IAC (IAC) investor relations material

Executive summary

• Q1 2026 marked a transition to a streamlined structure, consolidating around core assets People Inc. and MGM Resorts, with a planned rebranding to People Incorporated and expected $40 million in annual operating expense savings.

• The company completed the sale of Care.com for $296 million, spun off Angi Inc. in 2025, and closed its search segment, all now reported as discontinued operations.

• Leadership changes include the departure of key executives and the appointment of Neil Vogel as CEO and Tim Quinn as CFO post-Q2 2026.

• Corporate consolidation is underway, targeting $40 million+ in annual opex savings and $20–$25 million in reduced stock-based compensation.

• People Inc. delivered its 10th consecutive quarter of digital revenue growth, with strong performance in non-session-based revenue streams and product innovation.

Financial highlights

• Q1 2026 revenue declined 12% year-over-year to $422.9 million, with digital revenue up 8% to $253 million and print down 16%.

• Adjusted EBITDA for Q1 2026 was $39.5 million, down from $78.8 million in Q1 2025; digital Adjusted EBITDA rose 20% to $50 million, while print fell 55% to $6 million.

• Free cash flow for Q1 2026 was $2 million, up $33.5 million year-over-year; cash and cash equivalents at March 31, 2026, were $1.1 billion.

• Net loss improved to $71.9 million from $216.8 million in Q1 2025; diluted loss per share was $0.94.

• People Inc. reported $1.2 billion digital revenue and $330 million Adjusted EBITDA for the twelve months ended March 31, 2026.

Outlook and guidance

• FY 2026 Adjusted EBITDA guidance for People Inc. is $310–$340 million; total company Adjusted EBITDA expected at $210–$260 million.

• Digital revenue and Adjusted EBITDA for People Inc. projected to grow mid- to high-single digits in 2026.

• Corporate expense guidance raised to $95–$105 million due to severance and one-time charges, with annual run-rate corporate costs expected to decline to $45 million post-consolidation.

• Search segment to be presented as discontinued operations from Q2 2026.

• 2026 capital expenditures are projected to be 50–60% higher than 2025, mainly for leasehold improvements.