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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's Q3 2025 Earnings: A Mixed Bag

IAC's third-quarter 2025 financial performance was marked by a 9% growth in digital revenue, reaching $72 million in digital adjusted EBITDA. However, the company's adjusted EBITDA guidance range for the year was lowered to $325-340 million, citing uncertainty around Google Search disruptions and legal expenses. The actual EPS came out at '-0.27', missing estimates of '-0.24'.

Publication Date: Nov -15

📋 Highlights
  • Microsoft AI Content Partnership:: IAC partners with Microsoft for a publisher content marketplace, enabling direct compensation for AI use, with Copilot as the first buyer.
  • People Inc. Financial Performance:: 9% digital revenue growth and $72M digital adjusted EBITDA in Q3, with annual EBITDA guidance revised to $325–340M.
  • Share Buybacks & Capital Allocation:: $100M in Q3 share repurchases (total $300M YTD) and $1B+ cash reserves, prioritizing undervalued acquisitions and stock buybacks.
  • Off-Platform Traffic Growth:: 66% YoY increase in off-platform content usage, driven by strategic investments like Feedfeed acquisition.
  • Google Litigation Impact:: Seeking hundreds of millions in damages from Google, with $4M+ quarterly legal costs expected in Q4 and beyond.

Revenue Growth and Profitability

The company's digital revenue growth was driven by its strong portfolio of iconic brands, audience trends, and diversification of revenue streams. As Neil Vogel noted, "We're seeing strong digital revenue growth and improved profitability." The company's focus on owned and operated assets, off-platform content, and addressable audiences is paying off, with off-platform use accelerating 66% year-over-year.

Valuation and Growth Prospects

With a P/S Ratio of 0.99 and an EV/EBITDA of 7.66, the market is pricing in moderate growth prospects for IAC. Analysts estimate next year's revenue growth at -2.1%, indicating a challenging environment. However, the company's efforts to pivot resources to where the audiences are, such as through the acquisition of Feedfeed, a leading food influencer network, could drive future growth.

Capital Allocation and Share Buybacks

IAC remains committed to opportunistic share purchases, with $100 million in buybacks in the quarter and $300 million year-to-date. Barry Diller emphasized that the company is willing to wait for good opportunities, stating, "We're buying back stock and making opportunistic acquisitions, with a focus on undervalued companies."

Operational Highlights and Future Initiatives

The company is focused on connecting directly with consumers and advertisers through key investments and growth initiatives. The direct-to-consumer properties, such as MyRecipes, the People app, and WeReview, are showing momentum. IAC is also investing in editorial tentpoles like Red Plaid Café and Feedfeed, which drive multiple revenue streams.

Challenges and Opportunities

IAC faces challenges from Google Search traffic decline and the rise of AI, but the company's strategy and investments are expected to enable it to maintain overall growth. The partnership with Microsoft to be a launch partner of their publisher content marketplace is a significant endorsement of IAC's content and publishing capabilities.

3. NewsRoom

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Head-To-Head Comparison: ITT (NYSE:ITT) and IAC (NASDAQ:IAC)

Nov -27

Source: defenseworld.net

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IAC Inc. $IAC Shares Sold by Envestnet Asset Management Inc.

Nov -17

Source: defenseworld.net

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Mason Hawkins' Strategic Moves: Rayonier Inc. Takes Center Stage with 6.09% Portfolio Share

Nov -14

Source: gurufocus.com

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ControlMonkey Unifies Cloud and On-Prem Infrastructure Automation with AI-powered IaC Platform

Nov -13

Source: globenewswire.com

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Y Intercept Hong Kong Ltd Takes $611,000 Position in IAC Inc. $IAC

Nov -06

Source: defenseworld.net

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Securitas AB Interim Report Q3 2025 January-September

Nov -06

Source: prnewswire.com

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IAC Inc. (IAC) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Insperity Posts Downbeat Q3 Results, Joins IAC, Archer-Daniels-Midland And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session

Nov -04

Source: benzinga.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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Value: 6.2

Growth: 7.8

Quality: 8.2

Yield: 0.0

Momentum: 4.0

Volatility: 6.7

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CarGurus

A-Score: 5.2/10

Value: 3.0

Growth: 6.8

Quality: 8.2

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

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Liberty Broadband

A-Score: 4.9/10

Value: 7.0

Growth: 9.0

Quality: 6.8

Yield: 0.0

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Twilio

A-Score: 4.5/10

Value: 1.6

Growth: 8.1

Quality: 5.9

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

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Shutterstock

A-Score: 4.5/10

Value: 5.7

Growth: 3.9

Quality: 6.1

Yield: 7.0

Momentum: 1.0

Volatility: 3.3

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IAC

A-Score: 3.7/10

Value: 6.8

Growth: 2.7

Quality: 4.5

Yield: 0.0

Momentum: 2.0

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

36.76$

Current Price

36.76$

Potential

-0.00%

Expected Cash-Flows