IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -29.40%
• EPS Growth: -529.81%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.27
• Shares Outstanding: 71,643,550
• 10 Day Avg. Volume: 1,702,508
• 30 Day Avg. Volume: 1,204,489
• PEG Ratio: 0.02
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 10.17
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: -60.69
• 1Y Price Target: $48.57
• Price Target Upside: 46.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): $2.39B

• Rating: 46 Neutral
• Price Target: $32.00 ▼(-3.67% Downside)

IAC's overall stock score is primarily impacted by its financial performance and valuation challenges. The company is facing declining revenue and profitability, with negative net profit margins and a negative P/E ratio. Technical analysis indicates a bearish trend, further weighing on the score. While the earnings call highlighted some strategic initiatives and partnerships, these are not enough to offset the current financial and valuation concerns.

Positive Factors

Digital Revenue Growth

Consistent digital revenue growth demonstrates the company's ability to expand its digital footprint and capitalize on increasing online engagement.

Strategic Partnerships

The strategic partnership with Microsoft enhances IAC's potential to leverage AI technology, opening new revenue streams and strengthening its competitive edge.

Strong Cash Position

A robust cash position and active share buybacks reflect financial stability and management's confidence in the company's long-term prospects.

Negative Factors

Decline in Google Search Traffic

The decline in Google Search traffic suggests potential challenges in maintaining online visibility and could impact future advertising revenue.

Enterprise Revenue Challenges

Revenue declines in the enterprise segment indicate potential difficulties in sustaining growth amidst corporate spending cuts, affecting overall profitability.

Legal Expenses Impacting Profitability

High legal expenses strain profitability, highlighting potential risks associated with legacy operations that could affect future earnings.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/InteractiveCorp (IAC) is a diversified media and internet company that operates a portfolio of brands across various sectors, including online marketplaces, video streaming, and digital media. Founded in 1995, IAC is known for its innovative approach to technology and consumer engagement, owning well-established platforms such as Match Group, which includes dating services like Tinder and OkCupid, as well as home services and local advertising platforms. The company focuses on creating and scaling digital services that enhance user experiences and drive engagement.

How the Company Makes Money

IAC generates revenue primarily through a combination of subscription services, advertising, and transactional fees. Key revenue streams include subscription fees from dating services under the Match Group, which has a large user base willing to pay for premium features. Additionally, IAC earns revenue from advertising displayed on its various platforms, which is facilitated through partnerships and programmatic ad sales. The company's investment in home services and local advertising also contributes to its earnings, leveraging its digital marketing capabilities to connect consumers with service providers. Significant partnerships with other digital platforms and brands enhance IAC's reach and monetization opportunities.

IAC/InteractiveCorp. Financial Statement Overview

Summary

IAC/InteractiveCorp. faces challenges with declining revenue and profitability, as evidenced by negative net profit margins and EBIT margins. The balance sheet shows a conservative leverage position, but the negative return on equity highlights difficulties in generating shareholder value. Cash flow metrics indicate struggles in maintaining cash flow growth, although there is some strength in free cash flow relative to net income. Overall, the company needs to address profitability and cash flow generation to improve its financial health.

Income Statement

IAC/InteractiveCorp. has experienced declining revenue growth, with a significant drop of 11.31% in the TTM period. The company also shows negative net profit margins and EBIT margins, indicating profitability challenges. However, the gross profit margin remains relatively strong at 67.94%, suggesting efficient cost management at the gross level.

Balance Sheet

The company's debt-to-equity ratio is low, indicating a conservative leverage position. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is stable, showing a solid equity base relative to total assets.

