Angi : Reports Q1 2026 Results

Published: 2026-05-05 16:10:53 ET ANGI

Published on 05/05/2026 at 04:10 pm EDT

‌ANGI REPORTS Q1 2026

Angi reorganizes to focus product and development on AI-native platform and strategy

Service Requests returned to growth, increasing 5%, driven by 17% growth in Proprietary channels Angi repurchased $100.0 million, or 20%, of senior notes at a discount, strengthening the balance sheet Angi promotes Michael Wanderer to Chief Operating Officer, effective May 4, 2026

DENVER - May 5, 2026 - Angi Inc. (NASDAQ: ANGI) released its first quarter results today and separately posted a letter to shareholders from Jeff Kip, the Chief Executive Officer of Angi Inc., outlining the Company's strategic priorities and transition to an AI-native platform, on the Investor Relations section of Angi Inc.'s website at ir.angi.com.

ANGI INC. SUMMARY RESULTS

($ in millions except per share amounts)

Q1 2026 Q1 2025

% Change

Revenue

$ 238.2 $ 245.9

(3)%

Operating (loss) income

(9.5) 20.0

Net (loss) earnings

(9.0) 15.1

Diluted (loss) earnings per share

$ (0.22) $ 0.30

Adjusted EBITDA

22.9 27.7

(17)%

See reconciliations of GAAP to non-GAAP measures beginning on page 9.

Q1 2026 PERFORMANCE AND UPDATES

Revenue decreased (3)% year-over-year, reflecting a (56)% decline in Network Revenue as a result of the implementation of homeowner choice in January 2025, partially offset by a 7% increase in Proprietary Revenue from strong execution in paid marketing in Proprietary channels and a 7% growth in International Revenue.

Total U.S. Service Requests returned to growth, increasing 5% year-over-year in Q1 2026, and total U.S. Leads were flat. U.S. Proprietary Service Requests and Proprietary Leads increased 17% and 13% year-over-year, respectively, primarily driven by improvements in customer experience and strong performance in online marketing.

U.S. Network Service Requests and Network Leads declined (55)% and (54)%, respectively, driven by the implementation of homeowner choice in January of 2025.

Revenue per Lead decreased (5)% year-over-year in Q1 2026 primarily driven by delivering additional Leads to subscription Pros in excess of their contract values.

Operating loss was $(9.5) million, compared to operating income of $20.0 million in Q1 2025, reflecting a $14.9 million restructuring charge related to the reduction of the Company's global workforce and higher depreciation expense.

Adjusted EBITDA, which excludes the $14.9 million restructuring charge, was $22.9 million, down from $27.7 million in Q1 2025, primarily reflecting the planned reinvestment of overhead savings into brand marketing, including television, to support Proprietary growth, as well as the decline in Network Revenue, partially offset by lower fixed costs, including reduced product development expense resulting from the reduction of the Company's global workforce.

Angi reorganizes to focus product and development on AI-native platform and strategy, aligning investment with long-term growth priorities, as described in the CEO shareholder letter.

Between March 20, 2026 and May 5, 2026, the Company opportunistically repurchased $100.0 million aggregate principal amount of its 2028 Senior Notes for $91.9 million in cash, resulting in a $8.4 million gain and reducing outstanding debt.

For the three months ended March 31, 2026, the Company recorded an income tax benefit of $0.7 million. The effective income tax rate is lower than the statutory rate of 21% primarily due to $2.9 million of discrete restructuring tax benefit incurred in Q1 2026.

Angi announces the promotion of Michael Wanderer as Chief Operating Officer, effective Monday, May 4, 2026. Mr. Wanderer has been with the Company for 10 years, most recently serving as Chief People Officer.

‌OPERATING METRICS

Definitions of our key metrics are on page 12. For further detail, please refer to the "Angi Q1 2026 Metrics Supplement" document available at https://ir.angi.com/quarterly-earnings.

U.S. QUARTERLY PRO METRICS

(in thousands, rounding differences may occur)

Acquired Pros

(2)%

Average Monthly Active Pros

105

134

(22)%

Average Monthly Churn

(5.0)%

(4.5)%

(11)%

U.S. PROPRIETARY AND NETWORK CHANNEL METRICS

(in thousands, rounding differences may occur)

Q1 2026

Q1 2025

% Change

Service Requests

Proprietary

3,254

2,773

17 %

Network

267

588

(55)%

Total

3,521

3,361

5 %

Leads

Proprietary

4,048

3,590

13 %

Network

374

812

(54)%

Total

4,423

4,402

- %

Proprietary Revenue

$ 185,355

$ 173,351

7 %

Network Revenue

$ 17,143

$ 39,204

(56)%

As of March 31, 2026:

Angi Inc. had 40.4 million shares of Class A and no shares of Class B common stock outstanding,

Angi Inc. had $244.6 million in cash and cash equivalents,

ANGI Group, LLC (a subsidiary of Angi Inc.) had $471.4 million (net of unamortized debt issuance costs) of 3.875% Senior Notes due August 15, 2028, and

ANGI Group, LLC (a subsidiary of Angi Inc.) had $175.0 million available under its senior secured revolving facility, including a letter of credit sublimit of up to $25.0 million, that matures on November 6, 2030.

