IAC reported third‑quarter 2025 financial results, with revenue of $589.8 million, down 8.1% from $642.0 million in the same period last year. The company posted a GAAP loss of $0.27 per share, compared with a loss of $2.93 per share in Q3 2024.
The revenue miss reflects a decline in traffic to IAC’s ad‑supported search and content sites, driven in part by the rise of AI‑generated content that captures a larger share of online traffic. The company’s People Inc. division saw digital revenue grow 9% to $269 million, while other segments reported weaker performance.
Operating results swung to a loss of $20.4 million in Q3 2025, versus an operating income of $8.1 million in Q3 2024, due to margin compression and higher marketing and content costs. Net loss narrowed to $21.9 million from $243.7 million year‑over‑year.
Management highlighted the impact of the “Google Zero” phenomenon, where search traffic to People Inc. fell from 52% to 28% of total traffic, and announced a partnership with Microsoft to launch a Publisher Content Marketplace that will compensate publishers for AI use of their content.
IAC repurchased 2.8 million shares for $100 million during the quarter, signaling confidence in its strategy. The company expects People Inc. to generate operating income of $180‑$200 million and adjusted EBITDA of $325‑$340 million for the full year 2025, and projects digital revenue growth of 7‑10% for Q4.
The company will host a conference call on Tuesday to discuss the results and answer investor questions.
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