IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -12.78%
• EPS Growth: -343.35%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 79
• Industry: Internet Content & Information
• EPS (TTM): -6.44
• Shares Outstanding: 74,347,570
• 10 Day Avg. Volume: 1,651,240
• 30 Day Avg. Volume: 1,350,349
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.06
• Price to Cash Flow (P/CF): 9.20
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.56
• Price Target Upside: 97.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

IAC's overall score reflects a company with a solid financial foundation but facing profitability and growth challenges. Positive strategic moves, such as the Angi spin-off and share repurchase program, enhance potential future prospects. However, technical indicators suggest caution, and valuation metrics highlight current profitability issues. Strategic improvements in operational segments slightly improve the outlook.

Positive Factors

Corporate Restructuring

IAC shares rose by ~6%, presumably as funds took positions ahead of the Angi spin targeted for the start of 2Q25.

Digital Revenue Growth

Dotdash Meredith continues to deliver durable results, growing digital revenue by double-digits for the fourth consecutive quarter, with expectations that growth will remain solid in 2025 despite macro pressures.

Financial Performance

IAC Inc. reported solid 4Q24 results overall, with revenue beating consensus and adjusted EBITDA finishing largely in line with the Street's expectations.

Negative Factors

Earnings Decline

4Q24 revenue is forecast to decline 11.8% year-over-year, reflecting declines in ANGI, Search, and Emerging & Other revenues.

Revenue Guidance

The outlook had a lot more noise, but the general takeaway was a relatively underwhelming 1Q25 revenue guide for both DDM and Care.

Valuation Concerns

The price target is decreased to $64 from $70, based on a sum-of-the-parts analysis and the impact of lower numbers.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/InteractiveCorp (IAC) is a leading media and internet company that operates a diverse collection of businesses across various sectors, including digital media, online services, and technology products. With a focus on innovation and growth, IAC has built a robust portfolio of brands and companies, leveraging its expertise in digital transformation to deliver value to consumers and stakeholders. The company's core products and services span online dating, digital publishing, home services, and video platforms, establishing IAC as a significant player in the digital landscape.

How the Company Makes Money

IAC/InteractiveCorp generates revenue through a variety of channels aligned with its diverse business portfolio. A substantial portion of its income is derived from digital advertising across its media platforms and websites, which attract significant user engagement and traffic. Additionally, IAC earns money through subscription services and premium memberships, particularly in its online dating segment with brands like Match Group, which includes popular dating platforms such as Tinder and Match.com. The company also benefits from transaction fees and service charges in its home services and marketplaces segment. IAC's strategic acquisitions and investments in high-growth potential companies further contribute to its financial performance, enabling it to capitalize on emerging opportunities in the digital space. Key partnerships and collaborations with other tech and media companies bolster its market presence and revenue-generating capabilities.

IAC/InteractiveCorp. Financial Statement Overview

Summary

IAC/InteractiveCorp demonstrates a mixed financial performance. The income statement highlights challenges with profitability and inconsistent revenue growth. The balance sheet is a strength, with a solid equity position and no current debt burden. Cash flow analysis indicates improving free cash flow and solid operating cash flow, though historical volatility suggests potential risks. Overall, while the company has a strong financial foundation, it faces challenges in achieving 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.81B	4.37B	5.24B	3.70B	2.76B
	Gross Profit
2.75B	3.02B	3.31B	2.39B	2.04B
	EBIT
-4.23M	-260.76M	-362.02M	-17.61M	-272.52M
	EBITDA
-4.23M	1.10B	-906.45M	949.66M	486.01M
	Net Income Common Stockholders
-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	1.45B	1.66B	2.14B	3.59B
	Total Assets
9.55B	10.37B	10.39B	12.61B	9.16B
	Total Debt
1.97B	2.49B	2.05B	2.08B	712.28M
	Net Debt
168.68M	1.19B	632.37M	-42.49M	-2.65B
	Total Liabilities
3.97B	3.58B	3.79B	4.84B	1.78B
	Stockholders Equity
5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow		Free Cash Flow
289.01M	48.16M	-222.54M	46.74M	93.86M
	Operating Cash Flow
354.52M	189.53M	-82.79M	136.95M	154.58M
	Investing Cash Flow
276.82M	-87.47M	-494.81M	-2.90B	-1.87B
	Financing Cash Flow
-129.10M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.19
• 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 34.19 is below the 20-day moving average (MA) of 37.67, below the 50-day MA of 37.12, and below the 200-day MA of 39.42, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 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
YELP	79 Outperform	$2.22B	17.88	17.79%	―	5.61%	37.61%
OPRA	78 Outperform	$1.32B	16.44	8.64%	5.22%	20.42%	-36.54%
MTCH	62 Neutral	$7.13B	14.09	-865.98%	0.67%	3.41%	-10.41%
CARG	60 Neutral	$2.82B	149.34	3.62%	―	-2.17%	-26.53%
Sector *	58 Neutral	$26.42B	2.90	-10.89%	4.33%	2.18%	-46.94%
IAC	58 Neutral	$2.74B	―	-9.29%	―	-12.78%	-343.35%
ANGI	58 Neutral	$621.90M	17.42	3.42%	―	-17.69%	―

IAC/InteractiveCorp. Corporate Events

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.

Spark’s Take on IAC Stock

According to Spark, TipRanks’ AI Analyst, IAC is a Neutral.

IAC’s overall stock score of 63 reflects a balanced view of its strengths and challenges. The company’s solid balance sheet and improving cash flows are positive financial indicators, but profitability issues and inconsistent revenue growth weigh on its financial performance. Technical analysis suggests short-term bullish momentum, while valuation remains a concern due to negative earnings. Recent earnings call insights and strategic corporate events provide a mixed but slightly positive outlook, highlighting operational improvements and strategic initiatives.

To see Spark’s full report on IAC stock, click here.

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.

IAC/InteractiveCorp’s Dotdash Meredith Releases Financial Statements

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, has released its consolidated financial statements for the years ending December 31, 2024, and 2023. The independent audit conducted by Ernst & Young LLP concluded that the financial statements present a fair view of the company’s financial position, adhering to U.S. accounting standards. The audit report highlights the company’s ability to continue as a going concern and notes the management’s responsibility for financial statement preparation and internal controls.

IAC/InteractiveCorp Reports Q4 2024 Financial Results

IAC announced its Q4 2024 financial results, revealing a 6% decline in total revenue compared to Q4 2023, alongside a notable operating income of $51 million. The company’s board approved the spinoff of Angi Inc., expected in the first half of 2025, and CEO Joey Levin will transition to an advisory role post-spin-off. Dotdash Meredith reported a 10% increase in digital revenue, contributing to IAC’s over $1 billion annual digital revenue, while Angi Inc. and Care.com showed varied financial performances. The company also extended a key service agreement with Google and reported increased financial flexibility due to a reduced leverage ratio.

IAC Announces Care.com as Separate Reporting Segment

On January 15, 2025, IAC Inc. announced that Care.com will now be reported as a separate segment starting from the quarter ending December 31, 2024. This change, which was reflected in the supplemental financial information for the quarter ending September 30, 2024, aims to provide clearer insights into Care.com’s performance and strategic significance within IAC’s portfolio, potentially influencing stakeholder perceptions and investment strategies.