IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -23.79%
• EPS Growth: -138.59%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 2.57
• Shares Outstanding: 74,367,775
• 10 Day Avg. Volume: 1,012,516
• 30 Day Avg. Volume: 1,120,301
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 19.45
• 1Y Price Target: $49.00
• Price Target Upside: 52.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 51 Neutral
• Price Target: $32.00 ▼(-0.68% Downside)

IAC's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. Technical indicators suggest weak market momentum, further impacting the score. While the earnings call provided some positive insights, such as digital revenue growth and strategic refinancing, these are offset by ongoing challenges in traffic and consumer revenue. The valuation remains unattractive due to a negative P/E ratio and no dividend yield.

Positive Factors

Digital Revenue Growth

The consistent growth in digital revenue indicates strong demand for IAC's digital services, suggesting a robust market position and potential for sustained expansion.

Strategic Refinancing

Refinancing at favorable terms enhances financial flexibility, allowing IAC to invest in growth opportunities and manage debt more effectively over the long term.

BetMGM Performance

Strong performance from BetMGM highlights IAC's ability to capitalize on the growing online gaming market, supporting future revenue and profit growth.

Negative Factors

Declining Revenue

Continuous revenue decline poses a risk to long-term growth and sustainability, necessitating strategic adjustments to reverse this trend and improve profitability.

Impact of AI on Traffic

Reduced traffic from Google Search due to AI changes could impact user acquisition and engagement, challenging IAC's ability to maintain its digital audience.

Care.com Revenue Decline

The decline in Care.com's revenue reflects challenges in product experience and market conditions, potentially affecting IAC's overall revenue stability and growth.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC HOLDINGS, INC. IAC/InterActiveCorp is headquartered in New York, New York.

How the Company Makes Money

IAC generates revenue primarily through a combination of subscription services, advertising, and transactional fees. Key revenue streams include subscription fees from dating services under the Match Group, which has a large user base willing to pay for premium features. Additionally, IAC earns revenue from advertising displayed on its various platforms, which is facilitated through partnerships and programmatic ad sales. The company's investment in home services and local advertising also contributes to its earnings, leveraging its digital marketing capabilities to connect consumers with service providers. Significant partnerships with other digital platforms and brands enhance IAC's reach and monetization opportunities.

IAC/InteractiveCorp. Financial Statement Overview

Summary

IAC faces challenges with declining revenue and profitability, as evidenced by negative growth rates and margins. The balance sheet shows moderate leverage but negative returns on equity. Cash flow metrics highlight declining free cash flow, though some efficiency in cash conversion is present. Overall, the company needs to address profitability and cash generation to improve financial health.

Income Statement

The company has experienced declining revenue growth, with a negative growth rate of -10.52% in the TTM period. Gross profit margin remains relatively strong at 69.93%, but net profit margin is negative, indicating profitability challenges. EBIT and EBITDA margins are also weak, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is moderate at 0.29, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating positive returns for shareholders. The equity ratio is stable, showing a solid equity base relative to total assets.

Cash Flow

Free cash flow growth is negative at -33.42%, indicating declining cash generation. The operating cash flow to net income ratio is low, suggesting limited cash flow relative to earnings. However, the free cash flow to net income ratio is relatively high, indicating some efficiency in converting earnings to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09B	3.81B	4.37B	5.24B	3.70B	2.76B
Gross Profit	2.16B	2.75B	3.02B	3.31B	2.39B	2.04B
EBITDA	177.84M	-4.23M	1.10B	-906.45M	949.66M	486.01M
Net Income	-448.05M	-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet
Total Assets	7.36B	9.55B	10.37B	10.39B	12.61B	9.16B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.80B	1.45B	1.66B	2.14B	3.59B
Total Debt	1.43B	1.97B	2.49B	2.05B	2.08B	712.28M
Total Liabilities	2.40B	3.24B	3.58B	3.79B	4.84B	1.78B
Stockholders Equity	4.91B	5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow
Free Cash Flow	157.18M	289.01M	48.16M	-222.54M	46.74M	93.86M
Operating Cash Flow	199.99M	354.52M	189.53M	-82.79M	136.95M	154.58M
Investing Cash Flow	-328.69M	276.82M	-87.47M	-494.81M	-2.90B	-1.87B
Financing Cash Flow	-395.09M	-113.08M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Negative. The current price of 32.22 is below the 20-day moving average (MA) of 33.13, below the 50-day MA of 34.79, and below the 200-day MA of 36.39, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 17.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IAC.

IAC/InteractiveCorp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	―	$2.08B	14.92	20.13%	―	5.37%	13.08%
OPRA	―	$1.32B	16.20	8.73%	5.29%	30.00%	-9.72%
TBLA	―	$1.06B	97.28	1.40%	―	12.01%	―
MTCH	―	$7.78B	15.93	―	1.18%	-0.60%	-11.05%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GENI	―	$2.85B	―	-12.24%	―	25.76%	27.05%
IAC	―	$2.58B	―	-8.49%	―	-23.79%	-138.59%

IAC/InteractiveCorp. Corporate Events

IAC Reports Strong Q2 2025 Performance Amid Rebranding

IAC/InteractiveCorp, a diverse holding company, is known for building and managing a wide array of businesses, including digital media and services, with notable holdings in People Inc. and Care.com, and strategic investments in companies like MGM Resorts International.

IAC Earnings Call: Digital Growth and Strategic Moves

In the latest earnings call, IAC/InteractiveCorp. expressed a generally positive sentiment, highlighting strong digital revenue growth and successful refinancing efforts. The company also reported promising results from BetMGM and early positive signs from Care.com, despite facing macroeconomic challenges. However, concerns were raised regarding revenue reliance on Google Search, a decline in consumer revenue at Care.com, and the impact of strategic investments on margins.

IAC Reports Q2 2025 Results with Revenue Growth

On August 4, 2025, IAC announced its Q2 2025 results, highlighting a 9% increase in digital revenue for People Inc., formerly Dotdash Meredith, and a successful rebranding to align with its flagship brand, PEOPLE. The company reported an improvement in operating income by $22 million and a 15% growth in Adjusted EBITDA. Despite a 7% decline in total revenue, IAC remains committed to optimizing assets and unlocking shareholder value, with plans to continue strategic investments and stock buybacks.

The most recent analyst rating on (IAC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

IAC/InteractiveCorp Reports Slight Revenue Increase in Q2 2025

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, has released its consolidated financial statements for the period ending June 30, 2025. The financial report indicates a slight increase in revenue compared to the previous year, with a total of $427,370 for the three months ended June 30, 2025, compared to $425,161 in 2024. The company’s total assets decreased from $3,172,673 at the end of 2024 to $3,009,848 as of June 30, 2025. This financial update reflects the company’s ongoing efforts to manage its financial health amidst fluctuating market conditions.

The most recent analyst rating on (IAC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.