Angi (ANGI) Q4 2025 earnings summary

Executive summary

• Achieved a significant turnaround by doubling EBITDA and halving capital expenditures over three years, shifting from negative to positive free cash flow while improving customer metrics such as NPS, churn, and repeat rates.

• Q4 2025 operating income rose 175% year-over-year to $5.9M, with adjusted EBITDA up 25% to $39.7M, despite a 10% revenue decline to $240.8M due to a 79% drop in Network Revenue following the homeowner choice transition.

• Gave up $500 million in lower-quality revenue to focus on higher-margin, sustainable growth, with a material improvement in year-over-year revenue change of 700-900 basis points.

• Net earnings for Q4 2025 were $7.2M, reversing a $1.3M loss in Q4 2024; diluted EPS was $0.17 versus $(0.03) last year.

• Positioned for long-term growth by investing in AI, modernizing the tech stack, and leveraging proprietary data to enhance customer and pro matching.

Financial highlights

• Proprietary revenue grew 17% in 2025, with Q4 proprietary revenue up 23% year-over-year.

• Adjusted EBITDA reached $140 million in 2025, with guidance for $145-$150 million in 2026, excluding two $10 million one-time items.

• FY 2025 revenue was $1,030.5M, a 13% decrease from $1,185.1M in FY 2024.

• CapEx reduced to $55 million for 2026, supporting mid-teens profit growth on modest revenue growth.

• Free cash flow for FY 2025 was $45.5M, down from $105.4M in FY 2024.

Outlook and guidance

• Expecting low single-digit overall revenue growth (1-3%) for 2026, with proprietary channels growing high single to low double digits.

• Q1 revenue projected at -1% to -3% year-over-year, Q2 flat to slightly down, and mid-single-digit growth in the second half as network stabilizes.

• Incremental EBITDA in the mid-$20 million range in Q2 vs. Q1, with quarterly EBITDA in the mid-$40 million range for Q2 and Q3.

• Revenue growth is expected to return in FY 2026 following the completion of the homeowner choice transition.

• Brand marketing spend returning to 2024 levels, with a lagged but profitable impact on growth.