Home services online marketplace ANGI (NASDAQ: ANGI) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 10.9% year on year to $248 million. Its GAAP loss of $5.70 per share was significantly below analysts’ consensus estimates.

Is now the time to buy Angi? Find out by accessing our full research report, it’s free.

Company Overview

Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Angi’s demand was weak over the last three years as its sales fell at a 15% annual rate. This wasn’t a great result and suggests it’s a lower quality business.

This quarter, Angi missed Wall Street’s estimates and reported a rather uninspiring 10.9% year-on-year revenue decline, generating $248 million of revenue.

Looking ahead, sell-side analysts expect revenue to decline by 1.4% over the next 12 months. it’s tough to feel optimistic about a company facing demand difficulties.

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Cash Is King

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

Angi has shown mediocre cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 3.4%, below what we’d expect for a consumer internet business. The divergence from its good EBITDA margin stems from its capital-intensive business model, which requires Angi to make large cash investments in working capital (i.e., stocking inventories) and capital expenditures (i.e., building new facilities).

Taking a step back, we can see that Angi’s margin dropped by 1.8 percentage points over the last few years. This along with its unexciting margin puts the company in a tough spot, and shareholders are likely hoping it can reverse course. If the trend continues, it could signal it’s becoming a more capital-intensive business.

Angi’s free cash flow clocked in at $12.23 million in Q2, equivalent to a 4.9% margin. The company’s cash profitability regressed as it was 11.2 percentage points lower than in the same quarter last year, but it’s still above its two-year average. We wouldn’t read too much into this quarter’s decline because investment needs can be seasonal, leading to short-term swings. Long-term trends are more important.

Key Takeaways from Angi’s Q2 Results

We were impressed by how significantly Angi blew past analysts’ EBITDA expectations this quarter. On the other hand, its revenue missed. Overall, this quarter could have been better. The stock traded down 17.9% to $5.10 immediately following the results.

Big picture, is Angi a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).