IAC/InteractiveCorp. (IAC)
NASDAQ:IAC
Want to see IAC full AI Analyst Report?
Top Page
IAC/InteractiveCorp.
(NASDAQ:IAC)
Select Model
Select Model
Rating:64Neutral
Price Target:
$47.00
▲(5.95% Upside)
Action:Reiterated
Date:05/09/26
IAC scores a 64 driven mainly by improving financial performance (return to profitability, positive free cash flow, manageable leverage) and a constructive technical setup (above key moving averages with positive MACD). The latest earnings call supports the score with reaffirmed/raised guidance, strong free-cash-flow targets, and cost-saving restructuring, though Google-driven traffic declines and restructuring/litigation costs remain meaningful risks. Valuation is a drag due to a negative P/E and no dividend yield provided.
Positive Factors
High margins
Sustained high gross margins and expanding digital EBITDA margins indicate structurally profitable product mix and pricing power. With incremental digital margins cited near ~45%, margin profile supports scalable earnings, funds reinvestment and cushions returns during ad-market variability.
Negative Factors
Revenue decline
A shrinking top line erodes operating leverage and makes margin gains harder to translate into sustainable profit growth. Continued revenue declines force heavier reliance on portfolio adjustments, monetization shifts or M&A to restore scalable organic growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins
Sustained high gross margins and expanding digital EBITDA margins indicate structurally profitable product mix and pricing power. With incremental digital margins cited near ~45%, margin profile supports scalable earnings, funds reinvestment and cushions returns during ad-market variability.
Read all positive factors
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. (IAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.13B
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)206.4
Beta (1Y)0.90
Revenue Growth-34.87%
EPS GrowthN/A
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.43
Shares Outstanding68,590,550
10 Day Avg. Volume1,056,908
30 Day Avg. Volume1,294,903
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 Cap1.10
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit2.37
Enterprise Value/Ebitda8.58
Forecast
1Y Price Target
$53.20Price Target Upside19.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)-0.6
Revenue Forecast (FY)$1.85B
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. Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasizes clear operational progress: steady digital revenue growth, strong margin expansion, rapid growth of non-session-based revenue (+24% YoY) and diversified off-platform audiences (+27% YoY), solid free cash flow (almost $50M in Q1 and >$150M annual target), monetization wins (Care.com sale, domain sale, buybacks) and strategic moves (Decipher expansion, corporate consolidation) that position the company for improved long-term profitability. Near-term headwinds include print declines, the loss of Google-driven core web sessions, one-time consolidation and search shutdown costs, and litigation and geopolitical-driven ad market volatility. Overall, the positive operational momentum, cash generation and strategic reorganization outweigh the short-term costs and external traffic/litigation challenges.Positive Updates
Digital Revenue Growth & Margin Expansion
Digital revenue grew 8% year-over-year in Q1 (would have been ~10% ex-reclassification), digital adjusted EBITDA margin expanded to 20% from 18% (a 200 basis point improvement), and incremental digital margins were described as ~45%.
Negative Updates
Print EBITDA Decline
Print EBITDA declined in the quarter (described as expected), creating near-term headwinds; management reiterated that full-year print EBITDA is expected to cover People Inc. and corporate overhead excluding estimated Google litigation expense.
Read all updates
Q1-2026 Updates
Positive
Negative
Digital Revenue Growth & Margin Expansion
Digital revenue grew 8% year-over-year in Q1 (would have been ~10% ex-reclassification), digital adjusted EBITDA margin expanded to 20% from 18% (a 200 basis point improvement), and incremental digital margins were described as ~45%.
