Breaking Down Angi Inc. (ANGI) Financial Health: Key Insights for Investors

You're looking at Angi Inc. (ANGI) and seeing a confusing set of Q3 2025 results: revenue is down, but profit is up-so what's the real story for your portfolio? Honestly, the numbers paint a picture of deliberate, painful transition. The company's top line took a hit as total revenue fell to $265.6 million, a 10% decline year-over-year, and net earnings plummeted 70% to just $10.6 million, which defintely missed analyst expectations.

But here's the quick math on the pivot: management is trading volume for margin, and it's working on the cost side. You see this clearest in the operating income, which soared 179% to $21.8 million, driven by efficiency gains like sales force consolidation and lower acquisition expenses. The full-year 2025 revenue is still projected around $1.03 billion, which means the market is betting on a very different kind of home services marketplace. We need to map out if this strategic shift-moving away from high-volume, low-margin Network leads-is a sustainable path to long-term value, or just a one-time cost-cutting mirage.

Revenue Analysis

You're looking at Angi Inc. (ANGI)'s top-line numbers and, honestly, the recent trend requires a clear-eyed view. The headline is a revenue decline, but it's a strategic one. For the trailing twelve months ending September 30, 2025, Angi Inc.'s total revenue was about $1.06 billion, representing a year-over-year drop of 13.14%. This isn't a simple market slump; it's the cost of a major platform overhaul.

The core of Angi Inc.'s business is connecting homeowners with service professionals, and that revenue breaks down into a few key streams. In the third quarter of 2025 (Q3 2025), the total revenue was $265.63 million, a 10.5% decline from the same period last year. This decline is concentrated in the Domestic segment, which still makes up the vast majority of sales.

Here's the quick math on the Q3 2025 revenue sources:

• Lead Revenue: $183.25 million, the primary source.
• Advertising Revenue: $57.82 million.
• Services Revenue: $17.19 million.
• Membership Subscriptions: $6.93 million.

Strategic Shift and Revenue Impact

The most significant change in the revenue streams is directly tied to the company's full implementation of 'homeowner choice' in January 2025. This move, which stops automatically matching consumers with professionals in most cases, is intended to boost long-term customer satisfaction and profitability, but it hit the top-line hard in the near-term. It's a classic trade-off: short-term pain for potential long-term gain.

The impact is stark when you look at the volume metrics. In Q3 2025, the number of Network Service Requests plummeted by 67% year-over-year, and Leads dropped by 81%. That's a massive volume drain. But, to be fair, the new focus on proprietary channels (where Angi Inc. has more control over the experience) is showing promise. Proprietary Service Requests increased 11% year-over-year, and Proprietary Leads grew by 16% in the same quarter. That's the green shoot you need to watch.

The geographical split shows where the focus must remain. As of Q2 2025, the Domestic segment accounted for a dominant 88% of total revenue, with the International segment contributing the remaining 12%. The International segment is also seeing a decrease, down 4% in Q2 2025, partly due to a strategic shift in the Canadian business model to align with European operations. The entire business is in a period of calculated contraction and realignment. If you want to dig deeper into the ownership structure behind these decisions, you should check out Exploring Angi Inc. (ANGI) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for revenue per lead to start growing, which management expects to happen in 2026 as the new model matures. The company is defintely prioritizing quality over sheer volume right now.

Profitability Metrics

You want to know if Angi Inc. (ANGI) is actually making money, and the short answer is yes, but the story is complex: they are showing strong control over their core service costs, but revenue is still shrinking, making overall profitability a tightrope walk. The key takeaway from the Q3 2025 results is a dramatic improvement in operating income, driven purely by cost-cutting, not top-line growth.

For the third quarter of 2025, Angi Inc. reported revenue of $265.6 million, a 10% decline year-over-year. Despite this drop, the company's focus on operational efficiency is clear in the margin expansion. Here's the quick math on their core profitability metrics for Q3 2025:

• Gross Profit: $253.173 million
• Operating Income: $21.8 million
• Net Earnings: $10.6 million

Gross, Operating, and Net Margins in 2025

Angi Inc.'s gross profit margin for Q3 2025 was an impressive 95.3%, which is typical for an asset-light, digital marketplace business model where the cost of revenue (Cost of Goods Sold or COGS) is minimal. This high margin is a structural advantage. To be fair, this is significantly higher than the 75%-85% average for a pure Software-as-a-Service (SaaS) company, or the 79.9% seen in the online residential home sale listings industry.

However, the real challenge is converting that gross profit into operating and net profit. The operating margin for Q3 2025 came in at 8.2%, a substantial jump from 2.6% in the same quarter last year. This is where the cost management efforts kick in. The net profit margin for the quarter was 4.0%, translating to $10.6 million in net earnings. This is defintely a positive, but it's still highly sensitive to revenue fluctuations.

