Angi Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Revenue decreased 9% year-over-year to $242.0 million in Q3 2026, compared to $265.6 million in Q3 2025.
• Operating income was $15.5 million, a 29% decrease from $21.8 million in Q3 2025.
• Net earnings were $1.3 million, an 87% decrease from $10.6 million in Q3 2025.
• Diluted earnings per share were $0.03, down from $0.23 in Q3 2025.
• Adjusted EBITDA increased 6% year-over-year to $42.2 million in Q3 2026, compared to $39.7 million in Q3 2025.
• Year-to-date operating loss was $(227.7) million, driven by non-cash goodwill and intangible asset impairments of $235.2 million recorded in Q2 2026.
• Year-to-date Adjusted EBITDA was $93.3 million.
• Cash and cash equivalents were $202.5 million as of September 30, 2026.
• Long-term debt was $398.7 million (net of unamortized debt issuance costs) as of September 30, 2026.
• Deferred revenue was $23.8 million as of September 30, 2026.
• Free cash flow for the nine months ended September 30, 2026, was $(7.0) million.

Guidance and Future Outlook:

• The company announced a reduction of approximately 300 global roles to increase focus and organizational velocity.
• These workforce reductions are expected to generate annual run-rate savings of $50.0 million to $60.0 million in operating expenses and capital expenditures.
• The company expects to incur restructuring charges of $18.0 million to $30.0 million, primarily in the fourth quarter of 2026 and the first half of 2027.
• CEO Mike Steib stated the company is building on work to simplify operations, move faster, and develop better products using technology and AI.
• Management sees significant opportunities to improve profitability and cash flow in the near term while building a stronger company for long-term growth.

Business Segments and Product Lines:

• International revenue decreased 5% year-over-year, primarily due to a decrease in active Pros and unfavorable foreign currency exchange rates.
• Revenue per Lead increased 10% year-over-year in Q3 2026.
• Average monthly revenue per active Pro increased 6% year-over-year.
• Revenue from Large Pros grew over 20%, reflecting a shift away from heavily discounted legacy advertising products.
• U.S. Revenue was $211.1 million (down 9% YoY), while International Revenue was $30.9 million (down 5% YoY).
• Proprietary Service Requests were 3,806 thousand (flat YoY), while Network Service Requests fell 33% to 238 thousand.
• Total Leads were 4,485 thousand, down 18% year-over-year.
• Proprietary Revenue was $195.2 million (down 8% YoY), and Network Revenue was $15.9 million (down 25% YoY).
• Average Monthly Active Pros decreased 14% to 101 thousand.
• Average Monthly Churn was 6.7%.

Market and Competitive Landscape:

• The company highlighted its position as having one of the most recognized brands in home services with a large network of Pros.
• The Pro mix is shifting toward Large Pros, defined as those with expected or committed annualized spend of at least $50,000.
• National Partnerships are now reviewed together with small-and-medium-sized business Pros.

Risks and Challenges:

• Year-to-date operating loss was significantly impacted by $235.2 million in non-cash goodwill and intangible asset impairments recorded in Q2 2026.
• Operating income decline was driven by lower revenue and higher depreciation, including accelerated depreciation on capitalized software related to the planned retirement of the legacy technology platform.
• The effective income tax rate was higher than the U.S. federal statutory rate of 21% due to cross-border tax law and non-deductible share-based compensation.
• Forward-looking statements note risks including changes in advertising spending, consumer confidence, data security breaches, and potential impairments of goodwill and intangible assets.

Management Commentary and Tone:

• CEO Mike Steib expressed conviction in the business's potential following his first 45 days, citing the brand's recognition and market opportunity.
• Management emphasized a strategy to simplify operations and leverage AI to improve products and profitability.
• The tone reflects a focus on near-term profitability and cash flow improvements alongside long-term growth.

Other Key Points:

• The company announced a reduction of approximately 300 global roles, mostly in middle management and support functions, on November 3, 2026.
• As of September 30, 2026, Angi Inc. had 40.9 million shares of Class A common stock outstanding and no shares of Class B common stock.
• ANGI Group, LLC has $175.0 million available under its senior secured revolving facility maturing on November 6, 2030.
• The company recorded an income tax provision of $11.7 million for the three months ended September 30, 2026.
• Total operating costs and expenses for the quarter were $215.9 million, with significant expenses excluding cost of revenue totaling $189.2 million.
• Stock-based compensation expense for the quarter was $9.1 million.
• Depreciation expense for the quarter was $16.9 million.
• Restructuring charges for the quarter were $0.7 million.