The company’s transition to a "homeowner choice" model, which allows users to select their own service providers, triggered a 79% drop in network revenue during the quarter. This decline overshadowed a 23% increase in proprietary revenue, which management highlighted as a key growth engine. While Angi achieved a net profit of $7.2 million—reversing a loss from the previous year—its earnings of 17 cents per share fell short of the 34 cents projected by FactSet analysts.

Strategic Restructuring and Outlook

Management attributed a softened first-quarter outlook to the recent layoff of 350 employees, primarily within the product and technology departments. Kip noted that while the staff reductions have delayed the company’s product development, the move was a necessary trade-off for long-term sustainability. For the current quarter, Angi expects revenue to decline between 1% and 3%, with network revenue forecasted to stabilize in the second half of the year.

The platform's professional base also saw a pullback, with monthly active professionals falling 23% to 111,000. To regain momentum, Angi is planning an aggressive marketing push, forecasting first-quarter adjusted EBITDA between $15 million and $17 million. The company expects full-year adjusted EBITDA to reach between $145 million and $150 million, banking on the stabilization of its network revenue to clear the path for its 2026 targets.