Angi Inc.

Previous 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.

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 118,000 Average Monthly Active Pros (as defined below) during the three months ended September 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 September 30, 2025.

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 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.

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 nine months ended September 30, 2025 and the three and nine months ended September 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 $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.

Current wording

Domestic revenue decreased $31.7 million, or 12%, due primarily to a decrease in advertising revenue of $21.0 million, or 27%, a decrease in services revenue of $6.5 million, or 27%, a decrease in membership subscription revenue of $3.5 million, or 34%. The decrease in Domestic revenue was driven by ongoing measures to improve profitability and the quality of the customer experience, including sales force consolidation, marketing optimization and full implementation of homeowner choice in January 2025.

Previous wording

Domestic revenue decreased $93.9 million, or 17%, due primarily to a decrease in lead revenue of $58.6 million, or 18%, a decrease in advertising revenue of $19.6 million, or 13%, a decrease in services revenue of $8.8 million, or 20%, and a decrease in membership subscription revenue of $6.8 million, or 29%. The decrease in Domestic revenue was due primarily to the factors described above in the three-month discussion.

Current wording

Domestic revenue decreased $125.5 million, or 15%, due primarily to a decrease in lead revenue of $59.2 million, or 12%, a decrease in advertising revenue of $40.5 million, or 17%, a decrease in services revenue of $15.3 million, or 22%, and a decrease in membership subscription revenue of $10.3 million, or 31%. The decrease in Domestic revenue was due primarily to the factors described above in the three-month discussion.

Previous 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.

Current wording

International revenue decreased $1.9 million, or 2%, 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

Domestic cost of revenue decreased $0.8 million, or 6%, and remained constant as a percentage of revenue, due primarily to lower payments to third-party professional service providers of $0.9 million and lower credit card processing fees of $0.8 million, partially offset by higher hosting fees of $1.1 million.

Current wording

Domestic cost of revenue decreased $2.4 million, or 18%, and remained constant as a percentage of revenue, due primarily to lower credit card processing fees of $1.1 million and lower payments to third-party professional service providers of $0.8 million, partially offset by higher hosting fees of $0.2 million.

Previous 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.

Current wording

Domestic cost of revenue decreased $2.8 million, or 7%, and remained constant as a percentage of revenue, due primarily to lower credit card processing fees of $3.0 million, lower payments to third-party professional service providers of $2.3 million, partially offset by higher hosting fees of $3.0 million.

Previous wording

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

Current wording

Gross profit decreased $28.8 million, or 10%, due primarily to the decrease in revenue described in the revenue discussion above.

Previous wording

Gross profit decreased $95.9 million, or 16%, due primarily to the decrease in revenue described in the revenue discussion above.

Current wording

Gross profit decreased $124.7 million, or 14%, due primarily to the decrease in revenue described in the revenue discussion above.

Previous 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.

Current wording

International selling and marketing expense decreased $2.2 million, or 20%, driven by a decrease in compensation expense of $2.7 million due primarily to a reduction in headcount, partially offset by an increase in advertising expense of $0.5 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 $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.

Current wording

Domestic selling and marketing expense decreased $78.6 million, or 18%, driven by decreases of $59.0 million in compensation expense and $16.5 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 spend on offline advertising..

Previous wording

Domestic selling and marketing expense decreased $18.0 million, or 12%, driven by a decrease in compensation expense of $22.7 million, partially offset by an increase in advertising expense of $5.3 million. The decrease in compensation expense was due primarily to a reduction in headcount. The increase in advertising expense was due primarily to higher costs related to online advertising.

Current wording

International selling and marketing expense decreased $4.9 million, or 15%, driven by a decrease in compensation expense of $5.8 million, partially offset by an increase in advertising expense of $1.5 million. The reduction in headcount was due primarily to the factors described above in the three-month discussion. The increase in advertising expense was due primarily to higher costs related to online advertising.

