IAC (IAC) Q2 2025 earnings summary

Executive summary

• Dotdash Meredith rebranded as People Inc., achieving 9% digital revenue growth in Q2 2025, with core sessions growth and diversified revenue streams despite macro and open web volatility.

• Care.com relaunched its product and brand, showing early signs of improved engagement and stability in consumer metrics, though Q2 revenue declined 6%.

• MGM delivered strong digital gaming results, with BetMGM net revenue up 36% and a $307.4M unrealized gain on MGM investment boosting net earnings to $211.5M in Q2 2025.

• Adjusted EBITDA for the consolidated group increased 15% in Q2 2025, with full-year guidance set at $247M–$285M.

• Angi Inc. spin-off completed March 31, 2025, now presented as discontinued operations.

Financial highlights

• Q2 2025 revenue was $586.9M, down 7% year-over-year, but digital revenue at People Inc. rose 9% to $260.4M.

• Adjusted EBITDA for Q2 2025 was $74.2M, up 10% year-over-year; six-month Adjusted EBITDA: $167.5M, up 71%.

• Care.com reported $82M in Q2 revenue and $5.8M Adjusted EBITDA; Search revenue dropped 39% to $61.7M but improved margins.

• People Inc. delivered $1B in digital revenue and $312M in Adjusted EBITDA for the trailing twelve months ended June 30, 2025.

• Free cash flow for the first half of 2025 was negative $11.8M, down $65.6M year-over-year due to unfavorable working capital and higher capex.

Outlook and guidance

• Full-year 2025 guidance: Operating income of $82M–$140M and Adjusted EBITDA of $247M–$285M.

• People Inc. FY 2025 Adjusted EBITDA expected at $330M–$340M; digital revenue growth forecasted at 7%–10%.

• Q3 2025: People Inc. digital revenue growth of 7%–9% and Adjusted EBITDA of $68M–$73M.

• Care.com Q3 revenue expected to decline 4%–7% with Adjusted EBITDA of $6M–$10M.

• 2025 capital expenditures expected to increase 30%–40% over 2024, mainly for capitalized software at People Inc.