CRTO

This article first appeared on GuruFocus. Revenue: $428 million in Q2 2026. Contribution ex-TAC: $255 million, down 12% year-over-year at constant currency, including a $21 million impact from Retail Media client scope changes. Performance Media Revenue: $380 million, with contribution ex-TAC of $208 million, down 10% at constant currency. Retail Media Revenue: $48 million, with contribution ex-TAC of $47 million, reflecting a $21 million headwind; underlying business grew 20% excluding scope reductions. Adjusted EBITDA: $73 million in Q2 2026. Net Income: $12 million in Q2 2026. Diluted EPS: $0.22, compared to $0.39 in the prior year. Adjusted Diluted EPS: $0.80, compared to $0.92 in the prior year. Operating Cash Flow: $20 million in Q2 2026. Free Cash Flow: Minus $38 million in Q2 2026, with trailing 12-month free cash flow of $180 million. Media Spend: Grew 9% to $1.1 billion in Q2 2026. Client Retention: Close to 90%. Share Repurchases: Deployed $30 million to repurchase 1.7 million shares in Q2 2026. Warning! GuruFocus has detected 9 Warning Signs with BLMN. Is CRTO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OpenAI partnership is exceeding expectations, with over 2,000 brands running campaigns, more than double the number announced in April, and traffic from ChatGPT converting at 1.5-2 times the rate of traditional referral traffic. Criteo GO self-service platform is gaining traction, with more than half of small clients globally adopting it, and account creation in June was approximately 3 times higher than initial months post-launch. Retail Media underlying business grew 20% year-over-year excluding the impact of two retailer scope reductions, with strong adoption of auction-based display and new retailer partnerships across regions. New business revenue in the US grew 24% year-over-year in Q2, and the qualified pipeline has grown approximately 30% year-over-year, indicating improved commercial execution. The company maintains a strong balance sheet with no long-term debt, generated $180 million in trailing 12-month free cash flow, and continues to return capital to shareholders through buybacks. Agentic AI initiatives, including conversational ad formats and sponsored recommendations in retailer AI assistants, are showing early promise with first launches like Albertsons and a travel client in Europe. Q2 results missed expectations, with contribution ex-TAC down 12% at constant currency, primarily due to reduced spending from several large enterprise Performance Media clients. The company revised its full-year 2026 outlook downward, now expecting contribution ex-TAC to decline 10-12% at constant currency, assuming no recovery in spending from large enterprise clients. Performance Media revenue declined 10% at constant currency, with softness in commerce growth and continued weakness in discretionary retail categories like fashion, which was down 21%. The company faces ongoing headwinds from client-specific issues, including travel impacted by the Middle East conflict, tariff changes, and clients shifting budgets to other tactics. Retail Media revenue was negatively impacted by a $21 million headwind from previously communicated client scope reductions, and the company expects a mid-to-high teens decline in contribution ex-TAC for the segment in 2026. The company's outlook does not assume meaningful contributions from OpenAI or agentic AI initiatives until 2027, indicating near-term growth challenges. Q: Can you provide more color on why the large enterprise clients reduced spending, what changed from last quarter, and how Criteo can ensure the strength of the core business overrides these client-specific issues?A: Michael Komasinski, CEO, explained that there isn't one common thread among the affected clients. Root causes include a travel client impacted by the Middle East conflict, a client affected by tariff changes and de minimis import rules, and a client that shifted investment tactics where Criteo was unsuccessful in retaining the budget. He acknowledged that the latter is an execution issue the company is addressing with its upgraded commercial organization. To overcome these periodic enterprise client fluctuations, Criteo needs its new business engine and new products (like OpenAI and Criteo GO) to scale enough to offset the down cycles. He noted encouraging signs, such as US new business revenue growing 24% year-over-year in Q2. Q: Given the revised outlook, can you bridge the gap from the current OpenAI partnership status to the expected bigger impact next year, and how is the ecosystem shaping up for agentic commerce as a top-funnel product?A: Michael Komasinski, CEO, stated that clients are currently in a testing phase, figuring out how this new discovery channel fits into their overall media mix. The platform is only live in seven countries, with Mexico and Brazil launching soon and most of Western Europe still to come. Powerful product features like custom audiences and improved measurements only came online in the last few weeks. He emphasized that the platform is scaling at an incredible pace, and while it won't be a meaningful contributor to 2026 guidance, the company is confident it will be a significant growth driver in 2027. Q: Can you provide more detail on the monthly cadence of spending patterns through the quarter, especially given the outlook extrapolates June trends, and what is the conviction that the revised outlook has upside?A: Sarah Glickman, CFO, detailed that the specific client dynamics were particularly pronounced in Asia