IAC Inc. (NASDAQ: IAC) reported first‑quarter 2026 results that fell short of expectations. Revenue was $422.9 million, down 12% from $481.7 million in Q1 2025, while the company posted a net loss of $71.9 million, or $0.94 per share. Adjusted EBITDA contracted to $2.7 million, a 93% decline from the $36.4 million recorded in the same period a year earlier.
The decline was driven largely by the wind‑down of the Search segment, which lost 76% of its revenue after the expiration of the Google services agreement, and a 16% drop in print revenue. In contrast, People Inc. digital revenue grew 8% to $253 million and its adjusted EBITDA margin expanded to 20% from 18% year‑over‑year, reflecting stronger digital demand and a more favorable mix.
Revenue missed the consensus estimate of $520.31 million by roughly 18.7%. The shortfall was largely attributable to the rapid contraction of legacy businesses and the one‑time restructuring costs associated with consolidating corporate functions into People Inc. The company also incurred $15 million in Google litigation expenses, further weighing on the top line.
Earnings per share also fell short of the consensus estimate of –$0.29 (or –$0.34 in some reports). The $0.94 loss per share was driven by higher operating costs, the restructuring charge, and the loss of Search revenue, which together amplified the net loss relative to expectations.
During the earnings call, Chairman Barry Diller thanked employees for their work during the transition and emphasized the company’s focus on capital allocation and value creation. CEO Neil Vogel highlighted People Inc.’s digital momentum, noting the 20% adjusted EBITDA margin and the 8% revenue growth, and reiterated the company’s plan to achieve $63 million in annual run‑rate operating‑expense savings through corporate consolidation.
Investors reacted negatively to the results, citing margin compression, the exit of the Search segment, and the significant restructuring costs. Management maintained its full‑year 2026 guidance, signaling confidence in the long‑term transformation toward a People‑centric business model.
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