By Elias Schisgall

Angi said it remains confident it can return to revenue growth this year as it swung to a profit in the fourth quarter.

The home-services company, formed through the merger of Angie's List and HomeAdvisor, reported a profit of $7.2 million, or 17 cents a share, compared with a loss of $1.3 million, or 3 cents a share, a year earlier. Analysts polled by FactSet were expecting 34 cents a share.

"The fourth quarter was actually strong," Chief Executive Officer Jeff Kip said in an interview. "We overperformed on profitability, which we've been able to consistently over time."

He added that revenue has stabilized in January, and that the company remains confident in its goal of returning to revenue growth in 2026.

Fourth-quarter revenue fell 10% to $240.8 million, down from $267.9 million. Analysts were expecting $243.9 million.

The company said the decline was driven by a 79% decrease in network revenue related to the implementation of homeowner choice last year, which allows homeowners to select all the professionals they match with on the platform.

Propriety revenue rose 23% year over year, partially offsetting the fall in network revenue.

Kip said that network revenue is expected to continue declining in the first half of the year, but will level out to roughly flat, give or take, in the second half. He said that leveling, combined with continued momentum in proprietary revenue, will help Angi meet its 2026 growth target.

"We think we have a pretty clear path to growth, because we're coming off of this overhang of taking down our network revenue," Kip said in an interview.

The company said its acquired professionals fell 27% to 20,000 in the quarter, while average monthly active pros fell 23% to 111,000.

For the current first quarter, Angi expects revenue to decline between 1% and 3%. Kip said that the revenue outlook was affected by the layoff of 350 employees last month, largely in the products and tech organization, which moved the company's product roadmap back some.

"It's probably the difference between growth and where we're going to be," Kip said. "That's okay, we're going to get it long term, and you have to make those tradeoffs."

Angi is projecting full-year adjusted earnings before interest, taxes, depreciation, and amortization of between $15 million and $17 million, which it said was brought down by plans to spend aggressively on marketing during the quarter.

It is projecting full year adjusted Ebitda of between $145 million and $150 million.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 10, 2026 16:10 ET (21:10 GMT)

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