Pac (e-payment) and Europe (travel moderation). The guidance assumes current spending levels will not evolve into significant growth this year. She noted that the largest clients represent about 19% of revenue, a significant base, and while new products are being adopted by these clients, the growth rate is lower than anticipated. The outlook is a prudent baseline with no recovery assumed from these large enterprise clients. Q: Where are the incremental budgets for OpenAI commerce spending coming from, and is Criteo potentially too far ahead of the market with its innovative products while money slips away elsewhere?A: Michael Komasinski, CEO, said that current OpenAI budgets are largely test budgets. As they scale, he believes the spend will come from a mix of traditional search (brand keywords, product listing ads), general online video, and potentially incremental budgets, as ad spend continues to outpace GDP. On the enterprise client question, he clarified that Criteo is focused on commercial execution and being a trusted advisor with a closer seat at the table, as the product portfolio is now more full-funnel and multi-channel, requiring a more advisory approach. He declined to comment on the take-private offer, stating the Board is focused on maximizing shareholder value. Q: How are advertisers thinking about supply on the open web, and what are the spend-per-advertiser trends for the newly acquired Criteo GO customers?A: Michael Komasinski, CEO, noted that while there is pressure on lower-intent traffic and long-tail publishers, engagement from high-intent users remains strong. He emphasized that 85% of total media spend is already outside desktop display, and cross-channel clients spend up to 3 times more than single-channel clients. Todd Parsons, Chief Product Officer, added that it's still early days for GO, but adoption is spreading across the SMB spectrum. While not disclosing specific spend figures, he confirmed that trends are pulling through positively for the platform's users. Q: Has Criteo opened its user graph to third-party advertisers via SSPs, and how might new privacy laws like the one in New Jersey impact the business?A: Todd Parsons, Chief Product Officer, confirmed that exposing the graph to third-party demand has always been part of the strategy, and opening it up to SSP traffic is expected to increase demand paths into the business. Regarding privacy, he stated that Criteo watches every emerging state regulation closely and hopes for a more assertive federal approach in the US to ensure compliance with data security and privacy laws. Q: Can you discuss the competitive landscape in Retail Media and whether you are seeing more competition for budgets?A: Michael Komasinski, CEO, stated that there has been no material change in competitive dynamics. Criteo continues to gain share, with Retail Media spend growing 31% in the quarter, outpacing the market's 26% growth. The win rate remains high, and the company continues to secure major multi-year retailer renewals and new partners. He noted that while there are smaller competitors doing bespoke work, Criteo maintains a leadership position, supported by new products like Conquesting, auction-based display, and Page Intelligence. Q: What is the timeline for scaling the AI conversational ad format and sponsored recommendations in retailer AI assistants to commercial deployment?A: Michael Komasinski, CEO, said that similar to other agentic AI initiatives, the 2026 guidance does not assume much of a build from these formats. However, they are expected to be meaningful contributors next year. He highlighted that Criteo went live with Albertsons on their shopping assistant and has other retailers in the pipeline, and also launched the conversational ad format with one travel client in Europe, with more to follow. Q: Can you provide more color on the Performance Media headwinds, specifically the impact of the travel vertical and the performance in different regions?A: Sarah Glickman, CFO, explained that the headwinds are driven by specific dynamics, particularly in Asia Pac (e-payment) and Europe (travel moderation). Travel was a significant growth factor last year but has been impacted by macroeconomic and other drivers. The company assumes current spending levels will not improve significantly this year. In the Americas, the focus is on commercial execution to turn the business around. Q: Regarding the CFO transition, can you comment on the sustainability of share buybacks through the end of the $160 million remaining authorization and the capital structure?A: Sarah Glickman, CFO, confirmed that the Board is very supportive of the share buyback program, which was renewed as part of the redomiciliation to Luxembourg. She noted that 4.5 million shares were For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Criteo S.A.? Here are five stocks we like better. Criteo lowered its 2026 outlook after second-quarter results missed expectations, primarily because several large Performance Media clients reduced spending. Full-year Contribution ex-TAC is now expected to decline 10% to 12% at constant currency. Retail Media showed underlying strength despite $75 million of expected annualized impact from client scope reductions. Excluding those clients, second-quarter Retail Media Contribution ex-TAC grew 20%, while media spend increased 31% year over year. Criteo continues investing in AI and self-service products, with more than 2,000 brands running campaigns through its OpenAI partnership and over half of its small clients