IAC/InteractiveCorp. (IAC)
NASDAQ:IAC
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IAC/InteractiveCorp.
(NASDAQ:IAC)
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Rating:51Neutral
Price Target:
$38.00
▼(-7.02% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
IAC/InteractiveCorp. (IAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.06B
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-29.40%
EPS Growth-529.81%
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.99
Shares Outstanding69,088,520
10 Day Avg. Volume884,944
30 Day Avg. Volume1,006,357
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)0.64
Price to Sales (P/S)1.27
P/FCF Ratio67.65
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit2.33
Enterprise Value/Ebitda21.39
Forecast
1Y Price Target
$47.00Price Target Upside15.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.44
Revenue Forecast (FY)$2.28B
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, hea...
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 ...
IAC/InteractiveCorp. Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Provides a clear view of each segment's operational performance by excluding non-cash items, offering insight into core profitability and cash flow potential.
Provides a clear view of each segment's operational performance by excluding non-cash items, offering insight into core profitability and cash flow potential.
Data provided by:
The Fly
The FlyIAC/InteractiveCorp. Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call highlighted solid operational and financial momentum at People and IAC: double-digit digital growth in the quarter, strong off-platform and licensing expansion, improved digital margins, high engagement from new products (MyRecipes, PEOPLE app), progress on D/Cipher, and active capital returns (share buybacks). However, material challenges persist, notably the sharp decline in core web sessions driven by a multi-year collapse in Google search referrals, a steep print revenue decline, Care enterprise softness, uncertainty around the AMG/search business, and a projected $15M litigation expense that compresses consolidated EBITDA guidance. Management presented a constructive long-term strategy and prioritized product and distribution shifts that are already producing results, while also taking a conservative near-term posture in guidance to reflect external risks.Positive Updates
Strong Q4 and Full-Year Digital Revenue Growth
People digital revenue grew 14% in Q4. For the full year, IAC reported $1.8 billion of revenue with $1.1 billion from Digital (Digital revenue +10% year-over-year).
Negative Updates
Significant Decline in Core Web Sessions
Core sessions declined 13% YoY in Q4. The company cited a ~50% drop in Google search referrals over the last two years and softness in Google Discover as primary drivers of session declines.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and Full-Year Digital Revenue Growth
People digital revenue grew 14% in Q4. For the full year, IAC reported $1.8 billion of revenue with $1.1 billion from Digital (Digital revenue +10% year-over-year).
Read all positive updates
Company Guidance
IAC said it will stop providing quarterly guidance and move to annual guidance: People Inc. is expected to deliver mid‑ to high‑single‑digit growth in digital revenue and digital adjusted EBITDA, with total People adjusted EBITDA guided to $310M–$340M (which management says implies digital adjusted EBITDA of $325M–$355M vs $315M in 2025) and assumes ~ $15M of Google‑litigation expense that causes corporate expense to exceed print EBITDA by about $15M; Care adjusted EBITDA is guided to $45M–$55M with consumer revenue returning to growth by midyear; Search (AMG) is guided to -$5M to +$10M of EBITDA; Emerging & Other to $0M–$10M; Corporate expense $80M–$90M (management aims to be at the low end). Management also reiterated buyback activity ($337M repurchased over the last 12 months, ~10% fewer shares), expects capex of roughly $20M–$30M, net interest expense near $64M, and forecasts better than 50% EBITDA‑to‑free‑cash‑flow conversion in 2026.IAC/InteractiveCorp. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| 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
Positive
40.87
Price Trends
37.67
Positive
37.64
Positive
36.84
Positive
Market Momentum
0.77
Negative
65.42
Neutral
76.77
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 40.87 is above the 20-day moving average (MA) of 39.04, above the 50-day MA of 37.67, and above the 200-day MA of 36.84, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 76.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAC.
IAC/InteractiveCorp. Risk Analysis
IAC/InteractiveCorp. disclosed 32 risk factors in its most recent earnings report. IAC/InteractiveCorp. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IAC/InteractiveCorp. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.37B | 11.67 | 11.26% | 5.47% | 30.00% | -9.72% | |
71 Outperform | $1.52B | 13.22 | 19.96% | ― | 5.35% | 33.74% | |
65 Neutral | $7.56B | 12.77 | -275.39% | 2.32% | -0.46% | -2.75% | |
61 Neutral | $929.95M | 33.98 | 4.51% | ― | 10.96% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $1.12B | ― | -15.51% | ― | 30.70% | -49.80% | |
51 Neutral | $3.06B | -9.87 | -2.17% | ― | -29.40% | -529.81% |
* Communication Services Sector Average
IAC
IAC/InteractiveCorp.
40.87
6.55
19.09%
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Opera
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1.09
7.64%
MTCH
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32.49
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18.46%
GENI
Genius Sports Limited
4.07
-5.42
-57.11%
TBLA
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3.35
0.66
24.54%
IAC/InteractiveCorp. Corporate Events
Business Operations and StrategyM&A Transactions
IAC Completes Sale of Care.com, Refocuses Portfolio
Positive
Mar 16, 2026
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 f...
Business Operations and StrategyM&A Transactions
IAC to Divest Care.com Stake in $320 Million Deal
Positive
Mar 2, 2026
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 cust...
Financial DisclosuresRegulatory Filings and Compliance
IAC’s Dotdash Meredith Receives Clean 2025 Audit Opinion
Positive
Feb 20, 2026
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 financi...
Business Operations and StrategyStock BuybackFinancial Disclosures
IAC Highlights Q4 Results and Expands Strategic Investments
Neutral
Feb 3, 2026
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-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.