Nasdaq:ANGI
Angi Inc.
Angi Inc. operates as a leading digital marketplace connecting homeowners with local home improvement professionals in the US and Canada.
Key Metrics
Investment Thesis
Bull Case
Angi is an attractive buy for investors seeking exposure to the resilient home improvement sector with a clear path to sustained profitability. The company's strategic pivot to recurring SaaS revenue from professional services provides a stable cash flow foundation that supports valuation multiples. With strong free cash flow generation of $105.1M and a robust balance sheet, Angi is well-positioned to invest in growth initiatives and defend its market share against competitors.
Bear Case
The sharp contraction in revenue over the past three years raises concerns about the company's ability to grow sales in a saturated digital marketplace. Investors should be wary of the lingering retained earnings deficit of -$150.9M which indicates historical burn rates that may still impact future flexibility. Furthermore, the heavy investment in marketing expenses totaling $507.5M highlights the difficulty Angi faces in acquiring new users at profitable margins.
About Angi Inc.
Angi Inc. (ANGI) connects homeowners with home improvement professionals across North America through its digital platforms Angi.com and Angi WorkOnline. The company serves the vast residential services market by aggregating leads for trades like plumbing, HVAC, and roofing while providing a B2B SaaS solution for service providers to manage their businesses.
Analysis
Management Discussion
Angi has demonstrated a strong turnaround, moving from significant net losses in 2022 and 2023 to generating positive net income of $43.8M in 2025. The company successfully scaled its operations while maintaining a healthy cash position of $303.7M and reducing its reliance on external financing. Despite a notable decline in total revenue from $1.89B in 2022 to $1.03B in 2025, the shift to profitability suggests improved operational efficiency and better monetization of its user base.
Industry Overview
The home services industry is a fragmented, labor-intensive sector undergoing rapid digital transformation as consumers increasingly seek online platforms to find and vet service providers. This shift has created a lucrative opportunity for aggregator companies like Angi to capture value from the traditional 'word-of-mouth' economy. However, the market is becoming more competitive with new entrants and established players vying for dominance in lead generation and professional management software.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.89B | $1.36B | $1.19B | $1.03B |
| Cost of Revenue | $438.1M | $62.5M | $57.6M | $47.4M |
| Gross Profit | $1.45B | $1.30B | $1.13B | $983.1M |
| Operating Expenses | $1.58B | $1.32B | $1.11B | $917.7M |
| Operating Income | $-126.3M | $-26.5M | $21.9M | $65.4M |
| R&D | $73.8M | $96.5M | $95.4M | $87.4M |
| G&A | $474.2M | $359.4M | $320.0M | $262.9M |
| Marketing | $913.0M | $765.2M | $601.6M | $507.5M |
| Stock-Based Comp | $52.7M | $43.4M | $34.8M | $14.8M |
| Depreciation | $78.3M | $93.6M | $86.1M | $45.3M |
| Amortization | $14.4M | $8.0M | $2.6M | $1.8M |
| Other OpEx | $118.7M | $101.6M | $88.7M | $59.9M |
| Non-Operating Income | $-18.9M | $-1.7M | $-1.8M | $-2.9M |
| Interest Expense | $20.1M | $20.1M | — | — |
| Interest Income | $4.5M | $17.1M | $19.6M | $15.7M |
| Pre-Tax Income | $-145.2M | $-28.2M | $20.1M | $62.5M |
| Income Tax | $-17.3M | $1.8M | $-16.8M | $18.7M |
| Continuing Ops | $-128.0M | $-30.0M | $36.8M | $43.8M |
| Discontinued Ops | $0 | $-10.3M | $0 | $0 |
| Net Income | $-128.0M | $-40.3M | $36.8M | $43.8M |
| Minority Interest | $0 | $629.0K | $844.0K | $0 |