adopting Criteo GO. The company expects these initiatives to become meaningful growth contributors beginning in 2027. Trade Desk Pops on Possible OpenAI Deal—Game Changer or Headfake? Criteo (NASDAQ:CRTO) reported second-quarter results that fell short of its own expectations, citing reduced spending from several large Performance Media clients and softer demand in certain verticals. The company lowered its full-year outlook, while maintaining its Retail Media forecast and emphasizing continued investment in artificial intelligence, self-service tools and commercial execution. Chief Executive Officer Michael Komasinski said the company’s challenges were concentrated among a handful of large enterprise customers, whose spending reductions became more pronounced during the quarter. Those decisions more than offset resilience across most of Criteo’s client base, he said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The $100 Million Tell: Following Smart Money Into DoorDash “The second quarter was a challenging one for Criteo,” Komasinski said. “We did not meet the expectations we set for ourselves.” The company’s revised outlook assumes no improvement in spending from the affected large enterprise clients for the rest of 2026. Komasinski said the causes varied by customer, including travel-sector effects from conflict in the Middle East, tariff and de minimis import-rule changes, and client decisions to shift investment toward other parts of the marketing funnel. → 3 Drone Stocks That Should Soar After the Summer Slump Criteo reported second-quarter media spend growth of 9% to $1.1 billion. Revenue totaled $428 million, while Contribution ex-TAC, a non-GAAP measure referring to revenue excluding traffic acquisition costs, was $255 million. The figure included a $1 million year-over-year foreign-exchange headwind. At constant currency, Contribution ex-TAC declined 12%, including a $21 million impact from previously disclosed scope changes with two Retail Media clients. Chief Financial Officer Sarah Glickman said the company’s approximately $7 million shortfall relative to the midpoint of its prior Contribution ex-TAC guidance was primarily attributable to lower-than-expected budgets from several large Performance Media clients. Performance Media revenue was $380 million, with Contribution ex-TAC of $208 million, down 10% at constant currency. Retail Media revenue was $48 million, with Contribution ex-TAC of $47 million. Adjusted EBITDA was $73 million. Net income was $12 million, and diluted earnings per share was $0.22, compared with $0.39 a year earlier. Adjusted diluted EPS was $0.80, compared with $0.92 in the prior-year quarter. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Criteo now expects full-year 2026 Contribution ex-TAC to decline 10% to 12% at constant currency. The company expects Performance Media Contribution ex-TAC to decline in the high single digits, while its Retail Media outlook remains unchanged. For the third quarter, Criteo forecast Contribution ex-TAC of $237 million to $241 million, representing a 14% to 15% decline at constant currency. It expects Adjusted EBITDA of $54 million to $58 million. The company said foreign exchange is expected to reduce third-quarter Contribution ex-TAC by $6 million to $8 million year over year. Criteo expects an Adjusted EBITDA margin of approximately 30% for 2026, reflecting lower top-line expectations, partially offset by cost controls and productivity gains. Glickman said the company does not view that margin as a normalized profitability level and believes its model has operating leverage if revenue growth improves. Within Performance Media, Criteo said Commerce Growth experienced soft results, although AdTech services showed improved year-over-year trends. Media spend declined in all regions, with Europe, the Middle East and Africa more resilient than the U.S. and Asia-Pacific. The company said travel growth in Europe moderated after several strong years, while discretionary retail remained soft. Fashion spending declined 21%, according to Glickman. Criteo also cited lower spending among e-tailers in Asia-Pacific and inflation and weaker consumer sentiment affecting discretionary retail. Client retention remained near 90%. The company said its largest clients account for about 19% of revenue, including its largest Retail Media customer. Komasinski said Criteo is focusing on improving commercial execution to retain budgets as customers change tactics. The company has expanded its product set beyond lower-funnel remarketing toward full-funnel and multi-channel offerings, which he said requires a more consultative sales approach. Criteo reported that qualified pipeline grew approximately 30% year over year, while U.S. new-business revenue increased 24% in the second quarter. Agencies represented about 55% of pipeline, up from roughly 35% a year earlier. Retail Media was affected by the previously announced client scope reductions, which are expected to have a $75 million impact on full-year Contribution ex-TAC. Excluding the two affected clients, underlying Retail Media Contribution ex-TAC grew 20% in the second quarter. Retail Media media spending rose 31% year over year, with more than 4,500 global brands using the platform. Same-retailer Contribution ex-TAC retention was 84%, or 113% excluding Criteo’s largest retailer. The company added retailer partners including Loblaw Advance in Canada, Monoprix and Druni in EMEA, and Olive Young and Golf Digest Online in Asia-Pacific. It also cited growing activity with