Angi Inc. (ANGI): BCG Matrix [Dec-2025 Updated]

You're looking at a company actively reshaping its future, and the late 2025 Boston Consulting Group Matrix for Angi Inc. tells a clear story of strategic triage. We see the Stars-like proprietary leads growing 16%-fueling the Cash Cows that are set to generate $140 million to $145 million in Adjusted EBITDA this year. But this pivot means aggressively cutting the Dogs, evidenced by Network Channels leads dropping as much as 81%, while the high-risk, high-reward Question Marks, such as international expansion, hang on the goal of returning to overall revenue growth in 2026. Honestly, this is a painful but necessary shedding of low-quality volume, so let's break down exactly where the capital is moving below.

Background of Angi Inc. (ANGI)

You're looking at Angi Inc. (ANGI) right as we close out 2025, and the story here is one of strategic transition, which you can see clearly in the latest numbers. Angi Inc. operates its digital marketplace connecting consumers with home service professionals across the U.S. and internationally, primarily under the well-known brands Angi, HomeAdvisor, and Handy. The core business model revolves around its Ads and Leads segment, though it also has Services and International operations. It's definitely a business in flux right now.

Let's look at the most recent snapshot, the third quarter of 2025. The company posted revenue of $265.6 million, which was actually a 10% decline year-over-year, missing analyst expectations slightly. For the trailing twelve months ending September 30, 2025, total revenue stood at $1.06 billion. On the bottom line for Q3, the reported diluted Earnings Per Share (EPS) was $0.23, representing a significant drop of 67% compared to the prior year. Still, the stock price as of October 31, 2025, was hovering around $13.27.

The revenue pressure you see comes directly from a major strategic shift: the full implementation of what they call 'homeowner choice' back in January 2025. This change caused a sharp drop in their legacy business, with Network Service Requests falling by 67% and Network Leads dropping by 81% year-over-year in Q3. However, the pivot is showing results in their proprietary channels; Proprietary Service Requests grew 11% and Proprietary Leads increased 16% in the same period. That's the key dynamic you need to track-the migration from the old network model to the new proprietary one.

Despite the top-line revenue contraction, the focus on cost management and higher-quality transactions is clearly impacting profitability metrics. For Q3 2025, Operating Income surged a massive 179% to $21.8 million, and Adjusted EBITDA also climbed 12% to $39.7 million. This improvement in operating leverage, driven partly by lower pro acquisition expenses and reduced fixed costs, is what management is banking on to stabilize the business and return to revenue growth, which they anticipate by 2026. That's the near-term opportunity you're watching for.

Angi Inc. (ANGI) - BCG Matrix: Stars

You're analyzing Angi Inc. (ANGI)'s portfolio, and the proprietary channels clearly sit in the Star quadrant. These are the business units operating in a high-growth market-the direct-to-consumer home services origination space-where Angi Inc. is successfully capturing significant market share through direct investment and platform superiority. This focus is critical because the legacy network channel, which represented nearly 40% of leads a year ago, has shrunk to less than 10% of leads in Q3 2025, making the proprietary growth the key marker for 2026 revenue trajectory.

The engine driving this Star status is the performance of the proprietary funnel. The growth here is not just steady; it's accelerating, which is exactly what you look for in a Star investment. Management is pouring resources into promotion and placement here, which is why these segments consume significant cash, even as profitability improves elsewhere. Honestly, keeping this market share requires constant, heavy investment.

Here are the hard numbers defining the Star performance as of the third quarter of 2025:

The focus on quality is evident in the homeowner experience metrics. The homeowner Net Promoter Score (NPS) is up by approximately 10 points year-over-year, which is a massive lift in a service business. This improved experience directly feeds into the platform's supply health. For instance, the estimated hire rate for Pros is up by double-digits, signaling that better homeowner interactions are leading to more successful job matches and, therefore, better long-term Pro supply.

Furthermore, the investment in technology is paying off in conversion rates, which is critical for future market share gains in the growing home services sector. The deployment of fine-tuned Large Language Model (LLM) features, such as the AI Helper, is showing a conversion rate of approximately 2.7x compared to the legacy flow. This AI-driven matching is what allows Angi Inc. to maintain its leadership position and defend against new entrants.

