Angi Inc.

Previous wording

Angi Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality Pros with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. There were approximately 134,000 Average Active Monthly Pros (as defined below) during the three months ended March 31, 2025. Additionally, consumers turned to at least one of our businesses to find a Pro for approximately 16 million projects during the twelve months ended March 31, 2025.

Current wording

Angi Inc. (“Angi,” the “Company,” “we,” “our,” or “us”) connects quality home professionals (“Pros”) with consumers across more than 500 different categories, from repairing and remodeling homes to cleaning and landscaping. There were approximately 126,000 Average Active Monthly Pros (as defined below) during the three months ended June 30, 2025. Additionally, consumers turned to at least one of our businesses to find a Pro for approximately 16 million projects during the twelve months ended June 30, 2025.

Previous wording

For a more detailed description of the Company’s operating businesses, see “Description of Our Businesses” included in “Item 1—Business” to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

For a more detailed description of the Company’s operating businesses, see “Description of Our Businesses” included in “Item 1—Business” to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Report”).

Previous wording

Unless otherwise indicated or as the context otherwise requires, certain terms used in this quarterly report, which include the principal operating metrics we use in managing our business, are defined below:

Current wording

Unless otherwise indicated or as the context otherwise requires, certain terms used in this quarterly report on Form 10-Q (this “Quarterly Report”), which include the principal operating metrics we use in managing our business, are defined below:

Previous wording

•Domestic Revenue primarily comprises domestic revenue from lead revenue for consumer matches, revenue from Pros under contract for advertising and membership subscription revenue from Pros and consumers, and revenue from pre-priced offerings by which the consumer requests services through a Company platform and the Company connects them with a Pro to perform the service.

Current wording

•Domestic Revenue primarily comprises revenue generated within the Domestic segment, including lead revenue for consumer matches, revenue from Pros under contract for advertising and membership subscription revenue from Pros and consumers, and revenue from pre-priced offerings by which the consumer requests services through a Company platform and the Company connects them with a Pro to perform the service.

Previous wording

•International Revenue primarily comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including lead revenue for consumer matches and membership subscription revenue from Pros.

Current wording

•International Revenue comprises revenue generated within the International segment (consisting of businesses in Europe and Canada), including lead revenue for consumer matches and membership subscription revenue from Pros.

Previous wording

•Network Channelsare sources of Service Requests in which consumers are presented with Angi Pros through a 3rd party website experience.

Current wording

•Network Channelsare sources of Service Requests in which consumers are presented with Angi Pros through a third party website experience.

Previous wording

Results of Operations for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Current 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

Previous wording

The following discussion should be read in conjunction with “Item 1—Consolidated Financial Statements.” Included below are year-over-year comparisons between the three months ended March 31, 2025 and the three months ended March 31, 2024 reflecting our updated segment structure. See “Note 1—The Company and Summary of Significant Accounting Policies” for details regarding our segment change.

Current wording

The following discussion should be read in conjunction with “Item 1—Consolidated Financial Statements.” Included below are year-over-year comparisons between the three and six months ended June 30, 2025 and the three and six months ended June 30, 2024 reflecting our updated segment structure. See “Note 1—The Company and Summary of Significant Accounting Policies” for details regarding our segment change.

Previous wording

Domestic revenue decreased $57.5 million, or 21%, due primarily to a decrease in lead revenue of $45.1 million, or 28%, a decrease in advertising revenue of $5.5 million, or 7%, a decrease in services revenue of $3.5 million, or 17%, and a decrease in membership subscription revenue of $3.2 million, or 27%. The decrease in revenue was driven by the Company’s ongoing quality and efficiency improvements, including market optimization, sales force consolidation, and full implementation of consumer choice in January 2025.

Current wording

Domestic revenue decreased $36.4 million, or 13%, due primarily to a decrease in advertising revenue of $14.1 million, or 18%, a decrease in lead revenue of $13.4 million, or 8%, a decrease in services revenue of $5.3 million, or 22%, and a decrease in membership subscription revenue of $3.5 million, or 32%. The decrease in Domestic revenue was driven by the Company’s ongoing quality and efficiency improvements, including marketing optimization, sales force consolidation, and full implementation of homeowner choice in January 2025.

Previous wording

International revenue decreased $2.0 million, or 6%, due primarily to a management decision to change the business model of the Canadian business when migrating it onto the European platform. This decision was made to bring the business model in line with the European businesses and transition the Canadian business into a more profitable self-serve platform that needs fewer manual sales.

Current wording

International revenue decreased $2.5 million, or 4%, due primarily to a management decision to change the business model of the Canadian business when migrating it onto the European platform. This decision was made to bring the business model in line with the European businesses and transition the Canadian business into a more profitable self-serve platform that needs fewer manual sales.