Angi Inc. will host a conference call to answer questions regarding its first quarter results on Wednesday, May 6, 2026, at 8:30 a.m. Eastern Time. This conference call will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of Angi Inc.'s businesses. The conference call will be accessible to the public at ir.angi.com and a recording of the webcast will be made available at that location.

Angi Inc. has various dilutive securities. The table below details these securities as well as potential dilution at various stock prices (shares in millions; rounding differences may occur).

Avg.

Exercise

As of

Price

5/1/26 Dilution At:

Share Price

$ 7.64

$ 8.00

$ 9.00

$10.00

$11.00

Absolute Shares as of 5/1/26

40.4

SARs and Options

1.0

$ 18.29

0.0

RSUs and MSUs

3.3

0.9

Total Dilution

0.9

% Dilution

2.1%

Total Diluted Shares Outstanding

41.3

The dilutive securities presentation is calculated using the method and assumptions described below, which are different from those used for GAAP dilution, which is calculated based on the treasury stock method.

‌The Company currently settles all equity awards on a net basis; therefore, the dilutive effect is presented as the net number of shares expected to be issued upon exercise or vesting, and in the case of options, assuming no proceeds are received by the Company. Any required withholding taxes are paid in cash by the Company on behalf of the employees assuming a withholding tax rate of 50%. In addition, the estimated income tax benefit from the tax deduction received upon the exercise or vesting of these awards is assumed to be used to repurchase Angi Inc. shares. Assuming all awards were exercised or vested on May 1, 2026, withholding taxes paid by the Company on behalf of the employees upon net settlement would have been $13.5 million, assuming a stock price of $7.64 and a 50% withholding rate.

Revenue

$ 238,150

$ 245,913

Cost of revenue (exclusive of depreciation shown separately below)

9,693

13,015

Gross profit

228,457

232,898

Operating costs and expenses:

Selling and marketing expense

139,933

118,541

General and administrative expense

57,931

57,319

Product development expense

10,440

27,087

Depreciation

14,694

9,948

Restructuring

14,923

Total operating costs and expenses

237,921

212,895

Operating (loss) income

(9,464)

20,003

Interest expense

(5,330)

(5,044)

Other income, net

5,099

4,828

(Loss) earnings before income taxes

(9,695)

19,787

Income tax benefit (provision)

717

(4,681)

Net (loss) earnings attributable to Angi Inc. shareholders

$ (8,978)

$ 15,106

Per share information attributable to Angi Inc. shareholders:

Basic (loss) earnings per share

$ (0.22)

$ 0.30

Diluted (loss) earnings per share

$ (0.22)

$ 0.30

Stock-based compensation expense by function:

Selling and marketing expense

$ 275

$ 636

General and administrative expense

2,853

(6,847)

Product development expense

(376)

3,924

Total stock-based compensation expense

$ 2,752

$ (2,287)

(In tho

usands)

ASSETS

Cash and cash equivalents

$ 244,580

$ 303,701

Accounts receivable, net

37,366

33,054

Other current assets

31,358

29,627

Total current assets

313,304

366,382

Capitalized software, leasehold improvements and equipment, net

101,373

99,101

Goodwill

889,220

890,066

Intangible assets, net

166,978

167,142

Deferred income taxes

125,317

126,229

Other non-current assets, net

29,073

31,448

TOTAL ASSETS

$ 1,625,265

$ 1,680,368

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:

Accounts payable

$ 35,065

$ 34,031

Deferred revenue

20,996

22,096

Accrued expenses and other current liabilities

153,137

166,311

Total current liabilities

209,198

222,438

Long-term debt, net

471,389

497,667

Deferred income taxes

1,455

1,498

Other long-term liabilities

28,499

31,399

Commitments and contingencies

SHAREHOLDERS' EQUITY:

Class A common stock

538

Class B convertible common stock

Class C common stock

Additional paid-in capital

1,424,207

1,427,693

Accumulated deficit

(159,858)