To keep these Stars fed, Angi Inc. is still spending heavily, though efficiency is improving. While total revenue for Q3 2025 was $265.6 million, down 10% year-over-year due to the network channel decline, the operating income jumped 179% to $21.8 million, and Adjusted EBITDA rose 12% to $39.7 million. This shows the cash flow is being managed tightly, but the core investment thesis remains: fund the proprietary growth engine. The company had $340.7 million in cash and cash equivalents as of September 30, 2025, ready to deploy into these high-growth areas.

• Proprietary Leads growth: 16% in Q3 2025.
• Proprietary Service Requests growth: 11% in Q3 2025.
• AI Helper conversion rate: approximately 2.7x legacy flow.
• Homeowner NPS improvement: approximately 10 points year-over-year.
• Estimated Pro hire rate improvement: double-digits.

Finance: draft 13-week cash view by Friday.

Angi Inc. (ANGI) - BCG Matrix: Cash Cows

You're looking at the segment of Angi Inc. (ANGI) that is mature, commands a strong position, and reliably funds the rest of the portfolio. These are the Cash Cows, and for Angi Inc., that centers squarely on the performance of its core domestic marketplace.

The Core Domestic Marketplace's high-quality Pro base is the engine here. This segment benefits from the strategic shift away from the lower-value Network channels. For instance, Proprietary Service Requests grew 11% year-over-year in Q3 2025, showing that the higher-quality, controlled flow is gaining traction. This focus on quality over sheer volume in the lead generation process is directly reflected in the unit economics.

This focus on quality is driving better monetization. You saw Revenue per Lead increase by 11% in Q3 2025. That rise came specifically because the sales force consolidation in March 2025 shifted the mix away from Pros who previously relied on discounted, lower-value transactions. This is classic Cash Cow behavior: optimizing the existing, high-share base for margin rather than chasing top-line growth at any cost.

The underlying profitability of these transactions is exceptional. Angi Inc. maintains an impressive gross profit margin of nearly 95%, a figure supported by the 95% margin reported for Q2 2025. This high margin underscores the company's ability to generate substantial cash from its core service facilitation activities, which is the definition of a strong Cash Cow.

The financial output confirms this strength. Angi Inc. has confidence in hitting the middle of its prior range for full year 2025 Adjusted EBITDA, projected to be between $140 million and $145 million. This projected figure demonstrates the strong, predictable cash generation that these mature, high-share business units provide, which is essential for funding riskier Question Marks or Stars.

To put the scale of this cash generator into perspective, consider the recent operational numbers that feed this profitability:

Because this segment operates in a mature market, the strategy here is about maintenance and efficiency, not massive expansion spending. You see this in the focus on infrastructure improvements that boost cash flow rather than heavy promotion. The company is actively managing the Pro base for maximum yield. For example, the Pro base, as of the trailing twelve months ending Q3 2025, stood at 131,000 Average Monthly Active Pros, which was down 17% year-over-year, but the focus is clearly on the quality of those remaining Pros, as evidenced by the improved Revenue per Lead.

The Cash Cow segment's role is to support the enterprise, which means:

• Maintaining the current level of productivity in the domestic platform.
• Generating excess cash flow to cover corporate overhead.
• Funding strategic bets in other BCG quadrants.
• Supporting shareholder returns through capital deployment, such as the recent repurchase of 1.3 million common shares for an aggregate of $20.1 million between August 4, 2025, and October 31, 2025.

This unit is where you harvest the gains passively, only investing enough to keep the machinery running smoothly, defintely not overspending on growth initiatives here.

Angi Inc. (ANGI) - BCG Matrix: Dogs

You're looking at the parts of Angi Inc. (ANGI) that are draining focus or resources in low-growth areas, which is exactly what the Dogs quadrant is about. These are the business units or product lines that have low market share and low growth, and the strategy here is clear: minimize exposure and divest where possible. Angi Inc. has been actively pruning these areas in 2025.

The most visible evidence of this pruning is in the Network Channels and third-party traffic segment. This area is characterized by low-quality volume that the company is deliberately shedding to improve overall profitability. The results of this strategic shift are stark when you look at the volume metrics for the third quarter of 2025.

Here's the quick math on the decline in volume from these lower-quality channels:

The overall revenue for Angi Inc. in Q3 2025 was $265.6 million, which represented a 10% decline year-over-year. This decline directly reflects the deliberate shedding of low-quality volume, particularly from the Network Channels.

