IAC : Q1 2026 IAC Earnings Call Presentation

Published: 2026-05-04 16:08:20 ET IAC

Published on 05/04/2026 at 04:08 pm EDT

May 4, 2026

Core Business Execution

Industry-leading digital publisher

8% Digital revenue growth in Q1'26

Digital Adjusted EBITDA of $50M, up 20% with 45% incremental margins

Market leader with multiple growth drivers

IAC owns 66.8M shares/26%1

Capital Allocation

$111M of IAC buybacks since Q4 earnings, 4% of IAC equity2

Repurchased 13% of IAC equity

since the beginning of 20252

$37M / 1M shares purchased in Q1

Catalysts

Strategic Divestitures

Completed sale of Care.com with net proceeds of $296M

In Q1, IAC sold an unutilized domain name for $7.5M

Corporate Consolidation

$40M+ run-rate opex savings

$20-$25M reduced SBC

A streamlined and focused IAC with People Inc. and MGM stake as the core assets

1As of the MGM Resorts International Q1 2026 Earnings Presentation on April 29, 2026.

2As of 5/1/2026.

Market Value as of (5/1/2026)

IAC Share Price

$44.97

Shares Outstanding¹ (M):

75.6

Equity Value

$3.4B

Less: MGM Stake (@ $38.50/sh)2

($2.6)B

Less: IAC Cash3

($0.8)B

Implied Private Holdings Value:

($0.0B)

1 Fully Diluted Shares Outstanding as of 5/1/2026.

2 IAC has approximately $0.9B in NOLs to offset against the MGM taxable unrealized gain as of 5/1/2026.

3 IAC cash and cash equivalents balance as of 3/31/2026, excluding People Inc.

4 Revenue and Adjusted EBITDA excluding Certain Items for the twelve months ended 3/31/2026.

5 Calculated as Net Debt/Adjusted EBITDA excluding Certain Items. People Inc. net debt and leverage as of 3/31/2026.

6Reconciliations of all GAAP to non-GAAP measures are available in the appendix.

$1.2B Digital Revenue

$330M of Adj. EBITDA

excluding Certain Items4

$1.1B Net Debt

3.4x Leverage5,6

~$600M of

combined basis

Investors Are Effectively Acquiring These

Private Holdings for Free

Q1'24

Q1'25

Q1'26

AI Licensing

Commerce

Apple News

MyRecipes

D/Cipher

PEOPLE App

Events

Social

$235

$221

$253

'24-'26 CAGR

18%

($M) ($M)

$250

$200

$150

$100

$50

$60

$36 $42

$50

$40

$30

$20

$10

$0 $0

Q1'24 Q1'25 Q1'26

Ten consecutive quarters of Digital revenue growth

1Digital revenue has been recast to conform to current year presentation in all periods presented. Refer to slide number 9 for additional information.

(M)

2,500

2,000

1,500

'24-'26

759

34%

463

25%

1,452

1,378

1,841

2,211

2,273

1,245

55%

1,027

CAGR

-10%

-39%

(M)

25,000

20,000

15,000

'24-'26

10,192

16,545

20,962

CAGR

1,000

500

+16%

10,000

5,000

+43%

Q1'24 Q1'25 Q1'26

All Other Google Search

Off Platform Views

Growing Digital revenue at a 7% CAGR despite 63% decline in Google Search referrals over two years

AI Overviews appear on nearly 70% of top People Inc. queries1

People Inc. brands reach large and rapidly expanding audiences across Meta, Apple News, TikTok, YouTube

Distributed content experiences driving new revenue growth across platforms

1 AI Overviews penetration is an internally-sourced metric that tracks the presence of AI Overviews on the top 10,000 People Inc. search keywords.

2 Reflects off-platform views from Core brands. 6

$250

$200

$150

$253

41% revenue

24% y/y growth

Includes:

Advertising revenue

Social and native, events, sponsorships, email

D/Cipher+

Licensing revenue: Apple News, distributed content, AI licensing, Walmart licensing

~25% of Performance Marketing revenue

$100

$50

59% revenue

-1% y/y growth

Includes:

Advertising revenue

Traditional direct-sold display

Programmatic advertising

~75% of Performance Marketing revenue

$103

41%

$83

35%

$152

$150

$221

$235

$72

33%

$149

Q1'24 Q1'25 Q1'26

Adjusted EBITDA (excl. Certain Items)

Q1 Highlights:

($ in M)

Q1 2025

Q1 2026

Growth

Revenue

Advertising

$145

$146

Performance marketing

15%

Licensing and other

26%

Total Digital

$235

$253

163

138

(16%)

Intersegment eliminations

(5)

(13%)

Total Revenue

$393

$386

(2%)

8% Digital revenue growth

Revenue strength across Non-session-based Advertising, Licensing and Performance Marketing

