IAC Inc.IAC
IAC Inc. Segments Disclosure
NOTE 9—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 chief operating decision maker’s (“CODM”) view of the businesses. The Office of the Chairman, which is comprised of certain executives and members of the board of directors, is the CODM of the Company. In determining our operating segments, we consider how the businesses are organized as to segment management and the focus of the businesses with regards to the types of services or products offered or the target market. In the case of Emerging & Other, operating segments are combined for reporting purposes because they do not meet the quantitative thresholds that require presentation as separate reportable segments.
The following table presents revenue by reportable segment:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| People Inc. | |||||||||||||||||
| Digital | $ | 1,108,391 | $ | 1,004,417 | $ | 892,426 | |||||||||||
| 684,772 | 794,045 | 823,456 | |||||||||||||||
Intersegment eliminations(a) | (31,090) | (21,233) | (20,989) | ||||||||||||||
| Total People Inc. | 1,762,073 | 1,777,229 | 1,694,893 | ||||||||||||||
| Care.com | 347,375 | 369,620 | 375,039 | ||||||||||||||
| Search | 212,883 | 387,699 | 629,038 | ||||||||||||||
| Emerging & Other | 71,003 | 89,028 | 229,461 | ||||||||||||||
Intersegment eliminations(b) | (145) | (1,455) | (9,028) | ||||||||||||||
| Total | $ | 2,393,189 | $ | 2,622,121 | $ | 2,919,403 | |||||||||||
_____________________
(a) Intersegment eliminations relate to Digital performance marketing commissions earned for the placement of magazine subscriptions and Digital advertising related to media campaigns sold by an agency business within Print.
(b) For the years ended December 31, 2024 and 2023, intersegment eliminations primarily relate to advertising sold by People Inc. to other IAC owned businesses.
Disaggregated Revenue
The following table presents the revenue of the Company’s segments disaggregated by type of service:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| People Inc. | |||||||||||||||||
| Digital: | |||||||||||||||||
| Advertising revenue | $ | 666,826 | $ | 643,725 | $ | 560,786 | |||||||||||
| Performance marketing revenue | 291,878 | 243,895 | 231,087 | ||||||||||||||
| Licensing and other revenue | 149,687 | 116,797 | 100,553 | ||||||||||||||
| Total Digital revenue | 1,108,391 | 1,004,417 | 892,426 | ||||||||||||||
| Print: | |||||||||||||||||
| Subscription revenue | 288,624 | 327,079 | 329,357 | ||||||||||||||
| Advertising revenue | 148,612 | 174,889 | 203,210 | ||||||||||||||
| Project and other revenue | 118,869 | 155,090 | 128,354 | ||||||||||||||
| Newsstand revenue | 102,570 | 102,096 | 117,316 | ||||||||||||||
| Performance marketing revenue | 26,097 | 34,891 | 45,219 | ||||||||||||||
| Total Print revenue | 684,772 | 794,045 | 823,456 | ||||||||||||||
Intersegment eliminations(a) | (31,090) | (21,233) | (20,989) | ||||||||||||||
| Total People Inc. revenue | $ | 1,762,073 | $ | 1,777,229 | $ | 1,694,893 | |||||||||||
| Care.com | |||||||||||||||||
| Consumer revenue | $ | 178,615 | $ | 191,274 | $ | 210,455 | |||||||||||
| Enterprise revenue | 168,760 | 178,346 | 164,584 | ||||||||||||||
| Total Care.com revenue | $ | 347,375 | $ | 369,620 | $ | 375,039 | |||||||||||
| Search | |||||||||||||||||
| Advertising revenue: | |||||||||||||||||
| Google advertising revenue | $ | 212,634 | $ | 376,970 | $ | 582,481 | |||||||||||
| Non-Google advertising revenue | 187 | 9,280 | 44,068 | ||||||||||||||
| Total advertising revenue | 212,821 | 386,250 | 626,549 | ||||||||||||||
| Other revenue | 62 | 1,449 | 2,489 | ||||||||||||||
| Total Search revenue | $ | 212,883 | $ | 387,699 | $ | 629,038 | |||||||||||
Segment Expenses
