Angi Inc.

Previous wording

Angi Inc. (with its subsidiaries, “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 106,000 Average Monthly Active Pros (as defined below) in the U.S. during the three months ended June 30, 2026. Additionally, consumers turned to at least one of our businesses to find a Pro for approximately 15 million projects during the twelve months ended June 30, 2026.

Current wording

Angi Inc. (with its subsidiaries, “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 101,000 Average Monthly Active Pros (as defined below) in the U.S. during the three months ended September 30, 2026. Additionally, consumers turned to at least one of our businesses to find a Pro for approximately 15 million projects during the trailing twelve months ended September 30, 2026.

Previous wording

Results of Operations for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025

Current wording

Results of Operations for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025

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, 2026 and the three and six months ended June 30, 2025.

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, 2026 and the three and nine months ended September 30, 2025.

Previous wording

U.S. Revenue decreased by $30.2 million, or 12%, due primarily to macroeconomic conditions causing a reduction in Pro spend and utilization of available Pro capacity with a corresponding 10% decrease in Proprietary Revenue, reflecting a shift in homeowner demand toward lower-consideration categories, and a 34% decrease in Network Revenue, reflecting the continued shift in consumer traffic following the homeowner choice transition implemented in January 2025.

Current wording

U.S. Revenue decreased by $22.1 million, or 9%, primarily due to a reduction in Pro capacity and utilization with a corresponding 8% decrease in Proprietary Revenue and a 25% decrease in Network Revenue, reflecting the continued shift in consumer traffic following the homeowner choice transition implemented in January 2025.

Previous wording

U.S. Revenue decreased by $40.2 million, or 9%, due primarily to a 48% decrease in Network Revenue, reflecting the continued shift in consumer traffic following the homeowner choice transition implemented in January 2025, and a 2% decrease in Proprietary Revenue, reflecting a shift in homeowner demand toward lower-consideration categories amid unstable macroeconomic conditions and a corresponding reduction in Pro spend and utilization of available Pro capacity.

Current wording

U.S. Revenue decreased by $62.4 million, or 9%, due primarily to a 42% decrease in Network Revenue, reflecting the continued shift in consumer traffic following the homeowner choice transition implemented in January 2025, and a 4% decrease in Proprietary Revenue, reflecting the impact of unstable macroeconomic conditions on Pro capacity and utilization.

Previous wording

U.S. cost of revenue decreased $6.0 million, or 25%, and decreased as a percentage of revenue by 1%, due primarily to decreases of $2.5 million in sales tax expense and $1.8 million in hosting fees.

Current wording

U.S. cost of revenue decreased $2.1 million, or 19%, and decreased as a percentage of revenue by 1%, due primarily to decreases of $0.8 million in sales tax expense, $0.5 million in hosting fees, and $0.4 million in payments to Pros who fulfill Service Requests booked through our pre-priced offerings.

Previous wording

International cost of revenue increased $1.2 million, or 67%, and increased as a percentage of revenue by 2%, due primarily to an increase of $1.1 million in hosting fees.

Current wording

International cost of revenue increased $0.3 million, or 29%, and increased as a percentage of revenue by 1%, due primarily to an increase of $0.5 million in hosting fees.

Previous wording

U.S. cost of revenue decreased $2.2 million, or 18%, and remained constant as a percentage of revenue, due primarily to decreases of $1.1 million in sales tax expense, $0.4 million in credit card processing fees, and $0.2 million in hosting fees.

Current wording

U.S. cost of revenue decreased $8.2 million, or 23%, and decreased as a percentage of revenue by 1%, due primarily to decreases of $3.3 million in sales tax expense, $2.3 million in hosting fees and $0.9 million in payments to Pros who fulfill Service Requests booked through our pre-priced offerings.

Previous wording

International cost of revenue increased $0.8 million, or 96%, and increased as a percentage of revenue by 2%, due primarily to an increase of $0.6 million in hosting fees.

Current wording

International cost of revenue increased $1.6 million, or 52%, and increased as a percentage of revenue by 2%, due primarily to an increase of $1.6 million in hosting fees.