Previous wording

Domestic general and administrative expense decreased $10.9 million, or 15%, due primarily to decreases of $6.1 million in lease expense, $2.8 million in the provision for credit losses, and $2.3 million in software license and maintenance costs. The decrease in lease expense is primarily due to an impairment charge of right-of-use assets previously recognized in the second quarter of 2024 and the Company’s reduction of its real estate footprint. The decrease in the provision for credit losses is primarily due to lower revenue and improved collection rates. The decrease in software license and maintenance costs is due primarily to reduced costs related to data warehousing and customer support services.

Current wording

Domestic general and administrative expense decreased $7.5 million, or 11%, due primarily to decreases of $4.5 million in compensation expense, $2.0 million in the provision for credit losses, and $0.9 million in software license and maintenance costs. The decrease in compensation expense is primarily due to 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 software license and maintenance costs is due primarily to reduced costs related to data warehousing and customer support services.

Previous 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.

Current wording

Domestic general and administrative expense decreased $46.7 million, or 21%, due primarily to decreases of $17.8 million in compensation expense, $10.0 million in the provision for credit losses, $9.7 million in lease expense, $5.3 million in software license and maintenance costs, and $3.0 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

Product development expense decreased $1.2 million, or 5%, and increased $2.1 million, or 4%, for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024.

Current wording

Product development expense decreased $3.6 million, or 15%, and $1.4 million, or 2%, for the three and nine months ended September 30, 2025, respectively, compared to the three and nine months ended September 30, 2024.

Previous 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.

Current wording

Depreciation decreased $5.7 million, or 32%, 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 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.

Current wording

Operating income increased for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 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 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.

Current wording

At September 30, 2025, there was $36.1 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 2.3 years.

Previous wording

Domestic Adjusted EBITDA decreased $9.5 million, or 26%, to $27.6 million, and decreased as a percentage of revenue. This decrease was primarily driven by lower gross profit due to a decrease in revenue, partially offset by lower selling and marketing expense and lower general and administrative expense.

Current wording

Domestic Adjusted EBITDA decreased $0.7 million, or 2%, to $31.1 million, and increased as a percentage of revenue. The decrease was primarily driven by lower gross profit due to a decrease in revenue, offset by lower selling and marketing expense.

Previous wording

International Adjusted EBITDA increased $0.3 million, or 6%, to $5.4 million, and increased as a percentage of revenue, driven by lower selling and marketing expense and lower cost of revenue.

Current wording

International Adjusted EBITDA increased $5.0 million, or 135%, to $8.6 million, and increased as a percentage of revenue, driven by lower selling and marketing expense and lower cost of revenue.

Previous 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.

Current wording

Domestic Adjusted EBITDA decreased $17.9 million, or 18%, to $80.2 million, and remained constant 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.

Previous wording

Interest expense in the three and six months ended June 30, 2025 remained constant compared to the three and six months ended June 30, 2024, respectively.

Current wording

Interest expense in the three and nine months ended September 30, 2025 remained constant compared to the three and nine months ended September 30, 2024, respectively.

Previous wording

Other income, net includes interest income of $3.9 million and $5.1 million for the three months ended June 30, 2025 and 2024, respectively, and $8.2 million and $9.8 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Other income, net includes interest income of $3.8 million and $5.1 million for the three months ended September 30, 2025 and 2024, respectively, and $12.0 million and $14.9 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous 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 and state taxes, partially offset by research credits.

Current wording

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

Current wording

In 2025, the effective income tax rate is higher than the statutory rate of 21% due primarily to the effect of cross-border tax laws, tax shortfalls generated by the vesting of stock-based awards and state taxes.

Previous 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.

