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
StrengthsWeaknessesPeople 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.OpportunitiesThreatsMonetization 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.
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