Previous wording

International cost of revenue increased $0.1 million or 13%, and stayed consistent as a percentage of revenue, due primarily to a $0.1 million increase in the cost of content purchased and used on the business’s websites.

Current wording

International cost of revenue decreased $0.2 million, or 20%, and decreased as a percentage of revenue, due primarily to a $0.1 million decrease in the cost of content purchased and used on the business’s websites.

Previous wording

Domestic cost of revenue increased $0.4 million, or 3%, and increased as a percentage of revenue, due primarily to higher hosting fees of $1.8 million, partially offset by lower credit card processing fees of $1.2 million.

Current wording

Domestic cost of revenue decreased $0.4 million, or 2%, but increased as a percentage of revenue, due primarily to lower credit card processing fees of $2.0 million and lower payments to third-party professional service providers of $1.5 million, partially offset by higher hosting fees of $2.8 million.

Previous wording

Gross profit decreased $60.0 million, or 20%, due primarily to the decrease in revenue described in the revenue discussion above.

Current wording

Gross profit decreased $35.9 million, or 12%, due primarily to the decrease in revenue described in the revenue discussion above.

Previous wording

International selling and marketing expense decreased $1.8 million, or 16%, driven by a decrease in compensation expense of $1.6 million due primarily to a reduction in headcount. The reduction in headcount was driven by the management decision to change the business model of the Canadian business when migrating it onto the European platform described in the revenue discussion above.

Current wording

International selling and marketing expense decreased $0.9 million, or 10%, driven by a decrease in compensation expense of $1.5 million due primarily to a reduction in headcount, partially offset by an increase in advertising expense of $0.9 million. The reduction in headcount was driven by the management decision to change the business model of the Canadian business when migrating it onto the European platform described in the revenue discussion above. The increase in advertising expense was due primarily to higher costs related to online advertising.

Previous wording

Domestic selling and marketing expense decreased $36.7 million, or 25%, driven by decreases in compensation expense of $18.4 million and advertising expense of $16.9 million. The decrease in compensation expense was due primarily to a reduction in headcount. The decrease in advertising expense was due primarily to lower offline advertising.

Current wording

Domestic selling and marketing expense decreased $54.6 million, or 19%, driven by decreases of $41.0 million in compensation expense and $11.5 million in advertising expense. The decrease in compensation expense was due primarily to a reduction in headcount. The decrease in advertising expense was due primarily to lower costs related to offline advertising.

Previous wording

Domestic general and administrative expense decreased $28.3 million, or 37%, due primarily to decreases of $15.4 million in compensation expense, $5.3 million in the provision for credit losses, $2.9 million in lease expense, $2.2 million in software license and maintenance costs, and $2.1 million in third-party wages. The decrease in compensation expense is primarily due to cumulative previously recognized stock-based compensation expense of $10.2 million related to IAC restricted stock forfeited by Joseph Levin, former CEO of IAC and current Executive Chairman of Angi, and a reduction in headcount. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in lease expense is primarily due to an impairment charge of a right-of-use asset previously recognized in the first quarter of 2024 and the Company’s reduction of its real estate footprint. The decrease in software license and maintenance costs and third-party wages are due primarily to reduced costs related to customer support services.

Current wording

Domestic general and administrative expense decreased $39.2 million, or 26%, due primarily to decreases of $13.2 million in compensation expense, $9.1 million in lease expense, $8.0 million in the provision for credit losses, $4.5 million in software license and maintenance costs, and $2.6 million in third-party wages. The decrease in compensation expense is primarily due to previously recognized stock-based compensation expense of $10.2 million related to IAC restricted stock forfeited by Joseph Levin, former CEO of IAC and current Executive Chairman of Angi, in the first quarter of 2025, and a reduction in headcount. The decrease in lease expense is primarily due to impairment charges of right-of-use assets previously recognized in the first half of 2024 and the Company’s reduction of its real estate footprint. The decreases in the provision for credit losses and software license and maintenance costs are due primarily to the factors described above in the three-month discussion. The decrease in third-party wages is primarily due to reduced costs related to customer support services.

Previous wording

Depreciation decreased $13.9 million, or 58%, due primarily to the reduction in capitalized software spend over prior periods and the write-off of certain leasehold improvements and furniture and fixtures in connection with the Company reducing its real estate footprint in 2024.

Current wording

Depreciation decreased $14.0 million, or 58%, due primarily to the reduction in capitalized software spend over prior periods and the write-off of certain leasehold improvements and furniture and fixtures in connection with the Company’s reduction of its real estate footprint in 2024.

Previous wording

Operating income increased for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to the factors described above in the selling and marketing, general and administrative, and depreciation expense discussions.

Current wording

Operating income increased for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, respectively, due primarily to the factors described above in the cost of revenue, selling and marketing, general and administrative, and depreciation expense discussions.

Previous wording

At March 31, 2025, there was $28.3 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.04 years.

