Angi Inc. (ANGI): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at Angi Inc. right now and seeing a company in the middle of a major strategic overhaul, which, as an analyst who's seen a few of these pivots, tells a clear story. Forget the noise; the 4 P's show Angi Inc. is deliberately trading volume for quality, a painful but necessary move. They've slashed reliance on third-party channels, seeing an 81% drop in Leads there, while pushing hard on their own platform where Leads grew 16% in Q3 2025. This focus is already translating to the top line, with Revenue per Lead jumping 11% year-over-year as they unify the platform and simplify pricing. To really understand if this strategy sticks and how it impacts their $1.06 billion trailing revenue ending September 30, 2025, you need to dig into the specifics of their new Product vetting and Promotion spend-and that's exactly what we're breaking down below.

Angi Inc. (ANGI) - Marketing Mix: Product

The product element for Angi Inc. (ANGI) centers on its digital marketplace, which connects homeowners with service professionals across the US and Canada.

Core offering is the digital marketplace connecting homeowners with over 500 categories of service professionals. Angi Inc. is the dominant digital marketplace connecting homeowners with service professionals across the US and Canada, offering services that cover over 500 home services. This range includes everything from Handyperson and Cleaning to Roofing and Remodeling.

Strategic Shift to Homeowner Choice and Quality Metrics

The full rollout of Homeowner Choice, which requires consumers to actively select their professional from a curated list, began in January 2025. This strategic move intentionally reduced the lower-quality, non-proprietary Network Service Leads by over 80% in Q3 2025. Network Service Requests saw an 81% year-over-year decline in Leads in Network Channels for Q3 2025. The focus shifted to the proprietary channel, where Proprietary Service Requests grew 11% year-over-year in Q3 2025, up from 7% in Q2 2025. This quality focus is already showing in customer satisfaction metrics; the core marketplace homeowner Net Promoter Score (NPS) turned positive in February 2025 for the first time since tracking began.

The commitment to quality is further evidenced by improved professional engagement and retention. Pro churn is down approximately 7% year-over-year, and the pro win rate is approximately 30% higher. Furthermore, 12-month pro retention improved by 17% in Q1 2025 versus Q1 2024, following a 35% improvement in 2024 as a whole.

The following table summarizes the impact of the strategic product shifts on key operating metrics as of the third quarter of 2025:

The company is also focused on operationalizing quality through vetting, including ongoing license and background checks, which supports the higher pro retention figures.

Platform Consolidation and AI Integration

A strategic move to a single, unified platform for all pros is underway for 2025, consolidating the legacy Products previously known as 'Leads' pros and 'Ads' pros. This migration is a massive undertaking designed to give all marketplace professionals the ability to more narrowly target customers by task and location. This platform unification is linked to the decline of the non-proprietary channel; the network channel, which previously relied on auto-matching, fell from nearly 40% of leads a year ago to less than 10% this year (Q3 over Q3).

A new consumer-facing 'AI helper,' powered by large language model (LLM) technology, was deployed to nearly all proprietary traffic starting in June 2025. This investment directly addresses improving service request conversion and matching accuracy. The company also rebuilt its service request question technology in the second half of 2024, developing new, conditional questions to improve request details.

You're looking at a company intentionally trading short-term revenue from lower-quality channels for long-term, high-quality proprietary growth.

• Estimated hire rate is up double-digits.
• Homeowner NPS is up approximately 10 points year-over-year.
• The company repurchased 1.3 million common shares between August 4, 2025, and October 31, 2025, for an aggregate of $20.1 million.
• The Board approved a new share repurchase authorization of approximately 3.2 million shares on September 17, 2025.

Angi Inc. (ANGI) - Marketing Mix: Place

The primary distribution for Angi Inc. (ANGI) is the Angi digital platform, accessible via its website and mobile application, focused on the United States market.

The distribution strategy reflects a significant pivot away from third-party websites, termed 'Network Channels,' toward owned and operated channels, or 'Proprietary Channels.' This shift is quantified by the performance in the third quarter of 2025 compared to the third quarter of 2024.

The decline in Network Channel volume was substantial, driven by the full implementation of homeowner choice in January 2025. This channel saw an 81% year-over-year decline in Leads in Q3 2025. The overall impact on total leads was a 21% year-over-year decrease, with total Leads reaching 5,441 thousand in Q3 2025, down from 6,867 thousand in Q3 2024.

Conversely, the focus on Proprietary Channels yielded positive results, with Leads increasing by 16% year-over-year in Q3 2025. Proprietary Channels accounted for 4.95 million Leads out of the total 5.44 million Leads in the quarter.

Here is a breakdown of the Service Requests and Leads distribution metrics for Q3 2025 versus Q3 2024:

The company is actively enhancing its direct-to-pro distribution path. As of the end of Q3 2025, Angi Inc. had $340.7 million in cash and cash equivalents on its balance sheet.

Strategic distribution and pro acquisition initiatives being deployed or planned for the second half of 2025 include:

• Deployment of an online-only pro acquisition path, modeled after the international business channel.
• Continued expansion of service request acquisition within existing and new proprietary channels.
• Reinvestment in branded advertising to support proprietary channel performance.
• Upgraded qualification and vetting processes for all professionals, including ongoing license, ID, and background checks.