DoorDash across categories including beauty, personal care, food and beverage. Criteo said Auction-Based Display, its fastest-growing Retail Media format, is now active with more than 85 retailers globally, compared with 60 in the prior quarter. The company also secured its first Page Intelligence launch with one of its largest retail partners. The AI-driven offering is designed to optimize merchandising, monetization and shopper experience together. Criteo highlighted momentum in its partnership with OpenAI, where it became the company’s first advertising technology partner only months earlier. The number of brands running campaigns through OpenAI exceeded 2,000, more than double the 1,000 announced at the end of April, according to Komasinski. The OpenAI demand integration is available in seven countries, with Mexico and Brazil planned next following launches in Japan and South Korea. Criteo has also integrated OpenAI into its Criteo GO self-service platform alongside display, social and video channels. Komasinski said ChatGPT traffic converts at approximately 1.5 to two times the rate of traditional referral traffic, while roughly 80% of paid traffic is new to the brand. He characterized current OpenAI budgets primarily as client test spending, with advertisers still determining how the new discovery channel fits into broader media plans. Criteo’s 2026 outlook does not assume meaningful contributions from OpenAI or broader agentic AI initiatives. The company expects those offerings to become meaningful growth contributors beginning in 2027. More than half of Criteo’s small clients globally have adopted Criteo GO, the company said. June account creation was approximately three times higher than in the initial months after launch. Nearly 80% of U.S. GO revenue is already cross-channel, according to Komasinski. Criteo announced that Glickman will step down as CFO on Aug. 10 after six years in the role. She will remain an adviser through the end of September. Connor McGogney, currently chief strategy officer, will become CFO effective Aug. 10. The company generated $20 million in operating cash flow and negative free cash flow of $38 million during the quarter, which it attributed to seasonality and payments of 2025 income taxes. Trailing 12-month free cash flow was $180 million, and Criteo expects positive free cash flow in the second half. Criteo repurchased 1.7 million shares for $30 million during the quarter, with $160 million remaining under its current authorization at the end of June. In July, the company canceled 4.5 million treasury shares in connection with its redomiciliation to Luxembourg. The company said it completed its Luxembourg redomiciliation and direct listing of ordinary shares last week. It intends to pursue a subsequent redomiciliation to the U.S. as early as January, subject to required approvals, which it said could simplify its corporate structure, support U.S. index inclusion and broaden access to U.S. investors. Criteo is a global technology company specializing in digital performance advertising and commerce media solutions. The company provides a range of AI-driven ad products designed to help brands, retailers, and agencies deliver personalized promotional messages to consumers across web, mobile, and connected TV environments. By leveraging large-scale data analytics and machine learning algorithms, Criteo's platform optimizes the timing, placement, and creative of ads to drive engagement and conversions. At the core of Criteo's offering is its dynamic retargeting solution, which enables advertisers to automatically generate and display personalized product recommendations based on user behavior. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Criteo Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Appointed Connor McGogney as Chief Financial Officer, Effective August 10, 2026Q2 2026 Media Spend of $1.1 BillionDeployed $30 Million to Repurchase Shares in Q2 2026 NEW YORK, Aug. 5, 2026 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the global commerce intelligence platform, today announced financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights: The following table summarizes our consolidated financial results for the three months and six months ended June 30, 2026: "While our second quarter top line performance was disappointing, our long-term strategy remains unchanged," said Michael Komasinski, Chief Executive Officer of Criteo. "We remain confident in our Commerce Intelligence strategy and are strengthening execution, diversifying our business and positioning Criteo to help shape the next generation of AI driven commerce." Operating Highlights Criteo appointed Connor McGogney as Chief Financial Officer, effective August 10, 2026. He succeeds Sarah Glickman, who has served as Chief Financial Officer for the past six years and will remain as an advisor through the end of September to support a seamless transition. Criteo's media spend2 was $4.5 billion in the last 12 months and $1.1 billion in Q2 2026, up 9% year-over-year at constant currency3. Criteo became OpenAI's first advertising technology partner in March 2026 and now has over 2,000 brands advertising on ChatGPT across seven countries, with additional country launches planned, including Mexico and Brazil. ChatGPT Ads inventory is now available through Criteo's self-service, cross-channel performance platform Criteo GO. The Company further strengthened its Retail Media footprint with the addition of Loblaw Advance in Canada, Monoprix and Druni in EMEA, and Olive Young and