IAC Inc.
For the period ended Dec 31, 2025. Filed Feb 20, 2026.
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FY2025 · Filed Feb 20, 2026
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Item 8. Financial Statements and Supplementary Data
Financial Statements and Supplementary Data
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of IAC Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheet of IAC Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive operations, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 20, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
| Sufficiency of audit evidence over revenue | |
|---|---|
| Description of the Matter | As disclosed in Note 2 and Note 9 to the consolidated financial statements, the Company recognized revenue of $2.4 billion. The Company’s revenue includes multiple revenue streams and the Company’s process to account for and recognize revenue differs between certain revenue streams. Evaluating the sufficiency of audit evidence over revenue was complex and required a high degree of auditor judgment in designing our audit procedures to ensure sufficiency of audit evidence obtained due to the number of revenue streams and the use of multiple processes, including different revenue information technology (“IT”) systems, to account for and recognize revenue. Subjective auditor judgment was required to evaluate that revenue data was complete and accurate due to these varying IT systems and processes. |
| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the internal controls over the Company’s revenue recognition processes. This included testing controls over management’s review of manual journal entries and revenue related account reconciliations.Our audit procedures included, among other things, testing the completeness and accuracy of revenue data, testing a sample of revenue transactions to third-party documentation and contracts, where applicable, and reviewing the Company’s revenue related account reconciliations, including vouching cash receipts, where applicable. We also evaluated the Company’s disclosures included in Note 2 and Note 9 to the consolidated financial statements. We evaluated the sufficiency of audit evidence obtained by assessing the results of procedures performed. |
/s/Ernst & Young LLP
We have served as the Company’s auditor since 2019.
New York, New York
February 20, 2026
CONSOLIDATED BALANCE SHEET
| December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In thousands, except par value amounts) | ||
| ASSETS | ||
| Cash and cash equivalents | $960,211 | $1,381,736 |
| Accounts receivable, net | 448,814 | 483,020 |
| Other current assets | 135,725 | 125,208 |
| Current assets of discontinued operations | — | 495,072 |
| Total current assets | 1,544,750 | 2,485,036 |
| Buildings, land, equipment, leasehold improvements and capitalized software, net | 287,393 | 313,197 |
| Goodwill | 1,791,475 | 1,993,302 |
| Intangible assets, net of accumulated amortization | 465,860 | 554,473 |
| Investment in MGM Resorts International | 2,401,858 | 2,242,672 |
| Long-term investments | 409,240 | 438,534 |
| Other non-current assets | 230,153 | 324,901 |
| Non-current assets of discontinued operations | — | 1,336,529 |
| TOTAL ASSETS | $7,130,729 | $9,688,644 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| LIABILITIES: | ||
| Current portion of long-term debt | $24,500 | $35,000 |
| Accounts payable, trade | 37,519 | 53,672 |
| Deferred revenue | 50,315 | 56,560 |
| Accrued expenses and other current liabilities | 448,533 | 509,299 |
| Current liabilities of discontinued operations | — | 231,661 |
| Total current liabilities | 560,867 | 886,192 |
| Long-term debt, net | 1,401,324 | 1,435,007 |
| Deferred income taxes | 148,602 | 153,850 |
| Other long-term liabilities | 230,913 | 372,950 |
