IAC/InteractiveCorp. (IAC)
NASDAQ:IAC
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IAC/InteractiveCorp.
(NASDAQ:IAC)
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Rating:54Neutral
Price Target:
$45.00
▲(1.44% Upside)
Action:ReiteratedDate:04/29/26
The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and reduced 2025 free cash flow), with only partial improvement from the recent EBITDA swing. Technicals provide meaningful support via a strong uptrend and positive momentum, while valuation is constrained by negative earnings. Earnings-call commentary adds a modest positive tilt due to digital growth initiatives and buybacks, tempered by traffic headwinds, litigation costs, and conservative guidance.
Positive Factors
Digital Revenue Growth (People Inc.)
Sustained double-digit digital growth at the People unit indicates a structurally stronger, recurring revenue base within the portfolio. Consistent digital expansion supports higher lifetime customer value and monetization levers (subscriptions, licensing, ads) that are less cyclical than legacy print, improving long-term revenue visibility and scalability across products and channels.
Negative Factors
Multi‑Year Revenue Decline
A persistent top-line contraction across multiple years signals structural challenges in legacy segments and scale limitations for some portfolio businesses. Continued revenue erosion reduces operating leverage, pressures margins and makes it harder to restore sustainable profitability without material new revenue streams or successful portfolio reorientation.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital Revenue Growth (People Inc.)
Sustained double-digit digital growth at the People unit indicates a structurally stronger, recurring revenue base within the portfolio. Consistent digital expansion supports higher lifetime customer value and monetization levers (subscriptions, licensing, ads) that are less cyclical than legacy print, improving long-term revenue visibility and scalability across products and channels.
Read all positive factors
IAC/InteractiveCorp. (IAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.37B
Dividend YieldN/A
Average Volume (3M)971.66K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-37.14%
EPS Growth80.26%
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-1.26
Shares Outstanding69,088,520
10 Day Avg. Volume939,127
30 Day Avg. Volume971,662
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)0.64
Price to Sales (P/S)1.27
P/FCF Ratio67.65
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda22.71
Forecast
1Y Price Target
$51.29Price Target Upside15.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.23
Revenue Forecast (FY)$2.28B
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, hea...
How the Company Makes Money
IAC primarily makes money through the operating revenues and cash flows generated by the businesses it owns, rather than through a single unified product line. Key revenue streams typically include: (1) Subscriptions and membership fees: recurring...
IAC/InteractiveCorp. Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Provides a clear view of each segment's operational performance by excluding non-cash items, offering insight into core profitability and cash flow potential.
Provides a clear view of each segment's operational performance by excluding non-cash items, offering insight into core profitability and cash flow potential.
Data provided by:
The Fly
The FlyIAC/InteractiveCorp. Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call highlighted solid operational and financial momentum at People and IAC: double-digit digital growth in the quarter, strong off-platform and licensing expansion, improved digital margins, high engagement from new products (MyRecipes, PEOPLE app), progress on D/Cipher, and active capital returns (share buybacks). However, material challenges persist, notably the sharp decline in core web sessions driven by a multi-year collapse in Google search referrals, a steep print revenue decline, Care enterprise softness, uncertainty around the AMG/search business, and a projected $15M litigation expense that compresses consolidated EBITDA guidance. Management presented a constructive long-term strategy and prioritized product and distribution shifts that are already producing results, while also taking a conservative near-term posture in guidance to reflect external risks.Positive Updates
Strong Q4 and Full-Year Digital Revenue Growth
People digital revenue grew 14% in Q4. For the full year, IAC reported $1.8 billion of revenue with $1.1 billion from Digital (Digital revenue +10% year-over-year).
Negative Updates
Significant Decline in Core Web Sessions
Core sessions declined 13% YoY in Q4. The company cited a ~50% drop in Google search referrals over the last two years and softness in Google Discover as primary drivers of session declines.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and Full-Year Digital Revenue Growth
People digital revenue grew 14% in Q4. For the full year, IAC reported $1.8 billion of revenue with $1.1 billion from Digital (Digital revenue +10% year-over-year).
