What Happened?
Shares of home services online marketplace ANGI (NASDAQ: ANGI) fell 33% in the afternoon session after the company reported disappointing first-quarter results that included a revenue miss and a swing to a net loss from a profit a year ago.
The company's revenue for the quarter was $238.2 million, representing a 3.2% year-over-year decline and falling short of analyst expectations. Angi also posted a GAAP loss of $0.22 per share, a significant reversal from the $0.30 per share profit in the same quarter last year. The weaker quarter was also marked by a significant cash burn of $33.6 million.
While the company did beat analysts' estimates for its bottom line and adjusted EBITDA, these positives were not enough to outweigh the top-line weakness and deteriorating profitability, prompting a sharp sell-off in the stock.
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What Is The Market Telling Us
Angi’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Angi and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 29.5% on the news that the company reported impressive first quarter 2025 results which beat analysts' revenue, EPS, and EBITDA expectations.
The real story for the quarter was the profit rebound, a turnaround from the prior year driven by cuts in acquisition and marketing costs. On the other hand, its number of requests declined, and it pulled its full-year guidance. Still, we think this was a solid quarter with some key areas of upside.
Angi is down 61.1% since the beginning of the year, and at $4.92 per share, it is trading 74% below its 52-week high of $18.90 from August 2025. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at only $35.01.
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