Current wording

At June 30, 2025, there was $34.8 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 3.1 years.

Previous wording

Domestic Adjusted EBITDA decreased $7.7 million, or 26%, to $21.6 million, and decreased as a percentage of revenue, driven by lower gross profit due to a decrease in revenue, partially offset by lower selling and marketing expense due to a decrease in compensation expense and improved marketing efficiency and lower general and administrative expense due to decreases in compensation expense and the provision for credit losses.

Current wording

Domestic Adjusted EBITDA decreased $17.2 million, or 26%, to $49.1 million, and decreased as a percentage of revenue. The decrease was primarily driven by lower gross profit due to a decrease in revenue, partially offset by lower selling and marketing expense due to a decrease in compensation expense and lower costs related to offline advertising, lower general and administrative expense due to decreases in compensation expense, lease expense, and the provision for credit losses, and lower cost of revenue due to lower credit card processing fees and payments to third-party professional service providers.

Previous wording

International Adjusted EBITDA decreased $0.6 million, or 8%, to $6.1 million, and decreased as a percentage of revenue, driven by lower gross profit due to a decrease in revenue.

Current wording

International Adjusted EBITDA decreased $0.3 million, or 2%, to $11.5 million, and remained constant as a percentage of revenue, driven by lower gross profit due to a decrease in revenue.

Previous wording

In 2024, the Company recorded an income tax provision due primarily to the impact of stock-based awards and unbenefited losses, partially offset by research credits.

Current wording

In 2024, the effective income tax rate is higher than the statutory rate of 21% due primarily to the impact of stock-based awards and unbenefited losses, partially offset by research credits.

Previous wording

In 2025, the effective income tax rate is higher than the statutory rate of 21% due primarily to tax shortfalls generated by the vesting of stock-based awards, unbenefited losses, and foreign income taxed at different rates, partially offset by nontaxable cumulative previously recognized stock-based compensation expense related to the IAC restricted stock forfeited by Joseph Levin, former CEO of IAC and current Executive Chairman of Angi, and research credits.

Current wording

In 2025, the effective income tax rate is higher than the statutory rate of 21% due primarily to foreign income taxed at different rates, tax shortfalls generated by the vesting of stock-based awards and state taxes, partially offset by research credits.

Previous wording

The following tables reconcile net earnings attributable to Angi Inc. shareholders to Adjusted EBITDA for the Company's reportable segments and net earnings (loss) attributable to Angi shareholders:

Current wording

The following tables reconcile net earnings attributable to Angi shareholders to Adjusted EBITDA for the Company's reportable segments and net earnings (loss) attributable to Angi shareholders:

Previous wording

Net cash (used in) provided by operating activities consists of earnings adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments include depreciation, provision for credit losses, stock-based compensation expense, non-cash lease expense (including impairment of right-of-use assets), deferred income taxes, and amortization of intangibles.

Current wording

Net cash provided by operating activities consists of earnings adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments include depreciation, provision for credit losses, stock-based compensation expense, non-cash lease expense (including impairment of right-of-use assets), deferred income taxes, and amortization of intangibles.

Previous wording

Adjustments to net earnings consist primarily of $11.3 million of provision for credit losses, $9.9 million of depreciation, $2.7 million of deferred income taxes, $1.8 million of non-cash lease expense, and $(2.3) million of stock-based compensation expense. The decrease from changes in working capital consists primarily of a decrease of $20.4 million in accounts payable and other liabilities, an increase of $14.8 million in accounts receivable, a decrease of $6.7 million in deferred revenue, and a decrease of $3.3 million in operating lease liabilities, partially offset by a decrease of $2.5 million in other assets. The decrease in accounts payable and other liabilities is due primarily to payments for accrued compensation, partially offset by the timing of payments. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in deferred revenue is due primarily to a decrease in advertising sales and lower memberships. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The decrease in other assets is due to lower capitalized sales commissions which were impacted by a reduction in the size of the sales force, a larger portion of sales commissions being expensed rather than capitalized in the period, and a shift to annual bonuses for roles that previously received commissions, partially offset by an increase in prepaid assets due to the timing of invoices.

Current wording

Adjustments to net earnings consist primarily of $24.0 million of provision for credit losses, $20.2 million of depreciation, $7.4 million of deferred income taxes, $3.6 million of non-cash lease expense, and $2.8 million of stock-based compensation expense. The decrease from changes in working capital consists primarily of an increase of $31.1 million in accounts receivable, a decrease of $9.2 million in deferred revenue, and a decrease of $6.5 million in operating lease liabilities, partially offset by an increase of $12.4 million in accounts payable and other liabilities and a decrease of $6.7 million in other assets. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in deferred revenue is due primarily to a decrease in advertising sales and lower memberships. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The increase in accounts payable and other liabilities is due primarily to the timing of payments, partially offset by payments for accrued compensation. The decrease in other assets is due to lower capitalized sales commissions which were impacted by a reduction in the size of the sales force, a larger portion of sales commissions being expensed rather than capitalized in the period, and a shift to annual bonuses for roles that previously received commissions, partially offset by an increase in prepaid assets due to the timing of invoices.