Golf Digest Online in APAC. Criteo launched sponsored products into AI-powered conversational search with Albertsons, creating new discovery and monetization opportunities. Criteo was named a Leader in the QKS Group SPARK Matrix™ for Retail Media Network and Monetization Platform, Q2 2026. The Company deployed $61 million of capital for share repurchases in the first six months of 2026, including $30 million in the second quarter. Criteo completed its redomiciliation from France to Luxembourg, and its Board of Directors approved the subsequent transfer of legal domicile from Luxembourg to the United States, which is expected to be completed in January 2027, subject to shareholder approval and other customary conditions. Financial Summary Revenue for Q2 2026 was $428 million, gross profit was $222 million and Contribution ex-TAC was $255 million. Net income for Q2 2026 was $12 million, representing $0.22 per share on a diluted basis. Adjusted EBITDA for Q2 2026 was $73 million, and adjusted net income was $41 million, resulting in an adjusted diluted EPS of $0.80. As reported, revenue for Q2 decreased (11)%, gross profit decreased (14)% and Contribution ex-TAC decreased (13)%. At constant currency, revenue for Q2 2026 decreased (11)% and Contribution ex-TAC decreased (12)%. Cash flow from operating activities was $20 million in Q2 2026 and Free Cash Flow was $(38) million in Q2 2026. As of June 30, 2026, we had $303 million in cash and marketable securities on our balance sheet. Sarah Glickman, Chief Financial Officer, said, "Our updated outlook reflects a more conservative view of our business trends for the remainder of the year. Our strong profitability, cash flow and balance sheet provide the financial flexibility to execute our strategy, maintain disciplined capital allocation and create long term shareholder value." Second Quarter 2026 Results Revenue, Gross Profit and Contribution ex-TAC Revenue decreased (11)% year-over-year in Q2 2026, or decreased (11)% at constant currency, to $428 million (Q2 2025: $483 million). Gross profit decreased (14)% year-over-year in Q2 2026 to $222 million (Q2 2025: $259 million). Gross profit as a percentage of revenue, or gross profit margin, was 52% (Q2 2025: 54%). Contribution ex-TAC in the second quarter decreased (13)% year-over-year, or decreased (12)% at constant currency, to $255 million (Q2 2025: $292 million). Retail Media revenue decreased (21)%, or (22)% at constant currency, and Retail Media Contribution ex-TAC decreased (21)%, or (22)% at constant currency, reflecting a $21 million headwind from previously communicated scope changes with two specific Retail Media clients, partially offset by strong growth across the broader retail partner base. Excluding this impact, Contribution ex-TAC grew 20% in Q2 across the underlying client base. Performance Media revenue decreased (10)%, or decreased (9)% at constant currency, and Performance Media Contribution ex-TAC decreased (10)%, or decreased (10)% at constant currency, reflecting soft performance in Commerce Growth, partially offset by improved year-over-year trends in AdTech Services. Net Income and Adjusted Net Income Net income was $12 million in Q2 2026 (Q2 2025: net income: $23 million). Net income allocated to shareholders of Criteo was $11 million, or $0.22 per share on a diluted basis (Q2 2025: net income allocated to shareholders of $21 million, or $0.39 per share on a diluted basis). Adjusted net income, a non-GAAP financial measure, was $41 million, or $0.80 per share on a diluted basis (Q2 2025: $51 million, or $0.92 per share on a diluted basis). Adjusted EBITDA and Operating Expenses Adjusted EBITDA was $73 million (Q2 2025: $89 million), reflecting lower Contribution ex-TAC due to softness in Performance Media and the temporary impact of previously communicated scope changes with two specific Retail Media clients, along with planned growth investments, partially offset by lower than expected bad debt expense and lower than expected employee costs. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 29% (Q2 2025: 31%). Operating expenses decreased (9)% year-over-year to $207 million (Q2 2025: $228 million), mostly due to rigor on resource allocation, productivity gains, and the non-recurrence of a company-wide event held in the previous year, partially offset by planned growth investments. Non-GAAP operating expenses decreased (10)% year-over-year to $158 million (Q2 2025: $175 million). Cash Flow, Cash and Financial Liquidity Position Cash flow from operating activities was $20 million in Q2 2026 (Q2 2025: $(1) million). Free Cash Flow was $(38) million in Q2 2026 (Q2 2025: $(36) million). On a trailing 12-month basis, Free Cash Flow was $180 million. Cash and cash equivalents, and marketable securities, were $303 million, a $(86) million decrease compared to December 31, 2025, after spending $61 million on share repurchases in the six months ended June 30, 2026. As of June 30, 2026, the Company had total financial liquidity of approximately $767 million, including $252 million of cash and cash equivalents, $51 million of marketable securities and $464 million available through its revolving credit facility. 