Digital Adjusted EBITDA growth of 20%

Adjusted EBITDA margin of 20%; +200bps vs Q1

'25

Incremental Adjusted EBITDA margin of 45%

Digital

$42

$50

20%

(55%)

Other1

(12)

(13)

(9%)

Total Adjusted EBITDA (excl. Certain Items)1

$44

(1%)

Print revenue and Adjusted EBITDA reflects continued secular declines in Print advertising

Full year Print Adjusted EBITDA expected to offset Other/Corporate Overhead excluding ongoing Google ad-tech litigation expense (~$15M for FY 2026, $2M of which in Q1)

Q1'26 Free Cash Flow increased $35M y/y to $48M

1 Q1 2025 excludes a $36M net gain from an amendment of a lease, which provided for the surrender of certain office space early.

Overview: Effective 1/1/26, the digital portion of MNI, a legacy agency business, was moved from the Print segment to the Digital segment, reporting to the D/Cipher management team. Historical financials were recast to reflect this change as outlined below and previously disclosed on 4/7/26.

Strategic Rationale:

Expands addressable market: Targets independent ad agencies - incremental to People Inc. existing brand sales

Unlocks political advertising opportunity: Opportunity to service political ad demand using D/Cipher

Improved service levels: Better serve existing middle-market customers at higher margins for People Inc.

($ in M)

Total Digital Revenue & Growth Rates - Adjusted for Change

Financial Impact:

Results in ~200bps drag on Digital revenue growth in

Q1'26

Improving margins by servicing clients with D/Cipher

Election years cause volatility; especially 2024

presidential election cycle

No change to 2026 revenue guidance

1 Q1 2026 pre-recast total Digital revenue excludes MNI-related revenue that would have been recorded in the Print segment prior to the recast and includes estimated revenue from MNI-sold D/Cipher Digital products using the the

average of prior year margins and intercompany methodology.

Capital Allocation

MGM repurchased over 48% of its shares since the beginning of 20212

Undervalued

Properties

Recent property sale for

6.6x EBITDA; significantly higher than current implied trading multiple1

International Gaming

Osaka, Japan Dubai

Large Share of Unique Market in Las Vegas

Increasingly the center of entertainment and sports

Direct Relationship with Consumers

Over 50M MGM Reward members

Digital Opportunity

Brazil Venture

Compelling Equity Investment

1MGM Northfield Park sold for $546M in April 2026, as reported on the MGM Resorts International Q1 2026 Earnings Call on April 29, 2026.

2As of the MGM Resorts International Q1 2026 Earnings Presentation on April 29, 2026.

($ in M) Q1 2025 Q1 2026 Growth

People Inc. $393 $386 (2%)

Emerging & Other 18 20 10%

Total Revenue $482 $423 (12%)

($ in M) Q1 2025 Q1 2026 Growth

People Inc. $80 $44 (46%)

Emerging & Other (5) 4 NM

Total Adjusted EBITDA $36 $3 (93%)

Q1 Highlights:

Capital Allocation

Revenue

$111M in IAC share buybacks since Q4 earnings

Purchased an additional 1M shares of MGM for $37M

Search 70 17 (76%)

Completed sale of Care.com with net proceeds of $296M

Sold an unutilized domain name for $7.5M

Intersegment eliminations (0) (0) NM

Emerging & Other - 10% revenue growth and $9M Adjusted EBITDA improvement driven by:

Elimination of costs related to a legacy legal matter settled in Q3 2025

The Daily Beast and Vivian Health

One-time expenses:

Q1'25: $36M net gain from an amendment of a lease at People Inc.

Adjusted EBITDA

Q1'26:

Search 3 (8) NM

Corporate - $10M severance and related expense

- $2M Care transaction-related expenses

Corporate (42) (37) 13%

Search - $7M in severance and the write-off of prepaid assets related to certain vendor contracts

People Inc. - $2M related to antitrust litigation against Google

IAC will change its name to People Incorporated and is expected to trade under the ticker (NASDAQ: PPLI) on or before Q2 2026 earnings

Given the Company's narrowed focus on core assets People Inc. and its investment in MGM, IAC is consolidating its holding company corporate functions with those of its People Inc. business through a reduction in workforce, technology integration, and other cost-saving measures over the coming quarters that are expected to generate annual run-rate operating expense savings of $40M and approximately

$20-$25M in reduced stock-based compensation expense

As part of the transition away from a holding company structure, IAC officers Christopher Halpin (EVP, COO & CFO) and Kendall Handler (EVP, CLO) will depart the company in August, following a transition period and will serve as advisors to People Incorporated through March 2027

Barry Diller will continue as Chairman, and following Q2 2026 earnings, Neil Vogel is expected to become Chief Executive Officer and Tim Quinn Chief Financial Officer of the simplified entity that will be People Incorporated

$14M in severance and related expenses ($10M recognized in Q1 2026)

$48M in stock-based compensation expense

$0.5M to $1M in other costs 12

Stock-based compensation expense2 (90-85)

Amortization of intangibles (80-70)

Full Year 2026 Observations

($ in M)

FY 2026 Outlook1

Adjusted EBITDA

People Inc.