| Non-current liabilities of discontinued operations | — | 536,257 |
| Redeemable noncontrolling interests | 25,264 | 25,415 |
| Commitments and contingencies | ||
| SHAREHOLDERS’ EQUITY: | ||
| Common Stock, $0.0001 par value; authorized 1,600,000 shares; 83,581 and 84,831 shares issued and 71,555 and 80,481 shares outstanding at December 31, 2025 and 2024, respectively | 8 | 8 |
| Class B common stock, $0.0001 par value; authorized 400,000 shares; 5,789 shares issued and outstanding at December 31, 2025 and 2024 | 1 | 1 |
| Additional paid-in capital | 5,959,692 | 6,380,700 |
| Accumulated deficit | (643,000) | (538,974) |
| Accumulated other comprehensive loss | (11,842) | (11,396) |
| Treasury stock, 12,026 and 4,350 shares at December 31, 2025 and 2024, respectively | (571,032) | (252,441) |
| Total IAC shareholders’ equity | 4,733,827 | 5,577,898 |
| Noncontrolling interests | 29,932 | 701,075 |
| Total shareholders’ equity | 4,763,759 | 6,278,973 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $7,130,729 | $9,688,644 |
CONSOLIDATED STATEMENT OF OPERATIONS
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In thousands, except per share data) | |||
| Revenue | $2,393,189 | $2,622,121 | $2,919,403 |
| Operating costs and expenses: | |||
| Cost of revenue (exclusive of depreciation shown separately below) | 809,765 | 1,002,412 | 1,219,231 |
| Selling and marketing expense | 728,220 | 738,225 | 803,325 |
| General and administrative expense | 418,523 | 499,091 | 518,733 |
| Product development expense | 196,021 | 228,327 | 237,948 |
| Depreciation | 37,510 | 40,838 | 80,937 |
| Amortization of intangibles | 93,115 | 141,906 | 288,012 |
| Goodwill impairment | 207,451 | — | 9,000 |
| Total operating costs and expenses | 2,490,605 | 2,650,799 | 3,157,186 |
| Operating loss | (97,416) | (28,678) | (237,783) |
| Interest expense | (120,027) | (135,719) | (137,495) |
| Unrealized gain (loss) on investment in MGM Resorts International | 119,175 | (649,178) | 721,668 |
| Other income, net | 16,359 | 98,536 | 46,639 |
| (Loss) earnings from continuing operations before income taxes | (81,909) | (715,039) | 393,029 |
| Income tax (provision) benefit | (34,848) | 141,871 | (98,162) |
| Net (loss) earnings from continuing operations | (116,757) | (573,168) | 294,867 |
| Earnings (loss) from discontinued operations, net of tax | 15,287 | 39,838 | (36,550) |
| Net (loss) earnings | (101,470) | (533,330) | 258,317 |
| Net (earnings) loss attributable to noncontrolling interests | (2,556) | (6,567) | 7,625 |
| Net (loss) earnings attributable to IAC shareholders | $(104,026) | $(539,897) | $265,942 |
| Per share information from continuing operations: | |||
| Basic (loss) earnings per share | $(1.46) | $(6.89) | $3.42 |
| Diluted (loss) earnings per share | $(1.46) | $(6.89) | $3.31 |
| Per share information attributable to IAC common stock and Class B common stock shareholders: | |||
| Basic (loss) earnings per share | $(1.30) | $(6.49) | $3.07 |
| Diluted (loss) earnings per share | $(1.30) | $(6.49) | $2.97 |
| Stock-based compensation expense by function: | |||
| Cost of revenue | $1,644 | $2,219 | $1,613 |
| Selling and marketing expense | 3,922 | 2,636 | 2,488 |
| General and administrative expense | 23,303 | 68,991 | 64,971 |
| Product development expense | 3,444 | 3,899 | 4,490 |
| Total stock-based compensation expense | $32,313 | $77,745 | $73,562 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In thousands) | |||
| Net (loss) earnings | $(101,470) | $(533,330) | $258,317 |
| Other comprehensive income (loss), net of income taxes | |||
| Change in foreign currency translation adjustment | 3,206 | (2,860) | 3,428 |
| Change in net unrealized (losses) gains on interest rate swaps | (2,841) | 2,003 | (696) |
