U.S. Internet: Discontinuing Coverage

Research evidence excerpt

U.S. Internet: Discontinuing Coverage

Equity Research

29 May 2026

U.S. Internet

Discontinuing Coverage

Discontinuing CoverageA result of reallocating of analyst resources, we are

discontinuing coverage of the following stocks. All previous

ratings and forecasts should not be relied upon. U.S. Internet POSITIVE

Unchanged

A result of reallocating of analyst resources, we are discontinuing coverage of the following U.S. Internet

stocks. All previous ratings and forecasts should not be relied upon. Ross Sandler

+1 415 263 4470

• IAC - our final rating was Overweight: IAC has continued to simplify its portfolio, moving ross.sandler@barclays.com

away from a broader holding-company structure toward a more focused asset monetization BCI, US

and capital allocation story. The company has wound down Search, sold off Care.com,

reduced corporate overhead and the opportunity to unlock value in People Inc., MGM Resorts,

Turo and other holdings.

Digital revenue grew 8% y/y in 1Q26, and would have been 10% if not for the recent

reclassification of a legacy business into the Digital segment. Incremental Digital EBITDA

margins were up nicely despite soggy growth for session based and most of the growth

coming from lower margin off platform revenue, which is a solid margin trend. Non-Sessions-

Based revenue grew 26% and now represents 41% of Digital revenue. As this percentage

grows to larger than 50% of revenue, People should be over the hurdle of traffic hits from

Google Search (which saw sessions down 39% y/y, now 25% of total in 1Q). IAC expects this to

net $40m/yr in operating cost savings and $20-$25m in SBC savings by 2Q27 from winding

down its centralized corporate overhead. The company expects to continue returning capital