IAC Inc.

Previous wording

On July 31, 2025, Dotdash Meredith Inc. was rebranded “People Inc.” and is referred to as such throughout this report. Dotdash Meredith Inc. remains the entity’s legal name.

Current wording

On July 31, 2025, Dotdash Meredith Inc. was rebranded “People Inc.” and is referred to as such throughout this report (unless the context requires otherwise). Dotdash Meredith Inc. remains the entity’s legal name.

Previous wording

On March 31, 2025, IAC completed the spin-off of Angi Inc. (“Angi”) by means of a special dividend (the “Distribution”) of all shares of Angi capital stock held by IAC to holders of its common stock and Class B common stock. As a result of the Distribution, IAC no longer owns any shares of Angi’s capital stock and Angi became an independent public company. On November 1, 2023, Angi completed the sale of Total Home Roofing, LLC (“Roofing”) and reflected it as a discontinued operation in its standalone financial statements. At the time of its sale, Roofing did not meet the threshold to be reflected as a discontinued operation at the IAC level, therefore, IAC moved Roofing to Emerging & Other. As a result of the Distribution, the operations of Angi, which include Roofing, are presented as discontinued operations within IAC’s consolidated financial statements for all periods prior to March 31, 2025. See “Note 12—Discontinued Operations” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information.

Current wording

On March 31, 2025, IAC completed the spin-off of Angi Inc. (“Angi”) by means of a special dividend (the “Distribution”) of all shares of Angi capital stock held by IAC to holders of its common stock and Class B common stock. As a result of the Distribution, IAC no longer owns any shares of Angi’s capital stock and Angi became an independent public company. As a result of the Distribution, the operations of Angi are presented as discontinued operations within IAC’s consolidated financial statements for all periods prior to March 31, 2025. See “Note 12—Discontinued Operations” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information.

Previous wording

•Print Revenue - primarily includes subscription, advertising, newsstand, project and other, and performance marketing revenue. Project and other and performance marketing revenue include revenue from advertising agency related revenue and customer publishing, and revenue from marketing third-party magazine subscriptions, respectively.

Current wording

•Print Revenue - primarily includes subscription, advertising, newsstand, project and other, and performance marketing revenue. Project and other revenue includes revenue from advertising agency related revenue and custom publishing. Performance marketing revenue includes revenue from marketing third-party magazine subscriptions.

Previous wording

•Consumer Revenue - consists of revenue primarily generated through subscription fees from families and caregivers, both domestically and internationally, for its suite of products and services. Consumer revenue also includes revenue generated through Care.com’s comprehensive household payroll and tax support services (HomePay) as well as through contracts with businesses that advertise through its platform.

Current wording

•Consumer Revenue - consists of revenue primarily generated through subscription fees from families and caregivers, both domestically and internationally, for its suite of products and services. Consumer revenue also includes revenue generated through Care.com’s comprehensive household payroll and tax support services (HomePay) as well as through contracts with businesses that advertise on its platform.

Previous wording

•Cost of revenue (exclusive of depreciation) -consists primarily of traffic acquisition costs, which include (i) payments made to partners who direct traffic to our Ask Media Group websites and who distribute our business-to-business customized browser-based applications and (ii) the amortization of fees paid to Apple and Google related to the distribution of apps and the facilitation of in-app purchases. Traffic acquisition costs include payment of amounts based on revenue share and other arrangements. Cost of revenue also includes production, distribution and editorial costs at People Inc. related to the Print segment, compensation expense (including stock-based compensation expense) and other employee-related costs, content costs, hosting fees, credit card processing fees and payments made to care providers for Care For Business.

Current wording

•Cost of revenue (exclusive of depreciation) -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs; production, distribution and editorial costs of the People Inc. Print segment; traffic acquisition costs, which include (i) payments made to partners who direct traffic to our Ask Media Group websites and who distribute our business-to-business customized browser-based applications and (ii) the amortization of fees paid to Apple and Google related to the distribution of apps and the facilitation of in-app purchases; content costs; purchases of advertising inventory for advertising campaigns sold with People’s D/Cipher+ product; and hosting fees. Traffic acquisition costs include payment of amounts based on revenue share and other arrangements.