2026 Business Outlook The following forward-looking statements reflect Criteo's expectations as of August 5, 2026. The Company's outlook is based on year-to-date performance and current business trends. Fiscal year 2026 guidance: We now expect Contribution ex-TAC to decrease -12% to -10% at constant currency. We now expect an Adjusted EBITDA margin of approximately 30% of Contribution ex-TAC. Third quarter 2026 guidance: We expect Contribution ex-TAC between $237 million and $241 million, or -15% to -14% year-over-year at constant-currency. We expect Adjusted EBITDA between $54 million and $58 million. The Company's third quarter 2026 guidance reflects the temporary impact of previously communicated scope changes with two specific Retail Media clients. The above guidance for the fiscal year ending December 31, 2026 assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.86, a U.S. dollar-Japanese Yen rate of 159, a U.S. dollar-British Pound rate of 0.75, a U.S. dollar-Korean Won rate of 1,500 and a U.S. dollar-Brazilian Real rate of 5.16. The above guidance assumes that no acquisitions and dispositions are completed during the third quarter of 2026 or the fiscal year ended December 31, 2026. Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding U.S. GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could potentially have a significant impact on our future U.S. GAAP financial results. Non-GAAP Financial Measures This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission ("SEC"): Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted diluted EPS, Free Cash Flow and Non-GAAP Operating Expenses. These measures are not calculated in accordance with U.S. GAAP. Contribution ex-TAC is a profitability measure akin to gross profit. It is calculated by deducting traffic acquisition costs from revenue and reconciled to gross profit through the exclusion of other costs of revenue. Contribution ex-TAC is not a measure calculated in accordance with U.S. GAAP. We have included Contribution ex-TAC because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions. In particular, we believe that this measure can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Contribution ex-TAC provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Adjusted EBITDA is our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity related compensation, which includes employee equity awards compensation and director fees for share purchases, employer social contribution expense related to employee equity award compensation, pension service costs, certain acquisition costs, certain restructuring and related costs, integration and transformation costs, and other nonrecurring or noncash items impacting net income that we do not consider indicative of our ongoing business performance. Adjusted EBITDA and Adjusted EBITDA margin are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors. Adjusted Net Income is our net income adjusted to eliminate the impact of equity related compensation, which includes employee equity awards compensation and director fees for share purchases, employer social contribution expense related to employee equity award compensation, amortization of acquisition-related assets, certain restructuring and related costs, integration and transformation costs, certain acquisition costs, other nonrecurring or noncash items impacting net income that we do not consider indicative of our ongoing business performance, and the tax impact of these adjustments. Adjusted Net Income and Adjusted diluted EPS are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that Adjusted Net Income and Adjusted diluted EPS can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted diluted EPS provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors. Free Cash Flow is defined as cash flow from operating activities less net acquisition of intangible assets, property, and equipment. Free Cash Flow Conversion is defined as free cash flow divided by Adjusted EBITDA. Free Cash Flow and Free Cash Flow Conversion are key measures used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow and Free Cash Flow Conversion permit a more complete and comprehensive analysis of our available cash flows. Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate depreciation and amortization, equity related compensation, which includes employee equity awards compensation and director fees for share purchases, employer social contribution expense related to employee equity award compensation, pension service costs, certain restructuring and related costs, integration and transformation costs, certain acquisition costs, and other nonrecurring or noncash items. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community. Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Contribution ex-TAC to gross profit, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: 1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and 2) other companies may report Contribution ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income. Forward-Looking Statements Disclosure This press release contains forward-looking statements, including projected financial results for the quarter ending September 30, 2026 and the year ending December 31, 2026, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, including our use and expected use of AI; uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory; investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions or strategic transactions, including the completed redomiciliation from France to Luxembourg (the "Conversion") and the proposed transfer of our legal domicile from Luxembourg to the United States via the merger of the Company into a newly incorporated and wholly-owned U.S. subsidiary (the "U.S. Merger"), materialize as expected; uncertainty regarding our international operations and expansion, including related to changes in a specific country's