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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The overall concept that the Company employs in determining its operating segments is to present the financial information in a manner consistent with the CODM’s view of the businesses. The Executive Committee, which is comprised of the CEO of the Company and the Executive Chairman of the Company’s board of directors, is the CODM of the Company. In addition, the Company considers the organization of its businesses in terms of segment management and the focus of the businesses with regards to the types of services or products offered or the target market. During the three months ended March 31, 2025, management determined that a realignment of the Company’s operating and reportable segments was necessary to better reflect the operations and strategic priorities of the organization. The Company now has two reportable segments: Domestic and International. Disaggregated Revenue The following table presents revenue by reportable segment:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |  |  |
| (In thousands)
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic | $ | 233,247 |  |  | $ | 264,933 |  |  | $ | 691,333 |  |  | $ | 816,876 |  |  |  |  |  |  |
International | 32,386 |  |  | 31,786 |  |  | 98,434 |  |  | 100,367 |  |  |  |  |  |  |
Total | $ | 265,633 |  |  | $ | 296,719 |  |  | $ | 789,767 |  |  | $ | 917,243 |  |  |  |  |  |  |
The following table presents the revenue of the Company’s segments disaggregated by type of service:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |  |  |
| (In thousands)
Domestic: |  |  |  |  |  |  |  |  |  |  |  |  |
Lead revenue | $ | 151,261 |  |  | $ | 151,893 |  |  | $ | 420,857 |  |  | $ | 480,048 |  |  |  |  |  |  |
Advertising revenue | 57,820 |  |  | 78,782 |  |  | 193,713 |  |  | 234,228 |  |  |  |  |  |  |
Services revenue | 17,188 |  |  | 23,702 |  |  | 53,401 |  |  | 68,748 |  |  |  |  |  |  |
Membership subscription revenue | 6,931 |  |  | 10,452 |  |  | 23,205 |  |  | 33,491 |  |  |  |  |  |  |
Other revenue | 47 |  |  | 104 |  |  | 157 |  |  | 361 |  |  |  |  |  |  |
Total Domestic revenue | 233,247 |  |  | 264,933 |  |  | 691,333 |  |  | 816,876 |  |  |  |  |  |  |
International: |  |  |  |  |  |  |  |  |  |  |  |  |
Lead revenue | 31,986 |  |  | 26,024 |  |  | 96,376 |  |  | 82,711 |  |  |  |  |  |  |
Membership subscription revenue | — |  |  | 5,562 |  |  | 838 |  |  | 16,891 |  |  |  |  |  |  |
Other revenue | 400 |  |  | 200 |  |  | 1,220 |  |  | 765 |  |  |  |  |  |  |
Total International revenue | 32,386 |  |  | 31,786 |  |  | 98,434 |  |  | 100,367 |  |  |  |  |  |  |
Total revenue | $ | 265,633 |  |  | $ | 296,719 |  |  | $ | 789,767 |  |  | $ | 917,243 |  |  |  |  |  |  |
Segment Expenses The following table presents the significant expenses included in the Company’s segment reporting performance measure, Segment Adjusted EBITDA, that are regularly provided to the CODM:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  |  |  |  | 2025 |  | 2024 |  | 2025 |  | 2024
|  |  |  |  | (in thousands)
Domestic |  |  |  |  |  |  |  |  |  |  |
Consumer marketing expense (a) |  |  |  |  | $ | 84,869 |  |  | $ | 84,431 |  |  | $ | 242,999 |  |  | $ | 245,975 |
Fixed expense (b) |  |  |  |  | 45,006 |  |  | 47,658 |  |  | 142,761 |  |  | 153,534 |
Pro acquisition expense (c) |  |  |  |  | 34,068 |  |  | 57,577 |  |  | 108,243 |  |  | 186,456 |
Variable expense (d) |  |  |  |  | 26,979 |  |  | 29,835 |  |  | 81,507 |  |  | 94,370 |
Cost of revenue (e) |  |  |  |  | 11,270 |  |  | 13,692 |  |  | 35,619 |  |  | 38,445 |
Total Domestic expenses |  |  |  |  | 202,192 |  |  | 233,193 |  |  | 611,129 |  |  | 718,780 |
International |  |  |  |  |  |  |  |  |  |  |
Fixed expense (b) |  |  |  |  | 11,249 |  |  | 12,093 |  |  | 34,786 |  |  | 39,063 |
Variable expense (d) |  |  |  |  | 5,117 |  |  | 4,861 |  |  | 16,496 |  |  | 12,704 |
Consumer marketing expense (a) |  |  |  |  | 4,084 |  |  | 3,545 |  |  | 13,771 |  |  | 12,370 |
Pro acquisition expense (c) |  |  |  |  | 2,312 |  |  | 6,562 |  |  | 10,429 |  |  | 17,820 |
Cost of revenue (e) |  |  |  |  | 1,190 |  |  | 1,058 |  |  | 2,998 |  |  | 2,954 |
Total International expenses |  |  |  |  | 23,952 |  |  | 28,119 |  |  | 78,480 |  |  | 84,911 |
Total expenses |  |  |  |  | $ | 226,144 |  |  | $ | 261,312 |  |  | $ | 689,609 |  |  | $ | 803,691 |
Pro acquisition expense for the three months ended September 30, 2025 excludes $1.9 million of commissions capitalized in the same period and includes $6.5 million of capitalized commissions amortized from prior periods. Pro acquisition expense for the three months ended September 30, 2024 excludes $9.2 million of commissions capitalized in the same period and includes $12.1 million of capitalized commissions amortized from prior periods. Pro acquisition expense for the nine months ended September 30, 2025 excludes $7.7 million of commissions capitalized in the same period and includes $23.3 million of capitalized commissions amortized from prior periods. Pro acquisition expense for the nine months ended September 30, 2024 excludes $33.6 million of commissions capitalized in the same period and includes $39.0 million of capitalized commissions amortized from prior