Angi Inc.ANGI
Angi Inc. Income Taxes Disclosure
INCOME TAXES
Through March 31, 2025, the Company was included within IAC’s tax group for purposes of federal and consolidated state income tax return filings. In all periods presented, the income tax benefit and/or provision has been computed for the Company on an as if standalone, separate return basis and payments to and refunds from IAC for the Company’s share of IAC’s consolidated federal and state tax return liabilities/receivables calculated on this basis have been reflected within cash flows from operating activities in the statement of cash flows. The tax sharing agreement between the Company and IAC governs the parties’ respective rights, responsibilities and obligations with respect to tax matters, including responsibility for taxes attributable to the Company, entitlement to refunds, allocation of tax attributes and other matters and, therefore, ultimately governs the amount payable to or receivable from IAC with respect to income taxes. Any differences between taxes currently payable to or receivable from IAC under the tax sharing agreement and the current tax provision or benefit computed on an as if standalone, separate return basis for GAAP are reflected as adjustments to additional paid-in capital in the statement of shareholders’ equity and financing activities within the statement of cash flows. Based on the tax sharing agreement, Angi has a $19.9 million payable to IAC as of December 31, 2025.
U.S. and foreign earnings (loss) from continuing operations before income taxes and noncontrolling interests are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| U.S. | $ | 35,902 | $ | 8,980 | $ | (38,717) | |||||||||||
| Foreign | 26,625 | 11,097 | 10,509 | ||||||||||||||
| Total | $ | 62,527 | $ | 20,077 | $ | (28,208) | |||||||||||
The components of the income tax (benefit) provision are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Current income tax provision: | |||||||||||||||||
| Federal | $ | — | $ | 92 | $ | 1,373 | |||||||||||
| State | 727 | 2,675 | 3,198 | ||||||||||||||
| Foreign | 4,802 | 4,413 | 7,277 | ||||||||||||||
| Current income tax provision | 5,529 | 7,180 | 11,848 | ||||||||||||||
| Deferred income tax provision (benefit): | |||||||||||||||||
| Federal | 6,622 | 6,765 | (8,232) | ||||||||||||||
| State | 1,052 | 727 | (1,499) | ||||||||||||||
| Foreign | 5,492 | (31,443) | (278) | ||||||||||||||
| Deferred income tax benefit | 13,166 | (23,951) | (10,009) | ||||||||||||||
| Income tax (benefit) provision | $ | 18,695 | $ | (16,771) | $ | 1,839 | |||||||||||
A reconciliation of the income tax (benefit) provision to the amounts computed by applying the statutory federal income tax rate to earnings (loss) from continuing operations before income taxes is shown as follows:
Updated Effective Tax Rate Calculation
| Year Ended December 31, 2025 | |||||||||||
Amount | Percent | ||||||||||
| (In thousands) | |||||||||||
US Federal Statutory Tax Rate | $ | 13,131 | 21.00% | ||||||||
State and Local Income Taxes | 1,779 | 2.85% | |||||||||
Foreign tax effects: | |||||||||||
Germany | |||||||||||
Statutory tax rate difference between Germany and United States | 1,865 | 2.98% | |||||||||
Enactment of New Tax Laws | 2,433 | 3.89% | |||||||||
Other Adjustments | 927 | 1.48% | |||||||||
France | |||||||||||
Valuation Allowances | (5,397) | (8.63)% | |||||||||
Netherlands | |||||||||||
| Valuation Allowances | 2,655 | 4.25% | |||||||||
Canada | |||||||||||
| Valuation Allowances | (1,000) | (1.60)% | |||||||||
Other Foreign Jurisdictions | 191 | 0.31% | |||||||||
Effect of Cross Border Tax Laws | 1,215 | 1.94% | |||||||||
Research and Development Credits | (5,046) | (8.07)% | |||||||||
Nontaxable or Nondeductible Items | 2,241 | 3.58% | |||||||||
Changes in Unrecognized Tax Benefits | 3,497 | 5.59% | |||||||||
Other Adjustments | 204 | 0.33% | |||||||||
Total Tax Expense (Benefit) | $ | 18,695 | 29.90% | ||||||||
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (In thousands) | |||||||||||
| Income tax provision (benefit) at the federal statutory rate of 21% | $ | 4,216 | $ | (5,924) | |||||||
| State income taxes, net of effect of federal tax benefit | 2,418 | 1,510 | |||||||||
| Change in judgement on beginning of the year valuation allowance | (34,976) | 399 | |||||||||
| Research credit | (4,317) | (4,912) | |||||||||
| Stock-based compensation | 4,250 | 4,546 | |||||||||
| Unbenefited losses | 3,504 | 3,352 | |||||||||
| Foreign income taxed at a different statutory tax rate | 3,329 | 1,216 | |||||||||
| Non-deductible executive compensation | 2,771 | 3,514 | |||||||||
| Net adjustment related to the reconciliation of income tax provision accruals to tax returns | 802 | (2,430) | |||||||||
| Non-deductible transaction costs | 501 | 73 | |||||||||