The specific components identified as Dogs, which are being minimized or removed, include:

• Network Channels and third-party traffic, where Service Requests dropped by 67% and Leads dropped by 81% in Q3 2025.
• Legacy Ads product sales, which the company is actively discontinuing as part of the sales force consolidation effort in 2025.
• Unprofitable marketing and sales expenses that were actively removed, specifically noting lower pro acquisition expense due to a reduction in sales headcount to optimize long-term profitability.

To be fair, the action of removing these Dogs has a positive financial consequence on the remaining, higher-quality business. While revenue declined, the focus on efficiency paid off in profitability metrics:

• Operating income for Q3 2025 was $21.8 million, up substantially from $7.8 million in Q3 2024, representing a 179% increase.
• Adjusted EBITDA grew to $39.7 million in Q3 2025, up from $35.4 million in Q3 2024, a 12% rise.

Expensive turn-around plans are generally avoided for Dogs; here, the action was a strategic discontinuation and cost removal, not a costly investment to revive them. Finance: draft 13-week cash view by Friday.

Angi Inc. (ANGI) - BCG Matrix: Question Marks

Question Marks in the Angi Inc. portfolio represent business areas characterized by high market growth prospects but currently holding a low relative market share. These units consume significant cash investment to fuel their growth potential, which is necessary to avoid them stagnating into Dogs.

The current strategic focus for Angi Inc. is heavily weighted toward converting these high-potential, high-cash-burn areas into future Stars. The success of these initiatives directly underpins the company's forward-looking financial targets.

International Operations

International Operations represent a classic Question Mark. While the market growth potential is considered high for Angi Inc.'s service model globally, the current revenue contribution remains small relative to the overall business. For the three months ending September 30, 2025, International Operations contributed $32.4 million in revenue. This figure is small against the total Q3 2025 revenue of $265.6 million. The segment saw a year-over-year decrease of $1.9 million, or 2%, for the quarter, primarily due to strategic adjustments in the Canadian business model to align with European operations.

The strategy here is clear: significant investment is required to rapidly scale market penetration. If this investment does not quickly translate into market share gains, the segment risks becoming a drag on resources.

Unified Product and Platform Migration

The migration of all marketplace Professionals to a single, unified product and platform is a major undertaking, fitting the high-cost, high-risk, high-reward profile of a Question Mark. This initiative is designed to create a more efficient, scalable, and modern core technology stack, moving away from systems that are, in some cases, 20 years old. The target for achieving this single modern global and AI-first platform is 2027. This requires substantial, immediate capital deployment.

The financial impact of this investment is immediate and material:

You're betting significant near-term cash flow on this technology overhaul to unlock future efficiency and growth. If onboarding and integration take too long, the ROI timeline gets pushed out, increasing the risk profile.

Expansion into New Service Categories

Angi Inc. is actively pushing into new service categories, specifically targeting areas like preventative maintenance for HVAC and plumbing. This expansion is occurring within a housing market where homeowners are increasingly focused on 'stay-put' maintenance rather than large-scale moves or remodels, suggesting a high-growth environment for these specific services. However, market share in these new verticals is currently unproven.

The early indicators from proprietary channels suggest the strategy is gaining traction, which is why this category is a Question Mark and not a Dog:

• Proprietary Service Request growth accelerated to positive 11% year-over-year in Q3 2025.
• Proprietary Lead growth was 16% year-over-year in Q3 2025.
• Revenue per Lead increased by 11% year-over-year in Q3 2025.

These proprietary channel successes are what management hopes to scale across the entire service offering. The challenge is translating this early success into dominant market share against established competitors in these specific maintenance niches.

Goal for Overall Revenue Growth in 2026

The entire Question Mark strategy culminates in the high-stakes target to return to overall revenue growth in 2026. This goal is entirely dependent on the successful execution and adoption of the investments detailed above. Management has confirmed this trajectory, aiming for a specific growth rate.

The expected growth profile for the near term is:

• Anticipated full-year revenue drop for 2025: between 11% and 13%.
• Target for 2026 revenue growth: mid-single-digit percentage growth.
• The growth in proprietary channels is expected to offset the comparison against the network channels.

If the platform migration is delayed or the new service categories fail to capture meaningful share, this mid-single-digit target for 2026 will be missed, and the current investments will be burning cash without a clear path to Star status.