| Change in net unrealized losses on available-for-sale marketable debt securities | — | (20) | (33) |
| Total other comprehensive income (loss), net of income taxes | 365 | (877) | 2,699 |
| Comprehensive (loss) income, net of income taxes | (101,105) | (534,207) | 261,016 |
| Components of comprehensive (income) loss attributable to noncontrolling interests: | |||
| Net (earnings) loss attributable to noncontrolling interests | (2,556) | (6,567) | 7,625 |
| Change in foreign currency translation adjustment attributable to noncontrolling interests | (433) | 412 | (513) |
| Comprehensive (income) loss attributable to noncontrolling interests | (2,989) | (6,155) | 7,112 |
| Comprehensive (loss) income attributable to IAC shareholders | $(104,094) | $(540,362) | $268,128 |
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
| RedeemableNoncontrollingInterests · Common Stock,$.0001 par value · Class B Common Stock, $.0001 par value · Additional Paid-in Capital · (Accumulated Deficit) Retained Earnings · AccumulatedOtherComprehensiveLoss · Treasury Stock · Total IAC Shareholders’ Equity · NoncontrollingInterests · Total Shareholders’ Equity | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $ · Shares · $ · Shares | ||||||||||||
| (In thousands) | ||||||||||||
| Balance at December 31, 2022 | $27,235 | $8 | 84,184 | $1 | 5,789 | $6,295,080 | $(265,019) | $(13,133) | $(85,323) | $5,931,614 | $640,920 | $6,572,534 |
| Net (loss) earnings | (1,175) | — | — | — | — | — | 265,942 | — | — | 265,942 | (6,450) | 259,492 |
| Other comprehensive income, net of income taxes | — | — | — | — | — | — | — | 2,186 | — | 2,186 | 513 | 2,699 |
| Stock-based compensation expense | — | — | — | — | — | 73,562 | — | — | — | 73,562 | 48,388 | 121,950 |
| Issuance of common stock pursuant to stock-based awards, net of withholding taxes | — | — | 281 | — | — | (9,814) | — | — | — | (9,814) | — | (9,814) |
| Issuance of Angi Inc. common stock pursuant to stock-based awards, net of withholding taxes | — | — | — | — | — | (5,620) | — | 5 | — | (5,615) | (673) | (6,288) |
| Purchase of IAC treasury stock | — | — | — | — | — | — | — | — | (167,118) | (167,118) | — | (167,118) |
| Purchase of Angi Inc. treasury stock | — | — | — | — | — | (11,099) | — | — | — | (11,099) | — | (11,099) |
| Adjustment of noncontrolling interests to redemption amount | 7,567 | — | — | — | — | (7,567) | — | — | — | (7,567) | — | (7,567) |
| Adjustment to the liquidation value of Vivian Health preferred shares | — | — | — | — | — | 5,527 | — | — | — | 5,527 | (5,527) | — |
| Other | (249) | — | — | — | — | 243 | — | — | — | 243 | (29) | 214 |
| Balance at December 31, 2023 | $33,378 | $8 | 84,465 | $1 | 5,789 | $6,340,312 | $923 | $(10,942) | $(252,441) | $6,077,861 | $677,142 | $6,755,003 |
| Net earnings (loss) | 587 | — | — | — | — | — | (539,897) | — | — | (539,897) | 5,980 | (533,917) |
| Other comprehensive loss, net of income taxes | — | — | — | — | — | — | — | (465) | — | (465) | (412) | (877) |
| Stock-based compensation expense | — | — | — | — | — | 77,745 | — | — | — | 77,745 | 40,619 | 118,364 |
| Issuance of common stock pursuant to stock-based awards, net of withholding taxes | — | — | 366 | — | — | (14,845) | — | — | — | (14,845) | — | (14,845) |
| Issuance of Angi Inc. common stock pursuant to stock-based awards, net of withholding taxes | — | — | — | — | — | 4,013 | — | 11 | — | 4,024 | (11,377) | (7,353) |
| Purchase of Angi Inc. treasury stock | — | — | — | — | — | (28,581) | — | — | — | (28,581) | — | (28,581) |
| Purchase of noncontrolling interests | — | — | — | — | — | (11,296) | — | — | — | (11,296) | (4,723) | (16,019) |
| Adjustment of noncontrolling interests to redemption amount | (6,970) | — | — | — | — | 6,970 | — | — | — | 6,970 | — | 6,970 |
| Adjustment to the liquidation value of Vivian Health preferred shares | — | — | — | — | — | 6,154 | — | — | — | 6,154 | (6,154) | — |
