GICS Sector : Communication Services
Angi Inc.connects home service professionals with consumers in the United States and internationally.Its Angi Ads business, which connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing, and payment services.
Angi Inc. reported Q3 revenue that was in line with expectations, but EPS came in below estimates at $0.23 versus $0.33 expected. The company's EBITDA outperformance was driven by contribution margin, less expense, and timing of expenses. International EBITDA increased due to changes in the product organization, with the domestic and international teams combined to focus on consolidating onto one unified technology platform. The capitalization rate is expected to be higher in Q4 and similar in 2026, with around $60 million of CapEx this year and next.
Publication Date: Nov -12
The company is making significant strides in its mission to deliver more jobs done well, with key markers for customer experience improvement, including a double-digit increase in hire rate, nearly 30% increase in win rate, and a 10-point year-over-year increase in Net Promoter Score. Proprietary service request growth accelerated to 11% in Q3, with proprietary lead growth at 16% and revenue per lead growth at 11%. The network channel decreased from nearly 40% of leads to less than 10% year-over-year, indicating a successful shift towards proprietary channels.
Angi is accelerating its platform transformation, targeting a single modern global AI-first platform by 2027. This effort is expected to improve customer experience and business efficiency. The company is also investing in AI across customer and team workflows, with the AI helper being one of the first prototypes. The AI helper has been deployed, with 1/3 of customers using it to post service requests, resulting in higher conversion rates. As Jeff Kip, CEO of Angi, noted, "We're implementing AI across customer and team workflows... We're looking to invest in AI and marketing, but it's not significantly changing our view on 2026 investments."
Angi expects mid-single-digit revenue growth in 2026, driven by strong proprietary performance offset by network comparisons. The company's guidance is in line with analyst estimates of 3.9% revenue growth next year. With a P/E Ratio of 14.15 and an EV/EBITDA of 4.81, the market appears to be pricing in moderate growth expectations. The company's ROE of 3.44% and ROIC of 3.33% indicate a relatively stable return profile. As Angi continues to transform its platform and invest in AI, investors will be watching to see if the company can deliver on its growth promises.
Comparing Angi (NASDAQ:ANGI) & VS MEDIA (NASDAQ:VSME)
Nov -22
Angi Inc. (ANGI) Q3 2025 Earnings Call Transcript
Nov -05
Angi (ANGI) Reports Q3 Earnings: What Key Metrics Have to Say
Nov -05
Angi (ANGI) Lags Q3 Earnings and Revenue Estimates
Nov -05
Angi Inc. Earnings Release and Letter to Shareholders Available on Company's Website
Nov -04
Longleaf Partners Global Fund Q3 2025 Notable Contributors & Detractors
Oct -30
Angi: Too Cheap As Growth Is Set To Inflect Higher (Rating Upgrade)
Oct -13
Angi Inc. to Announce Q3 2025 Earnings on November 4th and Host Earnings Conference Call on November 5th
Oct -08
Angi Inc.'s 3% growth in Ads and Leads is driven by increasing homeowners' demand for home improvement services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital marketing and user experience enhancements have improved conversion rates, contributing to the growth.
Angi Inc.'s services growth is driven by increasing demand for home improvement and repair, fueled by aging housing stock, rising homeownership rates, and growing consumer spending on home-related services. Additionally, the company's strong brand recognition, expanding service offerings, and investments in digital platforms contribute to its 1.5% growth.
Angi Inc.'s international segment growth of 2.5% is driven by increasing adoption of online home services, expansion into new markets, and strategic partnerships. Additionally, growing demand for home improvement and repair services, fueled by an aging population and increasing homeownership, contributes to the segment's growth.
A platform that connects homeowners with pre-screened and reviewed professionals for various home repair and improvement projects.
A lead generation platform that provides professionals with exclusive leads and opportunities to bid on projects.
A digital advertising platform that allows professionals to target and reach homeowners actively searching for their services.
A suite of tools and services designed to help professionals manage their businesses, including lead management, invoicing, and payment processing.
A home services marketplace that connects homeowners with pre-screened professionals for various home repair and improvement projects.
An on-demand home services platform that connects homeowners with professionals for immediate, same-day service.
Angi Inc. operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.
Angi Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative service providers.
Angi Inc. has a diverse supplier base, and suppliers have limited bargaining power due to the company's large scale of operations.
The threat of new entrants is moderate due to the significant capital requirements and regulatory hurdles in the home services market.
The home services market is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 33.05% |
| Debt Cost | 3.95% |
| Equity Weight | 66.95% |
| Equity Cost | 13.81% |
| WACC | 10.55% |
| Leverage | 49.37% |
Value: 5.9
Growth: 8.3
Quality: 8.4
Yield: 0.0
Momentum: 7.5
Volatility: 3.3
1-Year Total Return ->
Value: 8.5
Growth: 4.7
Quality: 6.2
Yield: 0.0
Momentum: 10.0
Volatility: 0.3
1-Year Total Return ->
Value: 8.5
Growth: 4.9
Quality: 6.1
Yield: 0.0
Momentum: 1.5
Volatility: 2.7
1-Year Total Return ->
Value: 7.7
Growth: 1.3
Quality: 7.1
Yield: 0.0
Momentum: 1.0
Volatility: 3.0
1-Year Total Return ->
Value: 9.2
Growth: 2.1
Quality: 3.6
Yield: 0.0
Momentum: 0.0
Volatility: 2.3
1-Year Total Return ->
Value: 7.0
Growth: 3.1
Quality: 3.9
Yield: 0.0
Momentum: 1.0
Volatility: 2.0
1-Year Total Return ->