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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on IAC

IAC Inc.'s recent performance was driven by strong Q2 earnings, with a quarterly earnings beat of $2.57 per share, significantly surpassing the Zacks Consensus Estimate of a loss of $0.3 per share. The company's core profit rose 15% year-over-year, fueled by steady growth in its digital media segment and reduced operating expenses. A 20% stake in MGM, acquired in 2020, has been a value-creating move. Additionally, the company's subsidiary Dotdash Meredith, now rebranded as People Inc., has shown resilience in the publishing industry. IAC's strategic moves and financial management have positioned it well.

1.c. Company Highlights

2. IAC Q1 2026: Digital Surge, Cost Cuts, and a Clear Focus on People & MGM

First‑quarter results delivered a mixed but ultimately positive picture: digital revenue rose 8% to $1.3 billion, with a 20% adjusted EBITDA margin, while free cash flow hit $50 million, on track for $150 million annually (Halpin). EPS slipped to –$0.93 versus an estimate of –$0.34, reflecting one‑time restructuring charges. The company trades at a lofty 80.01× forward P/E, a 5.25× EV/EBITDA and a 0.72× P/B, underscoring the premium investors place on its digital upside and capital discipline.

Publication Date: May -06

📋 Highlights
  • People Inc. Digital Growth:: Achieved 8% digital revenue growth and 20% adjusted EBITDA margin, driven by diversified audience and new product investments.
  • Free Cash Flow Projections:: Generated $50 million in free cash flow for the quarter, with annual guidance raised to exceed $150 million.
  • Share Repurchases & MGM Investments:: Repurchased 2.9 million shares for $111 million and acquired additional 1 million MGM shares for $37 million.
  • Corporate Cost Savings:: Achieved $40 million in annual run-rate operating savings and reduced stock-based compensation by $20–25 million through consolidation.
  • Transition Costs & Guidance:: $63 million in one-time expenses for restructuring, with updated corporate expense guidance of $95–105 million for the year.

People Inc. Digital Momentum

Neil Vogel highlighted that People Inc. leveraged a diversified audience to drive an 8% digital revenue lift and a 200‑basis‑point margin expansion, thanks to new inversion projects that blend traditional publishing with digital experiences. The reclassification of the M&I business from print to digital unlocked fresh growth pathways, positioning People to capture a broader share of online advertising and licensing revenue.

Financial Health & Cash Flow

With $50 million in Q1 free cash flow and projections of $150 million for the year, People Inc. demonstrates robust cash generation. The company’s ROIC of 0.11% and ROE of 0.86% remain modest, but the negative Net Debt/EBITDA of –2.97 indicates a comfortable balance sheet that can support future investments and potential dividend considerations.

Strategic Asset Management

IAC’s sale of Care.com generated $296 million in net proceeds, while a $111 million share repurchase and a $37 million incremental purchase of MGM shares reinforced its commitment to core assets. The company also earmarked a $63 million one‑time expense to complete its transition by February 2027, with a projected $40 million in annual operating‑expense savings and a $20–25 million reduction in stock‑based compensation.

Operational Consolidation

By consolidating corporate functions and eliminating duplicative roles, IAC expects annual corporate costs to fall to $45 million, down from the current $95–105 million range. This streamlining, coupled with a decline in stock‑based compensation to $30 million, should free capital for strategic initiatives and bolster the company’s valuation multiples.

Future Outlook & Growth Initiatives

The firm reaffirmed People Inc.’s adjusted EBITDA guidance at $310–340 million and lifted Emerging & Other to $5–15 million. It plans to monetize its domain portfolio, pursue 19 inversion projects—including a recipe platform and a People app—and explore new ventures such as a Southern Living‑branded tea line and housing community. AI is being leveraged to enhance ad targeting, streamline content creation, and expand the Decipher business’s reach across the Open Web and CTV.

Capital Allocation Strategy

With ample cash, IAC will shrink its capitalization, invest further in MGM, and potentially introduce a dividend, while avoiding major M&A. The focus remains on internal growth, affiliate commerce, and licensing deals, positioning the company to capitalize on its iconic brands and a large, engaged audience.

