Shares of IAC Inc. (NASDAQ: IAC) traded at $35.69 on Wednesday, down 3.0% following the release of its fourth-quarter and full-year 2025 financial results. The stock initially rallied in pre-market trading on a revenue beat but reversed gains after the company issued 2026 guidance that trailed analyst expectations.
Company Description
IAC Inc. is a media and internet holding company that builds and operates a portfolio of digital businesses. Following a 2025 restructuring, the company’s core operations are centered on People Inc. (formerly Dotdash Meredith) and Care.com, alongside a significant minority equity stake in MGM Resorts International. The company generates revenue primarily through digital advertising, performance marketing, and subscription services across publishing and marketplace platforms.
Market Performance and Valuation
- Current Stock Price: $35.69 (as of close Feb 4, 2026)
- Market Capitalization: Approximately $2.78 billion
- 52-Week Context: Shares have traded between $29.56 and $50.49 over the past year. The current price reflects a persistent “sum-of-the-parts” discount, with the market valuing the company’s private holdings at a minimal level relative to its liquid MGM stake and cash.
- Valuation: IAC trades at a forward P/E of 87.7x based on 2026 earnings estimates. The high multiple is a function of suppressed GAAP net income during its digital pivot; however, the company’s price-to-book ratio of 0.60x indicates the stock is trading well below its reported asset value.
Fourth Quarter and Full-Year 2025 Results
IAC reported results for the period ended December 31, 2025:
- Q4 Revenue: $646 million, a 10.5% decline year-over-year, but slightly above the $641 million consensus estimate.
- Q4 GAAP Loss: $0.99 per share, missing the consensus estimate of a $0.71 loss.
- Adjusted EBITDA: $141.6 million for the quarter, exceeding the $137.5 million estimate.
- Segment Performance: People Inc. digital revenue grew 14% to $355 million, its strongest performance in five quarters, while print revenue fell 23% to $168 million.
- Full-Year Revenue: $3.81 billion, compared to $4.37 billion in 2024.
2026 Guidance and Forecasts
The market reaction focused on a moderated growth outlook for the coming fiscal year:
- Consolidated EBITDA Guidance: IAC projected 2026 Adjusted EBITDA at a midpoint of $297.5 million, trailing the $319 million analyst consensus.
- People Inc. Outlook: The segment is expected to deliver $310 million to $340 million in Adjusted EBITDA, with digital revenue growth projected in the mid-to-high single digits.
- Search and Litigation: The company expects $15 million in litigation expenses related to Google antitrust matters and projects the Search segment will be EBITDA negative ($5M to $10M loss) in 2026.
Macro Pressures and Geopolitical Risk
- Platform Risk: IAC continues to navigate a structural decline in search-driven traffic; core sessions from Google Search have dropped 50% since 2023.
- AI Disruption: The company is aggressively pivoting to “non-session-based” revenue, such as social video and AI content partnerships with Meta and Microsoft, to mitigate traffic volatility.
- Asset Concentration: With the spin-off of Angi completed, IAC’s valuation is increasingly tied to its 25% stake in MGM Resorts (65.8 million shares), exposing shareholders to hospitality and gaming sector volatility.
SWOT Analysis
| Strengths | Weaknesses |
| People Inc. digital revenue growth accelerated to 14%. | Ongoing double-digit declines in legacy print revenue. |
| Significant liquid value in MGM Resorts equity stake. | Dependency on Google search ecosystem for traffic. |
| Opportunities | Threats |
| Monetization of AI partnerships with Meta/Microsoft. | Projected $15M in litigation costs for Google antitrust. |
| Share repurchases at a deep discount to book value. | Potential further disruption of search-driven ad models. |