IAC reported a 15% increase in its second-quarter core profit, reaching US$51.4 million compared to US$44.8 million a year earlier.

The media and internet company owns brands including ‘Food & Wine’ and ‘Investopedia’.

Revenue for the quarter ended June 30, 2025 was US$586.9 million, falling short of analysts’ expectations of US$601.3 million, according to LSEG data.

IAC’s largest division, Dotdash Meredith, saw digital revenue grow 9%, supported by higher ad spending in health and pharmaceuticals, technology, and travel sectors.

Operating expenses dropped by 10.6% to US$586.4 million in the quarter.

IAC adjusted its full-year EBITDA forecast to a range of US$247 million to US$285 million, narrowing from its previous outlook of US$240 million to US$295 million.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Cost discipline drives profitability during revenue headwinds

IAC’s results demonstrate how strategic expense management can maintain profitability even when revenues decline.

The company achieved a 15% increase in core profit despite a 7.5% year-over-year revenue drop by cutting operating expenses by 10.6% to $586.4 million 1.

This approach helped IAC beat earnings expectations significantly, with GAAP earnings per share of $2.57 compared to analyst estimates of -$0.31 1.

The strategy reflects a broader trend among digital media companies facing advertising market pressures, where operational efficiency becomes crucial for maintaining investor confidence.

IAC’s operating margin improved from -3.4% to 0.1% year-over-year, showing how disciplined cost management can quickly transform loss-making operations into profitable ones 1.

2️⃣ Premium advertising categories show resilience amid broader market weakness

IAC’s digital media business illustrates how certain advertising verticals continue to perform well despite overall market challenges.