📊 IAC Key Takeaways
Is IAC Inc. (IAC) a Good Investment?
IAC is operationally unprofitable with declining revenue (-8.7% YoY) and negative net income (-17.0% margin), though strong free cash flow ($346.6M) provides near-term financial cushion. The inability to cover interest from operations (-1.0x coverage) combined with deteriorating profitability fundamentals signals structural business challenges despite adequate balance sheet strength.
IAC has strong liquidity and modest leverage with solid free cash flow generation (14% FCF margin), providing financial flexibility despite GAAP losses. However, revenue declined 8.7% YoY and both operating and net margins are negative with interest coverage at -2.5x, indicating unresolved profitability pressure. Neutral stance until revenue stabilizes and operating margins improve sustainably.
Why Buy IAC Inc. Stock? IAC Key Strengths
- Strong free cash flow generation ($346.6M) with exceptional 81.9% FCF margin demonstrates cash conversion capability
- Conservative leverage (0.31x debt/equity) with substantial cash reserves ($1.1B) provide financial flexibility
- Excellent liquidity position (3.69x current ratio) enables operational continuity despite profitability headwinds
- Strong liquidity (current 2.75x, quick 2.70x)
- Robust free cash flow with low capex intensity (14% FCF margin)
- Modest leverage and sizable cash balance (Debt/Equity 0.30x; Cash ~$960M)
IAC Stock Risks: IAC Inc. Investment Risks
- Declining revenue (-8.7% YoY) with negative operating income (-$40.1M) indicates deteriorating core business demand
- Inability to cover interest from operations (negative 1.0x coverage) and persistent GAAP losses (-17.0% net margin)
- Strong FCF sustainability questionable given revenue decline, low capex, and potential working capital headwinds or asset liquidation
- Top-line contraction (-8.7% YoY) suggesting growth headwinds
- Persistent operating losses and negative interest coverage (-2.5x)
- FCF sustainability risk if driven by working-capital/non-cash items while GAAP losses persist
Key Metrics to Watch
- Revenue stabilization and growth acceleration - critical inflection point for operational viability
- Operating margin trajectory and timeline to profitability restoration
- Free cash flow composition and sustainability amid revenue contraction
- Revenue growth (YoY)
- Operating margin
IAC Inc. (IAC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 81.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.69x current ratio provides a solid financial cushion.
IAC Profit Margin, ROE & Profitability Analysis
IAC vs Technology Sector: How IAC Inc. Compares
How IAC Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IAC Inc. Stock Overvalued? IAC Valuation Analysis 2026
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 Inc. Balance Sheet: IAC Debt, Cash & Liquidity
IAC Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
IAC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $422.9M | -$71.9M | $-0.94 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IAC Inc. Dividends, Buybacks & Capital Allocation
IAC SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IAC's key strengths?
Claude: Strong free cash flow generation ($346.6M) with exceptional 81.9% FCF margin demonstrates cash conversion capability. Conservative leverage (0.31x debt/equity) with substantial cash reserves ($1.1B) provide financial flexibility. ChatGPT: Strong liquidity (current 2.75x, quick 2.70x). Robust free cash flow with low capex intensity (14% FCF margin).
What are the risks of investing in IAC?
Claude: Declining revenue (-8.7% YoY) with negative operating income (-$40.1M) indicates deteriorating core business demand. Inability to cover interest from operations (negative 1.0x coverage) and persistent GAAP losses (-17.0% net margin). ChatGPT: Top-line contraction (-8.7% YoY) suggesting growth headwinds. Persistent operating losses and negative interest coverage (-2.5x).
What is IAC's revenue and growth?
IAC Inc. reported revenue of $422.9M.
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 $-0.94.
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 May 2026, IAC Inc. has a SELL rating with 66% 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 -1.6% (sector avg: 22%), net margin of -17.0% (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 $8.0M. FCF margin is 81.9%.
How does IAC compare to other Technology stocks?
Vs Technology sector averages: Net margin -17.0% (avg: 18%), ROE -1.6% (avg: 22%), current ratio 3.69 (avg: 2.5).