has not re-established durable earnings power.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.30 in 2025 (down from ~0.35 in 2024), and equity remains sizable versus debt. However, returns are weak: return on equity is negative in 2024 and 2025, reflecting ongoing net losses. Total assets and equity have trended down from 2021–2025, suggesting some balance-sheet contraction over time, though the overall capital structure still appears relatively sound for the sector.

Cash Flow

Cash generation is mixed and has weakened recently. Operating cash flow and free cash flow are positive in 2025, but both are far below 2024 levels (free cash flow down ~56% in 2025), indicating reduced cash conversion and/or higher cash costs. 2022 showed negative operating and free cash flow, highlighting volatility across the cycle. While free cash flow remains positive most years, the sharp step-down in 2025 and uneven track record limit confidence in near-term cash durability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.39B	3.81B	4.37B	5.24B	3.70B
Gross Profit	1.60B	2.75B	3.02B	3.30B	2.40B
EBITDA	285.90M	-265.12M	1.10B	-977.37M	913.92M
Net Income	-104.03M	-539.90M	265.94M	-1.17B	597.55M
Balance Sheet
Total Assets	7.13B	9.55B	10.37B	10.39B	12.30B
Cash, Cash Equivalents and Short-Term Investments	960.21M	1.80B	1.45B	1.66B	2.14B
Total Debt	1.43B	1.97B	2.02B	2.05B	2.08B
Total Liabilities	2.34B	3.24B	3.58B	3.79B	4.53B
Stockholders Equity	4.73B	5.58B	6.08B	5.93B	7.18B
Cash Flow
Free Cash Flow	44.83M	289.01M	48.16M	-222.54M	46.74M
Operating Cash Flow	64.03M	354.52M	189.53M	-82.79M	136.95M
Investing Cash Flow	-404.62M	276.82M	-87.47M	-494.81M	-2.90B
Financing Cash Flow	-451.00M	-129.10M	-223.01M	-112.65M	1.41B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Positive. The current price of 38.53 is above the 20-day moving average (MA) of 37.19, above the 50-day MA of 37.72, and above the 200-day MA of 36.61, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 49.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAC.

IAC/InteractiveCorp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	82 Outperform	$1.33B	11.67	11.26%	5.47%	30.00%	-9.72%
YELP	71 Outperform	$1.45B	13.22	19.96%	―	5.35%	33.74%
MTCH	65 Neutral	$7.23B	12.77	-275.39%	2.32%	-0.46%	-2.75%
TBLA	61 Neutral	$860.56M	33.98	4.51%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GENI	60 Neutral	$1.28B	-25.16	-15.51%	―	30.70%	-49.80%
IAC	51 Neutral	$2.96B	-29.16	-2.17%	―	-29.40%	-529.81%

IAC/InteractiveCorp. Corporate Events

IAC Completes Sale of Care.com, Refocuses Portfolio

On March 16, 2026, IAC Inc. completed the previously announced sale of its wholly owned subsidiary Care.com, Inc. to Care Parent, LLC, an indirect wholly owned subsidiary of Pacific Avenue Capital Partners. The transaction marks IAC’s exit from ownership of Care.com and reflects a continued portfolio-repositioning strategy, with potential implications for capital allocation priorities and a more focused operational profile.

By transferring Care.com to an entity controlled by Pacific Avenue Capital Partners, IAC shifts responsibility for the caregiving platform’s future growth and operations to the new owner. The deal may alter competitive dynamics in the care-services market while allowing IAC to redirect management attention and financial resources toward other core or higher-growth businesses in its portfolio.

The most recent analyst rating on (IAC) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC to Divest Care.com Stake in $320 Million Deal

On March 2, 2026, IAC announced a definitive agreement to sell all of its shares in Care.com to an affiliate of Pacific Avenue Capital Partners for approximately $320 million in cash, with closing expected in the first half of 2026 subject to customary conditions and a no-earlier-than date of March 13, 2026. The move is part of IAC’s strategy to streamline its portfolio around core assets such as People Inc. and its MGM stake, monetizing a profitable non-core holding after revamping Care.com’s brand, technology and product mix, while Pacific Avenue positions the carve-out as a standalone growth platform in the family care market, particularly in enterprise offerings.

Both sides highlighted that Care.com exits IAC from a position of profitability and operational strength, with Pacific Avenue planning to leverage its carve-out expertise to accelerate growth and performance under existing leadership. For IAC investors, the transaction enhances financial flexibility and simplifies the corporate structure, while for Care.com’s stakeholders it marks a transition to private equity ownership aimed at scaling services for families, caregivers and employer partners without the overhang of financing contingencies.

The most recent analyst rating on (IAC) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC’s Dotdash Meredith Receives Clean 2025 Audit Opinion

IAC’s Dotdash Meredith unit has released audited consolidated financial statements for the three years ended December 31, 2025, with Ernst & Young LLP issuing an unqualified opinion that the accounts present fairly the company’s financial position under U.S. GAAP. The filing details the balance sheet, income statement, cash flows and extensive note disclosures, underscoring stable audit oversight and providing investors and other stakeholders with updated transparency into the media subsidiary’s assets, liabilities and capital structure as of year-end 2025.

The audit report emphasizes management’s responsibility for internal controls, the going‑concern assessment and the use of significant estimates, while the auditors outline their risk‑based procedures and communication with governance. Together, the clean opinion and comprehensive financial disclosures support confidence in Dotdash Meredith’s reported results within IAC’s broader portfolio, without indicating any material weaknesses or going‑concern uncertainties for the period reviewed.

The most recent analyst rating on (IAC) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC Highlights Q4 Results and Expands Strategic Investments

On February 3, 2026, IAC reported its fourth-quarter 2025 results, highlighting strong performance at flagship unit People Inc., whose digital revenue rose 14% in the quarter to $355 million and 10% for the full year to $1.1 billion, driving full-year operating income of $186 million and adjusted EBITDA of $331 million excluding certain items. The company emphasized disciplined capital allocation over the past year, returning $337 million to shareholders through the repurchase of 8.2 million shares, while also deepening its strategic investment in MGM Resorts International by purchasing an additional 1 million shares in Q4 2025 and expanding People Inc.’s AI-driven content reach through partnerships with Meta, OpenAI and Microsoft, even as consolidated revenue declined 10% and overall operating results were weighed down by a goodwill impairment at Care.com and soft search revenue.

The most recent analyst rating on (IAC) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.