The following table presents the significant segment expenses regularly provided to the CODM for each of the Company’s reportable segments that are included in determining Segment Adjusted EBITDA, which is the Company’s segment reporting performance measure:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| People Inc. | |||||||||||||||||
| Digital: | |||||||||||||||||
| Cost of revenue | $ | 309,189 | $ | 272,225 | $ | 240,985 | |||||||||||
| Selling and marketing expense | 278,152 | 221,862 | 192,204 | ||||||||||||||
| General and administrative expense | 102,144 | 97,932 | 102,751 | ||||||||||||||
| Product development expense | 111,693 | 123,005 | 113,517 | ||||||||||||||
| Total Digital expenses | 801,178 | 715,024 | 649,457 | ||||||||||||||
| Print: | |||||||||||||||||
| Cost of revenue | 338,875 | 389,089 | 415,354 | ||||||||||||||
| Selling and marketing expense | 242,820 | 290,709 | 280,302 | ||||||||||||||
| General and administrative expense | 46,328 | 49,898 | 52,335 | ||||||||||||||
| Product development expense | 6,257 | 10,556 | 11,239 | ||||||||||||||
| Total Print expenses | 634,280 | 740,252 | 759,230 | ||||||||||||||
| Other: | |||||||||||||||||
Other(c)(d) | 628 | 47,766 | 84,438 | ||||||||||||||
| Intersegment eliminations | (31,090) | (21,233) | (20,989) | ||||||||||||||
| Total People Inc. expenses | $ | 1,404,996 | $ | 1,481,809 | $ | 1,472,136 | |||||||||||
| Care.com | |||||||||||||||||
| Cost of revenue | $ | 78,659 | $ | 79,167 | $ | 91,494 | |||||||||||
| Selling and marketing expense | 94,866 | 99,612 | 108,320 | ||||||||||||||
| General and administrative expense | 74,141 | 91,146 | 60,826 | ||||||||||||||
| Product development expense | 52,922 | 54,514 | 58,194 | ||||||||||||||
| Total Care.com expenses | $ | 300,588 | $ | 324,439 | $ | 318,834 | |||||||||||
| Search | |||||||||||||||||
Traffic acquisition costs and online marketing(e) | $ | 174,324 | $ | 328,573 | $ | 536,099 | |||||||||||
Other segment items(f) | 28,338 | 41,616 | 48,656 | ||||||||||||||
| Total Search expenses | $ | 202,662 | $ | 370,189 | $ | 584,755 | |||||||||||
(c) Other comprises unallocated corporate expenses.
(d) The year ended December 31, 2025 includes net gains of $41.5 million resulting from the amendments to a lease, which provided for the surrender of certain office space early and is included in “General and Administrative expense” in the statement of operations. The year ended December 31, 2023 includes a $44.7 million ROU asset impairment charge related to certain unoccupied leased office space due to the continued decline in the commercial real estate market, which is included in “General and administrative expense” in the statement of operations. See “Note 2—Summary of Significant Accounting Policies” for additional information on amendments and early terminations of lease agreements and impairment charges of ROU assets.
(e) Traffic acquisition costs include payments made to partners that direct traffic to our Ask Media Group websites and distribute our business-to-business customized browser-based applications and online marketing, which includes fees paid to search engines and other marketing platforms.
(f) Search other segment items include compensation expense, excluding stock-based compensation, and other operating expenses.
Segment Reporting Performance Measure and Reconciliations
Adjusted EBITDA is the segment reporting performance measure used by the CODM as one of the metrics by which we evaluate the performance of our businesses and our internal budgets are based and may impact management compensation. Adjusted EBITDA is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements, if applicable.
Approximately one-half of our consolidated annual Adjusted EBITDA is generated in the fourth quarter of each fiscal year. This is due to the concentration of spending by advertisers, which drives higher advertising revenue, and consumer spending, which drives higher performance marketing revenue during the year-end holiday selling season at People Inc.
