Angi Inc.

What they do

Angi operates digital marketplaces in the U.S. and international markets (Europe and Canada) under brands including Angi, Angie's List, HomeAdvisor, and Handy. It generates revenue by connecting consumers with home service professionals, offering lead generation, advertising, membership subscriptions, and pre-priced service bookings. The platform is free for consumers upon registration, while Pros pay for leads, advertising, and subscriptions.

Revenue drivers

• U.S. Lead Revenue — Primary revenue source from matching consumers with Pros; revenue per lead increased 1% YoY in Q2 2026, with a favorable shift toward subscription products.
• U.S. Advertising and Subscription Revenue — Revenue from Pros under contract for advertising and membership subscriptions; Large Pro and National Partnership Revenue grew 20% in Q2 2026, second consecutive quarter of 20%+ growth.
• International Revenue — Includes lead revenue and membership subscriptions from businesses in Europe and Canada; approximately flat YoY in Q2 2026.

Recent performance

In Q2 2026, total revenue declined 11% YoY to $248.0 million, driven by macroeconomic conditions reducing Pro spend and utilization. The company reported a net loss of $230.7 million, including a $235.2 million non-cash goodwill impairment charge. Adjusted EBITDA was $28.2 million, down from $33.0 million in Q2 2025. U.S. Average Monthly Active Pros decreased 17% YoY to 106,000, while total Leads declined 13%. Year-to-date Adjusted EBITDA was $51.2 million.

Strategy

In Q1 2026, Angi reorganized to focus on an AI-native platform and strategy, aligning investment with long-term growth priorities. The company launched a beta test of AI Front Desk, the first agent in its Pro Chief Revenue Officer suite, designed to automate lead follow-up and appointment scheduling. Additional AI agents are planned for future periods. Management also highlighted a key AI-first platform milestone: migrating the homeowner account experience, and continued debt repurchases to reduce leverage.

Risks

• Macroeconomic demand weakness — Reduced Pro spend and utilization, driven by a shift in homeowner demand toward lower-consideration categories, pressured revenue in Q2 2026.
• AI transition execution risk — The shift to an AI-native platform is early-stage; beta tests and planned agents may not achieve expected adoption or monetization.
• Goodwill impairment risk — A $235.2 million non-cash impairment of goodwill and indefinite-lived intangibles in Q2 2026 signals potential further write-downs if performance continues to decline.
• Pro churn and lead decline — Average Monthly Active Pros fell 17% YoY, and total Leads fell 13% YoY, which could reduce future revenue if not reversed.

Outlook

Management notes that the AI test is in early stages, with additional agents planned. They expect continued macroeconomic headwinds to affect Pro spend and utilization. The company will continue to focus on AI-first product development and may pursue further debt repurchases. No formal revenue or profit guidance was provided.