Previous wording

•Selling and marketing expense -consists primarily of advertising expenditures, which include online marketing expenditures, including fees paid to search engines, social media sites and other online marketing platforms, offline marketing expenditures, which primarily consists of costs related to television, streaming, direct mail and radio advertising within our Care.com segment, compensation expense (including stock-based compensation expense) and other employee-related costs for sales force and marketing personnel and subscription acquisition costs related to People Inc.

Current wording

•Selling and marketing expense -consists primarily of advertising expenditures, which include online marketing expenditures, including fees paid to search engines, social media sites and other online marketing platforms; offline marketing expenditures, which primarily consists of costs related to television, streaming, direct mail and radio advertising; compensation expense (including stock-based compensation expense) and other employee-related costs for sales force and marketing personnel; and People Inc. subscription acquisition costs.

Previous wording

•General and administrative expense -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions, rent expense and facilities cost (including impairments of right-of-use assets or “ROU assets”), fees for professional services (including transaction-related costs related to the Distribution and acquisitions), provision for credit losses and software license and maintenance costs. The customer service function at Care.com includes personnel who support its caregivers and consumers.

Current wording

•General and administrative expense -consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions; rent expense (including impairments of right-of-use assets or “ROU assets” and gains or losses on the amendments or early terminations of lease agreements) and facilities cost; fees for professional services (including transaction-related costs related to the Distribution and acquisitions); provision for credit losses; and software license and maintenance costs.

Previous wording

•Term Loan A-1- due May 14, 2030. On May 14, 2025, People Inc. entered into the Incremental Assumption Agreement and Amendment No. 2 to the Credit Agreement ("Amendment No. 2"), which replaced $288.8 million of the then outstanding Term Loan A with $350 million of the Term Loan A-1 and provided for a new five-year $150 million revolving credit facility (“Revolving Facility”). At June 30, 2025, the outstanding balance of the Term Loan A-1 was $350.0 million and bore interest at secured overnight financing rate (“SOFR”) plus 2.00%, or 6.31%. At December 31, 2024, the outstanding balance of the Term Loan A was $297.5 million and bore interest at an adjusted term SOFR plus 2.25%, or 6.94%. The Term Loan A-1 requires quarterly principal payments commencing September 30, 2025.

Current wording

•Term Loan A-1- due May 14, 2030. On May 14, 2025, People Inc. entered into the Incremental Assumption Agreement and Amendment No. 2 to the Credit Agreement ("Amendment No. 2"), which replaced $288.8 million of the then outstanding Term Loan A with $350 million of the Term Loan A-1 and provided for a new five-year $150 million revolving credit facility (“Revolving Facility”). At September 30, 2025, the outstanding balance of the Term Loan A-1 was $345.6 million and bore interest at secured overnight financing rate (“SOFR”) plus 2.00%, or 6.14%. At December 31, 2024, the outstanding balance of the Term Loan A was $297.5 million and bore interest at an adjusted term SOFR plus 2.25%, or 6.94%. The Term Loan A-1 requires quarterly principal payments, which commenced September 30, 2025.

Previous wording

•Term Loan B-2 - due June 16, 2032. On June 16, 2025, People Inc. completed the refinancing and replacement of its then outstanding $1.18 billion Term Loan B-1 with a combination of $700 million of the Term Loan B-2 and $400 million of the 7.625% Senior Secured Notes due June 15, 2032 (“2032 Notes”). At June 30, 2025 and December 31, 2024, the outstanding balances of the Term Loan B-2 and the Term Loan B-1 were $700.0 million and $1.18 billion, respectively, and bore interest at SOFR, subject to a minimum of 0.50%, plus 3.50%, or 7.82% and 8.05%, respectively, as the applicable margin was unchanged under the governing agreements. The Term Loan B-2 requires quarterly principal payments commencing March 31, 2026.

Current wording

•Term Loan B-2 - due June 16, 2032. On June 16, 2025, People Inc. completed the refinancing and replacement of its then outstanding $1.18 billion Term Loan B-1 with a combination of $700 million of the Term Loan B-2 and $400 million of the 7.625% Senior Secured Notes due June 15, 2032 (“2032 Notes”). At September 30, 2025 and December 31, 2024, the outstanding balances of the Term Loan B-2 and the Term Loan B-1 were $700.0 million and $1.18 billion, respectively, and bore interest at SOFR, subject to a minimum of 0.50%, plus 3.50%, or 7.78% and 8.05%, respectively, as the applicable margin was unchanged under the governing agreements. The Term Loan B-2 requires quarterly principal payments commencing March 31, 2026.