Previous wording

Gross profit decreased $28.7 million, or 11%, due primarily to the decrease in revenue partially offset by the decrease in cost of revenue as described above.

Current wording

Gross profit decreased $21.8 million, or 9%, due primarily to the decrease in revenue partially offset by the decrease in cost of revenue as described above.

Previous wording

Gross profit decreased $33.2 million, or 7%, due primarily to the decrease in revenue partially offset by the decrease in cost of revenue as described above.

Current wording

Gross profit decreased $55.0 million, or 7%, due primarily to the decrease in revenue partially offset by the decrease in cost of revenue as described above.

Previous wording

U.S. selling and marketing expense decreased $1.7 million, or 1%, due primarily to decreases in compensation expense of $4.1 million and service guarantee expense of $1.4 million, partially offset by an increase in advertising expense of $4.2 million. The decrease in compensation expense reflects headcount reductions, and the decrease in service guarantee expense reflects lower revenue from guaranteed service jobs. The increase in advertising expense reflects higher investment in television and online advertising to drive the service request volume of the Proprietary channel compared to that of the Network channel.

Current wording

U.S. selling and marketing expense decreased $2.4 million, or 2%, due primarily to decreases in compensation expense of $4.8 million and service guarantee expense of $1.3 million, partially offset by an increase in advertising expense of $4.0 million. The decrease in compensation expense reflects headcount reductions, and the decrease in service guarantee expense reflects lower revenue from guaranteed service jobs. The increase in advertising expense reflects higher investment in online advertising to drive the Service Request volume of the Proprietary channel compared to that of the Network channel.

Previous wording

U.S. selling and marketing expense increased $14.4 million, or 6%, due primarily to an increase in advertising expense of $34.6 million, partially offset by decreases in compensation expense of $16.4 million, service guarantee expense of $2.9 million, and software maintenance costs of $0.6 million. The increase in advertising expense reflects higher investment in television and online advertising to drive Proprietary channel service request volume compared to the Network channel. The decrease in compensation expense reflects headcount reductions, the decrease in service guarantee expense reflects lower revenue from guaranteed service jobs, and the decrease in software maintenance costs reflects the rationalization of software vendor contracts following the restructuring announced in January 2026.

Current wording

U.S. selling and marketing expense increased $12.0 million, or 3%, due primarily to an increase in advertising expense of $38.6 million, partially offset by decreases in compensation expense of $21.1 million, service guarantee expense of $4.2 million, and software maintenance costs of $1.1 million. The increase in advertising expense reflects higher investment in television and online advertising to drive Proprietary channel Service Request volume compared to the Network channel. The decrease in compensation expense reflects headcount reductions, the decrease in service guarantee expense reflects lower revenue from guaranteed service jobs, and the decrease in software maintenance costs reflects the rationalization of software vendor contracts following the restructuring announced in January 2026.

Previous wording

International selling and marketing expense increased $4.5 million, or 52%, due primarily to an increase in advertising expense of $2.3 million. The increase in advertising expense is due to higher television advertising spend.

Current wording

International selling and marketing expense increased $9.9 million, or 37%, due primarily to increases in advertising expense of $6.9 million and compensation expense of $2.4 million. The increase in advertising expense is due to higher television advertising spend.

Previous wording

U.S. general and administrative expense decreased $13.0 million, or 21%, due primarily to decreases in compensation expense of $9.3 million, provision for credit losses of $1.3 million, and third-party wages of $1.1 million. The decrease in compensation expense primarily reflects headcount reductions. The decrease in the provision for credit losses was primarily due to lower revenue and improved collection rates. The decrease in third-party wages was primarily due to reduced costs related to customer support services.

Current wording

U.S. general and administrative expense decreased $8.1 million, or 13%, due primarily to decreases in compensation expense of $4.2 million, provision for credit losses of $3.6 million, and third-party wages of $1.8 million. The decrease in compensation expense primarily reflects headcount reductions. The decrease in the provision for credit losses was primarily due to lower revenue and improved collection rates. The decrease in third-party wages was primarily due to reduced costs related to customer support services.