Current wording

Adjustments to net earnings consist primarily of $37.3 million of provision for credit losses, $32.1 million of depreciation, $16.9 million of deferred income taxes, $8.7 million of stock-based compensation expense and $5.5 million of non-cash lease expense. The decrease from changes in working capital consists primarily of an increase of $37.9 million in accounts receivable, a decrease of $13.9 million in accounts payable and other liabilities, a decrease of $12.2 million in deferred revenue, and a decrease of $9.7 million in operating lease liabilities, partially offset by a decrease of $14.5 million in 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 accrued compensation and timing of payments. 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.

Previous 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.

Current wording

Net cash used in investing activities includes capital expenditures of$40.9 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 $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.

Current wording

Net cash used in financing activities includes$102.7 million for the repurchase of 6.7 million shares of the Company’s Class A Common Stock, on a settlement date basis, at an average price of$15.31 per share and$6.9 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Previous 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.

Current wording

Adjustments to net earnings consist primarily of $65.7 million of depreciation, $43.7 million of provision for credit losses, $28.1 million of stock-based compensation expense, $13.8 million of non-cash lease expense (including impairment of right-of-use assets), and $24.6 million of deferred income taxes. The decrease from changes in working capital consists primarily of an increase of $44.7 million in accounts receivable, a decrease of $13.9 million in operating lease liabilities and a decrease of $3.9 million in accounts payable and other liabilities, partially offset by a decrease of $21.1 million in other assets. 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 accounts payable and other liabilities is due primarily to the timing of payments, partially offset by an increase in accrued advertising. 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.

Previous 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.

Current wording

Net cash used in investing activities includes capital expenditures of $37.5 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 $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.

Current wording

Net cash used in financing activities includes $25.7 million for the repurchase of 1.1 million shares of the Company’s Class A Common Stock, on a settlement date basis, at an average price of $22.51 per share, $16.0 million for the purchase of the remaining noncontrolling interests of a foreign subsidiary, and $5.7 million for the payment of withholding taxes on behalf of employees for stock-based awards that were net settled.

Previous 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.

Current wording

During the nine months ended September 30, 2025, the Company repurchased 6.7 million shares of its Class A Common Stock, on a trade date basis, at an average price of $15.31 per share, or $103.2 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 and September 17, 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 “May 2025 Share Authorization”) and approximately 3.2 million shares of its Class A Common Stock (the “September 2025 Share Authorization”), respectively.

Previous 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.

Current wording

In the third quarter of 2025, the Company entered into a three-year cloud computing contract with payments of $19.5 million expected to be made within the next twelve months and the remaining payments of approximately $44.5 million expected to be made by September 2028. As of September 30, 2025, there were no other 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.

Previous wording

The Company’s 2025 capital expenditures are expected to be higher than 2024 capital expenditures of $50.5 million by approximately 15% to 25%, due to an increase related to capitalized software.

Current wording

The Company’s 2025 capital expenditures are expected to be higher than 2024 capital expenditures of $50.5 million by approximately 20%, due to an increase related to capitalized software.

Previous wording

The Company believes its existing cash, cash equivalents, and expected positive cash flows generated from operations will be sufficient to fund its normal operating requirements, including capital expenditures, debt service, the payment of withholding taxes paid on behalf of employees for net-settled stock-based awards, and investing and other commitments, for the next twelve months. We may elect to raise additional capital through the sale of additional equity or debt financing to fund business activities such as strategic acquisitions, share repurchases, or other purposes beyond the next twelve months.

Current wording

The Company believes its existing cash, cash equivalents, and expected positive cash flows generated from operations will be sufficient to fund its normal operating requirements, including capital expenditures, debt service, the payment of withholding taxes paid on behalf of employees for net-settled stock-based awards, and investing and other commitments, for the next twelve months. The Company may consider additional forms of liquidity, including, but not limited to, revolving credit facilities. These forms of liquidity could subject us to operating and financial covenants that may restrict our business activities, including the incurrence of additional indebtedness, investments and certain payments. From time to time, we may also elect to raise additional capital through the sale of additional equity or debt financing to fund business activities such as strategic acquisitions, share repurchases, or other purposes.