Executive Summary

Revenue $278.2M and diluted EPS $0.23; revenue and EPS both exceeded Wall Street consensus, while EBITDA missed: revenue $261.6M* est vs $278.2M actual, EPS $0.263* est vs $0.297 actual, EBITDA $31.5M* est vs $28.0M actual *. Values retrieved from S&P Global.
Proprietary Service Requests grew 7% YoY and Proprietary Leads grew 16% YoY, marking the first proprietary volume growth since Q1 2021; total SRs and leads fell on Network Channels due to “homeowner choice” migration .
Adjusted EBITDA was $33.0M (down 22% YoY) primarily on lower revenue and higher consumer marketing; operating income rose to $17.7M (vs $9.2M), aided by lower depreciation from fewer 2024 write-offs .
Capital allocation: Angi repurchased 3.7M shares for $59.9M between May 6 and Aug 1; $362.5M cash at Q2-end and $500M senior notes outstanding; ~1.3M shares remain under the May 2025 buyback authorization .

What Went Well and What Went Wrong

What Went Well

First proprietary volume growth since 2021: “Proprietary Service Requests and Leads return to growth for the first time since Q1 2021” .
Product/matching upgrades: “We… implemented an LLM… a helper… allows us to get to the right question or move them to the right task… keep the homeowner going and not end up with the wrong task” .
Conversion metrics strengthening: “In June, our win rates… are up over 20%. In July… tracking to more than 30% up year over year… hire rates are coming right along” .

What Went Wrong

Network channel headwinds: Service Requests -59% and Leads -76% in Network Channels YoY, driving total SRs (-8%) and total leads (-17%) declines .
Adjusted EBITDA declined 22% YoY to $33.0M on lower revenue and increased consumer marketing costs per SR; consumer marketing expense rose to 35% of revenue (consolidated) vs 27% last year .
Macro softness caused an estimated 200–300 bps drag vs prior run rates, with lower homeowner intent in April/May before improving; management remains cautious on the environment .

Financial Results

Consolidated P&L and Key Metrics

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$267.9	$245.9	$278.2
Operating Income ($M)	$2.2	$20.0	$17.7
Net Earnings to ANGI Shareholders ($M)	$(1.3)	$15.1	$10.9
Diluted EPS ($)	$(0.00)	$0.30	$0.23
Adjusted EBITDA ($M)	$31.8	$27.7	$33.0
Gross Profit ($M)	$251.7	$232.9	$265.1
Gross Margin (%)	94.1%	94.7%	95.3%
EBIT Margin (%)	0.8%	8.1%	6.4%
Adj. EBITDA Margin (%)	11.9%	11.3%	11.9%

Notes: Gross/EBIT margins are calculated from cited revenue and gross profit/operating income . Adjusted EBITDA margins from Adjusted EBITDA and revenue .

Segment Revenue

Segment Revenue ($M)	Q4 2024	Q1 2025	Q2 2025
Domestic	$239.2	$212.6	$245.5
International	$28.6	$33.4	$32.7
Total	$267.9	$245.9	$278.2

KPIs

KPI	Q1 2025	Q2 2025
Service Requests – Proprietary (000s)	3,248→2,773 (-15% YoY)	3,848→4,118 (+7% YoY)
Service Requests – Network (000s)	878→588 (-33% YoY)	1,091→444 (-59% YoY)
Service Requests – Total (000s)	4,126→3,361 (-19% YoY)	4,939→4,562 (-8% YoY)
Leads – Proprietary (000s)	3,644→3,590 (-1% YoY)	4,309→4,980 (+16% YoY)
Leads – Network (000s)	1,867→812 (-57% YoY)	2,439→597 (-76% YoY)
Leads – Total (000s)	5,511→4,402 (-20% YoY)	6,749→5,577 (-17% YoY)
Acquired Pros (000s)	40→24 (-41% YoY)	39→24 (-39% YoY)
Avg Monthly Active Pros (000s)	157→134 (-14% YoY)	157→126 (-20% YoY)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Operating Income ($M)	FY 2025	$25–$60	No formal update; trajectory commentary only (stable contribution margins; operating leverage in Q4 without last year’s fixed expense bump)	Maintained (directional)
Adjusted EBITDA ($M)	FY 2025	$135–$150	No formal update; management tracking to plan, mix and margin comments reiterated	Maintained
Contribution Margin (%)	Q3–Q4 2025	n/a	“Fairly stable” Q3–Q4; operating margin leverage similar to prior years (sans Q4 fixed expense spike)	New qualitative
Marketing Expense (% of Revenue)	2H 2025	n/a	Modestly higher consumer marketing mix as paid proprietary channels scale; offset by lower Pro acquisition expense; net “fairly stable” contribution margins	New qualitative

