IAC’s Digital Division Shines Amid Mixed Quarterly Performance

IAC/InterActiveCorp US44891N2080

IAC/InterActiveCorp's latest financial report presents a study in contrasts. The company's fourth-quarter 2025 revenue surpassed market forecasts, yet the broader picture reveals a year-over-year decline. The standout performance of its core digital unit, People Inc., provided a significant bright spot, though this was partially offset by impairments and softer advertising income. The central question for investors is whether this digital momentum can sustainably counterbalance weaknesses elsewhere in the portfolio.

Alongside its operational results, IAC was active in strategic capital deployment. Throughout the full year, the company repurchased 8.2 million of its own shares at a total cost of $337 million. Furthermore, it increased its strategic investment position during the fourth quarter by acquiring an additional 1 million shares in MGM Resorts International. The company is also deepening its focus on artificial intelligence, expanding existing partnerships with tech leaders Meta, OpenAI, and Microsoft to enhance the distribution and optimization of its digital content.

Management is scheduled to discuss these results and the path forward in a conference call today at 8:30 a.m. EST (14:30 MEZ). The strategic direction for the AI collaborations and plans to stabilize search revenue are expected to be key topics of discussion.

A Closer Look at the Quarterly Figures

For the three months ending December 2025, IAC posted revenue of $646 million. This figure exceeded analyst expectations, which had been set at $641 million. However, it also represented a 10% decrease compared to the same period in the prior year. The bottom line faced considerable pressure, with the company reporting a GAAP loss per share of -$0.99, missing analyst estimates. This loss was driven in part by a goodwill impairment related to Care.com and a noted cooling in revenue generated from its search engine business.

People Inc.: The Engine of Growth

In stark contrast to the overall corporate performance, the digital publishing arm, People Inc., delivered robust growth. The segment's revenue jumped 14% year-over-year to reach $355 million for the fourth quarter. For the full fiscal year, the digital unit generated $1.1 billion in revenue, marking a solid 10% annual increase. Its full-year adjusted EBITDA stood at $331 million, underscoring its critical role as the primary profitability driver for the conglomerate.

Key Financial Metrics:
* Q4 Revenue: $646 million (Consensus Expectation: $641 million).
* Digital Segment (People Inc.) Q4 Revenue: $355 million, a 14% increase.
* Full-Year Share Repurchases: 8.2 million shares for $337 million.
* Strategic Investment: Purchase of 1 million MGM Resorts shares in Q4.

@ boerse-global.de | US44891N2080 IAC’S