$310-$340

Emerging & Other

5-15

Corporate2

(105-95)

Total Adjusted EBITDA

$210-$260

People Inc.

Expect both Digital revenue and Digital Adjusted EBITDA to grow mid-to-high single-digits in 2026

Corporate expenses expected to exceed Print Adjusted EBITDA by $15M due to estimated Google litigation expense

In aggregate, guiding to $310-$340M of

consolidated People Inc. Adjusted EBITDA

Depreciation (30-25)

Search - The consolidated operations of the Search segment will be presented as discontinued operations in Q2 2026 and prior periods will be reflected as discontinued operations to conform to this presentation

Total Operating income $10-$80

Emerging & Other - Revenue and Adjusted EBITDA growth

driven by Vivian Health and The Daily Beast

1 As of Q1 2026 Earnings on 5/5/2026.

2As a result of IAC consolidating its corporate functions with those of People Inc., the Corporate Adjusted EBITDA range reflects an estimate of $14M in severance and related expenses and $0.5M to $1M of other costs, and the stock-based compensation expense range reflects an estimate of $48M related to the acceleration and modification of employee awards.

Reducing the number of shares outstanding from 85M to 76M

90M

Shares Outstanding

80M

$179M $200M

$300M

$337M

$448M

70M

Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Cumulative spend on share repurchases as of the date of quarterly earnings release

($ in M, rounding differences may occur)

Thre e Months Ende d March 31, 2026

Operating Income (Loss)

Stock-based Compensation Expense

Depreciation

Amortization of Intangibles

Adjusted EBITDA

Digital

$28

$16

$50

Other

(19)

($13)

Total People Inc.

$10

$19

$44

(8)

Emerging & Other

Corporate

(45)

(37)

Total

($40)

$16

$19

($ in M, rounding differences may occur)

Thre e Months Ende d March 31, 2025

Operating Income (Loss)

Stock-based Compensation Expense

Depreciation

Amortization of Intangibles

Adjusted EBITDA

Digital

$18

$19

$42

$14

Other

$24

Total People Inc.

$43

$22

$80

Emerging & Other

(5)

($5)

Corporate

(17)

(27)

($42)

Total

$24

($21)

$11

$22

$36

($ in M, rounding differences may occur) March 31, 2026

Cash and cash equivalents $316

Total principal balance of long-term debt 1,435

Net Debt $1,119

Adjusted EBITDA excluding Certain Items1 $330

Leverage Ratio 3.4x

Thre e Months Ende d March 31,

($ in M, rounding differences may occur)

2025

2026

Net Cash provided by operating activities

$17

$56

Capital expenditures

(4)

(8)

Free cash flow

$13

$48

1 For the twelve months ended March 31, 2026.

Three Months Ended March 31, 2024

($ in M, rounding differences may occur)

Digital Operating Loss

($1)

Stock-based compensation expense

Depreciation

Amortization of intangibles

Digital Adjusted EBITDA

$36

Twelve Months Ended March 31, 2026

($ in M, rounding differences may occur)

Operating Income

$180

Stock-based compensation expense

Depreciation

Amortization of intangibles

Adjusted EBITDA

$320

Certain Items1

Adjusted EBITDA excluding Certain Items

$330

Three Months Ended March 31, 2025

($ in M, rounding differences may occur) Digital Print Other Total

Operating Income

$18

$17

$43

Stock-based compensation expense

Depreciation

Amortization of intangibles

Adjusted EBITDA

$42

$14

$24

$80

Certain Items2

(36)

Adjusted EBITDA excluding Certain Items

$42

$14

($12)

$44

1 Consists of $15M of severance-related costs driven by headcount reductions to better align the business with strategic growth priorities, partially offset by a $5M net gain from an amendment of a lease, which

provided for the surrender of certain office space early.

2 Consists of a $36M of net gain from amendments of a lease to surrender certain office space early in Q1 2025.

People Inc. reconciliation of Operating (Loss) Income to Adjusted EBITDA

($ in M, rounding differences may occur)

Three Months Ended March 31,

2025

2026

Digital Revenue

$235

$253

Digital Operating Income

Digital Operating Income margin

11%

Stock-based compensation expense

Depreciation

Amortization of intangibles

Digital Adjusted EBITDA

$42

$50

Digital Adjusted EBITDA margin

18%

20%

Incremental Digital Revenue

Incremental Digital Adjusted EBITDA

Incremental Digital Adjusted EBITDA margin

45%

People Inc. reconciliation of Q1 Operating Income margin to Adjusted EBITDA margin

Disclaimer

IAC Inc. published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 20:07 UTC.