0001628280-26-029798
SEC filingIAC's Q1 2026 results reflect a strategic restructuring and portfolio simplification, with revenue declining 25.9% but net loss improving 66.8% year-over-year.
Revenue for Q1 2026 was $422.9 million, down 25.9% from $570.5 million in Q1 2025. The decline was primarily due to the shutdown of the Search business and lower revenue in the Print segment, partially offset by growth in Digital. The Print segment's revenue decrease was driven by lower demand, partially offset by cost rationalization efforts.
Operating income was a loss of $40.1 million, compared to income of $35.8 million in the prior year, a decrease of 212.0%. The swing was driven by restructuring costs, severance payments, and the absence of a prior-year stock compensation reversal. Operating margin was negative 9.5%.
Net loss improved 66.8% to $71.9 million from $216.8 million in Q1 2025. The improvement was primarily due to a swing in unrealized gains on the MGM investment, which was a gain in the current quarter versus a significant loss in the prior year.
Capital expenditures increased to $8.0 million from $4.7 million, reflecting continued investment in operations. The company generated cash from asset sales, which were used for share repurchases and investments. Working capital changes included a decrease in accounts receivable, partially offset by decreases in accounts payable and operating lease liabilities.
IAC announced a corporate restructuring plan to consolidate operations, expected to be completed by Q1 2027. The plan involves cost reduction initiatives, including severance and facility exits. The company may need to raise additional capital to refinance its capital structure and fund acquisitions.