📊 IAC Key Takeaways
Is IAC a Good Investment? Thesis Analysis
IAC is experiencing significant operational challenges with declining revenue (-8.7% YoY) and negative profitability across all metrics, including -$104M net loss and -4.3% net margin. While the company maintains a strong balance sheet with excellent liquidity and positive free cash flow of $335.3M, the underlying business is unprofitable with negative ROE (-2.2%) and ROA (-1.5%), indicating fundamental business model challenges that must be resolved before the company is investable.
Why Buy IAC? Key Strengths
- Strong liquidity position with 2.75x current ratio and 2.70x quick ratio providing financial flexibility
- Positive free cash flow of $335.3M representing 14% FCF margin despite operating losses
- Conservative capital structure with 0.30x debt/equity ratio and $960.2M cash reserves
IAC Investment Risks to Consider
- Revenue declining 8.7% YoY with no growth trajectory and shrinking top line
- Unprofitable operations with -$97.4M operating income and negative margins across all profitability metrics
- Negative interest coverage ratio of -2.5x and poor capital returns (ROE -2.2%, ROA -1.5%)
Key Metrics to Watch
- Revenue growth stabilization and return to positive growth trajectory
- Operating income path to profitability and operating margin expansion from -4.1%
- Return on equity and asset recovery from negative territory
IAC Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.75x current ratio provides a solid financial cushion.
IAC Profitability Ratios
IAC vs Technology Sector
How IAC Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IAC Overvalued or Undervalued?
Based on fundamental analysis, IAC Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
IAC Balance Sheet & Liquidity
IAC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: IAC Inc.'s revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $2.97 reflects profitable operations.
IAC Growth Metrics (YoY)
IAC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $589.8M | -$21.9M | $-0.27 |
| Q2 2025 | $586.9M | -$5.4M | $-0.07 |
| Q1 2025 | $570.5M | $45.0M | $0.51 |
| Q3 2024 | $938.7M | -$61.8M | $-0.74 |
| Q2 2024 | $949.5M | -$89.0M | $-1.07 |
| Q1 2024 | $929.7M | $45.0M | $0.51 |
| Q3 2023 | $1.1B | -$61.8M | $-0.74 |
| Q2 2023 | $1.1B | -$89.0M | $-1.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IAC Capital Allocation
IAC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for IAC Inc. (CIK: 0001800227)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IAC
What is the AI rating for IAC?
IAC Inc. (IAC) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are IAC's key strengths?
Claude: Strong liquidity position with 2.75x current ratio and 2.70x quick ratio providing financial flexibility. Positive free cash flow of $335.3M representing 14% FCF margin despite operating losses.
What are the risks of investing in IAC?
Claude: Revenue declining 8.7% YoY with no growth trajectory and shrinking top line. Unprofitable operations with -$97.4M operating income and negative margins across all profitability metrics.
What is IAC's revenue and growth?
IAC Inc. reported revenue of $2.4B.
Does IAC pay dividends?
IAC Inc. does not currently pay dividends.
Where can I find IAC SEC filings?
Official SEC filings for IAC Inc. (CIK: 0001800227) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IAC's EPS?
IAC Inc. has a diluted EPS of $-1.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IAC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, IAC Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IAC stock overvalued or undervalued?
Valuation metrics for IAC: ROE of -2.2% (sector avg: 22%), net margin of -4.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy IAC stock in 2026?
Our dual AI analysis gives IAC Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IAC's free cash flow?
IAC Inc.'s operating cash flow is $354.5M, with capital expenditures of $19.2M. FCF margin is 14.0%.
How does IAC compare to other Technology stocks?
Vs Technology sector averages: Net margin -4.3% (avg: 18%), ROE -2.2% (avg: 22%), current ratio 2.75 (avg: 2.5).