Angi after Q1 2026: I was wrong - now what?
A brutal breach of trust, a risky AI reboot - and Angi stock that suddenly looks like a potential value trap
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Unfortunately, my last article on Angi has aged very poorly.
On January 16, I presented Angi as my top stock for 2026, arguing that the market underestimates the platform’s operational stabilization, cost discipline, and cash flow potential.
Four months later, the reality looks brutally different. The stock has since fallen another 50% or more. Angi lost around 35% on the day after the Q1 earnings report alone. This is no longer a normal pullback. It is a breach of trust between management and the capital market.
The Q1 figures themselves were not the actual trigger for this crash, however. Revenue stood at $238 million, just 3% below the previous year. Adjusted EBITDA reached nearly $23 million, exceeding the previously stated guidance of $16 million.
Operationally, there were mixed results: Service requests grew by 5%, and proprietary service requests grew by 17%. Meanwhile, the network business (i.e., leads generated via Google) continued to collapse and now plays virtually no role anymore. The number of monthly active pros (tradespeople) in the U.S. was only 105,000, down from 134,000 the previous year. Globally, Angi continues to report nearly 200,000 active pros in North America and Europe.
Needless to say, this was not a good quarter. Free cash flow was weak at -$34 million, operating cash flow was negative at -$18 million, and the net loss of $9 million shows that the turnaround is far from sustainable.
However, these figures alone do not explain the 35% one-day crash. The real shock lay in the strategic communication:
