IAC Q3 2025 slides: Digital growth offset by print decline as shares trade at discount

Introduction & Market Context

IAC/InterActiveCorp (NASDAQ:IAC) presented its Q3 2025 investor presentation on November 4, 2025, highlighting digital growth at its People Inc. subsidiary despite an overall revenue decline. The company’s stock fell 3.69% to $31.55 in pre-market trading following a slight earnings miss, with reported revenue of $589.8 million falling short of the anticipated $601.86 million.

The presentation emphasized IAC’s strategic focus on its core assets—People Inc. and a 24% stake in MGM Resorts—while arguing that the company trades at a substantial discount to its intrinsic value. IAC’s share price of $32.22 represents a significant discount from its 52-week high of $55.16, currently trading near its 52-week low of $29.56.

Executive Summary

IAC’s presentation outlined a three-pronged strategy focused on core business execution, capital allocation, and strategic catalysts. The company highlighted the completion of the Angi spin-off, making it IAC’s 10th fully independent company, and emphasized its ongoing share repurchase program, which has bought back 8% of outstanding shares year-to-date.

As shown in the following chart of IAC’s game plan and strategic focus areas:

People Inc. emerged as a bright spot with eight consecutive quarters of digital revenue growth and a 13% two-year CAGR, reaching $269 million in Q3 2025. However, this digital growth was offset by a 15% decline in print revenue and weakness in other segments, particularly a 41% drop in Search revenue.

Quarterly Performance Highlights

People Inc. demonstrated strong digital performance with revenue increasing 9% year-over-year to $269 million, driven by 38% growth in performance marketing and 24% growth in licensing revenue, though traditional advertising revenue declined 3%. Digital Adjusted EBITDA for People Inc. grew 9% to $72 million, maintaining a 27% margin.

The following chart illustrates People Inc.’s consistent digital revenue and EBITDA growth over the past two years:

However, IAC’s consolidated Q3 results showed an 8% year-over-year revenue decline to $590 million, with notable weakness across all segments: People Inc. down 2%, Care.com down 5%, Search down 41%, and Emerging & Other down 7%. Total Adjusted EBITDA fell to $29 million, though it reached $64 million excluding certain items, still representing an 11% decline from the prior year.

This comprehensive financial performance breakdown shows the mixed results across IAC’s portfolio:

Detailed Financial Analysis

IAC emphasized its valuation discount in the presentation, calculating an implied private holdings value of negative $0.3 billion after subtracting its MGM stake ($2.1 billion) and cash ($0.7 billion) from its $2.5 billion equity value. The company argues this means investors are effectively acquiring its private holdings—including People Inc., Care.com, Turo, and other assets—for free.

The following slide illustrates IAC’s valuation argument:

People Inc.’s performance shows the company’s ongoing digital transformation, with strong growth in performance marketing and licensing revenue offsetting traditional advertising challenges. The segment’s financial breakdown reveals the shifting revenue mix:

A key challenge highlighted in the presentation is the decline in Google search traffic, which dropped from 54% to 24% of total traffic. However, IAC noted that People Inc. has maintained its scaled audience through other channels, with off-platform views growing from 9.5 billion in Q3 2023 to 19.4 billion in Q3 2025.

Strategic Initiatives

IAC outlined several strategic initiatives to drive future growth. For People Inc., these include expanding direct-to-consumer offerings, growing off-platform distribution, pursuing M&A opportunities, exploring AI licensing partnerships with OpenAI and Microsoft, and implementing cost efficiencies.

The company announced a reduction in workforce affecting approximately 6% of employees, expected to deliver $65 million in run rate savings to be invested in growth initiatives and enhance profitability. Corporate costs declined 15% on a pro forma basis.

IAC also highlighted its 24% stake in MGM Resorts as a key strategic asset, emphasizing MGM’s digital opportunities through BetMGM, LeoVegas, and other ventures, its large customer base of over 50 million MGM Rewards members, and its international expansion into Japan and Dubai.

The following slide details MGM’s strategic positioning:

People Inc.’s portfolio of iconic brands spans multiple categories, with #1 positions in Entertainment, Food, Home, and Beauty & Style. This diverse portfolio reaches over 340 million monthly active users:

Forward-Looking Statements

Looking ahead, IAC provided guidance for FY 2025, projecting total Adjusted EBITDA of $234-$258 million. For People Inc. specifically, the company expects Q4 digital revenue growth of 7-10% and FY 2025 Adjusted EBITDA of $325-$340 million.

The company’s full-year guidance across all segments is detailed in the following chart:

IAC’s capital allocation strategy remains focused on share repurchases, having bought back $100 million in shares during Q3 and $300 million year-to-date, representing 8% of outstanding shares since the beginning of 2025. The company emphasized its streamlined focus on core assets following the Angi spin-off and suggested it would continue to evaluate strategic opportunities.

CEO Neil Vogel emphasized during the earnings call that IAC’s performance resulted from "our iconic portfolio of brands, the scaled audiences we’ve built, and our superior execution," while Chairman Barry Diller highlighted the company’s "long history of innovation," stating, "We have been inventing and building businesses at IAC for over thirty years."

Despite the optimistic outlook presented in the slides, investors will be watching closely to see if IAC can reverse the overall revenue decline while maintaining digital growth momentum in an increasingly challenging digital advertising environment.

Full presentation:

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