(150,880)

Accumulated other comprehensive income

5,760

5,938

Treasury stock

(355,923)

Total shareholders' equity

914,724

927,366

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 1,625,265

$ 1,680,368

Cash flows from operating activities:

Net (loss) earnings

$ (8,978)

$ 15,106

Adjustments to reconcile net (loss) earnings to net cash (used in) provided by operating

activities:

Depreciation

14,694

9,948

Provision for credit losses

10,338

11,314

Stock-based compensation expense

2,752

(2,287)

Non-cash lease expense (including impairment of right-of-use assets)

1,921

1,786

Deferred income taxes

482

2,717

Gain on extinguishment of debt

(2,739)

Other adjustments, net

444

(451)

Changes in assets and liabilities:

Accounts receivable

(14,790)

(14,773)

Other assets

851

2,469

Accounts payable and other liabilities

(16,285)

(20,390)

Income taxes payable and receivable

(2,047)

1,417

Operating lease liabilities

(3,461)

(3,270)

Deferred revenue

(1,085)

(6,699)

Net cash used in operating activities

(17,903)

(3,113)

Cash flows from investing activities:

Capital expenditures

(15,725)

(12,574)

Proceeds from sales of fixed assets

Net cash used in investing activities

(15,693)

(12,499)

Cash flows from financing activities:

Repurchases of debt

(23,744)

Withholding taxes paid on behalf of employees on net settled stock-based awards

(1,798)

(4,542)

Purchases of treasury stock

(9,801)

Net cash used in financing activities

(25,542)

(14,343)

Total cash used

(59,138)

(29,955)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(26)

Net decrease in cash and cash equivalents and restricted cash

(59,121)

(29,981)

Cash and cash equivalents and restricted cash at beginning of period

303,701

416,545

Cash and cash equivalents and restricted cash at end of period

$ 244,580

$ 386,564

The following tables present the significant expenses included in the Company's segment reporting performance measure, Segment Adjusted EBITDA, that are regularly provided to the Chief Operating Decision Maker (CODM):

Three Months Ended March 31,

2026

2025

2026

2025

(In thousands) As a percentage of revenue

U.S.

Cost of revenue

$ 8,219

$ 11,998

Consumer marketing expense

92,765

65,276

46%

31%

Variable expense

20,764

26,545

10%

12%

Pro acquisition expense

30,538

39,044

15%

18%

Fixed expense

35,097

48,122

17%

23%

Total U.S. expenses

$ 187,383

$ 190,985

93%

90%

International

Cost of revenue

$ 1,474

$ 1,017

Consumer marketing expense

8,798

4,961

25%

15%

Variable expense

5,964

5,345

17%

16%

Pro acquisition expense

5,024

4,290

14%

13%

Fixed expense

6,602

11,651

19%

35%

Total International expenses

$ 27,862

$ 27,264

78%

82%

Consolidated

Cost of revenue

$ 9,693

$ 13,015

Consumer marketing expense

101,563

70,237

43%

29%

Variable expense

26,728

31,890

11%

13%

Pro acquisition expense

35,562

43,334

15%

18%

Fixed expense

41,699

59,773

18%

24%

Total expenses

$ 215,245

$ 218,249

90%

89%

Pro acquisition expense for the three months ended March 31, 2026 excludes $2.8 million of commissions capitalized in the same period and includes $3.3 million of amortization of capitalized commissions from prior periods. Pro acquisition expense for the three months ended March 31, 2025 excludes $3.4 million of commissions capitalized in the same period and includes $9.1 million of amortization of capitalized commissions from prior periods.

($ in millions; rounding differences may occur)

U.S. $ 202.5 $ 212.6 (5)%

International 35.7 33.4 7 %

Total Revenue $ 238.2 $ 245.9 (3)%

($ in millions; rounding differences may occur)

Operating Income

Stock-Based Compensation Expense

Depreciation

Restructuring

Adjusted EBITDA

U.S.

$ (11.2)

$ 2.2

$ 14.3

$ 9.8

$ 15.1

International

1.8

0.5

0.4

5.1

7.8

Total

$ (9.5)

$ 2.8

$ 14.7

$ 14.9

$ 22.9

Interest expense

(5.3)

Other income, net

5.1

Earnings before income taxes

(9.7)

Income tax benefit

0.7

Net loss attributable to Angi Inc.

shareholders

$ (9.0)

Three Months Ended March 31, 2025

Operating

Stock-Based

Compensation Adjusted

Income

Expense Depreciation Restructuring EBITDA

U.S.