Read all positive updates
Company Guidance
Management reaffirmed People Inc. adjusted EBITDA guidance of $310–$340 million and reiterated digital revenue growth of mid‑ to high‑single digits, while raising Emerging & Other adjusted EBITDA to $5–$15 million; corporate expense guidance was increased to $95–$105 million (driven by severance/onetime charges). They disclosed total one‑time consolidation costs of $63 million (about $15 million cash severance, $48 million stock‑based comp), with ~$10 million of severance already recognized in Q1 and the $48 million SBC to be expensed over the next four quarters, and said the restructuring should deliver roughly $40 million of annual run‑rate operating expense savings and $20–$25 million of SBC reduction (phasing in through early 2027, with the first clean quarter of full savings in Q2 2027); post‑consolidation IAC corporate costs are expected to be about $45 million and total company SBC roughly $30 million. Financially, Q1 free cash flow was nearly $50 million and the company is on track to exceed $150 million of free cash flow in 2026, net debt is about $1.1 billion, and management highlighted recent capital actions including $296 million of net proceeds from the Care.com sale, $111 million repurchased (2.9M IAC shares) and $37 million for 1.0M MGM shares (ownership to 26%); they also noted Q1 People digital revenue grew 8% (would have been ~10% absent a ~200‑bp reclassification drag) and nonsession‑based revenue grew 24% to represent 41% of digital revenue.IAC/InteractiveCorp. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
69
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.25B | 2.39B | 3.81B | 4.37B | 5.24B | 3.70B |
| Gross Profit | 1.45B | 1.60B | 2.75B | 3.02B | 3.30B | 2.40B |
| EBITDA | 400.35M | 285.90M | -265.12M | 1.10B | -977.37M | 913.92M |
| Net Income | 116.53M | -104.03M | -539.90M | 265.94M | -1.17B | 597.55M |
Balance Sheet | ||||||
| Total Assets | 6.82B | 7.13B | 9.55B | 10.37B | 10.39B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 960.21M | 1.80B | 1.45B | 1.66B | 2.14B |
| Total Debt | 1.42B | 1.43B | 1.97B | 2.02B | 2.05B | 2.08B |
| Total Liabilities | 2.23B | 2.34B | 3.24B | 3.58B | 3.79B | 4.53B |
| Stockholders Equity | 4.55B | 4.73B | 5.58B | 6.08B | 5.93B | 7.18B |
Cash Flow | ||||||
| Free Cash Flow | 59.61M | 44.83M | 289.01M | 48.16M | -222.54M | 46.74M |
| Operating Cash Flow | 82.12M | 64.03M | 354.52M | 189.53M | -82.79M | 136.95M |
| Investing Cash Flow | 244.21M | -404.62M | 276.82M | -87.47M | -494.81M | -2.90B |
| Financing Cash Flow | -343.81M | -451.00M | -129.10M | -223.01M | -112.65M | 1.41B |
IAC/InteractiveCorp. Technical Analysis
Positive
44.36
Price Trends
41.36
Positive
39.57
Positive
37.39
Positive
Market Momentum
-0.32
Positive
51.56
Neutral
52.27
Neutral
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 42.33, above the 50-day MA of 41.36, and above the 200-day MA of 37.39, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, 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 | $1.56B | 13.01 | 11.76% | 5.47% | 24.83% | 73.88% | |
79 Outperform | $1.34B | 3.70 | 11.91% | ― | 9.62% | 880.15% | |
74 Outperform | $1.23B | 20.51 | 19.70% | ― | 2.09% | 4.03% | |
71 Outperform | $8.35B | 11.17 | -286.13% | 2.32% | 2.00% | 30.81% | |
64 Neutral | $3.13B | 206.42 | 2.46% | ― | -34.87% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $1.43B | -5.38 | -22.20% | ― | 33.31% | -210.69% |
* Communication Services Sector Average
IAC
IAC/InteractiveCorp.
42.03
5.72
15.75%
YELP
Yelp
22.39
-15.01
-40.13%
OPRA
Opera
17.43
0.86
5.20%
MTCH
Match Group
35.80
7.27
25.47%
GENI
Genius Sports Limited
5.35
-4.63
-46.39%
TBLA
Taboola.com
4.92
1.42
40.57%
IAC/InteractiveCorp. Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresM&A Transactions
IAC Unveils Major Restructuring Ahead of People Inc. Rebrand
Neutral
May 4, 2026
On May 4, 2026, IAC reported first-quarter 2026 results and detailed a major restructuring as it prepares to rename itself People Incorporated and trade under a new ticker, consolidating corporate functions into People Inc. and exiting its Search ...
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...
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.