From a ridiculed merger corpse to a highly efficient platform player: Angi Inc. has had a turbulent year. Following the spin-off from its parent company IAC and a radical overhaul, the US market leader for home services is at a turning point. For courageous investors, the current valuation offers an opportunity that is usually only found in turnaround candidates in the final stages – but the risks are as real as a burst pipe in the cellar.
In the world of the platform economy, one law applies: whoever controls access to the customer wins. Angi Inc (NASDAQ: ANGI), the heavyweight behind brands such as Angie’s List, myhammer and HomeAdvisor, has controlled this access for decades. But the path from founder Angie Hicks’ analog recommendation list to the digital ecosystem has been rocky. Today, after IAC’s final spin-off in April 2025, the company faces its biggest test: can it stop years of revenue erosion and reinvent itself as an AI-driven cash machine?
The anatomy of a radical horse cure
For a long time, Angi suffered from its own complexity. The business model was based on matching homeowners with tradespeople and collecting fees for these “leads” – often to the frustration of both sides. However, under CEO Jeff Kip and IAC veteran Joey Levin, a strategic pivot was made that is unparalleled in the industry: “Homeowner Choice”. Instead of selling customer requests like bulk goods to the highest bidder, users can now choose their professionals.
The short-term consequence was a shock for Wall Street: lead volume slumped by double digits and sales fell by around 10.5% to USD 265.6 million in the quarter. But those who only stare at the top line are missing the point. Angi is cleaning up its business from “inferior channels”. The result: the Net Promoter Score (NPS) is rising, the quality of contacts is increasing and the operating result exploded by 179% to USD 21.8 million in the third quarter of 2025 despite a decline in revenue.
The “moat” in the shadow of Google
The key question for investors remains: Does Angi have a sustainable competitive advantage (economic moat)? With a gross margin of an impressive 95% and a wealth of data from three decades of customer reviews, the answer is yes, but it is under siege. Its most powerful opponent is not its competitor Thumbtack or Yelp, but Google. Through “Local Services Ads”, the search engine giant often pushes Angi out of the direct field of vision of users.
Angi is countering this pressure with a technological upgrade. The new “AI Helper” is not just a marketing gimmick: it achieves a conversion rate 2.7 times higher than conventional processes. The migration to a fully AI-enabled platform should be completed by 2027. Management is also focusing on proprietary channels – its own apps and websites – in order to reduce the fatal dependence on expensive Google traffic.
A paradise for value investors?
Looking at the valuation, value investors are rubbing their eyes. Angi is trading at a forward EV/EBITDA of around 5.5x for the year 2026. Many peers in the internet sector are valued at double or triple this. Even more impressive is the cash flow generation: With a free cash flow (FCF) of over USD 100 million and a market capitalization of only around USD 550 million, the FCF yield is almost 20%.
The management is aggressively exploiting this undervaluation. In 2025 alone, the company bought back almost 15% of its outstanding shares – a massive vote of confidence in its own strategy. The fact that around 12% of the workforce was also cut at the beginning of 2026 in order to realize efficiency gains through AI underlines the operational rigour of the “Diller school” from which the management team comes.
The two faces of the medal: bull vs. bear case
Angi is currently a binary bet for investors:
The bull scenario: the transformation succeeds, sales stabilize at around USD 1.07 bn in 2026 and the enormous leverage effect of the 95% margin has a full impact on profits. In this case, a doubling or tripling of the share price from current levels (near the 52-week low of around USD 10) is absolutely plausible.
The bear scenario: The structural decline in sales is not a sign of “streamlining”, but of a loss of relevance. Google and modern competitors are siphoning off profitable customers, while Angi is left sitting on a mountain of outdated technology and goodwill.
Conclusion: Courage is rewarded – or punished
Angi is not for the faint-hearted. The share has lost over 30% of its value over the past 12 months and remains highly volatile. However, the fundamental basis is solid: moderate debt (debt-to-equity 0.50) and a crisis-proof core business – repairs and renovations are always being carried out – offer security.
Anyone betting that CEO Jeff Kip will turn things around and that AI integration will permanently reduce the cost base will find Angi one of the cheapest technology stocks on the US market. It is a bet on a formerly cumbersome giant that is just learning to act at sprint speed.
Verdict: Speculative buy for investors with staying power.
