Angi's Q4 2025 Release: A Critical Turnaround Checkpoint

What happened

Angi Inc. has posted its fourth-quarter 2025 financial results and a shareholder letter, with a conference call set for February 11, 2026, to discuss the details. According to the DeepValue report, Angi is navigating a fragile turnaround, marked by structural revenue declines and a shrinking pro network despite high gross margins. The company recently implemented AI-driven layoffs to boost efficiency, but the report highlights significant risks, including failure to achieve positive revenue growth by 2026 and potential free cash flow deterioration. This earnings release is a key moment for investors to evaluate whether proprietary service requests and pricing gains can offset persistent network volume drag. Analysts will scrutinize the results for signs of revenue stabilization and sustainable cash generation, which are critical to the investment thesis.

Implication

The Q4 2025 results will directly impact the DeepValue 'WAIT' rating by providing data on total revenue trends and free cash flow, core drivers of the investment case. Positive signals, such as narrowing revenue declines or strong proprietary growth, could support the base scenario with an implied value of $14, while continued weakness may reinforce the bear case at $9. Investors must evaluate the effectiveness of January 2026 layoffs in reducing operating expenses and whether AI-driven savings are materializing without harming marketplace quality. Management's guidance on the 2026 mid-single-digit growth target and capital allocation, including buybacks amid $500 million debt due 2028, will be crucial for assessing financial flexibility. This release serves as a vital checkpoint for deciding whether to maintain, adjust, or exit positions based on the evolving turnaround narrative.

Thesis delta

The availability of Q4 2025 results introduces fresh data that could validate or challenge the DeepValue thesis that Angi's investment case hinges on revenue inflection by 2026 and sustained free cash flow. If results show progress towards these goals, it may shift probability towards the base scenario; conversely, continued declines could strengthen the bear case. No fundamental shift occurs until detailed analysis is complete, but this update is a pivotal evaluation point for the 12-18 month reassessment window.