$ 14.0

$ (2.3) $ 9.9 $ - $ 21.6

International

6.0

- - - 6.1

Total

$ 20.0

$ (2.3) $ 9.9 $ - $ 27.7

Interest expense

(5.0)

Other income, net

4.8

Earnings before income taxes

19.8

Income tax provision

(4.7)

Net earnings attributable to Angi Inc.

shareholders

$ 15.1

($ in millions; rounding differences may occur)

2026

2025

Net cash (used in) provided by operating activities

(17.9)

(3.1)

Capital expenditures

(15.7)

(12.6)

Free Cash Flow

(33.6)

(15.7)

Total

Significant

Total

Expenses

Operating

Stock-based

(Excluding

Costs and

Compensation

Cost of

Expenses

Expense

Depreciation

Restructuring

Revenue)

U.S.

$ 205.5

$ (2.2)

$ (14.3)

$ (9.8)

$ 179.2

International

32.4

(0.5)

(0.4)

(5.1)

26.4

Total

$ 237.9

$ (2.8)

$ (14.7)

$ (14.9)

$ 205.6

Three Months Ended March 31, 2025

Total

Total Significant Expenses

Operating

Costs and Expenses

Stock-based (Excluding

Compensation Cost of

Expense Depreciation Restructuring Revenue)

U.S.

$ 186.6

$ 2.3 $ (9.9) - $ 179.0

International

26.3

- - - 26.2

Total

$ 212.9

$ 2.3 $ (9.9) $ - $ 205.2

Angi Inc. reports Adjusted EBITDA and Free Cash Flow, which are supplemental measures to U.S. generally accepted accounting principles ("GAAP"). Adjusted EBITDA is considered our primary segment measure of profitability and is one of the metrics, along with Free Cash Flow, by which we evaluate the performance of our businesses and our internal budgets are based and may also impact management compensation. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results. Angi Inc. endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures, which are included in this release. Interim results are not necessarily indicative of the results that may be expected for a full year.

Definitions of Non-GAAP Measures

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; (3) acquisition-related items consisting of amortization of intangible assets and impairments of goodwill and intangible assets, if applicable; and (4) restructuring. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between its performance and that of its competitors. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses.

Free Cash Flow is defined as net cash provided by operating activities attributable to continuing operations, less capital expenditures. We believe Free Cash Flow is useful to analysts and investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. For example, it does not take into account mandatory debt service requirements. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.

Definitions of Significant Expenses

Consumer Marketing Expense includes (i) advertising expenditures to promote the brand to consumers with (a) online marketing, including fees paid to search engines and other online marketing platforms, partners who direct traffic to our brands, and app platforms, and (b) offline marketing, which is primarily television, streaming and radio advertising, (ii) compensation expense, excluding stock-based compensation, and other employee-related costs for consumer marketing personnel and (iii) outsourced personnel costs.

Pro Acquisition Expense includes (i) advertising expenditures to promote the brand to Pros with (a) online marketing, including fees paid to search engines and other online marketing platforms, partners who direct traffic to the brands within the Angi Inc. segments, and app platforms, and (b) offline marketing, which is primarily television, streaming and radio advertising and (ii) compensation expense, excluding stock-based compensation, and other employee-related costs for pro acquisition sales and marketing personnel.

Fixed Expense includes (i) compensation expense, excluding stock-based compensation, and other employee-related costs for personnel engaged in (a) the design, development, testing, and enhancement of product offerings and related technology and (b) executive management, finance, legal, tax, marketing and human resources functions, (ii) software license and maintenance costs, (iii) rent expense and facilities costs (including impairments of ROU assets), (iv) fees for professional services and (iv) outsourced personnel costs for personnel engaged in product development.

Variable Expense includes (i) compensation expense, excluding stock-based compensation, and other employee-related costs for personnel engaged in customer service functions, (ii) provision for credit losses, (iii) outsourced personnel costs for personnel engaged in assisting in customer service functions and (iv) service guarantee expense.

Stock-based compensation expense consists of expense associated with the grants, including unvested grants assumed in acquisitions, of stock appreciation rights ("SARs"), restricted stock units ("RSUs"), stock options and performance-based RSUs and market-based awards. These expenses are not paid in cash, and we view the economic costs of stock-based awards to be the dilution to our share base; we also include the related shares in our fully diluted shares outstanding for GAAP earnings per share using the treasury stock method. Performance-based RSUs and market-based awards are included only to the extent the applicable performance or market condition(s) have been met (assuming the end of the reporting period is the end of the contingency period). The Company is currently settling all stock-based awards on a net basis and remits the required tax-withholding amounts from its current funds.