or region's political or economic conditions or policies and related uncertainties (such as the imposition and enforceability of tariffs); the impact of competition or client in-housing; uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith; our ability to obtain and utilize certain data as a result of consumer concerns regarding data collection and sharing, as well as potential limitations in accessing data from third parties; failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth; client flexibility to increase or decrease spend; our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the advertising industry; changes in applicable laws or accounting practices; failure to obtain the required shareholder vote to adopt the proposals needed to complete the U.S. Merger; failure to satisfy any of the other conditions to the U.S. Merger; the U.S. Merger not being completed; the impact or outcome of any legal proceedings or regulatory actions that may be instituted against us in connection with the Conversion or the U.S. Merger; failure to maintain the listing of our shares on Nasdaq or failure to list our stock on the New York Stock Exchange following the U.S. Merger or maintain our listing thereafter; inability to take advantage of the potential strategic opportunities provided by, and realize the potential benefits of, the Conversion or the U.S. Merger; the disruption of current plans and operations by the Conversion or the U.S. Merger; the disruption to the Company's relationships, including with employees, landowners, suppliers, lenders, partners, governments and shareholders; the future financial performance of Criteo, including our anticipated growth rate and market opportunity, changes in shareholders' rights as a result of the Conversion or the U.S. Merger; difficulty in adapting to operating under the laws of Luxembourg or the United States; the delay or abandonment of the U.S. Merger; costs or taxes related to the Conversion or the U.S. Merger; and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 26, 2026, as amended, and in subsequent Quarterly Reports on Form 10-Q and the Registration Statement on Form S-4 expected to be filed by a subsidiary of the Company in connection with the U.S. Merger, as well as future filings and reports by the Company. Importantly, at this time, macro-economic conditions including inflation and fluctuating interest rates in the U.S. have impacted and may continue to impact Criteo's business, financial condition, cash flow and results of operations. Accordingly, a forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise. Conference Call Information Criteo's senior management team will discuss the Company's earnings on a call that will take place today, August 5, 2026, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on the Company's website at https://criteo.investorroom.com/ and will subsequently be available for replay. United States: +1 800 836 8184 International: +1 646 357 8785 France 080-094-5120 Please ask to be joined into the "Criteo" call. About Criteo Criteo (NASDAQ: CRTO) is the global commerce intelligence platform that drives performance for brands, agencies, retailers, and publishers. Built on proprietary commerce data from more than $1 trillion in annual sales and two decades of AI innovation, Criteo helps companies across the ecosystem make smarter decisions and achieve better outcomes, while delivering more relevant experiences for shoppers. With thousands of clients and deep partnerships across global retail and digital commerce, Criteo provides the technology and insights businesses need to compete and grow. For more information, please visit www.criteo.com. Contacts Investor Relations & Corporate CommunicationsMelanie Dambre, [email protected] Public RelationsAmanda Echavarri, [email protected] Financial information to follow June 30, June 30,20262025YoYChange20262025YoYChangeNet income$ 11,751$ 22,920(49) %$ 20,331$ 62,931(68) %Adjustments:Financial expense (income)(319)1,796(118) %(2,192)(152)NMProvision for income taxes3,5765,734(38) %7,26916,192(55) %Equity related compensation, and related social contribution expenses (1)16,62621,543(23) %30,44837,423(19) %Pension service costs1961951 %3943784 %Depreciation and amortization expense31,58135,764(12) %59,94861,457(2) %Restructuring, integration and transformation costs 9,888556NM20,0502,427726 %Other noncash or nonrecurring events (2)—872(100) %1,950872124 %Total net adjustments61,54866,460(7) %117,867118,597(1) %Adjusted EBITDA (3)$ 73,299$ 89,380(18) %$ 138,198$ 181,528(24) % View original content:https://www.prnewswire.com/news-releases/criteo-reports-second-quarter-2026-results-302843149.html

Image source: The Motley Fool. Wednesday, May 6, 2026 at 8 a.m. ET Chief Executive Officer — Michael Komasinski Chief Financial Officer — Sarah Glickman Chief Product Officer — Todd Parsons Chief Customer Officer — Ed Dinichert SVP, Investor Relations — Melanie Dambre Michael Komasinski: Thanks, Melanie, and good morning, everyone. One year into my role, we've made significant progress in sharpening our strategy, strengthening execution and focusing the company on what we expect will drive sustainable value creation. Our focus is clear, building Criteo into the leading commerce intelligence and AI decisioning platform for an increasingly complex and fragmented ecosystem. Our conviction is that the next phase of commerce will be defined by how decisions are made, not just where ads appear. As AI changes how people discover products and makes the ecosystem more