The following table presents a summary of Segment Adjusted EBITDA:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| People Inc. | |||||||||||||||||
| Digital | $ | 307,213 | $ | 289,393 | $ | 242,969 | |||||||||||
| 50,492 | 53,793 | 64,226 | |||||||||||||||
Other(c)(d)(e) | (628) | (47,766) | (84,438) | ||||||||||||||
| Total People Inc. | 357,077 | 295,420 | 222,757 | ||||||||||||||
| Care.com | 46,787 | 45,181 | 56,205 | ||||||||||||||
| Search | 10,221 | 17,510 | 44,283 | ||||||||||||||
| Emerging & Other | (27,739) | (35,995) | (11,469) | ||||||||||||||
| Total Segment Adjusted EBITDA | $ | 386,346 | $ | 322,116 | $ | 311,776 | |||||||||||
The following table reconciles total Segment Adjusted EBITDA to (loss) earnings from continuing operations before income taxes:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Total Segment Adjusted EBITDA | $ | 386,346 | $ | 322,116 | $ | 311,776 | |||||||||||
| Corporate Adjusted EBITDA loss | (113,373) | (90,305) | (98,048) | ||||||||||||||
Stock-based compensation expense(g) | (32,313) | (77,745) | (73,562) | ||||||||||||||
| Depreciation | (37,510) | (40,838) | (80,937) | ||||||||||||||
| Amortization of intangibles | (93,115) | (141,906) | (288,012) | ||||||||||||||
| Goodwill impairment | (207,451) | — | (9,000) | ||||||||||||||
| Interest expense | (120,027) | (135,719) | (137,495) | ||||||||||||||
| Unrealized gain (loss) on investment in MGM Resorts International | 119,175 | (649,178) | 721,668 | ||||||||||||||
| Other income, net | 16,359 | 98,536 | 46,639 | ||||||||||||||
| (Loss) earnings from continuing operations before income taxes | $ | (81,909) | $ | (715,039) | $ | 393,029 | |||||||||||
(g) The year ended December 31, 2025, reflects the reversal of $49.8 million of previously recognized stock-based compensation expense related to the forfeiture of our former Chief Executive Officer’s (“CEO”) restricted stock award pursuant to an employment transition agreement (the “Employment Transition Agreement”) entered into on January 13, 2025, partially offset by $14.9 million of stock-based compensation expense related to the transfer of 5.0 million Class B shares of Angi held by the Company to our former CEO prior to the Distribution pursuant to the Employment Transition Agreement.
Segment Assets
Segment asset information is not regularly presented to the CODM.
Capital Expenditures
The following table presents capital expenditures:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| People Inc. | $ | 17,076 | $ | 14,293 | $ | 10,370 | |||||||||||
| Care.com | 1,500 | 510 | 2,039 | ||||||||||||||
| Emerging & Other | — | — | 7 | ||||||||||||||
| Corporate | 625 | 211 | 81,168 | ||||||||||||||
| Total | $ | 19,201 | $ | 15,014 | $ | 93,584 | |||||||||||
Geographic Information
Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Revenue: | |||||||||||||||||
| United States | $ | 2,224,354 | $ | 2,318,885 | $ | 2,469,053 | |||||||||||
All other countries(h) | 168,835 | 303,236 | 450,350 | ||||||||||||||
| Total | $ | 2,393,189 | $ | 2,622,121 | $ | 2,919,403 | |||||||||||
_____________________
(h) The decrease in the Company’s revenue from countries outside of the U.S. is due primarily to the continued decline in revenue at Search primarily due to Google algorithm changes and policy updates, as well as the revised terms of the Services Agreement that became effective April 2025, and the sale of the assets of Mosaic Group on February 15, 2024, which was included within Emerging & Other.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Long-lived assets (excluding goodwill and intangible assets): | |||||||||||
| United States | $ | 444,414 | $ | 535,608 | |||||||
| All other countries | 1,609 | 2,348 | |||||||||
| Total | $ | 446,023 | $ | 537,956 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.