Previous wording

•Revolving Facility - Amendment No. 2 provided for a revolving credit facility of $150 million, which expires on May 14, 2030, and replaced the then existing revolving credit facility. To date, People Inc. has not made any borrowings under any of its revolving credit facilities.

Current wording

•Revolving Facility - expires May 14, 2030. Amendment No. 2 provides for a revolving credit facility of $150 million, which replaced the then existing revolving credit facility. To date, People Inc. has not made any borrowings under any of its revolving credit facilities.

Previous wording

Google has made changes to the policies under the Services Agreement and has also made industry-wide changes that have in the past (and could in the future) require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which have negatively impacted revenue and been costly to address (and could in the future), and which have had and could have an adverse effect on our business, financial condition and results of operations. Further, changes to certain of the economic terms of the Services Agreement became effective April 1, 2025 and could impact Search revenue. See “Note 1—The Company and Summary of Significant Accounting Policies” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information on the Services Agreement.

Current wording

Google has made changes to the policies under the Services Agreement and has also made industry-wide changes that have in the past, continue to and are expected in the future to require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which have and are expected to in the future negatively impact revenue and been costly to address, and which have had and could have an adverse effect on our business, financial condition and results of operations. Further, changes to certain of the economic terms of the Services Agreement became effective April 1, 2025 and could impact Search revenue. See “Note 1—The Company and Summary of Significant Accounting Policies” in the accompanying notes to the financial statements included in “Item 1—Consolidated Financial Statements” for additional information on the Services Agreement.

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2025 Compared to the Three and Nine Months Ended September 30, 2024

Previous wording

◦The Print decrease was due primarily to decreases of $8.3 million, or 18%, in advertising revenue, $6.8 million, or 18%, in project and other revenue, $2.7 million, or 33%, in performance marketing revenue and $2.6 million, or 3% in subscription revenue, partially offset by an increase of $2.4 million, or 10%, in newsstand revenue. The decreases in advertising revenue, performance marketing revenue and subscription revenue are all due, in part, to ongoing portfolio optimization changes that resulted in a reduction in the number of issues sold in the current quarter compared to the prior year quarter and the ongoing migration of audience from print to digital platforms. The decrease in project and other revenue was due to a decrease in ticket sales for certain branded events. The increase in newsstand revenue was due primarily to an increase in the number of newsstand only issues produced in the current year and increased sales efficiency on titles produced in the prior year.

Current wording

◦The Print decrease was due primarily to decreases of $9.9 million, or 12%, in subscription revenue, $9.2 million, or 25%, in project and other revenue, $8.4 million, or 18%, in advertising revenue and $1.9 million, or 26%, in performance marketing revenue. The decreases in subscription revenue, advertising revenue and performance marketing revenue are all due, in part, to ongoing portfolio optimization changes that resulted in a reduction in the number of issues sold in the current quarter compared to the prior year quarter and the ongoing and continuing broader migration of audience from print to digital platforms. The decrease in project and other revenue was due to a decrease in revenue due to the inclusion in 2024 of political advertising spend on third-party publisher platforms from a legacy agency business, fewer project-related contracts compared to the prior year period and a shift in the timing of a certain branded event from the third quarter of 2024 to the fourth quarter of 2025.

Previous wording

◦The Digital increase was due primarily to increases of $7.7 million, or 5%, in Advertising revenue, $7.5 million, or 14.0%, in Performance marketing revenue and $7.0 million, or 23%, in Licensing and Other revenue. The increase in Advertising revenue was driven primarily by an increase in premium advertising sold through the People Inc. sales team in the Health and Pharmaceuticals, Technology and Travel categories, partially offset by lower programmatic revenue primarily due to lower impression volumes driven by higher premium advertising growth and related impression consumption, partially offset by higher programmatic rates. The increase in Performance marketing revenue was due primarily to an increase in affiliate commerce commission revenue, partially offset by a decrease in performance marketing service revenue in the Finance category. The increase in Licensing and Other revenue was due primarily toimproved performance from content syndication partners and Apple News+, as well as the contribution of a full quarter of OpenAI revenue, a partnership which beganin May 2024 (the “OpenAI Partnership”).

