v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 7—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.

Disaggregated Revenue
The following table presents revenue by reportable segment:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Revenue:
U.S.$215,375 $245,531 $417,873 $458,086 
International32,628 32,690 68,280 66,048 
Total$248,003 $278,221 $486,153 $524,134 
The following table presents the revenue of the Company’s segments disaggregated by type of service:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
U.S.:
Lead revenue$196,293 $154,207 $380,725 $269,596 
Advertising revenue— 64,247 (46)135,893 
Services revenue13,347 19,302 26,129 36,213 
Membership subscription revenue5,683 7,712 10,985 16,274 
Other revenue52 63 80 110 
Total U.S. Revenue
215,375 245,531 417,873 458,086 
International:
Lead revenue31,167 32,308 66,196 64,390 
Membership subscription revenue— — — 838 
Other revenue1,461 382 2,084 820 
Total International Revenue
32,628 32,690 68,280 66,048 
Total revenue$248,003 $278,221 $486,153 $524,134 
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 June 30,Six Months Ended June 30,
2026202520262025
(in thousands)
U.S.
Consumer marketing expense (a)
$95,089 $92,854 $187,853 $158,130 
Fixed expense (b)
35,334 49,633 70,431 97,755 
Pro acquisition expense (c)
31,792 35,131 62,330 74,175 
Variable expense (d)
21,561 27,983 42,325 54,528 
Cost of revenue (e)
10,122 12,351 18,341 24,349 
Total U.S. expenses193,898 217,952 381,280 408,937 
International
Fixed expense (b)
7,249 11,886 13,850 23,537 
Variable expense (d)
4,796 6,034 10,760 11,379 
Consumer marketing expense (a)
7,559 4,726 16,359 9,687 
Pro acquisition expense (c)
4,706 3,827 9,730 8,117 
Cost of revenue (e)
1,547 791 3,021 1,808 
Total International expenses25,857 27,264 53,720 54,528 
Total expenses$219,755 $245,216 $435,000 $463,465 
Pro acquisition expense for the three months ended June 30, 2026 excludes $2.2 million of commissions capitalized in the same period and includes $3.0 million of amortization of capitalized commissions from prior periods. Pro acquisition expense for the three months ended June 30, 2025 excludes $2.4 million of commissions capitalized in the same period and includes $7.8 million of amortization of capitalized commissions from prior periods.
Pro acquisition expense for the six months ended June 30, 2026 excludes $5.0 million of commissions capitalized in the same period and includes $6.3 million of amortization of capitalized commissions from prior periods. Pro acquisition expense for the six months ended June 30, 2025 excludes $5.8 million of commissions capitalized in the same period and includes $16.9 million of amortization of capitalized commissions from prior periods.
_____________________
(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 (v) 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 June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Segment Adjusted EBITDA:
U.S.$21,477 $27,581 $36,593 $49,147 
International6,771 5,424 14,560 11,522 
Total Segment Adjusted EBITDA$28,248 $33,005 $51,153 $60,669 
The following table reconciles total Segment Adjusted EBITDA to earnings before income taxes:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Total Segment Adjusted EBITDA$28,248 $33,005 $51,153 $60,669 
Stock-based compensation expense(4,956)(5,054)(7,708)(2,767)
Depreciation(21,039)(10,278)(35,733)(20,226)
Restructuring
(774)— (15,697)— 
Goodwill impairment
(225,628)— (225,628)— 
Impairment of intangibles(9,600)— (9,600)— 
Interest expense(4,807)(5,051)(10,137)(10,095)
Other income, net6,971 4,819 12,070 9,647 
Earnings before income taxes$(231,585)$17,441 $(241,280)$37,228 

Capital Expenditures

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

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Capital expenditures:
U.S.$13,187 $12,093 $26,709 $24,667 
International1,819 157 4,022 157 
Total$15,006 $12,250 $30,731 $24,824 
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 June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Revenue:
United States$215,346 $245,540 $417,839 $458,035 
All other countries32,657 32,681 68,314 66,099 
Total$248,003 $278,221 $486,153 $524,134 
June 30, 2026December 31, 2025
(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States$104,811 $113,647 
All other countries12,469 10,787 
Total$117,280 $124,434