Previous wording

U.S. general and administrative expense decreased $12.4 million, or 11%, due primarily to decreases in compensation expense of $3.9 million, provision for credit losses of $2.8 million, and third-party wages of $2.3 million. The decrease in compensation expense primarily reflects headcount reductions. The decrease in the provision for credit losses was primarily due to lower revenue and improved collection rates. The decrease in third-party wages was primarily due to reduced costs related to customer support services.

Current wording

U.S. general and administrative expense decreased $20.5 million, or 12%, due primarily to decreases in compensation expense of $8.0 million, provision for credit losses of $6.4 million, and third-party wages of $4.1 million. The decrease in compensation expense primarily reflects headcount reductions. The decrease in the provision for credit losses was primarily due to lower revenue and improved collection rates. The decrease in third-party wages was primarily due to reduced costs related to customer support services.

Previous wording

Product development expense decreased $12.7 million, or 54%, and decreased $29.3 million, or 58%, for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. The decrease is due primarily to the reduction of the Company’s global workforce by approximately 350 employees in order to reduce operating expenses and optimize the organizational structure in support of long-term growth. Refer to “Note 3—Restructuring” for a summary of the activities related to restructuring for the three and six months ended June 30, 2026.

Current wording

Product development expense decreased $11.5 million, or 55%, and decreased $40.8 million, or 57%, for the three and nine months ended September 30, 2026, respectively. The decrease is due primarily to the reduction of the Company’s global workforce by approximately 350 employees in order to reduce operating expenses and optimize the organizational structure in support of long-term growth. Refer to “Note 3—Restructuring” for a summary of the activities related to restructuring for the three and nine months ended September 30, 2026.

Previous wording

Depreciation increased $10.8 million, or 105%, and increased $15.5 million, or 77% for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025. This increase is due to the increase in the Company’s capitalized software spend over the prior year and accelerated depreciation recognized on certain capitalized software assets as a result of the planned deprecation of our legacy technology platform.

Current wording

Depreciation increased $4.9 million, or 41%, and increased $20.4 million, or 64% for the three and nine months ended September 30, 2026, respectively. This increase is due to the increase in the Company’s capitalized software spend over the prior year and accelerated depreciation recognized on certain capitalized software assets as a result of the planned deprecation of our legacy technology platform.

Previous wording

Restructuring increased $0.8 million and $15.7 million, for the three and six months ended June 30, 2026, respectively, due to a reduction of the Company’s global workforce by approximately 350 employees in order to reduce operating expenses and optimize the organizational structure in support of long-term growth. Refer to “Note 3—Restructuring” for a summary of the activities related to restructuring for the three and six months ended June 30, 2026.

Current wording

Restructuring increased $0.7 million and $16.4 million, for the three and nine months ended September 30, 2026, respectively, due to a reduction of the Company’s global workforce by approximately 350 employees in order to reduce operating expenses and optimize the organizational structure in support of long-term growth. Refer to “Note 3—Restructuring” for a summary of the activities related to restructuring for the three and nine months ended September 30, 2026.

Previous wording

The Company recorded an impairment charge during the three months ended June 30, 2026 related to goodwill at the U.S. reporting unit. Refer to “Note 1—The Company and Summary of Significant Accounting Policies” for more information.

Current wording

The Company recorded an impairment charge during the nine months ended September 30, 2026 related to goodwill at the U.S. reporting unit. Refer to “Note 1—The Company and Summary of Significant Accounting Policies” for more information.

Previous wording

The Company recorded an impairment charge during the three months ended June 30, 2026 related to indefinite-lived trade names at the U.S. reporting unit. Refer to “Note 1—The Company and Summary of Significant Accounting Policies” for more information.

Current wording

The Company recorded an impairment charge during the nine months ended September 30, 2026 related to a certain indefinite-lived trade name at the U.S. reporting unit. Refer to “Note 1—The Company and Summary of Significant Accounting Policies” for more information.

Previous wording

Operating income decreased for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, respectively, due primarily to the factors described above in the cost of revenue, selling and marketing, general and administrative, product development, depreciation, restructuring, goodwill impairment and impairment of intangibles expense discussions.

