IAC (NASDAQ:IAC) executives used the company’s fourth-quarter earnings call to highlight what they described as a “solid” finish to a year focused on execution, led by continued momentum at People Inc. and an increased ownership stake in MGM. Christopher Halpin, IAC’s COO and CFO, was joined by Chairman and Senior Executive Barry Diller and People Inc. CEO Neil Vogel.
People Inc. posts 14% digital revenue growth despite traffic pressure
Diller said People grew digital revenue 14% in the quarter, which he framed as a strong result amid “increasing AI disruption.” He noted that AI overviews are now appearing on most queries, but said the company is “delivering record results,” crediting preparation for the disruption and a distribution model that reaches audiences beyond owned sites and apps.
- Advertising: Up 9%, “returning to growth” despite a 13% decline in core sessions.
- Performance marketing: Up 17% during the holiday period, which Halpin attributed to execution and consumer strength.
- Licensing: Up 36%, driven by engagement through Apple News and syndication partners; Halpin added that a new AI content partnership with Meta contributed “a little bit” to growth.
Print revenue fell 23%, which Halpin said was expected and partly due to $20 million of political advertising in the prior-year period, alongside ongoing print sector declines.
Shift to “off-platform” audiences and non-session-based revenue
Vogel emphasized that the web ecosystem is changing and said the strategies the company has discussed are “working.” He said People’s core web sessions declined 13% year-over-year in the quarter, with the “biggest contributor” being a 50% drop in Google Search referrals over the last two years. He also cited softness in non-search traffic sources, including declines in Google Discover during the quarter.
At the same time, Vogel said People’s off-platform and distributed audiences have grown rapidly. He said off-platform views have nearly doubled over the last two years and increased 43% year-over-year in the quarter, as the company expanded distribution across platforms such as Instagram, Apple News, TikTok, and YouTube.
Vogel also pointed to a mix shift in revenue. He said non-session-based revenue—revenue not tied to web sessions—comprised about 38% of total digital revenue and grew 37% year-over-year in Q4. He said growth in that category was led by D/Cipher, events, creator and social models (including the Feedfeed acquisition), Apple News partnerships, and AI licensing deals. Session-based revenue represented 62% of digital revenue and grew 4% year-over-year, which Vogel said was supported by premium sales and performance marketing even as Google referrals fell.
Product initiatives: apps, services, and content franchises
Diller and Vogel described a longer-term strategy that goes beyond “conventional digital publishing,” with Diller saying the company is working to “invert” iconic content brands into new consumer businesses and standalone products less vulnerable to AI-driven disintermediation. He cited concepts under development across Southern Living, Food & Wine, and Travel + Leisure, while arguing each brand could be leveraged into products and services promoted across its platforms, including print distribution.
Vogel offered several examples of newer initiatives and metrics discussed on the call:
- MyRecipes: A “recipe locker” launched less than a year ago, which Vogel said has reached 3 million registered users who have saved 24 million recipes, with little to no outside marketing.
- People app: Relaunched less than a year ago with about 300,000 downloads. Vogel said the focus has been on engagement, citing average visit duration of two minutes on the website versus six minutes in the app. He added that app users who play games spend about 20 minutes in the app.
- InStyle’s “The Intern” social video franchise: Diller said sponsorship economics have scaled, noting seasons are now sold at roughly $500,000 to $700,000.
Other businesses: Care, Emerging & Other, and corporate overhead
Halpin said Care revenue declined 9% in the quarter, driven by a 13% drop in enterprise revenue as employers tightened benefits spending. Consumer revenue fell 4%, which he said was steady with the prior quarter. Halpin said the company expects consumer and total Care revenue to return to growth by midyear.
Care adjusted EBITDA was $19 million, for 22% EBITDA margins. Halpin said profitability was essentially flat on a normalized basis, citing legal charges and severance in the prior-year period.
Halpin said Emerging & Other revenue grew 18% and “flipped to profitability,” delivering $3 million of adjusted EBITDA. He cited The Daily Beast’s 50% revenue growth and Vivian’s return to quarterly growth for the first time since Q3 2024. He also said both businesses were profitable in the quarter and that year-over-year comparisons benefited from the resolution of a legacy legal matter referenced on the prior earnings call.
Corporate adjusted EBITDA was a $23 million loss, which Halpin attributed to continued overhead reduction efforts, with an objective to return to a mid-$80 million annualized run rate.
Guidance approach changes, buybacks, and MGM stake
Halpin said IAC will stop providing quarterly guidance, arguing it is not productive amid volatility—particularly for People Inc. as it navigates industry shifts. The company will continue to provide annual guidance and qualitative commentary on business dynamics.
For People Inc., Halpin guided to mid- to high-single-digit growth in both digital revenue and digital adjusted EBITDA. He said the company expects approximately $15 million in litigation expenses in 2026 related to Google AdTech litigation, which would cause corporate expense to exceed print adjusted EBITDA by that amount; absent litigation, he said the two would roughly offset. Halpin said total adjusted EBITDA guidance for People Inc. was $310 million to $340 million, and that the range implies digital adjusted EBITDA of $325 million to $355 million versus $315 million in 2025.
Halpin also discussed IAC’s search segment (Ask Media/AMG), noting it is managed for margin rather than growth and that negotiations with Google to extend a paid listings relationship will likely determine the future of the business. He said IAC guided to adjusted EBITDA of negative $5 million to positive $10 million for that segment and expects to “know a lot more” over the next 90 days.
For corporate results and cash generation, Halpin said IAC expects 50%+ EBITDA-to-free-cash-flow conversion in 2026, citing relatively minor capex, minimal cash taxes due to NOLs, and normalized working capital compared with the prior year.
On capital allocation, Diller said IAC increased its ownership in MGM, buying about 1% to reach 25%, which he called an important accounting milestone. Halpin said the company repurchased $337 million of IAC shares over the past 12 months, reducing share count by 10%, and Diller said IAC would continue to evaluate buybacks “opportunistically.”
Diller reiterated his conviction in MGM’s assets, pointing to the company’s Las Vegas footprint and a long-dated Osaka resort development he said is expected to come online in 2029–2030. He also said he remains interested in CNN, but suggested any potential deal would more likely be “on the personal side” rather than through IAC, while emphasizing that no transaction was certain.
About IAC (NASDAQ:IAC)
IAC (NASDAQ: IAC) is a publicly traded holding company headquartered in New York City that builds and invests in consumer-focused internet businesses. Through its portfolio of digital media brands, online marketplaces and subscription services, IAC delivers content and connections across a range of verticals, including lifestyle, finance, home services and personal care. The company’s operations span North America and parts of Europe, where its brands reach millions of visitors each month.
In the digital publishing space, IAC’s Dotdash Meredith division develops original content and data‐driven journalism across more than a dozen specialty sites.
