By Elias Schisgall and Katherine Hamilton

Angi is aiming to break even on revenue by the end of 2026, but it's a long road to get there.

The home-services company said fourth-quarter revenue fell 10% to $240.8 million, and expects another decline during the current quarter. Analysts were expecting $243.9 million.

Shares fell 16% to $10 in after-hours trading Tuesday.

Chief Executive Jeff Kip said in an interview that the fourth quarter was strong and the company "overperformed on profitability."

Angi 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 company, which was formed through the merger of Angie's List and HomeAdvisor, said the sales decline was driven by a 79% decrease in network revenue. That decrease was 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 added that revenue has stabilized in January, and that the company remains confident in its goal of returning to revenue growth in 2026.

For the current first quarter, Angi expects revenue to decline between 1% and 3%. Kip said 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."

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, Kip said. 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.

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

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 and Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 10, 2026 16:55 ET (21:55 GMT)

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