3. NewsRoom

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Here Are Wednesday’s Top Wall Street Analyst Research Calls: Advanced Micro Devices, American Eagle Outfitters, GlobalFoundries, IAC, Merck, Palantir Technologies, Reddit, and More

May -06

Source:

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IAC Inc. (IAC) Q1 2026 Earnings Call Transcript

May -05

Source: seekingalpha.com

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IAC (IAC) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

May -05

Source: zacks.com

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IAC (IAC) Reports Q1 Loss, Lags Revenue Estimates

May -04

Source: zacks.com

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IAC Revenue Slides as People's Print Business Weighs on Results, 2026 Outlook Cut

May -04

Source: wsj.com

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IAC Earnings Release Available on Company's Website

May -04

Source: prnewswire.com

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Barry Diller's IAC to Change Name, Cut Staff

Apr -28

Source: wsj.com

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Letter from Barry Diller to IAC Shareholders: IAC Announces Name Change to People Incorporated

Apr -28

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.30%)

6. Segments

Dotdash Meredith - Digital

Expected Growth: 0.5%

The digital publishing industry is experiencing moderate growth, driven by online advertising and subscription-based models. Dotdash Meredith's strong brand presence and diversified revenue streams position it for slightly higher growth than the global average.

Angi Inc - ADS and Leads

Expected Growth: 0.4%

The home services market is relatively stable, with steady demand for advertising and lead generation services. Angi Inc's established market presence and diversified service offerings support a growth rate slightly above the global average.

Search

Expected Growth: 0.2%

The online search market is highly competitive, with established players dominating the landscape. While the segment's revenue is largely driven by advertising, its growth is constrained by intense competition and market saturation.

Care.com

Expected Growth: 0.6%

The online care services market is growing, driven by increasing demand for caregiving services. Care.com's established market presence and expanding service offerings position it for higher growth than the global average.

Angi Inc - International

Expected Growth: 0.4%

The international home services market is relatively stable, with steady demand for advertising and lead generation services. Angi Inc's established international presence and diversified service offerings support a growth rate similar to its ADS and Leads segment.

Angi Inc. - Services

Expected Growth: 0.5%

The home services market is growing, driven by increasing demand for repair and maintenance services. Angi Inc's established market presence and expanding service offerings position it for moderate growth.

Emerging & Other

Expected Growth: 0.8%

Emerging businesses and investments are often characterized by higher growth potential, driven by innovation and expanding market opportunities. While the segment's growth is subject to various risks and uncertainties, its diversified portfolio and IAC's strategic support position it for higher growth than the global average.

Dotdash Meredith - Print

Expected Growth: 0.1%

The print publishing industry is experiencing a decline, driven by shifting consumer preferences towards digital media. Dotdash Meredith's print business is likely to continue this trend, with a growth rate below the global average.

Intersegment Eliminations

Expected Growth: 0.3%

As Intersegment Eliminations is not a revenue-generating segment, its growth is largely a function of the company's overall financial activity and intercompany transactions. A defensive growth figure of 0.3% is applied.

7. Detailed Products

Angie's List

A membership-based review platform that connects consumers with trusted home service professionals

HomeAdvisor

A home services marketplace that connects homeowners with pre-screened professionals

Thumbtack

A platform that connects customers with professionals for various tasks and projects

Care.com

A platform that connects families with caregivers and babysitters

Match.com

A online dating platform that connects singles

OkCupid

A online dating platform that connects singles

Tinder

A location-based online dating platform that connects singles

Dotdash

A digital media company that operates various online brands and websites

8. IAC Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

IAC Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and diversified portfolio of brands help to mitigate the threat of substitutes.

Bargaining Power Of Customers

IAC Inc.'s customers have relatively low bargaining power due to the company's diversified portfolio of brands and its ability to adapt to changing consumer preferences.

Bargaining Power Of Suppliers

IAC Inc. relies on a diverse range of suppliers, which reduces the bargaining power of individual suppliers. However, the company's dependence on a few key suppliers for certain products and services increases the bargaining power of those suppliers.

Threat Of New Entrants

The threat of new entrants is high in IAC Inc.'s industry, as the barriers to entry are relatively low and the market is highly competitive. However, the company's strong brand recognition and established market position help to mitigate this threat.

Intensity Of Rivalry

The intensity of rivalry in IAC Inc.'s industry is high, with many established players competing for market share. The company's diversified portfolio of brands and its ability to adapt to changing consumer preferences help to mitigate this threat.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.60%
Debt Cost 8.99%
Equity Weight 74.40%
Equity Cost 10.74%
WACC 10.29%
Leverage 34.41%

11. Quality Control: IAC Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 2.0

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A-Score: 5.0/10

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A-Score: 4.0/10

Value: 6.9

Growth: 2.7

Quality: 4.6

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.25$

Current Price

42.25$

Potential

-0.00%

Expected Cash-Flows