Previous wording

Net cash used in investing activities includes capital expenditures of $12.6 million primarily related to investments in capitalized software to support the Company’s products and services.

Current wording

Net cash used in investing activities includes capital expenditures of $24.8 million primarily related to investments in capitalized software to support the Company’s products and services.

Previous wording

Net cash used in financing activities includes $9.8 million for the repurchase of 0.6 million shares of the Company’s Class A Common Stock, on a settlement date basis, at an average price of $16.53 per share and $4.5 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Current wording

Net cash used in financing activities includes $76.4 million for the repurchase of 5.1 million shares of the Company’s Class A Common Stock, on a settlement date basis, at an average price of $14.91 per share and $6.8 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Previous wording

Adjustments to net loss consist primarily of $23.8 million of depreciation, $15.9 million of provision for credit losses, $9.4 million of stock-based compensation expense, $4.8 million of non-cash lease expense (including impairment of right-of-use assets), and $1.3 million of deferred income taxes. The decrease from changes in working capital consists primarily of an increase of $25.8 million in accounts receivable and decreases of $17.4 million in accounts payable and other liabilities and $4.5 million in operating lease liabilities, partially offset by a decrease of $13.3 million of other assets. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in accounts payable and other liabilities is due primarily to payments for accrued compensation. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The decrease in other assets is due primarily to a payment received related to insurance coverage for previously incurred legal fees.

Current wording

Adjustments to net earnings consist primarily of $48.2 million of depreciation, $28.9 million of provision for credit losses, $18.1 million of stock-based compensation expense, $12.1 million of non-cash lease expense (including impairment of right-of-use assets), and $1.7 million of deferred income taxes. The decrease from changes in working capital consists primarily of an increase of $44.3 million in accounts receivable and a decrease of $9.5 million in operating lease liabilities, partially offset by a decrease of $20.5 million in other assets and an increase of $2.5 million in accounts payable and other liabilities. The increase in accounts receivable is due primarily to timing of cash receipts. The decrease in operating lease liabilities is due to cash payments on leases net of interest accretion. The decrease in other assets is due primarily to the receipt of an insurance claim from coverage for previously incurred legal fees and a decrease in prepaid hosting services. The increase in accounts payable and other liabilities is due primarily to an increase in accrued advertising, partially offset by timing of payments.

Previous wording

Net cash used in investing activities includes capital expenditures of $12.8 million primarily related to investments in capitalized software to support the Company’s products and services.

Current wording

Net cash used in investing activities includes capital expenditures of $25.4 million primarily related to investments in capitalized software to support the Company’s products and services.

Previous wording

Net cash used in financing activities includes $6.9 million for the repurchase of 0.3 million shares of Angi Inc. Class A Common Stock, on a settlement date basis, at an average price of $23.72 per share and $3.2 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Current wording

Net cash used in financing activities includes $18.2 million for the repurchase of 0.8 million shares of the Company’s Class A Common Stock, on a settlement date basis, at an average price of $22.36 per share and $4.7 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Previous wording

During the three months ended March 31, 2025, the Company repurchased 0.6 million shares of its Class A Common Stock, on a trade date basis, at an average price of $16.46 per share, or $10.6 million in aggregate. From April 1, 2025 through May 2, 2025 the Company repurchased an additional 1.7 million shares at an average price of $12.83 per share, or $21.3 million in aggregate. As of May 2, 2025, the Company had no shares remaining in the 2.5 million share authorization approved by the board of directors of the Company on August 2, 2024.

Current wording

During the six months ended June 30, 2025, the Company repurchased 5.2 million shares of its Class A Common Stock, on a trade date basis, at an average price of $14.92 per share, or $78.0 million in aggregate. As of May 2, 2025, the Company had no shares remaining in the 2.5 million share authorization approved by the board of directors of the Company on August 2, 2024. On May 5, 2025, the board of directors of the Company approved a new stock repurchase authorization of 5.0 million shares of its Class A Common Stock (the “2025 Share Authorization”). From July 1, 2025 through August 1, 2025, the Company repurchased an additional 0.8 million shares at an average price of $16.39 per share, or $13.4 million in aggregate. As of August 1, 2025, the Company had 1.3 million shares remaining in the 2025 Share Authorization.

Previous wording

At March 31, 2025, there were no material changes outside the ordinary course of business to the Company’s contractual obligations disclosures as of December 31, 2024, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

At June 30, 2025, there were no material changes outside the ordinary course of business to the Company’s contractual obligations disclosures as of December 31, 2024, included in the Annual Report.