Read all positive updates
Company Guidance
IAC said it will stop providing quarterly guidance and move to annual guidance: People Inc. is expected to deliver mid‑ to high‑single‑digit growth in digital revenue and digital adjusted EBITDA, with total People adjusted EBITDA guided to $310M–$340M (which management says implies digital adjusted EBITDA of $325M–$355M vs $315M in 2025) and assumes ~ $15M of Google‑litigation expense that causes corporate expense to exceed print EBITDA by about $15M; Care adjusted EBITDA is guided to $45M–$55M with consumer revenue returning to growth by midyear; Search (AMG) is guided to -$5M to +$10M of EBITDA; Emerging & Other to $0M–$10M; Corporate expense $80M–$90M (management aims to be at the low end). Management also reiterated buyback activity ($337M repurchased over the last 12 months, ~10% fewer shares), expects capex of roughly $20M–$30M, net interest expense near $64M, and forecasts better than 50% EBITDA‑to‑free‑cash‑flow conversion in 2026.IAC/InteractiveCorp. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.39B | 3.81B | 4.37B | 5.24B | 3.70B |
| Gross Profit | 1.60B | 2.75B | 3.02B | 3.30B | 2.40B |
| EBITDA | 285.90M | -265.12M | 1.10B | -977.37M | 913.92M |
| Net Income | -104.03M | -539.90M | 265.94M | -1.17B | 597.55M |
Balance Sheet | |||||
| Total Assets | 7.13B | 9.55B | 10.37B | 10.39B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 960.21M | 1.80B | 1.45B | 1.66B | 2.14B |
| Total Debt | 1.43B | 1.97B | 2.02B | 2.05B | 2.08B |
| Total Liabilities | 2.34B | 3.24B | 3.58B | 3.79B | 4.53B |
| Stockholders Equity | 4.73B | 5.58B | 6.08B | 5.93B | 7.18B |
Cash Flow | |||||
| Free Cash Flow | 44.83M | 289.01M | 48.16M | -222.54M | 46.74M |
| Operating Cash Flow | 64.03M | 354.52M | 189.53M | -82.79M | 136.95M |
| Investing Cash Flow | -404.62M | 276.82M | -87.47M | -494.81M | -2.90B |
| Financing Cash Flow | -451.00M | -129.10M | -223.01M | -112.65M | 1.41B |
IAC/InteractiveCorp. Technical Analysis
Positive
44.36
Price Trends
38.31
Positive
38.23
Positive
37.00
Positive
Market Momentum
1.36
Negative
79.85
Negative
95.45
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 44.36 is above the 20-day moving average (MA) of 40.40, above the 50-day MA of 38.31, and above the 200-day MA of 37.00, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 79.85 is Negative, neither overbought nor oversold. The STOCH value of 95.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAC.
IAC/InteractiveCorp. Risk Analysis
IAC/InteractiveCorp. disclosed 32 risk factors in its most recent earnings report. IAC/InteractiveCorp. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IAC/InteractiveCorp. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.66B | 13.01 | 11.26% | 5.47% | 24.83% | 73.88% | |
78 Outperform | $1.61B | 13.22 | 19.96% | ― | 3.75% | 16.49% | |
69 Neutral | $1.05B | 33.98 | 4.51% | ― | 8.26% | ― | |
65 Neutral | $9.00B | 12.77 | -275.39% | 2.32% | 0.22% | 19.74% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $1.11B | -25.16 | -15.51% | ― | 31.04% | -59.19% | |
54 Neutral | $3.37B | -29.16 | -2.17% | ― | -37.14% | 80.26% |
* Communication Services Sector Average
IAC
IAC/InteractiveCorp.
44.97
9.62
27.21%
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IAC/InteractiveCorp. Corporate Events
Business Operations and StrategyExecutive/Board Changes
IAC Restructures, Rebrands as People Incorporated Platform
Negative
Apr 28, 2026
IAC said it will change its corporate name to People Incorporated around its second-quarter 2026 earnings in August and is launching a restructuring plan to fold remaining IAC corporate functions into the People Inc. publishing business. The plan,...
Business Operations and StrategyRegulatory Filings and Compliance
IAC Caps Voting Power in MGM Through New Agreement
Neutral
Apr 7, 2026
On April 3, 2026, IAC Inc. entered into a voting agreement with MGM Resorts International and Barry Diller that effectively caps the voting power of IAC, Mr. Diller and their controlled affiliates above 25.73% of MGM’s outstanding voting sec...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
IAC Updates Financials After Reorganization and Care.com Sale
Neutral
Apr 7, 2026
On April 7, 2026, IAC Inc. released updated supplemental financial information recasting past results to reflect a strategic internal reorganization at Dotdash Meredith’s People Inc. unit and the completion of the Care.com divestiture on Mar...
Business Operations and StrategyM&A Transactions
IAC Completes Sale of Care.com, Refocuses Portfolio
Positive
Mar 16, 2026
On March 16, 2026, IAC Inc. completed the previously announced sale of its wholly owned subsidiary Care.com, Inc. to Care Parent, LLC, an indirect wholly owned subsidiary of Pacific Avenue Capital Partners. The transaction marks IAC’s exit f...
Business Operations and StrategyM&A Transactions
IAC to Divest Care.com Stake in $320 Million Deal
Positive
Mar 2, 2026
On March 2, 2026, IAC announced a definitive agreement to sell all of its shares in Care.com to an affiliate of Pacific Avenue Capital Partners for approximately $320 million in cash, with closing expected in the first half of 2026 subject to cust...
Financial DisclosuresRegulatory Filings and Compliance
IAC’s Dotdash Meredith Receives Clean 2025 Audit Opinion
Positive
Feb 20, 2026
IAC’s Dotdash Meredith unit has released audited consolidated financial statements for the three years ended December 31, 2025, with Ernst Young LLP issuing an unqualified opinion that the accounts present fairly the company’s financi...
Business Operations and StrategyStock BuybackFinancial Disclosures
IAC Highlights Q4 Results and Expands Strategic Investments
Neutral
Feb 3, 2026
On February 3, 2026, IAC reported its fourth-quarter 2025 results, highlighting strong performance at flagship unit People Inc., whose digital revenue rose 14% in the quarter to $355 million and 10% for the full year to $1.1 billion, driving full-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.