periods. _____________________ (a) Consumer marketing expense includes (i) advertising expenditures to promote the brand to consumers with (a) online marketing, including fees paid to search engines and other online marketing platforms, partners who direct traffic to our brands, and app platforms, and (b) offline marketing, which is primarily television, streaming and radio advertising, (ii) compensation expense, excluding stock-based compensation, and other employee-related costs for consumer marketing personnel and (iii) outsourced personnel costs. (b) Fixed expense includes (i) compensation expense, excluding stock-based compensation, and other employee-related costs for personnel engaged in (a) the design, development, testing, and enhancement of product offerings and related technology and (b) executive management, finance, legal, tax, marketing and human resources functions, (ii) software license and maintenance costs, (iii) rent expense and facilities costs (including impairments of ROU assets), (iv) fees for professional services and (iv) outsourced personnel costs for personnel engaged in product development. (c) Pro acquisition expense includes (i) advertising expenditures to promote the brand to Pros with (a) online marketing, including fees paid to search engines and other online marketing platforms, partners who direct traffic to the brands within the Angi segments, and app platforms, and (b) offline marketing, which is primarily television, streaming and radio advertising and (ii) compensation expense, excluding stock-based compensation, and other employee-related costs for professional acquisition sales and marketing personnel. (d) Variable expense includes (i) compensation expense, excluding stock-based compensation, and other employee-related costs for personnel engaged in customer service functions, (ii) provision for credit losses, (iii) outsourced personnel costs for personnel engaged in assisting in customer service functions and (iv) service guarantee expense. (e) Cost of revenue consists primarily of (i) credit card processing fees, (ii) hosting fees and (iii) payments made to independent third-party Pros who perform work. Segment Reporting Performance Measure and Reconciliations Adjusted EBITDA is the Company’s primary financial and GAAP segment measure. Adjusted EBITDA is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of amortization of intangible assets and impairments of goodwill and intangible assets, if applicable. Adjusted EBITDA is the segment reporting performance measure used by the CODM as one of the metrics by which we evaluate the performance of the Company and our internal budgets are based and may impact management compensation. The following table presents a summary of Segment Adjusted EBITDA:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |  |  |
| (In thousands)
Segment Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic | $ | 31,052 |  |  | $ | 31,743 |  |  | $ | 80,199 |  |  | $ | 98,101 |  |  |  |  |  |  |
International | 8,630 |  |  | 3,666 |  |  | 20,152 |  |  | 15,453 |  |  |  |  |  |  |
Total Segment Adjusted EBITDA | $ | 39,682 |  |  | $ | 35,409 |  |  | $ | 100,351 |  |  | $ | 113,554 |  |  |  |  |  |  |
The following table reconciles total Segment Adjusted EBITDA to earnings before income taxes:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (In thousands)
Total Segment Adjusted EBITDA | $ | 39,682 |  |  | $ | 35,409 |  |  | $ | 100,351 |  |  | $ | 113,554 |
Stock-based compensation expense | (5,982) |  |  | (10,024) |  |  | (8,749) |  |  | (28,093) |
Depreciation | (11,918) |  |  | (17,568) |  |  | (32,144) |  |  | (65,741) |
Interest expense | (5,069) |  |  | (5,045) |  |  | (15,164) |  |  | (15,124) |
Other income, net | 4,090 |  |  | 5,979 |  |  | 13,737 |  |  | 15,033 |
Earnings before income taxes | $ | 20,803 |  |  | $ | 8,751 |  |  | $ | 58,031 |  |  | $ | 19,629 |
Capital Expenditures The following table presents capital expenditures as viewed by the CODM:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (In thousands)
Capital expenditures: |  |  |  |  |  |  |
Domestic | $ | 14,162 |  |  | $ | 12,103 |  |  | $ | 38,829 |  |  | $ | 37,531 |
International | 1,886 |  |  | — |  |  | 2,043 |  |  | 16 |
Total | $ | 16,048 |  |  | $ | 12,103 |  |  | $ | 40,872 |  |  | $ | 37,547 |
Asset information at the reportable segment level is not regularly provided to the Company’s CODM because the Company manages capital expenditures on a consolidated basis. Geographic Information Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |  |  |
| (In thousands)
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 233,219 |  |  | $ | 264,931 |  |  | $ | 691,254 |  |  | $ | 816,621 |  |  |  |  |  |  |
All other countries | 32,414 |  |  | 31,788 |  |  | 98,513 |  |  | 100,622 |  |  |  |  |  |  |
Total | $ | 265,633 |  |  | $ | 296,719 |  |  | $ | 789,767 |  |  | $ | 917,243 |  |  |  |  |  |  |
| September 30, 2025 |  | December 31, 2024
| (In thousands)
Long-lived assets (excluding goodwill and intangible assets): |  |  |
United States | $ | 111,987 |  |  | $ | 104,290 |
All other countries | 8,272 |  |  | 5,692 |
Total | $ | 120,259 |  |  | $ | 109,982 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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