| Other | (1,580) | — | — | — | — | 228 | — | — | — | 228 | — | 228 |
| Balance at December 31, 2024 | $25,415 | $8 | 84,831 | $1 | $5,789 | $6,380,700 | $(538,974) | $(11,396) | $(252,441) | $5,577,898 | $701,075 | $6,278,973 |
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (CONTINUED)
| RedeemableNoncontrollingInterests · Common Stock, $0.0001 par value · Class B Common Stock, $0.0001 par value · AdditionalPaid-inCapital · Accumulated Deficit · AccumulatedOtherComprehensiveLoss · Treasury Stock · Total IACShareholders’Equity · NoncontrollingInterests · Total Shareholders’Equity | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $ · Shares · $ · Shares | ||||||||||||
| (In thousands) | ||||||||||||
| Balance at December 31, 2024 | $25,415 | $8 | 84,831 | $1 | 5,789 | $6,380,700 | $(538,974) | $(11,396) | $(252,441) | $5,577,898 | $701,075 | $6,278,973 |
| Net earnings (loss) | 381 | — | — | — | — | — | (104,026) | — | — | (104,026) | 2,175 | (101,851) |
| Other comprehensive (loss) income, net of income taxes | — | — | — | — | — | — | — | (68) | — | (68) | 433 | 365 |
| Stock-based compensation expense | — | — | — | — | — | 29,163 | — | — | — | 29,163 | 2,498 | 31,661 |
| Issuance of common stock pursuant to stock-based awards, net of withholding taxes | — | — | 1,750 | — | — | (70,683) | — | — | — | (70,683) | — | (70,683) |
| Forfeiture of IAC's former CEO's restricted common stock award | — | — | (3,000) | — | — | — | — | — | — | — | — | — |
| Withholding taxes paid on IAC's transfer of Angi Inc. Class B shares to its former CEO | — | — | — | — | — | (9,347) | — | — | — | (9,347) | — | (9,347) |
| Issuance of Angi Inc. Class A common stock pursuant to stock-based awards, net of withholding taxes, prior to the Distribution | — | — | — | — | — | (8,264) | — | 4 | — | (8,260) | 3,688 | (4,572) |
| Purchase of IAC treasury stock | — | — | — | — | — | — | — | — | (318,591) | (318,591) | — | (318,591) |
| Purchase of Angi Inc. treasury stock prior to the Distribution | — | — | — | — | — | (10,688) | — | — | — | (10,688) | — | (10,688) |
| Adjustment of noncontrolling interests to redemption amount | (498) | — | — | — | — | 498 | — | — | — | 498 | — | 498 |
| Adjustment to the liquidation value of Vivian Health preferred shares | — | — | — | — | — | (2,990) | — | — | — | (2,990) | 2,990 | — |
| Distribution of IAC's investment in Angi Inc. | — | — | — | — | — | (1,031,998) | — | (382) | — | (1,032,380) | — | (1,032,380) |
| Elimination of Angi Inc. noncontrolling interest | — | — | — | — | — | 682,927 | — | — | — | 682,927 | (682,927) | — |
| Other | (34) | — | — | — | — | 374 | — | — | — | 374 | — | 374 |
| Balance at December 31, 2025 | $25,264 | $8 | 83,581 | $1 | 5,789 | $5,959,692 | $(643,000) | $(11,842) | $(571,032) | $4,733,827 | $29,932 | $4,763,759 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In thousands) | |||
| Cash flows from operating activities attributable to continuing operations: | |||
| Net (loss) earnings | $(101,470) | $(533,330) | $258,317 |
| Less: Earnings (loss) from discontinued operations, net of tax | 15,287 | 39,838 | (36,550) |
| Net (loss) earnings attributable to continuing operations | (116,757) | (573,168) | 294,867 |
| Adjustments to reconcile net (loss) earnings attributable to continuing operations to net cash provided by operating activities attributable to continuing operations: | |||
| Goodwill impairment | 207,451 | — | 9,000 |
| Amortization of intangibles | 93,115 | 141,906 | 288,012 |
| Depreciation | 37,510 | 40,838 | 80,937 |
| Non-cash lease expense (including right-of-use asset impairments) | 36,683 | 38,663 | 90,539 |
| Stock-based compensation expense | 32,313 | 77,745 | 73,562 |
| Deferred income taxes | 27,596 | (156,659) | 88,403 |