Current wording

Operating income decreased for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025, respectively, due primarily to the factors described above in the revenue, cost of revenue, selling and marketing, general and administrative, product development, depreciation, restructuring, goodwill impairment and impairment of intangibles discussions.

Previous wording

U.S. Adjusted EBITDA decreased $6.1 million, or 22%, to $21.5 million, and decreased as a percentage of revenue. The decrease was primarily driven by a decrease of revenue of $30.2 million and an increase in advertising spend. This was partially offset by lower general and administrative expense and product development expense due to the reduction of the Company’s global workforce.

Current wording

U.S. Adjusted EBITDA increased $0.8 million, or 3%, to $31.8 million, and increased as a percentage of revenue. The increase was primarily driven by lower general and administrative expense and product development expense due to the reduction of the Company’s global workforce and a decrease in provision for credit losses. This was partially offset by a decrease in revenue and higher advertising expense.

Previous wording

International Adjusted EBITDA increased $1.3 million, or 25%, to $6.8 million, and increased as a percentage of revenue. The increase was primarily driven by an increase in revenue and decrease in product development expense due to the reduction of the Company’s global workforce, partially offset by higher selling and marketing expense due to an increase in advertising expense.

Current wording

International Adjusted EBITDA increased $1.7 million, or 20%, to $10.3 million, and increased as a percentage of revenue. The increase was primarily driven by a decrease in product development expense due to the reduction of the Company’s global workforce, partially offset by a decrease in revenue and higher selling and marketing expense due to an increase in advertising expense.

Previous wording

U.S. Adjusted EBITDA decreased $12.6 million, or 26%, to $36.6 million, and decreased as a percentage of revenue. The decrease was primarily driven by an increase in advertising spend as the Company prioritized investment in Proprietary channels, along with a decline in legacy Network Revenue. These factors were partially offset by lower product development expense resulting from the reduction of the Company’s global workforce.

Current wording

U.S. Adjusted EBITDA decreased $11.8 million, or 15%, to $68.4 million, and decreased as a percentage of revenue. The decrease was primarily driven by an increase in advertising expense as the Company prioritized investment in Proprietary channels, along with a decline in legacy Network Revenue. These factors were partially offset by lower general and administrative expense and product development expense resulting from the reduction of the Company’s global workforce.

Previous wording

International Adjusted EBITDA increased $3.0 million, or 26%, to $14.6 million, and increased as a percentage of revenue. The increase was primarily driven by an increase in revenue and lower product development expense due to the reduction of the Company’s global workforce, partially offset by higher selling and marketing expense due to an increase in advertising expense.

Current wording

International Adjusted EBITDA increased $4.8 million, or 24%, to $24.9 million, and increased as a percentage of revenue. The increase was primarily driven by lower product development expense due to the reduction of the Company’s global workforce and an increase in revenue, partially offset by higher selling and marketing expense due to an increase in advertising expense.

Previous wording

Other income, net, increased for the three and six months ended June 30, 2026 by $2.2 million and $2.4 million, or 45% and 25%, respectively. The increase for the three months ended June 30, 2026 was primarily driven by a $5.6 million gain on extinguishment of debt, partially offset by a decrease of $2.2 million in interest income and a increase of $1.3 million in foreign exchange losses. The increase for the six months ended June 30, 2026 was driven by a $8.4 million gain on extinguishment of debt, partially offset by a decrease of $4.0 million in interest income and a increase of $1.9 million in foreign exchange losses.

Current wording

Other income, net, decreased for the three months ended September 30, 2026 by $2.2 million, or 54%, and increased for the nine months ended September 30, 2026 by $0.2 million, or 2%. The decrease for the three months ended September 30, 2026 was primarily driven by a decrease of $2.2 million in interest income. The increase for the nine months ended September 30, 2026 was driven by an $8.4 million gain on extinguishment of debt, partially offset by a decrease of $6.2 million in interest income and an increase of $1.9 million in foreign exchange losses.

Previous wording

For the three and six months ended June 30, 2026, the Company recorded an income tax benefit of $0.9 million and $1.6 million, respectively. The effective income tax rate is lower than the statutory rate of 21% primarily due to the impact of a goodwill impairment charge, which is primarily permanently non-deductible for income tax purposes, for which no corresponding tax benefit was recorded.