Current wording

◦The Digital increase was due primarily to increases of $19.6 million, or 42%, in Performance marketing revenue, net of intersegment eliminations, and $6.9 million, or 24%, in Licensing and Other revenue, partially offset by a decrease of $6.6 million, or 4%, in Advertising revenue, net of intersegment eliminations. The increase in Performance marketing revenue was due primarily to an increase in affiliate commerce commission revenue due tohigher transaction volumes and the timing of volume-related retailer incentive programs, partially offset by a decrease in performance marketing service revenue primarily in the Finance category. The increase in Licensing and Other revenue was due primarily toimproved performance from Apple News+ and content syndication partners. The decrease in Advertising revenue was driven primarily by lower programmatic revenue primarily due to lower impression volumes driven by a 6% decline in Core Sessions, due primarily to the impact of the increasing prominence of Google AI Overviews on Google search sessions, and an increased portion of impression volume consumed by premium advertising, partially offset by higher programmatic rates. The Company expects the increasing prominence of Google AI Overviews to continue to negatively impact Core Sessions. The decrease in programmatic revenue was partially offset by an increase in premium advertising sold through the People Inc. sales team in the Travel, Technology and Finance categories as well as the increasing contribution from D/Cipher+.

Previous wording

•Care.com revenue decreased 6% to $82.0 million due primarily to decreases of $4.2 million, or 9%, in Consumer Revenue and $1.4 million, or 4%, in Enterprise Revenue. The decrease in Consumer Revenue was driven by fewer Care.com platform subscriptions. The decrease in Enterprise Revenue was primarily due to lower overall product utilization.

Current wording

•Care.com revenue decreased$4.9 million, or 5%, to $90.8 million due primarily to decreases of $3.1 million, or 6%, in Enterprise Revenue and $1.8 million, or 4%, in Consumer Revenue. The decrease in Enterprise Revenue was primarily due to lower overall product utilization. The decrease in Consumer Revenue was driven by fewer Care.com platform subscriptions.

Previous wording

•Search revenue decreased 39% to $61.7 million due to decreases of $32.8 million, or 39%, from Ask Media Group, resulting from channel mix, and a reduction in marketing through affiliate partners, which drove fewer visitors to our ad-supported search and content websites and, $7.3 million, or 41%, from Desktop due primarily to the continued decline in search queries from our legacy business-to-business partnership operations.

Current wording

•Search revenue decreased $36.4 million, or 41%, to $51.9 million due to decreases of $29.8 million, or 41%, from Ask Media Group, due primarily to frequent changes to Google’s algorithm and policy updates, resulting in a reduction in marketing through affiliate partners, which drove fewer visitors to our ad-supported search and content websites, and $6.6 million, or 42%, from Desktop due primarily to the continued decline in search queries from our legacy business-to-business partnership operations.

Previous wording

•People Inc. revenue increased 1% to $820.4 million due to an increase of $37.2 million, or 8%, from Digital, partially offset by a decrease of $30.2 million, or 8%, from Print.

Current wording

•People Inc. revenue decreased $4.9 million to $1.3 billion, due primarily to a decrease of $59.8 million, or 10%, from Print, partially offset by an increase of $54.9 million, or 8%, from Digital, net of intersegment eliminations.

Previous wording

◦The Print decrease was due primarily to decreases of $13.6 million, or 15%, in advertising revenue, $9.4 million, or 14%, in project and other revenue, $6.3 million, or 4% in subscription revenue and $5.2 million, or 27%, in performance marketing revenue, partially offset by an increase of $4.2 million, or 8%, in newsstand revenue. The decreases in advertising revenue, subscription revenue and performance marketing revenue and the increase in newsstand revenue are all due, in part, to the factors described above in the three-month discussion. The decrease in project and other revenue was due primarily to political advertising spend from a legacy agency business in 2024 on third-party publisher platforms and a decrease in ticket sales for certain branded events.

