IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 803.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -29.40%
• EPS Growth: -529.81%
• Country: US
• Employees: 9,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.99
• Shares Outstanding: 71,643,550
• 10 Day Avg. Volume: 1,096,217
• 30 Day Avg. Volume: 803,878
• PEG Ratio: 0.36
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 67.65
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 14.92
• 1Y Price Target: $46.33
• Price Target Upside: 29.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $35.00 ▼(-1.93% Downside)

Overall score is held back mainly by weak financial performance (shrinking revenue, losses, and volatile cash flow) and bearish technical momentum. The earnings call provides some support via improving digital execution and ongoing buybacks, but valuation remains difficult to justify with a negative P/E and no dividend yield data.

Positive Factors

Off-platform revenue diversification

A growing share of revenue comes from off-platform and non-session channels, which have nearly doubled views and now comprise ~38% of Digital revenue. This structural shift reduces dependence on search referrals, creates more stable monetization pathways, and supports durable top-line resilience.

Improving digital profitability

Digital margins around 28% and sequential digital EBITDA growth show a scalable, high-margin core. Sustained digital profitability implies operating leverage in content and platform businesses, supporting long-term cash generation and the ability to reinvest in product, distribution, and new growth initiatives.

Manageable leverage & active capital returns

Management has returned capital via substantial buybacks and maintained modest leverage (debt-to-equity ~0.30 per balance-sheet commentary). Disciplined allocation and a compact capital structure provide flexibility to fund investments, support operations, and pursue value-accretive M&A or returns over time.

Negative Factors

Multi-year revenue decline

A persistent top-line contraction across multiple years erodes scale benefits, pressures fixed-cost absorption, and complicates margin recovery. Even with digital pockets of growth, a shrinking consolidated revenue base increases reliance on successful turnaround of specific units and heightens execution risk.

High reliance on Google traffic

A material drop in search-driven sessions and a looming non-renewal/renegotiation of Google agreements create a structural traffic and monetization headwind. This dependency exposes revenue to platform decisions and makes durable audience growth and distribution diversification critical but uncertain.

Volatile cash generation

Large swings in operating and free cash flow, including a steep FCF decline in 2025, reduce predictability for reinvestment and returns. Volatility limits strategic flexibility, raises refinancing or liquidity risk if adverse, and forces conservative corporate guidance and capital-allocation choices.

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 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

Financials are pressured by a multi-year revenue decline and recurring operating losses, despite strong gross margins and a 2025 improvement (positive EBITDA and a narrower net loss). Cash flow remains volatile with a sharp 2025 free-cash-flow step-down, while leverage looks manageable (debt-to-equity ~0.30) but ROE is negative.

Income Statement

Profitability is inconsistent and currently pressured. Revenue has declined for three straight years (2023: -16.6%, 2024: ~-0.1%, 2025: -12.5%), signaling a shrinking top line. Gross margins remain strong (roughly mid-60% to low-70%), but operating results are weak with losses at the EBIT line in most years and a negative net margin in 2024 and 2025 (2025 net margin ~-4.3% improved from 2024 ~-14.2%). EBITDA turned positive in 2025 (vs. negative in 2024), which is a constructive swing, but the business has not re-established durable earnings power.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.30 in 2025 (down from ~0.35 in 2024), and equity remains sizable versus debt. However, returns are weak: return on equity is negative in 2024 and 2025, reflecting ongoing net losses. Total assets and equity have trended down from 2021–2025, suggesting some balance-sheet contraction over time, though the overall capital structure still appears relatively sound for the sector.

Cash Flow

Cash generation is mixed and has weakened recently. Operating cash flow and free cash flow are positive in 2025, but both are far below 2024 levels (free cash flow down ~56% in 2025), indicating reduced cash conversion and/or higher cash costs. 2022 showed negative operating and free cash flow, highlighting volatility across the cycle. While free cash flow remains positive most years, the sharp step-down in 2025 and uneven track record limit confidence in near-term cash durability.

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	213.40M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 35.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 35.69 is below the 20-day moving average (MA) of 38.63, below the 50-day MA of 38.19, and below the 200-day MA of 36.55, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 28.75 is Positive, neither overbought nor oversold. The STOCH value of 12.38 is Positive, 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
YELP	77 Outperform	$1.49B	10.60	20.37%	―	5.35%	33.74%
TBLA	72 Outperform	$1.08B	49.93	2.63%	―	10.96%	―
OPRA	67 Neutral	$1.14B	14.02	8.73%	5.47%	30.00%	-9.72%
MTCH	65 Neutral	$7.23B	12.86	―	2.32%	-0.46%	-2.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GENI	54 Neutral	$2.16B	-12.88	-18.65%	―	30.70%	-49.80%
IAC	47 Neutral	$2.76B	-26.40	-2.31%	―	-29.40%	-529.81%

IAC/InteractiveCorp. Corporate Events

IAC Highlights Q4 Results and Expands Strategic Investments

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-year operating income of $186 million and adjusted EBITDA of $331 million excluding certain items. The company emphasized disciplined capital allocation over the past year, returning $337 million to shareholders through the repurchase of 8.2 million shares, while also deepening its strategic investment in MGM Resorts International by purchasing an additional 1 million shares in Q4 2025 and expanding People Inc.’s AI-driven content reach through partnerships with Meta, OpenAI and Microsoft, even as consolidated revenue declined 10% and overall operating results were weighed down by a goodwill impairment at Care.com and soft search revenue.

The most recent analyst rating on (IAC) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

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.

The most recent analyst rating on (IAC) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.