| Net to Common | $-128.0M | $-40.9M | $36.0M | $43.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $484.2M | $487.2M | $495.1M | $366.4M |
| Cash & Equivalents | $321.2M | $364.0M | $416.4M | $303.7M |
| Marketable Securities | $0 | — | — | — |
| Accounts Receivable | $93.9M | $51.1M | $36.7M | $33.1M |
| Other Current Assets | $69.2M | $72.1M | $42.0M | $29.6M |
| Long-Term Assets | $1.42B | $1.37B | $1.34B | $1.31B |
| PP&E (Net) | $153.9M | $109.5M | $79.6M | $99.1M |
| Intangibles | $178.1M | $170.8M | $167.7M | $167.1M |
| Goodwill | $882.9M | $886.0M | $883.4M | $890.1M |
| Operating Leases | $57.4M | $46.0M | $30.4M | $25.3M |
| Other LT Assets | $151.3M | $156.7M | $174.6M | $132.3M |
| Total Assets | $1.91B | $1.86B | $1.83B | $1.68B |
| Current Liabilities | $281.8M | $258.7M | $231.7M | $222.4M |
| Accounts Payable | — | $29.5M | $18.3M | $34.0M |
| Current Leases | $16.9M | $17.8M | $12.8M | $13.5M |
| Deferred Revenue | $50.9M | $49.9M | $42.0M | $22.1M |
| Other Current Liab | $14.0M | $-17.8M | $-12.8M | $-13.5M |
| Long-Term Liabilities | $574.6M | $553.1M | $536.3M | $530.6M |
| Long-Term Debt | $495.3M | $496.0M | $496.8M | $497.7M |
| LT Operating Leases | $73.6M | $51.5M | $35.5M | $24.2M |
| Other LT Liab | $5.6M | $5.4M | $3.8M | $8.6M |
| Total Liabilities | $856.4M | $811.7M | $767.9M | $753.0M |
| Shareholders' Equity | $1.05B | $1.04B | $1.06B | $927.4M |
| Retained Earnings | $-190.1M | $-231.0M | $-195.0M | $-150.9M |
| AOCI | $-1.2M | $1.2M | $-2.5M | $5.9M |
| Treasury Stock | $166.2M | $177.3M | $205.9M | $355.9M |
| Total L&E | $1.91B | $1.86B | $1.83B | $1.68B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-128.4M | $-40.3M | $36.8M | $43.8M |
| Non-Cash Adjustments | $44.8M | $102.1M | $139.4M | $69.0M |
| Working Capital Changes | $110.7M | $43.1M | $-20.3M | $-7.7M |
| Cash from Operations | $27.1M | $104.8M | $155.9M | $105.1M |
| Capital Expenditures | $116.4M | $47.8M | $50.5M | $59.6M |
| Cash from Investing | $-116.1M | $-46.2M | $-50.4M | $-59.5M |
| Debt Issuances | $0 | — | — | — |
| Cash from Financing | $-17.2M | $-17.0M | $-53.8M | $-158.3M |
| FX Effect | $-1.1M | $535.0K | $473.0K | $-120.0K |
| Net Change in Cash | $-107.3M | $42.2M | $52.2M | $-112.8M |
| Beginning Cash | $429.5M | $322.1M | $364.3M | $416.5M |
| Ending Cash | $322.1M | $364.3M | $416.5M | $303.7M |
Frequently Asked Questions
How does Angi Inc. make money?
The company's revenue is primarily driven by its Home Improvement Services platform, which generates fees from tradespeople and leads generated for consumers. Additionally, Angi derives significant income from its Professional Services segment, where it licenses its proprietary software to help home service businesses manage operations, marketing, and customer relationships.
What are the main risks for ANGI?
The company faces intense competition from other digital marketplaces and direct-to-consumer service providers that could erode its take rate. Regulatory changes or data privacy laws could impact its ability to collect and utilize consumer data effectively for marketing. High customer acquisition costs and the need for continuous technological investment in an evolving digital landscape pose ongoing operational risks.
What is ANGI's competitive advantage?
Angi possesses a massive network effect with millions of registered professionals and homeowners creating high switching costs and brand loyalty. Its dual-sided marketplace model creates a self-reinforcing ecosystem where more professionals attract more users, and vice versa. The company has successfully transitioned from a pure lead-generation model to a comprehensive SaaS platform, diversifying its revenue streams beyond simple advertising fees.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.