0001705110-26-000044
SEC filingAngi swung to a net loss in Q1 2026, driven by restructuring costs and higher advertising investment, though gross margin remained strong at 95.9%.
Revenue for the first quarter of 2026 was $238.2 million, a decrease of 3.2% compared to $245.9 million in the same period last year. The decline reflects ongoing shifts in service mix as the company prioritizes its Proprietary channel, which typically generates higher-quality service requests but may carry different revenue recognition patterns. Gross profit decreased 1.9% to $228.5 million, while gross margin remained robust at 95.9%, underscoring the company's ability to maintain pricing power and cost discipline.
Operating income swung from a profit of $20.0 million in Q1 2025 to a loss of $9.5 million in Q1 2026. The deterioration was primarily driven by $14.9 million in restructuring charges associated with a workforce reduction of approximately 350 employees, as well as increased investment in television and online advertising to drive Proprietary channel service request volume. Net income followed a similar trajectory, falling to a loss of $9.0 million from a profit of $15.1 million, resulting in diluted earnings per share of -$0.22 compared to $0.30 in the prior year.