Current wording

For the three and nine months ended September 30, 2026, the Company recorded an income tax provision of $11.7 million and $10.1 million, respectively. The effective income tax rate for the three months ended September 30, 2026 is higher than the statutory rate of 21% primarily due to the effect of cross-border tax law and non-deductible equity based compensation, partially offset by research and development tax credits. The effective income tax rate for the nine months ended September 30, 2026 differs from the statutory rate of 21% primarily due to the impact of a goodwill impairment charge, which is primarily permanently non-deductible for income tax purposes, for which no corresponding tax benefit was recorded.

Previous wording

For the three months ended June 30, 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. For the six months ended June 30, 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

For the three months ended September 30, 2025, the Company recorded an income tax provision of $10.2 million, which represents an effective income tax rate of 49%. 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 and development tax credits. For the nine months ended September 30, 2025, the Company recorded an income tax provision of $21.4 million, which represents an effective income tax rate of 37%. 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 $225.6 million of goodwill impairment, $35.7 million of depreciation, $9.6 million of impairment of intangibles, $7.7 million of stock-based compensation expense, and $3.8 million of non-cash lease expense, partially offset by a $8.4 million net gain of extinguishment of debt and $2.3 million of deferred income taxes. The decrease in cash from changes in working capital consists primarily of a decrease of $10.8 million in accounts payable and other liabilities, a decrease of $9.4 million in operating lease liabilities, an increase in accounts receivable, net, of $3.9 million which includes the non-cash impact from the provision for credit losses of $20.8 million and excludes foreign currency impact of $0.3 million, a decrease of $3.7 million in income taxes payable and receivable, partially offset by a decrease of $3.1 million in other assets and an increase of $0.9 million in deferred revenue. The increase in accounts receivable was due primarily to timing of invoicing and cash receipts. The decrease in accounts payable and other liabilities was due primarily to payments of compensation previously accrued and interest. The decrease in operating lease liabilities was due to cash payments on leases net of interest accretion. The decrease in other assets was due primarily to the amortization of prepaid balances in excess of new prepayments made during the period. The increase in deferred revenue was due primarily to changes in the timing of billings and revenue recognized.

Current wording

Adjustments to net earnings consist primarily of $225.6 million of goodwill impairment, $52.6 million of depreciation, $16.8 million of stock-based compensation expense, $9.6 million of impairment of intangibles, $5.7 million of non-cash lease expense, $2.4 million of deferred income taxes, and other adjustments, net of $0.9 million, partially offset by an $8.4 million net gain on extinguishment of debt. The decrease in cash from changes in working capital consists primarily of a decrease of $22.5 million in accounts payable and other liabilities, a decrease of $11.9 million in operating lease liabilities, an increase in accounts receivable, net, of $1.3 million which includes the non-cash impact from the provision for credit losses of $30.1 million and excludes foreign currency impact of $0.3 million, partially offset by a decrease of $3.0 million in other assets, an increase of $1.8 million in income taxes payable and receivable, and an increase of $1.8 million in deferred revenue. The decrease in accounts payable and other liabilities was due primarily to payments under the IAC tax sharing agreement, legal settlement previously accrued, compensation previously accrued, and interest. The increase in accounts receivable was due primarily to timing of invoicing and cash receipts. The decrease in operating lease liabilities was due to cash payments on leases net of interest accretion. The decrease in other assets was due primarily tolower capitalized sales commissions, which were impacted by a reduction in the size of the sales force and a shift to annual bonuses for roles that previously received commissions. The increase in deferred revenue was due primarily to changes in the timing of billings and revenue recognized.

Previous wording

Net cash used in investing activities includes capital expenditures of $30.7 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 $44.8 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 $91.2 million for the repurchase of ANGI Group Senior Notes and $2.1 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 $91.2 million for the repurchase of ANGI Group Senior Notes and $2.4 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 $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

During the three and six months ended June 30, 2026, the Company repurchased a total of $73.4 million and $100.0 million aggregate principal amount, respectively, of the ANGI Group Senior Notes, maturing in 2028, for total cash consideration, including $0.5 million and $0.7 million, respectively, of accrued and unpaid interest, for $68.0 million and $91.9 million, respectively. The repurchases of the ANGI Group Senior Notes resulted in an aggregate net gain on extinguishment of debt of $5.6 million and $8.4 million, which is included in other income, net in the consolidated statement of operations for the three and six months ended June 30, 2026, respectively.