Operational Efficiency and Profitability Trends

The trend is a mixed bag: revenue is declining, but operating efficiency is soaring. Angi Inc.'s revenue has struggled, dropping at a 17.2% annual rate over the last three years, but the company has countered this by slashing operating expenses. This strategic shift, which included sales force consolidation and a focus on a 'quality-over-quantity' approach, is directly responsible for the massive 179% increase in operating income to $21.8 million in Q3 2025 compared to Q3 2024. They are running a much leaner operation now.

What this estimate hides is the sustainability of revenue. The company is actively choosing to reduce low-quality leads, which cuts revenue but improves the quality of the service professional (Pro) base and lowers customer acquisition costs (CAC). This is a strategic trade-off for long-term profitability. The goal is to optimize long-term profitability, not just chase top-line revenue growth. You can see more on this strategic shift in Exploring Angi Inc. (ANGI) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

The core of any company's financial stability lies in its capital structure-how it balances debt financing against shareholder equity. For Angi Inc. (ANGI), the picture is one of measured leverage, which is typical for a maturing technology platform.

As of the most recent data, Angi Inc. (ANGI) maintains a relatively conservative debt profile, especially when you look at the industry. The company's Total Debt for the most recent quarter stands at approximately $537.06 million. This debt is largely comprised of a single, long-term issuance.

Current Debt Levels and Composition

Angi Inc.'s debt is not a complex mix of short-term liabilities and high-interest loans. It's quite straightforward. The vast majority of the company's debt is long-term, specifically the $500 million in 3.875% Senior Notes that are due in August 2028. This means the company has locked in a low, fixed interest rate for a few more years, which is defintely a smart move in a rising-rate environment.

Here's the quick math on the balance sheet as of early 2025:

• Total Debt (MRQ): $537.06 million
• Total Shareholders' Equity (Mar 31, 2025): $1,062.801 million

The company is not relying heavily on short-term debt, which is a sign of good liquidity management and less exposure to immediate refinancing risk. You want to see that kind of discipline.

Debt-to-Equity Ratio: A Healthy Comparison

The best way to gauge this debt load is through the Debt-to-Equity (D/E) ratio, which tells you how much debt the company uses to finance its assets relative to the funding from its own shareholders. Angi Inc.'s D/E ratio is approximately 0.54. This is a strong, favorable figure for investors.

To be fair, a ratio below 1.0 is generally considered healthy, meaning the company is funding its operations more with equity than debt. When you compare Angi Inc.'s 0.54 to the average for the broader Information Technology sector, which is around 0.48, you see they are slightly more leveraged than the average tech peer, but still well within a comfortable range. For context, the average D/E for the S&P 500 is closer to 0.61. They are using debt efficiently to fuel growth without taking on excessive risk.

Recent Financing and Capital Strategy

Angi Inc. balances its capital structure by using a mix of equity and strategic debt. They recently secured a new liquidity backstop, which is a key action for any company. On November 6, 2025, a subsidiary, ANGI Group, LLC, established a new $175,000,000 senior secured revolving credit facility. This facility matures in November 2030 and provides a flexible, low-cost source of capital for working capital needs or unexpected opportunities.

This move is not an issuance of new debt to fund operations, but rather a line of credit-a safety net. It shows the company is focused on maintaining financial flexibility while its core long-term debt remains the fixed-rate Senior Notes. This capital strategy aligns with their broader organizational goals, which you can read more about here: Mission Statement, Vision, & Core Values of Angi Inc. (ANGI).

The company is using debt as a tool for growth and stability, not as a crutch. This measured approach should give you confidence in their financial footing.

Liquidity and Solvency

Angi Inc. maintains a solid near-term liquidity position, largely driven by its asset-light business model, which translates to strong current and quick ratios. However, you need to watch the volatility in its quarterly Free Cash Flow (FCF) and the strategic use of its cash reserves, which is a key decision point for investors.

The company's short-term financial health, or liquidity, looks good. As of the third quarter of 2025, Angi Inc.'s Current Ratio was approximately 1.89, meaning it holds $1.89 in current assets for every dollar of current liabilities. The Quick Ratio, which strips out inventory (since Angi Inc. has very little), was a very close 1.76. This high ratio is a clear sign of immediate financial flexibility. One clean one-liner: This business is not going to run out of cash next week.

Analyzing the working capital trend shows a healthy buffer. For example, in the second quarter of 2025, Current Assets were $443.23 million against Current Liabilities of $247.90 million. Here's the quick math: that leaves a net working capital (current assets minus current liabilities) of approximately $195.33 million. What this estimate hides is that while this is a strong number, the quality of those current assets, like accounts receivable, needs constant monitoring, especially with the recent shift to homeowner choice.

