Angi misses Q4 revenue estimates on weakness in network revenue

Reuters
11 hours ago
Angi misses Q4 revenue estimates on weakness in network revenue

Overview

  • Home services platform's Q4 revenue fell 10%, missing analyst expectations

  • Adjusted EBITDA for Q4 grew 25%, beating analyst estimates

  • Company repurchased 19.9% of shares since IAC spin-off

Outlook

  • Angi expects to return to revenue growth for fiscal year 2026

Result Drivers

  • NETWORK REVENUE DECLINE - Revenue decreased 10% primarily due to a 79% drop in Network Revenue following the implementation of homeowner choice

  • PROPRIETARY REVENUE GROWTH - Proprietary Revenue increased 23% driven by strong execution in paid marketing channels

  • COST REDUCTIONS - Operating income increased due to a $12.8 mln restructuring expense, lower depreciation, and reduced stock-based compensation

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$240.80 mln

$243.92 mln (8 Analysts)

Q4 EPS

$0.17

Q4 Net Income

$7.20 mln

Q4 Adjusted EBITDA

Beat

$39.70 mln

$39.23 mln (8 Analysts)

Q4 Operating Income

$5.90 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy."

  • Wall Street's median 12-month price target for Angi Inc is $18.00, about 54% above its February 9 closing price of $11.69

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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