IAC/InteractiveCorp. (IAC)
NASDAQ:IAC
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IAC/InteractiveCorp.
(NASDAQ:IAC)
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Rating:61Neutral
Price Target:
$45.00
▲(1.44% Upside)
Action:Reiterated
Date:06/04/26
Overall score reflects improving fundamentals and a positive earnings call (profitability/FCF momentum and reaffirmed guidance), tempered by ongoing revenue decline and volatility in financial performance. Technicals are neutral, and valuation looks somewhat expensive with a ~28 P/E and no dividend support.
Positive Factors
Margins & Profitability
Sustained gross margins near 65% and an ~18% EBITDA margin indicate durable operating leverage across digital brands. Those margins provide a structural cushion versus ad-market cyclicality, supporting reinvestment, buybacks and debt service even if top-line recovery is gradual.
Negative Factors
Revenue Decline
Ongoing top-line contraction undermines scalability of margins and makes profit improvements dependent on continued digital growth or portfolio actions. Persistent revenue declines constrain long-term operating leverage and require sustained execution to convert margin gains into durable enterprise value.
Read all positive and negative factors
Positive Factors
Negative Factors
Margins & Profitability
Sustained gross margins near 65% and an ~18% EBITDA margin indicate durable operating leverage across digital brands. Those margins provide a structural cushion versus ad-market cyclicality, supporting reinvestment, buybacks and debt service even if top-line recovery is gradual.
Read all positive factors
IAC/InteractiveCorp. Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Provides a clear view of each segment's operational performance by excluding non-cash items, offering insight into core profitability and cash flow potential.
Provides a clear view of each segment's operational performance by excluding non-cash items, offering insight into core profitability and cash flow potential.
Data provided by:
The Fly
The FlyIAC/InteractiveCorp. (IAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.19B
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)28.1
Beta (1Y)0.91
Revenue Growth-34.87%
EPS GrowthN/A
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.43
Shares Outstanding68,598,000
10 Day Avg. Volume1,070,030
30 Day Avg. Volume1,332,613
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)0.64
Price to Sales (P/S)1.27
P/FCF Ratio67.65
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit2.51
Enterprise Value/Ebitda9.11
Forecast
1Y Price Target
$52.90Price Target Upside19.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)-0.6
Revenue Forecast (FY)$1.85B
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, hea...
How the Company Makes Money
IAC primarily makes money through the operating revenues and cash flows generated by the businesses it owns, rather than through a single unified product line. Key revenue streams typically include: (1) Subscriptions and membership fees: recurring...
IAC/InteractiveCorp. Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasizes clear operational progress: steady digital revenue growth, strong margin expansion, rapid growth of non-session-based revenue (+24% YoY) and diversified off-platform audiences (+27% YoY), solid free cash flow (almost $50M in Q1 and >$150M annual target), monetization wins (Care.com sale, domain sale, buybacks) and strategic moves (Decipher expansion, corporate consolidation) that position the company for improved long-term profitability. Near-term headwinds include print declines, the loss of Google-driven core web sessions, one-time consolidation and search shutdown costs, and litigation and geopolitical-driven ad market volatility. Overall, the positive operational momentum, cash generation and strategic reorganization outweigh the short-term costs and external traffic/litigation challenges.Positive Updates
Digital Revenue Growth & Margin Expansion
Digital revenue grew 8% year-over-year in Q1 (would have been ~10% ex-reclassification), digital adjusted EBITDA margin expanded to 20% from 18% (a 200 basis point improvement), and incremental digital margins were described as ~45%.
Negative Updates
Print EBITDA Decline
Print EBITDA declined in the quarter (described as expected), creating near-term headwinds; management reiterated that full-year print EBITDA is expected to cover People Inc. and corporate overhead excluding estimated Google litigation expense.
Read all updates
Q1-2026 Updates
Positive
Negative
Digital Revenue Growth & Margin Expansion
Digital revenue grew 8% year-over-year in Q1 (would have been ~10% ex-reclassification), digital adjusted EBITDA margin expanded to 20% from 18% (a 200 basis point improvement), and incremental digital margins were described as ~45%.
