IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -18.11%
• EPS Growth: -516.37%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 85
• Industry: Internet Content & Information
• EPS (TTM): -2.80
• Shares Outstanding: 74,052,280
• 10 Day Avg. Volume: 930,407
• 30 Day Avg. Volume: 1,088,068
• PEG Ratio: 0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.23
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: -8.66
• 1Y Price Target: $50.60
• Price Target Upside: 41.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $38.00 ▲(6.29%Upside)

IAC's overall stock score reflects a balanced perspective of both strengths and challenges. The strong balance sheet and strategic corporate events provide a solid foundation. However, profitability issues and valuation challenges weigh on the score. The positive sentiment from the earnings call and share repurchase initiatives are encouraging, suggesting potential for future improvement.

Positive Factors

Capital Return

IAC repurchased 5% of their shares outstanding, indicating a strong commitment to the recently reactivated buyback program.

Growth Opportunities

Despite challenges, IAC's strategic interest in leisure, media, and travel sectors suggests potential growth opportunities.

Negative Factors

Consumer Business Performance

Care’s consumer business was softer than anticipated, although offset by a growing enterprise component.

Revenue Decline

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

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 mixed financial performance. The income statement indicates profitability challenges with negative net profit margins and fluctuating revenue. However, the balance sheet is strong with a solid equity position and no current debt. The cash flow analysis reveals a positive trend in free cash flow growth, although historical variability suggests potential risks. Overall, the company has a strong financial foundation but struggles with consistent profitability and growth.

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
	EBIT
90.72M	-4.23M	-260.76M	-362.02M	-17.61M	-272.52M
	EBITDA
-230.82M	-4.23M	1.10B	-906.45M	949.66M	486.01M
	Net Income Common Stockholders
-801.73M	-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.16B	1.80B	1.45B	1.66B	2.14B	3.59B
	Total Assets
7.19B	9.55B	10.37B	10.39B	12.61B	9.16B
	Total Debt
0.00	1.97B	2.49B	2.05B	2.08B	712.28M
	Net Debt
-1.16B	168.68M	1.19B	632.37M	-42.49M	-2.65B
	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: Negative
• Last Price: 35.75
• 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 35.75 is below the 20-day moving average (MA) of 36.58, below the 50-day MA of 35.80, and below the 200-day MA of 38.40, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 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	80 Outperform	$1.65B	25.00	9.18%	4.23%	26.71%	-23.67%
YELP	71 Outperform	$2.26B	17.03	19.74%	―	5.93%	29.17%
CARG	69 Neutral	$3.04B	86.36	7.98%	―	0.63%	15.34%
ANGI	68 Neutral	$740.92M	14.80	5.05%	―	-16.79%	―
IAC	62 Neutral	$2.85B	―	-15.07%	―	-18.11%	-516.37%
MTCH	62 Neutral	$7.41B	14.90	-865.98%	2.52%	0.40%	-11.05%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%

IAC/InteractiveCorp. Corporate Events

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.

IAC Nominates Tor R. Braham to Board

On April 29, 2025, IAC announced the nomination of Tor R. Braham to its Board of Directors, following constructive engagement with shareholder Arkhouse Management Co. LP. Braham’s expertise in technology and capital markets is expected to enhance IAC’s strategic execution. The nomination is part of broader corporate governance enhancements, including a director resignation policy for nominees receiving less than a majority of votes in uncontested elections.

IAC Completes Spin-Off of Angi Inc.

On April 8, 2025, IAC Inc. announced the completion of the spin-off of Angi Inc., including Total Home Roofing, LLC, which was sold on November 1, 2023. This move, finalized on March 31, 2025, was executed through a special dividend distribution of Angi’s shares to IAC’s stockholders, resulting in Angi becoming an independent public company. Consequently, IAC has reclassified Angi’s operations as discontinued in its financial statements, reflecting this strategic shift in its business structure.

IAC/InteractiveCorp. Completes Spin-Off of Angi Inc.

On March 31, 2025, IAC Inc. completed the spin-off of Angi Inc., making Angi an independent public company. This strategic move allows Angi to focus on its growth objectives with a simplified equity structure, while IAC shifts its focus to other growth opportunities. Joey Levin transitioned from IAC CEO to Executive Chairman of Angi, working alongside Angi’s CEO Jeff Kip to drive the company’s strategic goals. The spin-off is expected to enhance Angi’s ability to pursue mergers, acquisitions, and talent acquisition, while IAC continues to develop its existing businesses and explore new opportunities.

IAC/InteractiveCorp. Announces Spin-Off of Angi Inc.

On March 7, 2025, IAC’s Board of Directors approved the spin-off of Angi Inc., distributing all Angi shares held by IAC to its common stockholders. This strategic move, set to be completed on March 31, 2025, will result in IAC no longer owning any shares of Angi, potentially impacting its market positioning by focusing on its remaining digital and online services portfolio.

IAC Expands Share Repurchase Program by 10 Million

On March 16, 2025, IAC Inc. announced an increase in its share repurchase program, allowing the company to repurchase up to an additional 10 million shares. This strategic move provides IAC with the flexibility to manage its capital needs and respond to market conditions, potentially enhancing shareholder value and strengthening its market position.