IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -23.79%
• EPS Growth: -138.59%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 86
• Industry: Internet Content & Information
• EPS (TTM): 2.57
• Shares Outstanding: 74,367,775
• 10 Day Avg. Volume: 1,387,700
• 30 Day Avg. Volume: 1,266,862
• 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: 1.21
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 19.45
• 1Y Price Target: $48.82
• Price Target Upside: 38.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 52 Neutral
• Price Target: $36.00 ▲(1.81% Upside)

IAC's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. Technical analysis also indicates bearish momentum. However, the earnings call and corporate events highlight strategic initiatives and financial restructuring efforts, which provide some positive outlook for future growth.

Positive Factors

Digital Growth

People digital growth should still be in the 7-10% range this year and next, and should see 10+% EBITDA growth in 2026.

Diversification

Investments in D/Cipher+ and the People app aim to diversify the company away from reliance on Google, potentially strengthening its market position.

Stock Valuation

The current trading valuation suggests a favorable risk/reward profile with potential upside.

Negative Factors

Buyback Program

The abrupt halt to the buyback program has disappointed investors, leading some to exit the stock.

EBITDA Decline

Overall EBITDA is forecasted to decline by 9.2% year-over-year, indicating a potential pressure on profitability.

Revenue Miss

Revenue of $587 million missed consensus by $14 million, with Search being the culprit.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/InteractiveCorp (IAC) is a diversified media and internet company with a portfolio spanning across various sectors such as digital marketplaces, publishing, and entertainment. The company is known for its ownership and operation of a multitude of popular online brands and services, including Angi Inc., Dotdash Meredith, Care.com, and Vimeo, among others. IAC focuses on creating innovative consumer-facing digital content and services that cater to a wide range of audiences globally.

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/InteractiveCorp shows a mixed financial performance. The income statement highlights challenges with profitability and inconsistent revenue growth. The balance sheet is a strength, with a solid equity position and no current debt burden. Cash flow analysis indicates improving free cash flow and solid operating cash flow, though historical volatility suggests potential risks.

Income Statement

The income statement reveals fluctuating revenue and profitability. The gross profit margin remains strong, indicating efficient cost management relative to revenue. However, the net profit margin is negative in recent years due to declining net income, highlighting profitability challenges. Revenue growth is inconsistent, with some years experiencing declines, pointing to potential market or operational issues. The negative EBIT and EBITDA margins suggest operating inefficiencies and potential restructuring needs.

Balance Sheet

The balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The company carries no debt as of the latest report, reducing financial risk. However, past years indicate fluctuating debt levels. The return on equity has been negative in recent periods due to net losses, but the strong stockholders' equity suggests potential for future recovery and growth.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth, particularly in the latest year, contributing to financial flexibility. Operating cash flow to net income ratio is positive, reflecting effective cash generation from operations despite negative net income in some years. However, historical variability in free cash flow suggests potential volatility in cash generation capacity.

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: 35.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 35.36 is below the 20-day moving average (MA) of 36.57, below the 50-day MA of 37.90, and below the 200-day MA of 37.21, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 74.80 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	78 Outperform	$1.45B	20.11	8.57%	4.94%	29.62%	-19.65%
CARG	73 Outperform	$3.21B	25.57	29.24%	―	4.80%	―
ANGI	72 Outperform	$813.68M	14.68	5.86%	―	-15.79%	―
YELP	70 Outperform	$1.95B	14.03	20.13%	―	5.37%	13.08%
MTCH	68 Neutral	$9.11B	18.64	-865.98%	1.03%	-0.60%	-11.05%
Sector *	60 Neutral	$42.79B	1.96	-13.01%	4.01%	1.89%	-41.77%
IAC	52 Neutral	$2.85B	―	-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.

IAC Refinances Loans and Establishes New Credit Facility

On May 14, 2025, Dotdash Meredith Inc., a subsidiary of IAC, refinanced its existing term A loans with $350 million in new term A loans and established a new $150 million revolving credit facility. These financial adjustments aim to optimize the company’s debt structure, with changes in interest rates, maturity, and amortization terms, potentially impacting the company’s financial flexibility and operational strategy.