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what it is
IAC owns digital businesses in publishing, search, and online marketplaces.
how it gets paid
Last year Iac made $2.4B in revenue.
why growth slowed
Revenue fell 8.7% last year. On the other hand, print revenue probably declined sharply.
what just happened
With ~$2.4B FY revenue, a normal quarter is ~$600M ballpark— an old $1.7B “quarter” line on this page was inconsistent and dropped. EPS prints vary by source (e.g. EDGAR vs Yahoo); read the same GAAP period.
At a glance
B+ balance sheet — decent shape, but not bulletproof
10/100 earnings predictability — expect surprises
trailing p/e n/m — losses make the headline multiple meaningless
1.0% return on capital — nothing to write home about
$0.60 fy2026 eps est
xvary composite: 52/100 — below average
What they do
IAC owns digital businesses in publishing, search, and online marketplaces.
Barry Diller owns 8.0% of the common stock and 100% of Class B. Class B → extra votes → one holder can steer the portfolio. If you own IAC, you are betting on a manager with a hard grip, not a sleepy crowd.
How they make money
$2.4B
annual revenue · revenue declined -8.7% last year
total revenue
$2.4B
8.7%
The products that matter
publishing and digital content
Publishing
part of $2.4B revenue
this sits inside the $2.4B portfolio, but the snapshot does not break out segment revenue. that means you are underwriting the collection more than the individual asset.
no split shown
search and traffic monetization
Search
part of $2.4B revenue
search is one of the named business lines, yet there is no standalone growth figure here. when revenue is already down 8.7%, missing segment detail matters.
detail is thin
online marketplaces
Marketplaces
part of $2.4B revenue
marketplaces can be great businesses when they scale. here, all you know from the snapshot is that the total company kept only 3.2% of revenue as net profit.
profit test
Key numbers
n/m
trailing p/e
Trailing EPS is negative in several feeds— a giant “P/E” is arithmetic noise. Use forward estimates or cash flow instead.
$2.4B
annual revenue
That is the whole top line after an 8.7% drop.
4.1%
operating margin
About $4.10 of each $100 of sales reaches operating income— thin, but positive at this line.
$1.4B
long-term debt
That is 31% of capital, so leverage is not huge, but it does limit cash moves.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $1.4B (31% of capital)
- net profit margin 3.2% — keeps 3 cents of every dollar in revenue
- return on equity 2% — $0.02 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IAC 3 years ago → it's now worth $9,200.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Rough ~$600M quarter revenue (FY $2.4B ÷ 4— verify exact quarter in the filing), with EPS still negative depending on the line item.
EDGAR showed about -$0.34 EPS for one recent quarter; Yahoo can show a different consolidated print (e.g. -$0.99). Do not mix periods or GAAP vs adjusted. The old $1.7B quarter revenue figure fought the $2.4B annual total and was removed.
~$600M
implied quarter revenue
~-$0.34
EPS (EDGAR quarter)
64.83%
gross margin
the number that mattered
Revenue down 8.7% at the FY level with still-negative EPS prints— the story is turnaround execution, not a clean trailing multiple.
-
at people inc., digital revenue likely continued to grow at a high-single-digit pace.
-
on the other hand, print revenue probably declined sharply.
-
at care.com, enterprise demand likely remained weak, leading to a modest decline, despite steadier trends on the consumer side.cost reductions may offset some of these pressures, including a step-down in depreciation charges after the angi spin-off.
-
business prospects are likely to remain uneven in 2026.we look for revenues of roughly $2.34 billion, with an earnings improvement to about $0.60 per share, as overhead continues to come down, and people inc.’s digital operations contribute more consistently.
-
we expect declines in the print and search businesses to continue to weigh on results.share repurchases should also support per-share results, given management’s stated intention to direct excess cash toward buybacks rather than acquisitions.
source: company earnings report, 2026
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What could go wrong
this snapshot is thin on company-specific headlines, so the important updates are in the numbers. and the numbers are not subtle.
med
sales keep slipping
revenue already fell 8.7% from last year. if that continues, management has to cut its way to earnings because growth is not doing the work.
with only $2.4B in annual revenue today, another down year makes the $2B fy2028 estimate look less like caution and more like trajectory.
med
thin profit gets thinner fast
3.2% net margin means IAC keeps about 3 cents on every dollar of revenue. that is not much cushion if costs rise or weaker businesses drag on the portfolio.
a small hit to margin matters a lot when the earnings base is already thin enough to produce a 395.1x trailing p/e.
med
the business does not compound well yet
return on capital is 1.0% and return on equity is 2%. those are weak numbers for a company that needs investors to believe in future value creation.
if capital stays this unproductive, the market can keep treating the stock as a restructuring story instead of a durable franchise.
med
you are not getting paid to wait
the midpoint target is $34, below the current $39.51 price. the high target is $51, but the low target is $16. that's a wide spread because the outcomes are wide too.
the range says this stock needs execution to justify today's price, and the downside case is not theoretical.
My take: stay cautious until margin turns positive for 2 straight quarters. Until then, the $34 VL target has the cleaner case.
source: institutional data · regulatory filings · risk analysis
Pay attention to
profit conversion
15.0% operating margin vs. 3.2% net margin
that gap is the number that mattered on this page. if more of the operating profit starts reaching the bottom line, the stock finally gets a cleaner earnings story.
revenue trend
whether the 8.7% decline stops
shrinking sales and a turnaround thesis do not mix well for long. one quarter does not fix it, but the next update needs to look less like contraction.
estimate stack
fy2026 eps sits at $0.60
that is the market's current bridge to credibility. if estimates move lower, the argument that current valuation already discounts the bad news gets weaker.
target gap
$34 midpoint vs. $39.51 current price
the target stack is not backing up a clear upside case yet. until operations improve, the stock is trading ahead of the middle estimate, not below it.
Analyst rankings
earnings predictability
10 / 100
in human-speak, analysts and models do not trust this earnings stream to stay smooth.
risk rank
3
safer than roughly half the market. not fragile, not especially defensive.
price stability
35 / 100
the stock has not behaved like a calm compounder. you should expect movement.
source: institutional data
Institutional activity
162 buyers vs. 161 sellers in 3q2025. total institutional holdings: 69.9M shares.
source: institutional data
Price targets
3-5 year target range
$16
$51
$40
current price
$34
target midpoint · 14% from current · 3-5yr high: $51
Want the deeper analysis?
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