| Deferred tax adjustment for enacted changes in tax law and rates | 235 | 99 | |||||||||
| Other, net | 496 | 396 | |||||||||
| Income tax (benefit) provision | $ | (16,771) | $ | 1,839 | |||||||
The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss carryforwards | $ | 153,948 | $ | 145,160 | |||||||
| Tax credit carryforwards | 32,862 | 29,685 | |||||||||
| Capitalized research & development expenditures | 2,943 | 29,230 | |||||||||
| Capitalized software, leasehold improvements and equipment, net | 2,920 | 22,961 | |||||||||
| Accrued expenses | 10,335 | 13,697 | |||||||||
| Long-term lease liabilities | 8,621 | 11,816 | |||||||||
Other | 7,262 | 17,829 | |||||||||
| Total deferred tax assets | 218,891 | 270,378 | |||||||||
| Less valuation allowance | (31,189) | (42,493) | |||||||||
| Total deferred tax assets, net of valuation allowance | 187,702 | 227,885 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Intangible assets, net | (44,743) | (46,192) | |||||||||
| Capitalized software, leasehold improvements and equipment, net | (10,489) | — | |||||||||
| Right-of-use assets | (5,660) | (7,554) | |||||||||
| Capitalized costs to obtain a contract with a customer | (2,079) | (6,567) | |||||||||
| Total deferred tax liabilities | (62,971) | (60,313) | |||||||||
| Net deferred tax assets | $ | 124,731 | $ | 167,572 | |||||||
At December 31, 2025, the Company has federal and state NOLs of $351.2 million and $519.7 million, respectively, available to offset future income. The federal NOLs, are primarily indefinite but a portion will expire between 2036 and 2037, if not utilized. The state NOLs, will expire at various times primarily between 2026 and 2045. At December 31, 2025, the
Company has foreign NOLs of $296.6 million available to offset future income. The foreign NOLs are primarily indefinite but a portion will expire in 2044.
At December 31, 2025, the Company has tax credit carryforwards of $43.7 million relating to federal and state tax credits for research activities. Of these credit carryforwards, $2.4 million can be carried forward indefinitely and $41.3 million, if not utilized, will expire between 2026 and 2044.
The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning and historical experience.
During 2025, the Company’s valuation allowance decreased by $11.3 million primarily due to a change in judgement on the realizability of Travaux France NOLs and the removal of the Capital Loss asset and valuation allowance as part of the IAC tax sharing agreement. At December 31, 2025, the Company has a valuation allowance of $31.2 million related to the portion of NOLs and other items for which it is more likely than not that the tax benefit will not be realized.
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, is as follows:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Balance at January 1 | $ | 9,494 | $ | 8,014 | $ | 6,181 | |||||||||||
| Additions based on tax positions related to the current year | 1,960 | 1,509 | 1,564 | ||||||||||||||
| Additions for tax positions of prior years | 3,092 | 96 | 545 | ||||||||||||||
| Reductions for tax positions of prior years | (170) | (92) | (88) | ||||||||||||||
| Expirations of statutes | (490) | (33) | — | ||||||||||||||
| Settlements | — | — | (188) | ||||||||||||||
| Balance at December 31 | $ | 13,886 | $ | 9,494 | $ | 8,014 | |||||||||||
The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. At December 31, 2025 and 2024, accruals for interest are not material and there are no accruals for penalties.
The Company’s income taxes are routinely under audit by federal, state, local and foreign authorities as a result of previously filed separate company and consolidated tax returns with IAC. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Company is currently under audit by the Internal Revenue Service for 2023 as part of the IAC consolidated tax return. Returns filed in various other jurisdictions are open to examination for tax years beginning with 2015. Income taxes payable include unrecognized tax benefits that are considered sufficient to pay assessments that may result from the examination of prior year tax returns. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.
At December 31, 2025 and December 31, 2024, the Company has unrecognized tax benefits, including interest, of $14.1 million and $9.7 million, respectively. If unrecognized tax benefits at December 31, 2025 are subsequently recognized, the income tax provision would be reduced by $12.9 million. The comparable amount as of December 31, 2024 is $9.1 million.
Individual jurisdictions equaling 5% or more of the total income taxes paid (net of refunds) for the year ended December 31, 2025 include Germany at $2.2 million and United Kingdom at $1.7 million.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 14, 2018 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.