Management did not provide explicit numerical Q2 or updated FY ranges beyond the Q4 outlook; directional commentary above came from the Q2 call .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI/technology initiatives	Q1: Introduced homeowner choice; launch of metrics primer; prepared to roll LLM aid for SR path	LLM “helper” live; rebuilding Q&A; ~15% of volume in test; 20% fewer wrong-task credits; plan to reach 80%+ by year-end	Scaling AI in matching; measurable quality lift
Proprietary vs Network mix	Q1: Network SR/Leads down sharply on homeowner choice; proprietary declines decelerating	Proprietary SR +7%, leads +16%; network stabilizing at exit rates	Proprietary strengthening; network stabilizing lower
Macro and demand	Q1: 300–500 bps drag; nondiscretionary ~2/3 of business offers resilience	Drag improved to ~200–300 bps; April softness reversed in June/July; cautious stance	Moderating headwinds; cautious outlook
Pro acquisition & capacity	Q1: Fewer pros acquired but higher LTV; online enroll planned; Europe test validates	Acquired pros -39% YoY; aggregate LTV down ~4% despite -39% pros; targeting larger pros; Boston online acquisition test	Quality over quantity; capacity set to grow into 2026
Capital allocation	Q4: FY25 OI/EBITDA outlook; spin-off plan	$59.9M buybacks; future buybacks constrained near-term by spin-off tax rules; Board opportunistic	Active repurchases; prudent constraints

Management Commentary

“Last night, we reported our first quarter of proprietary volume growth since the 2021… this time, it will be profitable revenue growth.” — CEO Jeff Kip .
“We… implemented an LLM… if the homeowner is confused… they can tell us in their own words… get to the right question… keep the homeowner going” .
“We acquired 39% fewer Pros in Q2 versus last year, but the aggregate Pro lifetime value sold in Q2 was down just 4% year over year.” — CFO Andrew Russakoff .
“Expect network volume… roughly stable the rest of the year… improvement in YoY revenue comparisons will come from… revenue per lead” — CEO Jeff Kip .

Q&A Highlights

Revenue trajectory and mix: Management expects proprietary SR/Leads to grow at similar rates to Q2 and revenue per lead to rise as legacy Ads pros migrate to the single platform, stabilizing network volumes near Q2 exit rates .
Margins and spend: Consumer marketing as % of revenue elevated on paid proprietary channels; contribution margins expected “fairly stable” in Q3–Q4 with operating leverage flowing through in Q4 absent last year’s fixed expense spike .
Macro: April softness impacted hiring; by June/July, win and hire rates rebounded double digits; management embeds cautious macro in run-rate outlook .
Buybacks: $59.9M repurchased in Q2 period; future pace bounded by tax-free spin-off limitations but Board remains opportunistic .
Capacity: Under-indexed to larger pros; online enroll pilot suggests incremental low-CAC capacity; path to mid-single-digit revenue growth in 2026 with flat contribution margins and EBITDA growth .

Estimates Context

Metric	Consensus (Q2 2025)	Actual (Q2 2025)	Surprise
Revenue ($M)	$261.6*	$278.2	+$16.6M; +6.4% — bold beat
Primary EPS ($)	$0.263*	$0.297 (diluted EPS ~$0.23; primary EPS actual per S&P)*	+$0.034 — bold beat
EBITDA ($M)	$31.5*	$28.0*	-$3.5M — miss
# of EPS Estimates	6*	n/a	—
# of Revenue Estimates	8*	n/a	—

Notes: Asterisks denote S&P Global data. Values retrieved from S&P Global. GAAP diluted EPS from filings was $0.23 ; S&P’s “Primary EPS” shows $0.297 actual*.

Key Takeaways for Investors

Revenue/EPS beat with sequential revenue growth (+13% QoQ) and solid GAAP profitability; Adjusted EBITDA improved QoQ to $33.0M though below consensus on higher consumer marketing mix *. Values retrieved from S&P Global.
Proprietary channels inflected positively (SR +7%, Leads +16% YoY); network pressure persists but is stabilizing at lower levels, reducing one major source of volatility .
Structural mix changes (homeowner choice; Ads-to-single platform) should lift revenue per lead through 2H25, supporting a path to mid-single-digit revenue growth in 2026 with flat contribution margins and EBITDA growth .
Conversion KPIs improving materially (win/hire rates +20–30% YoY into June/July), indicating product/matching enhancements are translating to economic value for pros and sustainable demand quality .
Share repurchases ($59.9M) and strong liquidity ($362.5M cash) provide support for per-share metrics; constraints from the spin-off limit near-term buyback cadence, but Board remains opportunistic .
Near-term trading setup: Positive narrative on proprietary growth and conversion improvements vs caution on macro and EBITDA miss; watch for 2H25 revenue per lead uplift and Ads migration execution as catalysts .
Medium-term thesis: AI-led matching, larger-pro targeting, and online enroll can expand capacity and unit economics, enabling revenue growth with operating leverage on a disciplined fixed cost base .

Appendix: Additional Data

Operating Expense Mix (Consolidated, % of Revenue; Q2 2025 vs Q2 2024)

Expense	Q2 2025 (% of Revenue)	Q2 2024 (% of Revenue)
Consumer Marketing	35%	27%
Pro Acquisition	14%	22%
Fixed Expense	22%	22%
Variable Expense	12%	11%
Cost of Revenue	5%	4%

Liquidity and Capital Structure

Cash & Equivalents: $362.5M at 6/30/25 .
Debt: $500M 3.875% Senior Notes due Aug 15, 2028 (ANGI Group, LLC) .
Buybacks: 3.7M shares repurchased for $59.9M (May 6–Aug 1); ~1.3M shares remain under 5.0M authorization .
Shares: 45.1M Class A outstanding at 6/30/25 .

S&P Global disclaimer: All figures marked with an asterisk (*) are consensus/actuals retrieved from S&P Global.

Angi Inc. (ANGI)·Q2 2025 Earnings Summary