Angi (2UH0) Q3 2026 Earnings Report

The call was broadly optimistic. Despite an 8.9% revenue decline, a 17.6% decline in leads, lower active-pro counts, and challenging near-term revenue comparisons, management emphasized improved adjusted EBITDA, stronger free cash flow, substantial cost savings, large-pro growth, progress on replatforming and Pro CRO, and multiple AI and LLM initiatives. The expected return to growth in the back half of 2027 and structurally higher margins led to a predominantly positive outlook.

The company is not providing detailed financial guidance for 2027, but expects EBITDA less CapEx to grow meaningfully, to be substantially better than the $50 million floor my predecessor previously provided for this year, and to operate at structurally higher margins; revenue comps remain challenging for the next few quarters and the year over year impact will continue into 2027, while the team's outlook for return to growth in the back half of 2027 makes sense. The reduction of approximately 300 roles is expected to generate approximately $40 million to $50 million in annualized operating expense savings and reduce capital expenditures by approximately $10 million, or $50 million to $60 million of total annual savings, with approximately $18 million to $30 million of onetime restructuring costs, full annualized savings run rate by the end of the first half of 27, and at least half of the savings falling to the bottom line; these savings are incremental to the $70 million to $80 million announced earlier this year in Q1. The company expects higher adjusted EBITDA with stronger cash flow, and will continue to run marketing to a breakeven return on the dollar.