The cash flow statement overview for 2025 tells a story of strategic cash deployment and some operational volatility. The positive trend in cash flow from operating activities (CFO) is a strength, but the use of cash for share repurchases is a key financing activity to note.

The primary liquidity strength is the substantial cash and cash equivalents balance, which stood at $340.7 million as of October 31, 2025. This cash pile provides a cushion against market shifts and funds their ongoing strategic initiatives. The major liquidity concern is the long-term debt: Angi Group, LLC holds $500 million of 3.875% Senior Notes due in August 2028. While the current cash position and operational cash flow can handle the interest payments, the maturity date is now on the near-term horizon, and the company will defintely need a plan to refinance or repay that principal.

Also, Free Cash Flow (FCF) for Q3 2025 was relatively low at $4.93 million, a sharp drop from the previous quarter, which highlights that while the ratios are strong, the actual cash generation is inconsistent. This volatility is a risk, but it's partially offset by the company's focus on long-term profitability and its clear Mission Statement, Vision, & Core Values of Angi Inc. (ANGI).

Next Step: Portfolio Manager: Model a scenario where the $500 million debt is refinanced at a 6.0% interest rate to quantify the impact on future interest expense and FCF by the end of the year.

Valuation Analysis

You're looking at Angi Inc. (ANGI) right now and asking the core question: is it a bargain or a value trap? The quick takeaway is that based on current valuation multiples, Angi Inc. looks undervalued compared to its industry, but the market's 'Hold' consensus signals real caution about its near-term growth.

The stock is trading near its 52-week low, which tells you the market is defintely nervous. The price has been on a tough slide, falling approximately 40.28% over the last year, with the stock trading around $11.18 as of mid-November 2025, near the bottom of its 52-week range of $10.88 to $26.50. That's a brutal performance.

Is Angi Inc. Overvalued or Undervalued?

When we look at the core valuation multiples-the numbers that strip away the noise-Angi Inc. appears cheap. Here's the quick math on the trailing twelve months (TTM) data as of late 2025:

• Price-to-Book (P/B) Ratio: At about 0.50 to 0.61, the stock is trading for less than its book value. This is a strong indicator of being undervalued, especially since it's close to its 10-year low of 0.55.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA is low, sitting around 4.81 to 5.86. For context, the Interactive Media industry median is around 9.675. This suggests the company's operating cash flow is very cheap relative to its total value.
• Price-to-Earnings (P/E) Ratio: The TTM P/E is about 14.76 to 15.77. More importantly, the forward P/E, based on 2025 earnings estimates, drops to a compelling 8.06 to 9.02. This is a very low multiple for a technology-driven marketplace.

What this estimate hides is the recent earnings miss. The company reported $0.23 Earnings Per Share (EPS) for the last quarter, missing the consensus estimate of $0.33. The market is clearly discounting the stock due to revenue decline and execution risk, even though the multiples look attractive.

Analyst Consensus and Dividend Profile

The analyst community is sitting on the fence, which is why the stock is a 'Hold' despite the low multiples. The consensus rating is 'Hold,' with a breakdown of two 'Buy' ratings, eight 'Hold' ratings, and one 'Sell' rating across eleven brokerages.

The average 1-year price target is a significant upside from the current price, ranging from $20.50 to $21.50. The spread is wide, though, with the most bullish target at $27.00 and the most bearish at $14.00. This wide range shows a lack of conviction, suggesting a high degree of uncertainty about the company's turnaround plan.

For income-focused investors, there is no dividend to consider. Angi Inc. does not currently pay a dividend, meaning its dividend yield and payout ratio are both 0.00%. The company is prioritizing reinvestment or debt management over shareholder distributions.

Here's a summary of the valuation numbers:

The valuation multiples scream 'cheap,' but the 'Hold' rating and the stock's poor performance over the last 12 months (down over 40%) tell you there's a serious disconnect. The risk here is that the low valuation is justified by the difficulty in executing the transition to their fixed-price service model. Before making a move, you should look deeper into the institutional ownership and short interest. Exploring Angi Inc. (ANGI) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at Angi Inc. (ANGI) and seeing a company in the middle of a massive strategic pivot. That pivot, while aiming for long-term quality, creates significant near-term financial and operational risks. The direct takeaway is this: Angi Inc. is trading revenue volume for margin and customer quality, but the transition is causing a sharp revenue contraction that could strain its financial health if the new model doesn't accelerate growth soon.

The company faces a triple threat of external and internal pressures. Externally, the home services market is crowded with competitors who are defintely investing heavily in AI-driven service delivery models. Plus, the macroeconomic environment, especially volatile interest rates, still impacts consumer spending on big home projects. Internally, the biggest risk stems from their strategic shift to a 'homeowner choice' model, which has decimated their lower-quality, high-volume network channels.

