<div id="readability-page-1"><div>IAC Inc., a leading media and internet company, has released its 2025 10-K report, providing a comprehensive overview of its financial performance, business operations, strategic initiatives, and the challenges it faces. The report highlights the company's efforts to navigate a competitive and evolving industry landscape, with a focus on digital transformation and strategic realignments. Financial Highlights <ul><li>Total Revenue: $2,393.2 million, a decrease of 9% from 2024, primarily due to declines in the Search and Emerging &amp; Other segments.</li><li>Operating Income (Loss): $(97.4) million, an increased loss of 240% due to a goodwill impairment at Care.com.</li><li>Net Loss: $(101.5) million, significantly impacted by a goodwill impairment of $207.5 million at Care.com.</li><li>Net Loss Attributable to IAC Shareholders: $(104.0) million, reflecting the overall net loss from continuing operations.</li></ul> Business Highlights <ul><li>Revenue Segments: <ul><li>People Inc. is divided into Digital and Print segments. The Digital segment includes advertising, performance marketing, and licensing revenue, while the Print segment includes subscription, advertising, and newsstand revenue.</li><li>Care.com generates revenue from Consumer and Enterprise segments. Consumer revenue comes from subscription fees and payroll services, while Enterprise revenue is from contracts with businesses offering Care.com services as employee benefits.</li><li>The Search segment consists of Ask Media Group and Desktop businesses, generating revenue primarily through advertising and paid listings.</li></ul> </li><li>Sales Units: People Inc.'s Print business had approximately 15.4 million active subscriptions as of December 31, 2025.</li><li>New Product Launches: People Inc. introduced the D/Cipher advertising product, which targets users based on intent and extends to various digital formats.</li><li>Future Outlook: <ul><li>The company expects continued migration from print to digital platforms, impacting People Inc.'s Print revenue. Additionally, the increasing prominence of Google AI Overviews is expected to negatively impact Core Sessions and advertising revenue.</li><li>The Search segment faces uncertainty due to the expiration of the Google Services Agreement in March 2026, with ongoing negotiations for revised terms.</li></ul> </li><li>Operational Performance: <ul><li>People Inc. experienced a 10% increase in Digital revenue, driven by performance marketing and licensing, while Print revenue decreased by 14% due to portfolio optimization and audience migration to digital.</li><li>Care.com saw a 6% decrease in revenue, attributed to a decline in subscriptions and lower product utilization in the Enterprise segment.</li><li>The Search segment's revenue decreased by 45%, primarily due to Google algorithm changes and policy updates affecting traffic and marketing through affiliate partners.</li><li>Emerging &amp; Other segment revenue decreased by 20%, largely due to the sale of Mosaic Group assets and reduced revenue from IAC Films and Vivian Health.</li><li>People Inc. Digital segment saw increased advertising revenue from premium advertising in Health, Pharmaceuticals, Technology, and Travel categories, despite a decline in Core Sessions.</li><li>The Print segment's decline in subscription and advertising revenue was influenced by a reduction in the number of issues sold and a shift to digital platforms.</li><li>Care.com experienced a goodwill impairment of $207.5 million due to reassessment of its fair value in the fourth quarter of 2025.</li></ul> </li></ul> Strategic Initiatives <ul><li>Spin-off of Angi Inc.: IAC completed the spin-off of Angi Inc. on March 31, 2025, making Angi an independent public company through a special dividend distribution of all shares of Angi capital stock held by IAC.</li><li>Rebranding: IAC rebranded Dotdash Meredith Inc. to People Inc. on July 31, 2025, as part of its strategic realignment to focus on its core digital and print publishing operations.</li><li>Capital Management: <ul><li>IAC undertook significant refinancing activities in 2025, including replacing $1.18 billion of Term Loan B-1 with $700 million of Term Loan B-2 and issuing $400 million of 7.625% Senior Secured Notes due June 15, 2032.</li><li>The company also replaced $288.8 million of Term Loan A with $350 million of Term Loan A-1 and established a new $150 million revolving credit facility.</li><li>Furthermore, IAC repurchased 7.7 million shares of its common stock for $316.1 million, utilizing the remaining shares from a previous authorization and part of a new 10 million share repurchase authorization approved in March 2025.</li></ul> </li><li>Future Outlook: IAC plans to continue optimizing its capital structure by managing its debt levels and exploring further share repurchase opportunities. The company anticipates increased capital expenditures in 2026, primarily for leasehold improvements, and expects to maintain sufficient liquidity through its cash reserves and positive cash flows from operations. IAC is also negotiating revised terms with Google for its Services Agreement, which is set to expire on March 31, 2026, and this outcome could impact future revenue streams.</li></ul> Challenges and Risks <ul><li>Industry Competition: IAC operates in highly competitive and evolving industries, with significant reliance on digital platforms and technologies. The company faces challenges in maintaining and enhancing its brand reputation, which is crucial for attracting audiences and advertisers. The Print business is experiencing ongoing revenue decline due to reduced consumer demand and increased competition from digital media.</li><li>Search Engine Dependency: IAC's business is subject to numerous risks, including reliance on search engines like Google for traffic, which can be affected by changes in algorithms and policies. Advances in AI and digital technologies are altering how information is accessed, potentially reducing traffic to IAC's platforms.</li><li>Economic Sensitivity: The company is sensitive to economic events that impact advertising spending. Regulatory changes in data privacy and AI could impose additional costs and operational changes.</li><li>Print Business Challenges: The Print business faces structural challenges, including cost volatility in paper and postage, and dependency on a limited number of vendors.</li><li>Management Strategies: Management acknowledges the need to adapt to rapidly changing digital landscapes and consumer preferences. The company is investing in digital content and advertising solutions like D/Cipher to enhance targeting capabilities. However, the effectiveness of these initiatives is uncertain, and failure to adapt could adversely affect business performance.</li><li>Market Risks: IAC is exposed to market risks, including interest rate fluctuations affecting its variable rate indebtedness. The company uses interest rate swaps to manage this risk but remains vulnerable to counterparty credit risk. Additionally, the volatility in the market price and trading volume of IAC common stock could impact investor confidence and financial stability.</li></ul>SEC Filing: IAC Inc. [ IAC ] - 10-K - Feb. 20, 2026</div></div>

ANGI

IAC Inc. has released its 2025 10-K report, detailing a 9% revenue decline to $2.39 billion, primarily due to losses in the Search and Emerging segments. The company reported a net loss of $101.5 million, impacted by a $207.5 million goodwill impairment at Care.com. Strategic initiatives included the spin-off of Angi Inc. and rebranding Dotdash Meredith to People Inc. IAC plans to optimize its capital structure and negotiate revised terms with Google as its Services Agreement expires in March 2026. The company faces challenges from industry competition and reliance on search engines for traffic.

IAC Inc. SEC 10-K Report