Read all positive updates
Company Guidance
Management reaffirmed People Inc. adjusted EBITDA guidance of $310–$340 million and reiterated digital revenue growth of mid‑ to high‑single digits, while raising Emerging & Other adjusted EBITDA to $5–$15 million; corporate expense guidance was increased to $95–$105 million (driven by severance/onetime charges). They disclosed total one‑time consolidation costs of $63 million (about $15 million cash severance, $48 million stock‑based comp), with ~$10 million of severance already recognized in Q1 and the $48 million SBC to be expensed over the next four quarters, and said the restructuring should deliver roughly $40 million of annual run‑rate operating expense savings and $20–$25 million of SBC reduction (phasing in through early 2027, with the first clean quarter of full savings in Q2 2027); post‑consolidation IAC corporate costs are expected to be about $45 million and total company SBC roughly $30 million. Financially, Q1 free cash flow was nearly $50 million and the company is on track to exceed $150 million of free cash flow in 2026, net debt is about $1.1 billion, and management highlighted recent capital actions including $296 million of net proceeds from the Care.com sale, $111 million repurchased (2.9M IAC shares) and $37 million for 1.0M MGM shares (ownership to 26%); they also noted Q1 People digital revenue grew 8% (would have been ~10% absent a ~200‑bp reclassification drag) and nonsession‑based revenue grew 24% to represent 41% of digital revenue.IAC/InteractiveCorp. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
69
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.25B | 2.39B | 3.81B | 4.37B | 5.24B | 3.70B |
| Gross Profit | 1.45B | 1.60B | 2.75B | 3.02B | 3.30B | 2.40B |
| EBITDA | 400.35M | 285.90M | -265.12M | 1.10B | -977.37M | 913.92M |
| Net Income | 116.53M | -104.03M | -539.90M | 265.94M | -1.17B | 597.55M |
Balance Sheet | ||||||
| Total Assets | 6.82B | 7.13B | 9.55B | 10.37B | 10.39B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 960.21M | 1.80B | 1.45B | 1.66B | 2.14B |
| Total Debt | 1.42B | 1.43B | 1.97B | 2.02B | 2.05B | 2.08B |
| Total Liabilities | 2.23B | 2.34B | 3.24B | 3.58B | 3.79B | 4.53B |
| Stockholders Equity | 4.55B | 4.73B | 5.58B | 6.08B | 5.93B | 7.18B |
Cash Flow | ||||||
| Free Cash Flow | 59.61M | 44.83M | 289.01M | 48.16M | -222.54M | 46.74M |
| Operating Cash Flow | 82.12M | 64.03M | 354.52M | 189.53M | -82.79M | 136.95M |
| Investing Cash Flow | 244.21M | -404.62M | 276.82M | -87.47M | -494.81M | -2.90B |
| Financing Cash Flow | -343.81M | -451.00M | -129.10M | -223.01M | -112.65M | 1.41B |
IAC/InteractiveCorp. Technical Analysis
Positive
44.36
Price Trends
42.17
Positive
39.90
Positive
37.71
Positive
Market Momentum
0.41
Negative
48.40
Neutral
58.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Positive. The current price of 44.36 is above the 20-day moving average (MA) of 42.21, above the 50-day MA of 42.17, and above the 200-day MA of 37.71, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 58.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAC.
IAC/InteractiveCorp. Risk Analysis
IAC/InteractiveCorp. disclosed 32 risk factors in its most recent earnings report. IAC/InteractiveCorp. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IAC/InteractiveCorp. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.70B | 14.50 | 11.76% | 5.47% | 24.83% | 73.88% | |
79 Outperform | $1.33B | 11.72 | 11.91% | ― | 9.62% | 880.15% | |
74 Outperform | $1.27B | 9.32 | 19.70% | ― | 2.09% | 4.03% | |
71 Outperform | $8.24B | 12.57 | -286.13% | 2.32% | 2.00% | 30.81% | |
66 Neutral | $1.63B | -9.99 | -22.20% | ― | 33.31% | -210.69% | |
61 Neutral | $3.19B | 28.12 | 2.46% | ― | -34.87% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
IAC
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IAC/InteractiveCorp. Corporate Events
Business Operations and StrategyDelistings and Listing Changes
IAC Rebrands as People Incorporated and Changes Ticker
Positive
Jun 4, 2026
On June 4, 2026, IAC Inc. formally changed its corporate name to People Incorporated, amending its charter and by-laws to reflect the new identity while leaving other charter provisions intact. The rebranded company, which owns People Inc., Americ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
IAC Reclassifies Search Segment as Discontinued Operations
Negative
Jun 2, 2026
On December 10, 2025, IAC Inc., soon to be renamed People Incorporated, received a notice of non-renewal from Google for a services agreement originally signed in 2015, leading to the contract’s expiration on April 30, 2026 and the shutdown ...
Business Operations and StrategyM&A Transactions
IAC/InteractiveCorp Proposes Taking MGM Resorts Private in Cash
Positive
Jun 1, 2026
On June 1, 2026, People Incorporated announced that it had submitted a non-binding proposal to acquire all outstanding shares of MGM Resorts International that it does not already own for $48.30 per share in cash, representing premiums of 24.1% to...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresM&A Transactions
IAC Unveils Major Restructuring Ahead of People Inc. Rebrand
Neutral
May 4, 2026
On May 4, 2026, IAC reported first-quarter 2026 results and detailed a major restructuring as it prepares to rename itself People Incorporated and trade under a new ticker, consolidating corporate functions into People Inc. and exiting its Search ...
Business Operations and StrategyExecutive/Board Changes
IAC Restructures, Rebrands as People Incorporated Platform
Negative
Apr 28, 2026
IAC said it will change its corporate name to People Incorporated around its second-quarter 2026 earnings in August and is launching a restructuring plan to fold remaining IAC corporate functions into the People Inc. publishing business. The plan,...
Business Operations and StrategyRegulatory Filings and Compliance
IAC Caps Voting Power in MGM Through New Agreement
Neutral
Apr 7, 2026
On April 3, 2026, IAC Inc. entered into a voting agreement with MGM Resorts International and Barry Diller that effectively caps the voting power of IAC, Mr. Diller and their controlled affiliates above 25.73% of MGM’s outstanding voting sec...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
IAC Updates Financials After Reorganization and Care.com Sale
Neutral
Apr 7, 2026
On April 7, 2026, IAC Inc. released updated supplemental financial information recasting past results to reflect a strategic internal reorganization at Dotdash Meredith’s People Inc. unit and the completion of the Care.com divestiture on Mar...
Business Operations and StrategyM&A Transactions
IAC Completes Sale of Care.com, Refocuses Portfolio
Positive
Mar 16, 2026
On March 16, 2026, IAC Inc. completed the previously announced sale of its wholly owned subsidiary Care.com, Inc. to Care Parent, LLC, an indirect wholly owned subsidiary of Pacific Avenue Capital Partners. The transaction marks IAC’s exit f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.