Current wording

◦The Print decrease was due primarily to decreases of $22.0 million, or 16%, in advertising revenue, $18.6 million, or 18%, in project and other revenue, $16.2 million, or 7% in subscription revenue and $7.0 million, or 27%, in performance marketing revenue, partially offset by an increase of $4.0 million, or 5%, in newsstand revenue. The decreases in advertising revenue, project and other revenue, subscription revenue and performance marketing revenue are all due, in part, to the factors described above in the three-month discussion. The increase in newsstand revenue was due primarily to an increase in the number of newsstand only issues produced in the current year and increased sales efficiency on titles produced in the prior year.

Previous wording

◦The Digital increase was due primarily to increases of $14.5 million, or 26%, in Licensing and Other revenue, $13.2 million, or 13%, in Performance marketing revenue and $9.4 million, or 3%, in Advertising revenue. The increase in Licensing and Other revenue was due primarily to the contribution of a full six months of revenue from the OpenAI Partnership and improved performance of content syndication partners including Apple News+. The increase in Performance marketing revenue was due primarily tothe factors described above in the three-month discussion. The increase in Advertising revenue was driven primarily by an increase in premium advertising sold through the People Inc. sales team in the Technology, Health and Pharmaceuticals and Travel categories, partially offset by lower programmatic revenue due primarily to the factors described above in the three-month discussion.

Current wording

◦The Digital increase was due primarily to increases of $32.5 million, or 23%, in Performance marketing revenue, net of intersegment eliminations, and $21.4 million, or 25%, in Licensing and Other revenue. The increase in Performance marketing revenue was due primarily tothe factors described above in the three-month discussion. The increase in Licensing and Other revenue was due primarily to the contribution of a full nine months of OpenAI revenue, a partnership which began in May 2024, and improved performance of content syndication partners and Apple News+.

Previous wording

•Care.com revenue decreased 5% to $170.9 million due primarily to a decrease of $9.0 million, or 9%, in Consumer Revenue due primarily to the factor described above in the three-month discussion.

Current wording

•Care.com revenue decreased$14.2 million, or 5%, to $261.7 million due primarily to decreases of $10.8 million, or 7%, in Consumer Revenue and $3.4 million, or 3%, in Enterprise Revenue, due primarily to the factors described above in the three-month discussion.

Previous wording

•Search revenue decreased 37% to $132.0 million due to decreases of $65.1 million, or 37%, from Ask Media Group and $13.1 million, or 36%, from Desktop due primarily to the factors described above in the three-month discussion.

Current wording

•Search revenue decreased $114.6 million, or 38%, to $183.9 million due to decreases of $94.9 million, or 38%, from Ask Media Group and $19.7 million, or 38%, from Desktop due primarily to the factors described above in the three-month discussion.

Previous wording

•Emerging & Other revenue decreased 37% to $34.2 million due primarily to the inclusion in the prior year period of $17.8 million in revenue from Mosaic Group, the assets of which were sold on February 15, 2024, and a decrease of $4.4 million, or 71%, from IAC Films, partially offset by an increase in revenue of 39%, from The Daily Beast.

Current wording

•Emerging & Other revenue decreased $21.0 million, or 29%, to $51.5 million due primarily to the inclusion in the prior year period of $17.8 million in revenue from Mosaic Group, the assets of which were sold on February 15, 2024, and decreases of $4.6 million, or 61%, from IAC Films and 5% from Vivian Health, partially offset by an increase in revenue of 20% from The Daily Beast.

Previous wording

Cost of revenue in 2025 decreased from 2024 due primarily to decreases of $84.6 million from Search, $10.8 million from Emerging & Other and $8.3 million from People Inc.

Current wording

Cost of revenue in 2025 decreased from 2024 due primarily to a decrease of $37.5 million from Search, partially offset by an increase of $0.8 million from People Inc.

Previous wording

•The Search decrease was due primarily to a decrease in traffic acquisition costs of $43.8 million following a decrease in revenue and the proportion of revenue earned from affiliate partners who direct traffic to our websites.

Current wording

•The Search decrease was due primarily to a decrease in traffic acquisition costs of $36.9 million following a decrease in revenue and the proportion of revenue earned from affiliate partners who direct traffic to our websites.

