IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -23.79%
• EPS Growth: -138.59%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 94
• Industry: Internet Content & Information
• EPS (TTM): 2.57
• Shares Outstanding: 74,367,775
• 10 Day Avg. Volume: 1,174,246
• 30 Day Avg. Volume: 1,483,238
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 19.45
• 1Y Price Target: $47.91
• Price Target Upside: 33.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: $37.00 ▲(2.95% Upside)

IAC's overall stock score reflects significant challenges in financial performance, with declining revenue and profitability being major concerns. While the earnings call and recent corporate events show strategic initiatives and some positive momentum, these are offset by valuation concerns and neutral technical indicators. The company's focus on strategic investments and product revitalization offers potential for future growth, but current financial health remains a key risk.

Positive Factors

Digital Revenue Growth

The consistent growth in digital revenue indicates strong market demand and effective digital strategies, enhancing long-term business prospects.

Strategic Refinancing

Refinancing at attractive terms improves financial flexibility, allowing for better capital allocation and long-term strategic investments.

Product Revitalization

Revitalizing Care.com's products can enhance user engagement and market competitiveness, supporting sustained growth and revenue potential.

Negative Factors

Declining Revenue Growth

Negative revenue growth reflects challenges in maintaining market share and competitiveness, potentially impacting long-term profitability.

Impact of AI on Traffic

The decline in traffic due to AI and search changes can reduce visibility and revenue, posing a risk to digital business sustainability.

Consumer Revenue Decline

Declining consumer revenue at Care.com indicates challenges in user retention and satisfaction, affecting long-term revenue stability.

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/InteractiveCorp generates revenue predominantly through its diverse range of online businesses. Key revenue streams include digital advertising, subscription fees, and service transactions. For example, Angi Inc. earns from service provider memberships and consumer service fees, Dotdash Meredith monetizes through digital advertising across its various publishing platforms, and Care.com charges subscription and service fees for its caregiving marketplace. Additionally, IAC benefits from strategic acquisitions and investments that enhance its portfolio and revenue-generating capabilities. Revenue is also driven by Vimeo, which offers a range of video services, monetized through subscription plans and enterprise video solutions. IAC's business strategy often involves nurturing and scaling its subsidiaries until they are viable for spin-offs or sales, further contributing to its financial performance.

IAC/InteractiveCorp. Financial Statement Overview

Summary

IAC faces challenges with declining revenue and profitability, as evidenced by negative growth rates and margins. The balance sheet shows moderate leverage but negative returns on equity. Cash flow metrics highlight declining free cash flow, though some efficiency in cash conversion is present. Overall, the company needs to address profitability and cash generation to improve financial health.

Income Statement

The company has experienced declining revenue growth, with a negative growth rate of -10.52% in the TTM period. Gross profit margin remains relatively strong at 69.93%, but net profit margin is negative, indicating profitability challenges. EBIT and EBITDA margins are also weak, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is moderate at 0.29, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating positive returns for shareholders. The equity ratio is stable, showing a solid equity base relative to total assets.

Cash Flow

Free cash flow growth is negative at -33.42%, indicating declining cash generation. The operating cash flow to net income ratio is low, suggesting limited cash flow relative to earnings. However, the free cash flow to net income ratio is relatively high, indicating some efficiency in converting earnings to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09B	3.81B	4.37B	5.24B	3.70B	2.76B
Gross Profit	2.16B	2.75B	3.02B	3.31B	2.39B	2.04B
EBITDA	177.84M	-4.23M	1.10B	-906.45M	949.66M	486.01M
Net Income	-448.05M	-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet
Total Assets	7.36B	9.55B	10.37B	10.39B	12.61B	9.16B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.80B	1.45B	1.66B	2.14B	3.59B
Total Debt	1.43B	1.97B	2.49B	2.05B	2.08B	712.28M
Total Liabilities	2.40B	3.24B	3.58B	3.79B	4.84B	1.78B
Stockholders Equity	4.91B	5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow
Free Cash Flow	157.18M	289.01M	48.16M	-222.54M	46.74M	93.86M
Operating Cash Flow	199.99M	354.52M	189.53M	-82.79M	136.95M	154.58M
Investing Cash Flow	-328.69M	276.82M	-87.47M	-494.81M	-2.90B	-1.87B
Financing Cash Flow	-395.09M	-113.08M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 35.94 is below the 20-day moving average (MA) of 36.06, below the 50-day MA of 37.76, and below the 200-day MA of 36.90, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IAC.

IAC/InteractiveCorp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	75 Outperform	$1.76B	24.48	8.57%	3.96%	29.62%	-19.65%
YELP	70 Outperform	$2.00B	14.34	20.13%	―	5.37%	13.08%
TBLA	70 Outperform	$1.01B	93.19	1.40%	―	12.01%	―
MTCH	68 Neutral	$9.33B	19.09	-865.98%	1.00%	-0.60%	-11.05%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
GENI	60 Neutral	$3.23B	―	-12.24%	―	25.76%	27.05%
IAC	54 Neutral	$2.88B	―	-8.49%	―	-23.79%	-138.59%

IAC/InteractiveCorp. Corporate Events

IAC Reports Q2 2025 Results with Revenue Growth

On August 4, 2025, IAC announced its Q2 2025 results, highlighting a 9% increase in digital revenue for People Inc., formerly Dotdash Meredith, and a successful rebranding to align with its flagship brand, PEOPLE. The company reported an improvement in operating income by $22 million and a 15% growth in Adjusted EBITDA. Despite a 7% decline in total revenue, IAC remains committed to optimizing assets and unlocking shareholder value, with plans to continue strategic investments and stock buybacks.

IAC/InteractiveCorp Reports Slight Revenue Increase in Q2 2025

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, has released its consolidated financial statements for the period ending June 30, 2025. The financial report indicates a slight increase in revenue compared to the previous year, with a total of $427,370 for the three months ended June 30, 2025, compared to $425,161 in 2024. The company’s total assets decreased from $3,172,673 at the end of 2024 to $3,009,848 as of June 30, 2025. This financial update reflects the company’s ongoing efforts to manage its financial health amidst fluctuating market conditions.

IAC/InteractiveCorp. Concludes Annual Stockholders Meeting

On June 18, 2025, IAC Inc. held its Annual Meeting of Stockholders, where several key proposals were voted on. The stockholders elected twelve board members, approved a non-binding advisory vote on the company’s 2024 executive compensation, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the 2025 fiscal year. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

IAC/InteractiveCorp’s Dotdash Meredith Completes $400M Note Offering

On June 16, 2025, Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, completed a private offering of $400 million in Senior Secured Notes due 2032. These notes, which bear a 7.625% interest rate, were issued to qualified institutional buyers in the U.S. and non-U.S. investors, with proceeds used to repay existing debt and cover related expenses. Concurrently, DDM entered into an amended credit agreement, establishing a new $700 million term loan B facility to replace a previous $1.18 billion facility. This strategic financial restructuring aims to optimize DDM’s capital structure and enhance its financial flexibility, impacting its operations and potentially benefiting stakeholders.