Angi Inc. (ANGI) - Marketing Mix: Promotion

You're looking at how Angi Inc. (ANGI) is spending to get in front of customers and professionals as of late 2025. Promotion is where the rubber meets the road for driving that proprietary volume growth we've been seeing.

The company has been aggressive with its brand messaging, centering on the promise of Jobs Done Well. While the plan for 2025 included doubling TV advertising spend, the actual reported impact in the second quarter was that increased spending was roughly 40% driven by the re-launch of television advertising in that quarter. This investment is part of a broader strategy that anticipates mid-single-digit revenue growth for the full year 2025. So, the message is getting out there, but it's costing more to capture attention.

Search Engine Marketing (SEM) and other paid channels are performing well, which is critical given the shift away from organic traffic. Organic traffic has declined over the years and is now less than 10% of volume. The strong performance in SEM is directly fueling proprietary lead growth, which saw Proprietary Leads increase by 16% year-over-year in Q2 2025. Also, Revenue per Lead in Q3 2025 was up 11% year-over-year, showing that the quality of the traffic being driven is translating to better monetization.

The overall consumer marketing expense as a percentage of revenue is higher. This is a direct result of the strategic mix shift toward paid service requests, as Proprietary Service Requests increased 7% year-over-year in Q2 2025, while Network Channel Service Requests declined 59% year-over-year in the same period. This shift is profitable at the margin, as Adjusted EBITDA was $33.0 million in Q2 2025, up from $9.2 million in Q2 2024, though the quarter-over-quarter comparison showed Adjusted EBITDA down 22% from $42.2 million in Q2 2024, partly due to this higher consumer marketing expense.

The focus on quality over sheer volume in Pro acquisition is clear, and the numbers back up a significant improvement in unit economics. Sales headcount is down 50%, which has lowered the Pro acquisition cost, but the value of the Pros being brought onto the platform has increased substantially. The LTV to CAC ratio improved to 2.8x in Q2 2025, up from 1.0x two years prior. Here's the quick math on that Pro transformation in Q2 2025:

This table shows that while the volume of new Pros acquired dropped sharply, the aggregate value of those Pros sold barely moved, meaning the average Pro acquired is much more valuable now. It definitely signals a successful pruning of lower-value acquisition efforts.

The results of the promotional and sales optimization efforts can be summarized by key performance indicators from Q2 2025:

• Proprietary Service Requests increased 7% year-over-year.
• Proprietary Leads increased 16% year-over-year.
• LTV to CAC ratio reached 2.8x.
• Sales headcount was reduced by 50%.
• Organic traffic is now less than 10% of volume.

The company is definitely spending more on paid channels to drive growth, but the return on the Pro side, in particular, is showing much higher lifetime value per acquisition.

Angi Inc. (ANGI) - Marketing Mix: Price

You're looking at the pricing strategy for Angi Inc. (ANGI) professionals as of late 2025. The core of how professionals pay to access customers remains a fee-per-lead structure, though the company is actively simplifying this. There are also options for professionals to advertise their listings for greater visibility on top of search results. Some contractors report that leads typically cost between $25 and $120, depending on the trade and geographic location. This is for the conversation, not a guaranteed job. For the Angi Pro subscription itself, the starting cost is noted as $200 per month. That's the baseline for getting into the lead flow.

The strategic shift toward a unified platform is directly impacting how revenue is recognized from these interactions. You saw Revenue per Lead increase 11% year-over-year in Q3 2025. This lift is attributed to price optimization efforts and the consolidation of the sales force in March 2025, which shifted the professional base away from those utilizing higher effective discounts. Also, growth in proprietary channels is strong; Proprietary Leads increased 16% year-over-year in Q3 2025, and Proprietary Service Requests were up 11% year-over-year in the same quarter. The legacy network channel, which used to be nearly 40% of leads a year ago, is now less than 10% of leads. It's a clear move to higher-value interactions.

The financial goalposts for profitability reflect this strategic reset. Full-year 2025 Adjusted EBITDA is targeted to be consistent with 2024 levels, specifically between $135 million and $150 million. This focus on profitability over top-line volume is evident in the trailing twelve-month revenue ending September 30, 2025, which stood at $1.06 billion. That number reflects the strategic revenue reset that began with changes like the implementation of homeowner choice in January 2025. The consensus estimate for the full fiscal year 2025 revenue, however, was sitting around $1.04 billion.

The platform unification effort is key to future pricing simplicity. The move to a single platform is designed to simplify and unify pricing, which means eliminating outdated discount structures. Management expects this migration to a single, AI-first global platform to be complete by 2027. This simplification should help align pricing more closely with the perceived value delivered.

Here's a quick look at some of the key pricing-related financial metrics from the latest reported quarter and the trailing period.

You can see the shift in focus clearly in the numbers. The company is prioritizing margin expansion through pricing optimization over raw volume, especially as the legacy network channels shrink.

The professional pricing options you should be aware of include:

• Pay per lead structure for core service delivery.
• Advertising options to feature listings at the top of search results.
• A starting monthly subscription fee for Angi Pro, around $200 per month.
• The goal of unifying pricing by 2027 to remove old discount tiers.

Finance: draft 13-week cash view by Friday.