IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• 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: 962,339
• 30 Day Avg. Volume: 1,300,528
• 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: 1.12
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: -60.69
• 1Y Price Target: $48.57
• Price Target Upside: 32.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.29
• Revenue Forecast (FY): $2.39B

• Rating: 55 Neutral
• Price Target: $38.00 ▲(3.37% Upside)

IAC/InteractiveCorp. faces significant challenges in financial performance, with declining revenue and profitability being major concerns. However, the company's strategic focus on digital revenue growth and partnerships, as well as its strong cash position, provide some optimism for future growth. Technical indicators suggest positive momentum, but valuation remains a concern due to negative earnings. Overall, while there are positive strategic moves, the financial and valuation challenges weigh heavily on the stock's score.

Positive Factors

Digital Revenue Growth

Consistent digital revenue growth demonstrates the company's ability to expand its digital footprint and capitalize on increasing online engagement.

Strategic Partnerships

The strategic partnership with Microsoft enhances IAC's potential to leverage AI technology, opening new revenue streams and strengthening its competitive edge.

Strong Cash Position

A robust cash position and active share buybacks reflect financial stability and management's confidence in the company's long-term prospects.

Negative Factors

Decline in Google Search Traffic

The decline in Google Search traffic suggests potential challenges in maintaining online visibility and could impact future advertising revenue.

Enterprise Revenue Challenges

Revenue declines in the enterprise segment indicate potential difficulties in sustaining growth amidst corporate spending cuts, affecting overall profitability.

Legal Expenses Impacting Profitability

High legal expenses strain profitability, highlighting potential risks associated with legacy operations that could affect future earnings.

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

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: 36.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 36.76 is above the 20-day moving average (MA) of 34.13, above the 50-day MA of 33.67, and above the 200-day MA of 36.18, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 67.91 is Neutral, neither overbought nor oversold. The STOCH value of 93.29 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
TBLA	74 Outperform	$1.14B	54.33	2.63%	―	10.96%	―
YELP	70 Outperform	$1.83B	13.09	20.37%	―	5.35%	33.74%
OPRA	67 Neutral	$1.24B	15.17	8.73%	5.65%	30.00%	-9.72%
MTCH	66 Neutral	$8.15B	16.07	―	2.20%	-0.46%	-2.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IAC	55 Neutral	$2.85B	―	-4.58%	―	-29.40%	-529.81%
GENI	54 Neutral	$2.74B	―	-18.65%	―	30.70%	-49.80%

IAC/InteractiveCorp. Corporate Events

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.