Iac/interactivecorp Stock Earnings Reports

IAC (rebranding to People Inc.) reported a solid Q1 driven by People Inc.'s digital business: digital revenue grew 8% with a 200-basis-point expansion in digital adjusted EBITDA margin. Non-sessions-based revenue (licensing, Decipher targeting, social/custom ad programs, Apple News, scaled commerce) grew 24% YoY and now represents ~41% of digital revenue — a primary strategic focus. Management outlined a corporate consolidation that will fold IAC parent functions into People Inc., targeting ~$40 million annual run-rate operating expense savings and $20–25 million lower stock-based compensation, with one-time charges of $63 million and a transition through Feb 2027. IAC completed the sale of Care.com and classified it (and the shuttered Search business) as discontinued operations. The company repurchased IAC shares ($111M since last call) and increased its MGM stake to 26% (additional $37M), and said capital allocation priorities remain buybacks, MGM exposure, and reinvesting in People Inc. Product initiatives (“inversion” projects) — memberships, social shopping, recipe locker, People app, and social video series — are being scaled to build non-ad/subscription revenue streams. Management expects free cash flow to exceed $150M for the year, net debt around $1.1B, and reaffirmed People Inc. adjusted EBITDA guidance ($310M–$340M) while raising Emerging & Other to $5M–$15M. They continue to pursue Decipher adoption and AI/licensing opportunities, and see AI as a productivity and growth enabler rather than a net threat to their branded businesses.