Previous wording

◦The Digital increase was due primarily to increases of $6.4 million in compensation expense due primarily to an increase in headcount to better align resources with strategic initiatives, $2.9 million in content costs due primarily to increased demand for custom content campaigns within premium advertising revenue and $1.1 million in spend related to advertising campaigns sold with D/Cipher+.

Current wording

◦The Digital increase was due primarily to increases of $9.7 million in compensation expense due primarily to $4.3 million in severance-related costs in the third quarter of 2025 driven by headcount reductions to better align the business with strategic growth priorities and $2.1 million related to the purchase of advertising inventory for advertising campaigns sold with D/Cipher+, partially offset by a decrease of $1.4 million in content costs due primarily to a decrease in advertising revenue.

Previous wording

◦The Print decrease was due primarily to a decrease of $10.6 million in production and distribution costs (postage, paper, printing and editorial) resulting from the planned reduction in the number of printed copies of certain publications and a decrease in paper costs.

Current wording

◦The Print decrease was due primarily to decreases of $9.1 million in production and distribution costs (postage, paper, printing and editorial), partially offset by an increase of $1.6 million in compensation expense. The decrease in production and distribution costs resulted from the planned reduction in the number of printed copies of certain publications and a decrease in paper costs. The increase in compensation expense was due to $3.3 million in severance-related costs in the third quarter of 2025 driven by headcount reductions to better align the business with strategic growth priorities, partially offset with a decrease in headcount in the fourth quarter of 2024.

Previous wording

Cost of revenue in 2025 decreased from 2024 due primarily to decreases of $44.4 million from Search, $4.1 million from People Inc. and $2.4 million from Emerging & Other.

Current wording

Cost of revenue in 2025 decreased from 2024 due primarily to decreases of $122.1 million from Search, $9.8 million from Emerging & Other and $7.6 million from People Inc.

Previous wording

•The Search decrease was due primarily to a decrease in traffic acquisition costs of $83.0 million due primarily to the factors described above in the three-month discussion.

Current wording

•The Search decrease was due primarily to a decrease in traffic acquisition costs of $119.9 million due primarily to the factors described above in the three-month discussion.

Previous wording

•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $7.7 million in expense from Mosaic Group, the assets of which were sold on February 15, 2024, and a decrease of $2.6 million in compensation expense at The Daily Beast resulting from a planned reduction in editorial staff in the prior year.

Current wording

•The Emerging & Other decrease was due primarily to the inclusion in the prior year period of $7.4 million in expense from Mosaic Group, the assets of which were sold on February 15, 2024, and a decrease of $2.3 million in compensation expense at The Daily Beast resulting from the planned reduction in editorial staff in the prior year.

Previous wording

◦The Print decrease was due primarily to a decrease of $21.5 million in production and distribution costs (postage, printing, paper and editorial) resulting from the planned reduction in the number of printed copies of certain publications and a decrease in paper costs and a decrease of $2.3 million in compensation expense primarily related to headcount reductions in the fourth quarter of 2024 intended to better align resources with strategic initiatives.

Current wording

◦The Print decrease was due primarily to a decrease of $30.6 million in production and distribution costs (postage, printing, paper and editorial) resulting from the planned reduction in the number of printed copies of certain publications and a decrease in paper costs, $5.6 million in costs related to fulfill political advertising on third-party publisher platforms from a legacy agency business in the prior year and a net decrease of $0.7 million in compensation expense primarily related to headcount reductions in the fourth quarter of 2024, partially offset by $3.3 million in severance-related costs described above in the three-month discussion.

Previous wording

◦The Digital increase was due primarily to increases of $12.0 million in compensation expense, $4.8 million in content costs, $1.8 million in traffic acquisition costs and $1.3 million in spend related to advertising campaigns sold with D/Cipher+. The increases in both compensation expense and content costs were due primarily to the factors described above in the three-month discussion. The increase in traffic acquisition costs was due primarily to a new contractual relationship entered into in the prior year to increase programmatic revenue rates.

Current wording

◦The Digital increase was due primarily to increases of $21.8 million in compensation expense, $3.4 million related to the purchase of advertising inventory for advertising campaigns sold with D/Cipher+ and $1.8 million in content costs. The increases in both compensation expense and content costs were due primarily to the factors described above in the three-month discussion. The increase in traffic acquisition costs was due primarily to a new contractual relationship entered into in the prior year to increase programmatic revenue rates.

