IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $3.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 1,121,188
• 30 Day Avg. Volume: 1,076,985
• 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: 1.03
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: -60.69
• 1Y Price Target: $48.11
• Price Target Upside: 20.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.29
• Revenue Forecast (FY): $2.39B

• Rating: 56 Neutral
• Price Target: $41.00 ▲(2.35% Upside)

IAC's overall stock score reflects a challenging financial performance with declining revenue and profitability. However, strong technical indicators suggest bullish momentum, and strategic initiatives highlighted in the earnings call and corporate events provide potential for future growth. Valuation remains a concern with a negative P/E ratio, and the non-renewal of the Google agreement adds uncertainty.

Positive Factors

Strategic Partnerships

The partnership with Microsoft for AI-driven content indicates a strategic move to leverage AI technology, potentially driving future revenue growth and enhancing competitive positioning in digital media.

Digital Revenue Growth

Consistent digital revenue growth at People Inc. suggests strong market demand and effective digital strategies, contributing to long-term revenue stability and business expansion.

Strong Cash Position

A robust cash position provides financial flexibility for strategic investments, share buybacks, and potential acquisitions, supporting long-term growth and shareholder value.

Negative Factors

Decline in Google Search Traffic

The significant decline in Google Search traffic could impact advertising revenue and user engagement, challenging IAC's ability to maintain its market presence and revenue streams.

Non-Renewal of Google Agreement

The potential loss of the Google Services Agreement could disrupt revenue from the Search segment, affecting IAC's operational stability and necessitating strategic adjustments.

Enterprise Revenue Challenges

Revenue declines in the enterprise segment reflect broader market pressures, potentially impacting IAC's overall revenue growth and necessitating strategic realignment to mitigate losses.

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	102.60M	289.01M	48.16M	-222.54M	46.74M	93.86M
Operating Cash Flow	134.79M	354.52M	189.53M	-82.79M	136.95M	154.58M
Investing Cash Flow	-371.43M	276.82M	-87.47M	-494.81M	-2.90B	-1.87B
Financing Cash Flow	-477.88M	-129.10M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 40.06 is above the 20-day moving average (MA) of 36.74, above the 50-day MA of 34.50, and above the 200-day MA of 36.22, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 77.30 is Negative, neither overbought nor oversold. The STOCH value of 93.01 is Negative, 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
YELP	77 Outperform	$1.92B	13.81	20.37%	―	5.35%	33.74%
TBLA	72 Outperform	$1.16B	55.16	2.63%	―	10.96%	―
OPRA	67 Neutral	$1.26B	15.49	8.73%	5.47%	30.00%	-9.72%
MTCH	66 Neutral	$7.80B	15.37	―	2.30%	-0.46%	-2.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IAC	56 Neutral	$3.10B	-15.14	-4.58%	―	-29.40%	-529.81%
GENI	54 Neutral	$2.73B	-22.47	-18.65%	―	30.70%	-49.80%

IAC/InteractiveCorp. Corporate Events

IAC Faces Uncertainty with Google Agreement Non-Renewal

On December 10, 2025, IAC received a notice from Google indicating the non-renewal of their Google Services Agreement, which is set to expire on March 31, 2026. This agreement, crucial for IAC’s Search segment, generated significant revenue and operating income. Google plans to propose revised terms for a new agreement, but the outcome remains uncertain, potentially impacting IAC’s operations and market positioning.

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.

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.