Cash Flow

IAC/InteractiveCorp. has seen a decline in free cash flow growth, with a significant drop of 32.97% in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively higher, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.74B	3.81B	4.37B	5.24B	3.70B	2.76B
Gross Profit	1.83B	2.75B	3.02B	3.30B	2.40B	2.02B
EBITDA	-52.53M	-265.12M	1.10B	-977.37M	913.92M	455.99M
Net Income	-226.21M	-539.90M	265.94M	-1.17B	597.55M	269.73M
Balance Sheet
Total Assets	7.19B	9.55B	10.37B	10.39B	12.30B	9.16B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.80B	1.45B	1.66B	2.14B	3.59B
Total Debt	1.43B	1.97B	2.02B	2.05B	2.08B	712.28M
Total Liabilities	2.34B	3.24B	3.58B	3.79B	4.53B	1.78B
Stockholders Equity	4.79B	5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow
Free Cash Flow	105.36M	289.01M	48.16M	-222.54M	46.74M	93.86M
Operating Cash Flow	137.55M	354.52M	189.53M	-82.79M	136.95M	154.58M
Investing Cash Flow	-358.93M	276.82M	-87.47M	-494.81M	-2.90B	-1.87B
Financing Cash Flow	-463.54M	-129.10M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 33.22 is above the 20-day moving average (MA) of 33.20, below the 50-day MA of 34.15, and below the 200-day MA of 36.31, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 is Negative, 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	72 Outperform	$1.21B	14.79	8.73%	5.79%	30.00%	-9.72%
YELP	70 Outperform	$1.74B	12.49	20.37%	―	5.35%	33.74%
TBLA	67 Neutral	$1.16B	55.16	2.63%	―	10.96%	―
MTCH	63 Neutral	$7.62B	15.02	―	1.18%	-0.46%	-2.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GENI	52 Neutral	$2.44B	―	-18.65%	―	30.70%	-49.80%
IAC	46 Neutral	$2.57B	―	-4.58%	―	-29.40%	-529.81%

IAC/InteractiveCorp. Corporate Events

IAC/InteractiveCorp Reports Q3 2025 Earnings

IAC/InteractiveCorp is a diversified media and internet company that operates in the digital and print publishing sectors, with significant investments in global entertainment and gaming. In its latest earnings report for Q3 2025, IAC highlighted a strategic focus on its core businesses, People Inc. and MGM Resorts, while also engaging in share repurchases to bolster shareholder value.

IAC/InteractiveCorp’s Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for IAC/InteractiveCorp presented a mixed outlook, showcasing both positive strides and notable challenges. The company highlighted strong digital revenue growth and strategic partnerships, which are promising for future expansion. However, it also faced hurdles such as declining Google Search traffic, pressures on enterprise revenue, and significant legal expenses. Despite these challenges, IAC’s robust cash position and strategic focus on core assets like MGM and People Inc. suggest resilience and potential for future growth.

IAC Reports Q3 2025 Results with Strategic Focus

On November 3, 2025, IAC reported its Q3 2025 results, highlighting a strategic focus on People Inc. and MGM. People Inc. achieved a 9% growth in digital revenue, signed an AI licensing deal with Microsoft, and acquired Feedfeed, enhancing its social media presence. IAC repurchased 2.8 million shares for $100 million, reflecting confidence in its strategy. Despite a total operating loss, the company showed a significant improvement in net loss compared to the previous year, indicating a positive trajectory.

The most recent analyst rating on (IAC) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC/InteractiveCorp Reports Q3 2025 Financial Results

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, released its consolidated financial statements for the period ending September 30, 2025. The company reported total assets of $2.97 billion, a decrease from $3.17 billion at the end of 2024, and a slight decline in revenue for the three months ended September 30, 2025, compared to the same period in 2024. The financial results indicate a decrease in both current assets and liabilities, with a notable reduction in accounts receivable and accrued expenses. Despite these changes, the company’s total shareholder’s equity increased to $943.6 million, up from $895.9 million at the end of 2024, reflecting a stronger equity position.

The most recent analyst rating on (IAC) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC Reports Strong Q2 2025 Performance Amid Rebranding

IAC/InteractiveCorp, a diverse holding company, is known for building and managing a wide array of businesses, including digital media and services, with notable holdings in People Inc. and Care.com, and strategic investments in companies like MGM Resorts International.

IAC Earnings Call: Digital Growth and Strategic Moves

In the latest earnings call, IAC/InteractiveCorp. expressed a generally positive sentiment, highlighting strong digital revenue growth and successful refinancing efforts. The company also reported promising results from BetMGM and early positive signs from Care.com, despite facing macroeconomic challenges. However, concerns were raised regarding revenue reliance on Google Search, a decline in consumer revenue at Care.com, and the impact of strategic investments on margins.