Previous wording

Selling and marketing expense in 2025 increased slightly from 2024 due to increases of$12.0 million from Search and$4.0 million from People Inc., partially offset by decreasesof $12.9 million from Emerging & Other and$2.2 million from Care.com.

Current wording

Selling and marketing expense in 2025 increased from 2024 due to increasesof$3.3 million from Search, $2.2 million from Care.com and $1.0 million from People Inc.

Previous wording

•The Search increase was due primarily to an increase of $7.0 million in online marketing spend due to higher traffic through internal marketing efforts, partially offset by a decrease of $0.5 million in compensation expense due to a reduction in headcount.

Current wording

•The Search increase was due primarily to an increase of $3.7 million in online marketing spend due to higher traffic through the shift to internal marketing efforts and away from using affiliate partners.

Previous wording

•The Care.com decrease was due primarily to the inclusion in the prior year of $9.5 million in legal accruals due to the resolution of certain legal matters.

Current wording

•The Care.com increase was due primarily to an increase of $1.6 million in online marketing spend due to its rebrand in June 2025.

Previous wording

◦The Digital increase was due primarily to increases of $10.0 million in advertising and events production expense due, in part, to an increase in online marketing spend due primarily to an increase in paid affiliate commerce commission revenue and $2.5 million in compensation expense due primarily to higher headcount and commissions.

Current wording

◦The Digital increase was due primarily to increases of $10.7 million in advertising and events production expense due, in part, to online marketing spend due primarily to an increase in paid affiliate commerce commission revenue, and $4.7 million in compensation expense due to an increase in headcount and $3.1 million in severance-related costs in the third quarter of 2025 driven by headcount reductions to better align the business with strategic growth priorities.

Previous wording

Selling and marketing expense in 2025 increased from 2024 due to increasesof$6.4 million from Search and $5.0 million from People Inc., partially offset by a decrease of $3.4 million from Emerging & Other.

Current wording

Selling and marketing expense in 2025 increased from 2024 due to increases of$15.3 million from Search and$4.9 million from People Inc., partially offset by a decreaseof $13.8 million from Emerging & Other.

Previous wording

•The Search increase was due primarily to an increase of $13.5 million in online marketing spend, partially offset by a decrease of $1.3 million in compensation expense due to the factors described above in the three-month discussion.

Current wording

•The Search increase was due primarily to an increase of $17.2 million in online marketing spend due to the factor described above in the three-month discussion, partially offset by a decrease of $1.4 million in compensation expense due to the planned reduction in headcount.

Previous wording

◦The Print decrease was due primarily to decreases of $7.0 million in advertising and events production expense due, in part, to a decrease in direct mail marketing spend and the promotion of branded events in the prior year period, and $3.7 million in compensation expense primarily due to the factors described above in the three-month discussion.

Current wording

◦The Print decrease was due primarily to decreases of $12.6 million in advertising and events production expense due, in part, to the promotion of branded events in the prior year period and a decrease in direct mail marketing spend, and $5.5 million in subscription acquisition costs and $4.5 million in compensation expense, both due primarily to the factors described above in the three-month discussion.

Previous wording

•The Emerging & Other decrease was due primarily to the inclusion in the prior year of$8.3 million of expense from Mosaic Group, the assets of which were sold on February 15, 2024, a decrease of $1.6 million in offline marketing spend at IAC Films and a decrease of $1.1 million in compensation expense at Vivian Health primarily due to the factor described above in the three-month discussion.

Current wording

•The Emerging & Other decrease was due primarily to the inclusion in the prior year of$8.3 million of expense from Mosaic Group, the assets of which were sold on February 15, 2024, a decrease of $1.8 million in compensation expense at Vivian Health primarily due to a reduction in headcount and a decrease of $1.6 million in offline marketing spend at IAC Films.

Previous wording

•The Emerging & Other increase was due primarily to increases of $2.9 million in legal fees related to a legacy business and $2.4 million in stock-based compensation expense.

Current wording

•The Emerging & Other increase was due primarily to an increase of $18.2 million in legal fees and settlement expenses for litigation that concluded in the third quarter of 2025 related to a legacy business.