Citizens has reaffirmed its Market Outperform rating and kept a $47.00 price target on IAC Inc following the company’s fourth-quarter 2025 results. The target implies meaningful upside relative to the prevailing share price of $35.69, and available valuation metrics show a low price-to-book ratio of 0.59.
The company’s quarterly results were broadly in line with consensus overall. Within IAC’s operating structure, the People Inc. segment delivered revenue that exceeded consensus by about 3%. Citizens highlighted accelerating advertising growth in People Inc. and cited expanding licensing partnerships as drivers of that performance, noting a newly signed Meta agreement that was announced in December.
Operational moves and capital returns were central to Citizens’ commentary. Over the past year, IAC repurchased $337 million of its own shares, a sign of active capital return. Management has also been increasing its ownership position in MGM and is working to simplify the corporate structure while bolstering cash resources. Citizens framed these steps as measures to enable thoughtful, opportunistic capital allocation.
On balance-sheet metrics, IAC reported a current ratio of 2.75, indicating that liquid assets comfortably exceed short-term liabilities. Citizens pointed to the balance-sheet health and the firm’s long record of incubating businesses and creating shareholder value over nearly three decades as a central element of its investment thesis for maintaining the Market Outperform rating.
Profitability and valuation were mixed. IAC was not profitable over the trailing twelve months, but analysts referenced by Citizens expect the company to return to profitability this year. The company’s enterprise value to EBITDA multiple stands at an attractive 3.0, according to the data noted alongside the rating decision.
That said, the quarter included a material earnings miss. Reported earnings per share came in at -$0.99, falling short of the consensus expectation of $0.68. Revenue for the quarter did edge past forecasts, totaling $646 million versus the projected $641 million. The stock moved higher in the market despite the earnings shortfall, a reaction that may reflect investor focus on the slightly stronger revenue outcome and the company’s capital return activities.
Citizens’ reiteration of an Outperform rating rests on a combination of operational progress inside high-growth segments, an active approach to capital allocation, and a balance sheet that management is using to pursue simplification and opportunistic investments. The earnings miss underscores ongoing execution and profitability challenges that analysts and investors will continue to monitor as the company aims to achieve positive results for the year.
Context and outlook
The quarter presents a mixed picture: revenue beats in key segments and concrete capital returns on one hand, and an EPS shortfall and trailing unprofitability on the other. Citizens’ stance is anchored in IAC’s track record of building and monetizing digital businesses and the view that the company’s financial flexibility supports continued value creation.