v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 6—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, resulting in two reportable segments: Domestic and International. During the fourth quarter of 2025, the Company changed the name of its “Domestic” segment to “U.S.” segment. The change reflects an updated naming convention and did not result in any change to the composition of the segment or how the Company evaluates its performance in the current year as well as prior periods. The naming convention for prior periods has been conformed to the current period. The change had no impact on the Company’s consolidated financial statements. As a result of these updates, the Company now has the following two reportable segments: (i) U.S. and (ii) International.
Disaggregated Revenue
The following table presents revenue by reportable segment:
Three Months Ended March 31,
20262025
(In thousands)
Revenue:
U.S.$202,498 $212,555 
International35,652 33,358 
Total$238,150 $245,913 
The following table presents the revenue of the Company’s segments disaggregated by type of service:
Three Months Ended March 31,
20262025
(In thousands)
U.S.:
Lead revenue$184,432 $115,389 
Advertising revenue(46)71,646 
Services revenue12,782 16,911 
Membership subscription revenue5,302 8,562 
Other revenue28 47 
Total U.S. Revenue
202,498 212,555 
International:
Lead revenue35,029 32,082 
Membership subscription revenue— 838 
Other revenue623 438 
Total International Revenue
35,652 33,358 
Total revenue$238,150 $245,913 
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 March 31,
20262025
(in thousands)
U.S.
Consumer marketing expense (a)
$92,765 $65,276 
Fixed expense (b)
35,097 48,122 
Pro acquisition expense (c)
30,538 39,044 
Variable expense (d)
20,764 26,545 
Cost of revenue (e)
8,219 11,998 
Total U.S. expenses187,383 190,985 
International
Fixed expense (b)
6,602 11,651 
Variable expense (d)
5,964 5,345 
Consumer marketing expense (a)
8,798 4,961 
Pro acquisition expense (c)
5,024 4,290 
Cost of revenue (e)
1,474 1,017 
Total International expenses27,862 27,264 
Total expenses$215,245 $218,249 
Pro acquisition expense for the three months ended March 31, 2026 excludes $2.8 million of commissions capitalized in the same period and includes $3.3 million of amortization of capitalized commissions from prior periods. Pro acquisition expense for the three months ended March 31, 2025 excludes $3.4 million of commissions capitalized in the same period and includes $9.1 million of amortization of capitalized commissions from prior periods.
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(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, (iii) payments made to independent third-party Pros who perform work, and (iv) sales tax.
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; (4) restructuring. 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 March 31,
20262025
(In thousands)
Segment Adjusted EBITDA:
U.S.$15,116 $21,566 
International7,789 6,098 
Total Segment Adjusted EBITDA$22,905 $27,664 
The following table reconciles total Segment Adjusted EBITDA to earnings before income taxes:

Three Months Ended March 31,
20262025
(In thousands)
Total Segment Adjusted EBITDA$22,905 $27,664 
Stock-based compensation expense(2,752)2,287 
Depreciation(14,694)(9,948)
Restructuring
(14,923)— 
Interest expense(5,330)(5,044)
Other income, net5,099 4,828 
Earnings before income taxes$(9,695)$19,787 

Capital Expenditures

The following table presents capital expenditures as viewed by the CODM:

Three Months Ended March 31,
20262025
(In thousands)
Capital expenditures:
U.S.$13,522 $12,574 
International2,203 — 
Total$15,725 $12,574 
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 March 31,
20262025
(In thousands)
Revenue:
United States$202,493 $212,495 
All other countries35,657 33,418 
Total$238,150 $245,913 
March 31, 2026December 31, 2025
(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States$112,567 $113,647 
All other countries12,139 10,787 
Total$124,706 $124,434