Please see page 4 for a summary of our dilutive securities as of May 1, 2026, and a description of the calculation methodology.

Depreciation is a non-cash expense relating to our capitalized software, leasehold improvements and equipment and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives, or, in the case of leasehold improvements, the lease term, if shorter.

Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses related primarily to acquisitions. At the time of an acquisition, the identifiable definite-lived intangible assets of the acquired company, such as professional relationships, technology and trade names, are valued and amortized over their estimated lives. Value is also assigned to acquired indefinite-lived intangible assets, which comprise trade names and trademarks, and goodwill that are not subject to amortization. An impairment is recorded when the carrying value of an intangible asset or goodwill exceeds its fair value. We believe that intangible assets represent costs incurred by the acquired company to build value prior to acquisition and the related amortization and impairments of intangible assets or goodwill, if applicable, are not ongoing costs of doing business.

Restructuring are costs associated with a formal restructuring plan that are primarily related to workforce reductions. The Company excludes these expenses because they are not reflective of ordinary course ongoing business and operating results.

‌Metric Definitions

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release and our conference call, which will be held at 8:30 a.m. Eastern Time on Wednesday, May 6, 2026, may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "may," "will," "should," "could," "intend," "target," "project," "continue," "anticipate," "estimate," "expect," "plan," "believe," and "potential" among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: the future financial performance of the Company and its businesses, the Company's plans and expectations concerning debt repurchases, business prospects and strategy, the timing, development, and expected outcome of strategic and product initiatives, future capital allocation strategy, the anticipated benefits of being an independent public company, anticipated trends and prospects in the home services industry and other similar matters. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: (i) the continued migration of the home services market online, (ii) our ability to market our various products and services in a successful and cost-effective manner, (iii) the continued prominence of the display of links to websites offering our products and services in search results, (iv) our ability to expand our pre-priced offerings, while balancing the overall mix of service requests and directory services on Angi Inc. platforms, (v) our ability to establish and maintain relationships with quality and trustworthy Pros, (vi) our continued ability to develop and monetize versions of our products and services for mobile and other digital devices, (vii) our ability to access, share, use and protect the personal data of consumers, (viii) our continued ability to communicate with consumers and Pros via e-mail (or other sufficient means), (ix) our ability to continue to generate leads for Pros given changing requirements applicable to certain communications with consumers, (x) any challenge to the contractor classification or employment status of our Pros, (xi) our ability to compete, (xii) unstable market and economic conditions (particularly those that adversely impact advertising spending levels and consumer confidence and spending behavior), either generally and/or in any of the markets in which our businesses operate, as well as geopolitical conflicts, (xiii) our ability to maintain and/or enhance our various brands, (xiv) our ability to protect our systems, technology and infrastructure from cyberattacks (including cyberattacks experienced by third parties with whom we do business), (xv) the occurrence of data security breaches and/or fraud, (xvi) increased liabilities and costs related to the processing, storage, use and disclosure of personal and

confidential user information, (xvii) the integrity, quality, efficiency and scalability of our systems, technology and infrastructures (and those of third parties with whom we do business), (xviii) changes in key personnel, (xix) our development and use of AI and machine learning technologies and the related legal and regulatory developments, (xx) various risks related to our relationship with IAC following the spin-off, (xxi) our ability to generate sufficient cash to service our indebtedness, (xxii) the impact of our current and future indebtedness on our ability to obtain additional financing and pursue other business opportunities and (xxiii) certain risks related to ownership of our Class A common stock. Certain of these and other risks and uncertainties are discussed in Angi Inc.'s filings with the Securities and Exchange Commission (the "SEC"), including the most recent Annual Report on Form 10-K filed with the SEC on February 20, 2026, and subsequent reports that Angi Inc. files with the SEC. Other unknown or unpredictable factors that could also adversely affect Angi Inc.'s business, financial condition and results of operations may arise from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

About Angi Inc.

Angi (NASDAQ: ANGI) helps homeowners get home projects done well and helps home service professionals grow their businesses. Founded in 1995, Angi connects homeowners with skilled local professionals - from plumbers and electricians to remodelers and landscapers - and provides tools for researching costs, planning projects and hiring with confidence. Homeowners have turned to Angi and its vast network of skilled home pros for help with more than 300 million projects.

Angi Inc. Investor Relations

(720) 282-1958

[email protected]

Angi Inc. Corporate Communications

(303) 963-8352

Angi Inc.

3601 Walnut Street, Denver, CO 80205 (303) 963-7200 http://www.angi.com

Disclaimer

ANGI Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 20:09 UTC.