IAC Inc.

Q2 digital revenue grew 6%, extending the company’s streak to 11 straight quarters of digital revenue growth. Digital adjusted EBITDA increased 18%, and digital margins expanded to 26% from 23% a year ago. At the segment level, total People segment EBITDA grew 5%; performance marketing rose 13%; licensing grew 23%; and print revenue declined 18%. Management did not give a quarterly EPS figure. For the full year, People Inc. operating company EBITDA guidance remains $325 million to $355 million, with the only adjustment under the new definition being the add-back of $15 million of forecasted Google litigation expense; Emerging & Other was raised to $10 million to $15 million; parent corporate costs are $80 million under the new definition; and the overall 2026 guide for People Inc. is $255 million to $290 million. Management also said they expect to close the LP stake sale in Q3 for approximately $189 million of gross cash, and expect to be under 3x net leverage by year-end.

Barry Diller said the company has pivoted away from its old acquisition-led model because the opportunities no longer looked compelling or attractively priced. He framed the new strategy as focusing on two core assets, People Inc. and MGM, while selling noncore assets and simplifying the corporate structure. On MGM, he reiterated long-term confidence in the business and management, and said they expect to increase ownership over time.

Tim Quinn emphasized strong cash generation and balance-sheet improvement, citing $179 million of free cash flow over the last 12 months and an expectation to be under 3x net leverage by year-end. He also reiterated that People Inc. continues to convert EBITDA into free cash flow well, and that print EBITDA should still offset corporate overhead for the full year. Christopher Halpin outlined the corporate consolidation path, saying Q3 corporate costs should be in line with the prior quarter, then fall below $20 million in Q4 and lower again in Q1 2027, with a target of $45 million of annual corporate run-rate expense and $30 million of total company stock-based compensation after consolidation is complete.

Analysts focused on how management is offsetting declining core search-driven sessions, how the licensing pipeline is developing, and whether the company might block Google. Management said the strategy is to grow non-session revenue through events, social, subscriptions, licensing, and new product launches, while preserving pricing power in the remaining session business; Tim Quinn also noted Google traffic was about 21% of total traffic in the quarter versus roughly two-thirds historically. On Google, Neil Vogel said the company wants Google to separate search and AI crawlers, but is not turning off Google yet because search still matters economically; he said a resolution may come in 2027. Questions also covered the LP stake sale, where Halpin said the deal is for approximately $189 million and that more than $250 million of remaining capital loss carryforwards should more than offset the gain.