Current wording

During the nine months ended September 30, 2026, the Company repurchased a total of $100.0 million aggregate principal amount of the ANGI Group Senior Notes, maturing in 2028, for total cash consideration, including $0.7 million of accrued and unpaid interest, of $91.9 million. The repurchases of the ANGI Group Senior Notes resulted in an aggregate net gain on extinguishment of debt of $8.4 million, which is included in other income, net in the consolidated statement of operations for the nine months ended September 30, 2026. There were no repurchases of the ANGI Group Senior Notes during the three months ended September 30, 2026.

Previous wording

The Company’s 2026 capital expenditures are expected to be consistent with 2025 capital expenditures of $59.6 million.

Current wording

The Company’s 2026 capital expenditures are expected to be consistent with 2025 capital expenditures.

Previous wording

If the conclusion of our qualitative assessment is that there are indicators of impairment and a quantitative test is required, the annual or interim quantitative test of the recovery of goodwill involves a comparison of the estimated fair value of the Company’s reporting unit that is being tested to its carrying value. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, a goodwill impairment equal to the excess is recorded. During the second quarter of 2026, the Company concluded that the continued decrease in stock price and market capitalization since December 31, 2025 constituted a triggering event such that the Company performed quantitative impairment assessments of its goodwill and indefinite-lived intangible assets as of May 31, 2026.

Current wording

If the conclusion of the Company’s qualitative assessment is that there are indicators of impairment and a quantitative test is required, the annual or interim quantitative test of the recovery of goodwill involves a comparison of the estimated fair value of the Company’s reporting unit that is being tested to its carrying value. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, a goodwill impairment equal to the excess is recorded. During the second quarter of 2026, the Company concluded that the continued decrease in stock price and market capitalization since December 31, 2025 constituted a triggering event such that the Company performed quantitative impairment assessments of its goodwill and indefinite-lived intangible assets as of May 31, 2026.

Previous wording

As a result of the quantitative impairment assessment, the Company determined that the carrying value of the U.S. reporting unit exceeded the fair value by $225.6 million, resulting in a goodwill impairment charge of $225.6 million which is presented as a separate line item on the consolidated statement of operations during the three and six months ended June 30, 2026. The estimated fair value of the International reporting unit exceeded its carrying value by approximately $200.0 million, or 70%, and accordingly no goodwill impairment was recorded during the three and six months ended June 30, 2026.

Current wording

As a result of the quantitative impairment assessment performed as of May 31, 2026, the Company determined that the carrying value of the U.S. reporting unit exceeded the fair value by $225.6 million, resulting in a goodwill impairment charge of $225.6 million which is presented as a separate line item on the consolidated statement of operations during the nine months ended September 30, 2026. No goodwill impairment was recorded for the U.S. reporting unit during the three months ended September 30, 2026. The estimated fair value of the International reporting unit exceeded its carrying value by approximately $200.0 million, or 70%, and accordingly no goodwill impairment was recorded during the three and six months ended June 30, 2026.

Previous wording

Following the impairment charge, the carrying value of the U.S. reporting unit's goodwill equals its approximate fair value as of June 30, 2026. Accordingly, any adverse change in key assumptions could result in additional impairment. A 100 basis point increase in the discount rate would result in approximately $35.0 million of additional impairment. A 100 basis point decrease in the long-term growth rate would result in approximately $20.0 million of additional impairment.

Current wording

Following the impairment charge, the carrying value of the U.S. reporting unit equals its approximate fair value as of September 30, 2026. Accordingly, any adverse change in key assumptions could result in additional impairment. A 100 basis point increase in the discount rate would result in approximately $35.0 million of additional impairment. A 100 basis point decrease in the long-term growth rate would result in approximately $20.0 million of additional impairment.