Here's the quick math on the operational risk: Angi Inc.'s Q3 2025 earnings showed total revenue at just $265.6 million, a 10.5% decline year-over-year. This is directly tied to the strategic decision to discontinue automatically matching homeowners with pros. The impact on the old model was brutal:

• Network Service Requests dropped 67% year-over-year in Q3 2025.
• Network Leads fell by a staggering 81% year-over-year in Q3 2025.
• Full-year 2025 revenue is forecast to be just over $1 billion, which is notably half of its historical peak.

That's a painful but intentional cut to the top line. The whole strategy hinges on the growth of their higher-quality, higher-margin Proprietary Channels, which did show promise, with Proprietary Leads increasing by 16% in Q3 2025. The company is betting all its chips on this quality-over-quantity approach.

On the financial front, the risk profile is elevated. While Angi Inc. has been disciplined on costs-driving Adjusted EBITDA up 12% to $39.7 million in Q3 2025-the net result is still a fragile financial picture. Net earnings plunged 70% to $10.6 million in Q3 2025, partly due to a higher income tax provision from recent changes in tax laws. What this estimate hides is the underlying financial distress signaled by an Altman Z-Score of 1.35, which places the company in the 'distress zone,' suggesting a non-trivial risk of bankruptcy within the next two years.

The company's mitigation plan is clear: focus on efficiency and capital return. They are consolidating sales forces and reducing fixed costs, which is why operating income still rose 179% to $21.8 million in Q3 2025. Also, they're using a strong balance sheet to return capital, buying back 14.7% of outstanding shares in Q3 2025, a move that signals management's confidence in the long-term value. For a deeper dive into who's holding the bag during this risky transition, you should be Exploring Angi Inc. (ANGI) Investor Profile: Who's Buying and Why?

The table below summarizes the key financial and strategic risks you need to watch:

The next step is to monitor Q4 2025 results for any sign that Proprietary Channel growth is finally starting to offset the Network Channel losses. If it doesn't, the revenue decline will continue to put pressure on that fragile net earnings number.

Growth Opportunities

You're looking at Angi Inc. (ANGI) and seeing a company in a deliberate, painful transition. The direct takeaway is this: 2025 is a reset year-expect revenue declines, but watch the profitability metrics and marketplace health, which are defintely improving. The company is trading short-term revenue to build a better, more profitable long-term platform.

For the full fiscal year 2025, Angi Inc. is guiding for a revenue decline in the range of (11)% to (13)%. This isn't a sign of failure, but the direct result of their strategic shift to a 'quality-over-quantity' model, shedding lower-value transactions. Here's the quick math: they are sacrificing volume now to gain higher lifetime value from customers and professionals (pros) later. Still, they expect to hit full-year 2025 Adjusted EBITDA of roughly $140 million to $145 million, showing their focus on cash flow is working. That's a strong signal of financial discipline.

The real growth story for Angi Inc. is anchored in three key strategic initiatives:

• Homeowner Choice: Launched in January 2025, this lets homeowners directly select pros, moving the Net Promoter Score (NPS) from a deeply negative territory (below -30) to a positive one. This is huge for customer retention.
• Single Platform Migration: By the end of the third quarter of 2025, they plan to migrate all marketplace pros to one unified product and platform. This simplifies the experience, improving match quality and pro response rates.
• AI and Self-Enrollment: They are leveraging AI-driven job matching and re-launching a self-enrollment pro acquisition path. This makes it easier to onboard new, high-quality pros and is expected to increase the pro win rate by 10%.

The company's competitive advantage isn't just its brand recognition; it's the underlying unit economics. Angi Inc. maintains an impressive gross profit margin of nearly 95%, which underscores its ability to generate cash flow even while revenue is under pressure. This high margin gives them a significant cushion to invest in technology and marketing. Plus, the recent spin-off from IAC, completed around March 31, 2025, gives the management team greater autonomy to execute this turnaround strategy without the distraction of a parent company.

You can see the green shoots in the Q2 2025 results: Proprietary Service Requests increased 7% year-over-year, and Proprietary Leads jumped 16% year-over-year. This proprietary channel growth is the engine that will drive the anticipated return to revenue growth in 2026. For a deeper look at who is buying into this turnaround story, check out Exploring Angi Inc. (ANGI) Investor Profile: Who's Buying and Why?

The near-term risk is that the macroeconomic environment continues to dampen discretionary home spending, but the focus on non-discretionary, higher-value jobs helps mitigate that. The shift is already yielding better results, with Q2 2025 Diluted EPS at $0.23. Your action item is to track the proprietary growth metrics and the Adjusted EBITDA margin-that's where the value is being built.