IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $3.14B
• Dividend Yield: N/A
• Average Volume (3M): 810.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -18.11%
• EPS Growth: -516.37%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 75
• Industry: Internet Content & Information
• EPS (TTM): -2.80
• Shares Outstanding: 74,052,280
• 10 Day Avg. Volume: 727,216
• 30 Day Avg. Volume: 810,748
• PEG Ratio: 0.07
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.29
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: -3.84
• 1Y Price Target: $52.00
• Price Target Upside: 32.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $45.00 ▲(14.50%Upside)

IAC's stock score is primarily supported by strong technical indicators and positive recent corporate events. Financial performance presents mixed signals, with a strong balance sheet but profitability challenges. The stock's valuation is a notable downside, with a negative P/E ratio. Earnings call insights provide a cautiously optimistic outlook, highlighting strategic achievements and growth in digital revenue despite macroeconomic uncertainties.

Positive Factors

Capital Management

IAC has repurchased 4.5 million shares and has 9.2 million remaining under authorization, indicating a focus on capital return.

Partnerships

The partnership with Open AI is expected to continue benefiting licensing revenue, contributing positively to IAC's financial performance.

Revenue Growth

The management guided to DDM Digital revenue growth of 7%-9% year-over-year, supported by advertising and performance marketing.

Negative Factors

Profitability

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

Revenue Decline

Emerging & Other revenue is estimated to decline by 25% year-over-year, reflecting challenges in this segment.

Revenue Decrease

2024 revenue and EBITDA are expected to decrease significantly after pulling out Angi.

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 exhibits a mixed financial performance. The income statement highlights challenges with profitability and inconsistent revenue growth. However, the balance sheet is strong with no current debt and a solid equity position. The cash flow analysis shows 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	3.45B	3.81B	4.37B	5.24B	3.70B	2.76B
Gross Profit	2.45B	2.75B	3.02B	3.31B	2.39B	2.04B
EBITDA	-230.82M	-4.23M	1.10B	-906.45M	949.66M	486.01M
Net Income	-801.73M	-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet
Total Assets	7.19B	9.55B	10.37B	10.39B	12.61B	9.16B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.80B	1.45B	1.66B	2.14B	3.59B
Total Debt	0.00	1.97B	2.49B	2.05B	2.08B	712.28M
Total Liabilities	2.47B	3.24B	3.58B	3.79B	4.84B	1.78B
Stockholders Equity	4.71B	5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow
Free Cash Flow	236.08M	289.01M	48.16M	-222.54M	46.74M	93.86M
Operating Cash Flow	290.53M	354.52M	189.53M	-82.79M	136.95M	154.58M
Investing Cash Flow	122.83M	276.82M	-87.47M	-494.81M	-2.90B	-1.87B
Financing Cash Flow	-103.13M	-113.08M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Neutral. The current price of 39.3 is below the 20-day moving average (MA) of 40.19, above the 50-day MA of 38.19, and above the 200-day MA of 37.77, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 16.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IAC.

IAC/InteractiveCorp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	73 Outperform	$2.20B	16.56	19.74%	―	5.93%	29.17%
OPRA	73 Outperform	$1.48B	22.48	9.18%	4.71%	26.71%	-23.67%
MTCH	68 Neutral	$8.35B	16.80	-865.98%	1.11%	0.40%	-11.05%
IAC	68 Neutral	$3.14B	―	-15.07%	―	-18.11%	-516.37%
CARG	67 Neutral	$3.24B	92.09	7.98%	―	0.63%	15.34%
ANGI	64 Neutral	$778.35M	15.54	5.05%	―	-16.79%	―
Sector *	61 Neutral	$42.98B	-1.93	-13.49%	4.03%	2.81%	-64.88%

IAC/InteractiveCorp. Corporate Events

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.

The most recent analyst rating on (IAC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

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.

The most recent analyst rating on (IAC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

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.

The most recent analyst rating on (IAC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC/InteractiveCorp Reports Q1 2025 Revenue Increase

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, released its unaudited consolidated financial statements for the quarter ending March 31, 2025. The company reported a slight increase in revenue to $393.1 million from $390.5 million in the same period the previous year. However, total assets decreased from $3.17 billion at the end of 2024 to $3.03 billion by March 2025, indicating potential challenges in asset management or operational efficiency.

IAC Announces New Share Repurchase Authorization

In the first quarter of 2025, IAC completed the spin-off of Angi Inc., repurchased 4.5 million shares, and announced a new 10 million share repurchase authorization. Despite a 9% decrease in total revenue compared to Q1 2024, IAC reported a significant increase in operating income and adjusted EBITDA, driven by strong performance in its largest business, Dotdash Meredith. The company remains optimistic about capital allocation opportunities and continues to grow its digital revenue amidst industry challenges.