| Loss related to the allocation of a disputed gain on a real estate transaction | 19,189 | — | — |
| Net losses (gains) on sales of investments and businesses (including unrealized losses on investments) | 17,675 | (10,493) | 18,133 |
| Unrealized (gain) loss on investment in MGM Resorts International | (119,175) | 649,178 | (721,668) |
| Net (gains) losses on amendments and early terminations of lease agreements | (42,193) | (232) | 361 |
| Increase in the estimated fair value of a warrant | — | (20,393) | (2,832) |
| Other adjustments, net | 11,689 | (1,619) | (5,637) |
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||
| Accounts receivable | 14,166 | (6,398) | 12,140 |
| Other assets | 1,372 | 74,929 | 23,393 |
| Operating lease liabilities | (88,662) | (51,031) | (53,623) |
| Accounts payable and other liabilities | (58,594) | (8,732) | (106,557) |
| Income taxes payable and receivable | (2,259) | 2,738 | (2,677) |
| Deferred revenue | (7,084) | (4,809) | (9,032) |
| Net cash provided by operating activities attributable to continuing operations | 64,035 | 192,463 | 77,321 |
| Cash flows from investing activities attributable to continuing operations: | |||
| Capital expenditures | (19,201) | (15,014) | (93,584) |
| Allocation of Angi Inc. cash in the Distribution | (386,563) | — | — |
| Purchase of MGM Resorts International common shares | (40,011) | — | — |
| Net proceeds from the sales of investments and businesses | 11,359 | 177,163 | 10,861 |
| Purchases of investments | — | (53) | (103,555) |
| Proceeds from the sale of a portion of the retirement investment fund | 13,934 | 2,326 | — |
| Purchase of retirement investment fund | — | (15,968) | — |
| Net proceeds from sales of fixed assets | 17,458 | 12,751 | 29,394 |
| Proceeds from maturities of marketable debt securities | — | 375,000 | 537,500 |
| Purchases of marketable debt securities | — | (221,788) | (443,051) |
| Net collections of notes receivable | — | 11,834 | 11,297 |
| Other, net | (1,591) | 985 | 9,902 |
| Net cash (used in) provided by investing activities attributable to continuing operations | (404,615) | 327,236 | (41,236) |
| Cash flows from financing activities attributable to continuing operations: | |||
| Principal payments on Term Loans | (1,434,523) | (67,964) | (30,000) |
| Net proceeds from Term Loans refinancing | 991,451 | 7,964 | — |
| Proceeds from the issuance of the 2032 Notes | 400,000 | — | — |
| Debt issuance and deferred financing costs | (12,937) | (15) | — |
| Purchases of treasury stock | (315,041) | — | (165,622) |
| Withholding taxes paid on behalf of employees on net settled stock-based awards | (79,996) | (14,976) | (10,587) |
| Other, net | 43 | (1,897) | 179 |
| Net cash used in financing activities attributable to continuing operations | (451,003) | (76,888) | (206,030) |
| Total cash (used in) provided by continuing operations | (791,583) | 442,811 | (169,945) |
| Net cash (used in) provided by operating activities attributable to discontinued operations | (2,758) | 162,055 | 112,207 |
| Net cash used in investing activities attributable to discontinued operations | (12,499) | (50,411) | (46,231) |
| Net cash used in financing activities attributable to discontinued operations | (14,343) | (52,211) | (16,983) |
| Total cash (used in) provided by discontinued operations | (29,600) | 59,433 | 48,993 |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | 759 | (1,230) | 1,124 |
| Net (decrease) increase in cash and cash equivalents and restricted cash | (820,424) | 501,014 | (119,828) |
| Cash and cash equivalents and restricted cash at beginning of period | 1,807,255 | 1,306,241 | 1,426,069 |
| Cash and cash equivalents and restricted cash at end of period | $986,831 | $1,807,255 | $1,306,241 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.