fragmented, the real value will come from turning intent into measurable outcomes at scale. That is exactly where we are focused and where we are building our advantage. While this is not yet reflected in our results, we are making meaningful progress as we continue to transform our business. As we navigate this transition year, we executed with discipline in the first quarter, including media spend growth for the third consecutive quarter and meaningful progress across all our strategic priorities. What matters most is the pace of execution, and we are moving quickly. In the first quarter, we have advanced our Agentic AI road map, including our exciting partnership with OpenAI and increasing adoption of MCP with agencies. We also launched Criteo GO as our AI-powered self-service offering and introduced new capabilities like Page Intelligence to help retailers improve product discovery while maximizing monetization. Together, these milestones demonstrate strong progress against our strategy and reinforce the foundations for mid- and long-term growth. More broadly, AI is shaping how consumers discover, evaluate and buy, which raises the bar for relevance, trust and high-quality data. As commerce becomes more complex, the need for a decisioning and orchestration layer across multiple touch points becomes critical, and that is exactly where we believe we have a clear competitive advantage. This is powered by our unique commerce data foundation with visibility into over $1 trillion in e-commerce transactions annually and reach across billions of daily active users, products and interactions, allowing us to operate at scale. We believe this combination of data, AI and scale positions us to play a central role in the ecosystem and to capture increasing value over time. At the same time, AI platforms are emerging as a powerful new discovery channel, unlocking incremental budgets and expanding our addressable market. And for retailers, this is opening new monetization opportunities as they integrate conversational AI into their digital storefronts and create new surfaces for sponsored discovery. These dynamics are increasing demand, expanding our opportunity set and reinforcing the central role we play across the commerce ecosystem. We entered 2026 with the ambition to lead in Agentic AI, and we are already delivering on this ambition with discipline and focus. We became OpenAI's first ad tech partner, integrating our demand into ChatGPT's advertising offering with a focus on experiences that are relevant, additive and built on user trust. This positions us at the forefront of a new high-intent discovery channel for our advertiser clients. Momentum is building. We now have over 1,000 brands live with incremental budgets from both existing and new clients, strong agency traction and early expansion across international markets. We are also extending access through Criteo GO, integrating ChatGPT into our self-service cross-channel platform to enable advertisers to easily test and scale AI native media. This traction reflects the value advertisers are seeing. Traffic from AI platforms like ChatGPT converts at approximately 1.5x the rate of other referral channels, driving incremental high-quality demand to retailer and brand destinations. More broadly, as AI-driven commerce emerges, our agentic recommendation service is enabling us to demonstrate our capabilities. It has been instrumental in advancing several partnership opportunities, including driving new engagement with a broader set of partners and is now evolving into a foundational layer of our platform embedded across multiple use cases. An example is conversational ads, an innovative format we are actively developing. These enable interactive shopping experiences where users can describe what they're looking for and receive tailored product or service recommendations directly within the ad unit. In addition to being engaging, they generate richer intent signals that continuously enhance our models. We're seeing strong early interest, particularly in our travel vertical. We are also advancing sponsored recommendations within retailer AI assistant built on the same capability. This allows sponsored and organic products to appear seamlessly within conversational experiences, opening new retail media inventory across these emerging surfaces, and we look forward to sharing more. Importantly, Agentic AI is making our platform more scalable and easier to use. We are moving toward an API-first future with agentic workflows embedded directly into our solutions, reducing friction and accelerating execution for our clients. Thanks to our MCP server, dentsu has activated campaigns with Criteo from their agent using only a plain text brief. And this is a concrete example of how Agentic AI raises the bar for efficiency and interoperability, and we expect others to follow. At the same time, we are scaling agents across the platform, helping clients move faster across onboarding, audience creation, analytics and activation. Turning to Performance Media, our focus is clear: reaccelerating growth by scaling self-service, expanding cross-channel activation and extending further up the funnel. As consumer journeys become more dynamic, advertisers are increasingly looking for unified outcome-driven solutions across the full path to purchase. This plays to our strengths and reinforces our confidence that Performance Media will be a durable and growing contributor to our business over time. Against this backdrop, near-term trends reflect softer demand in specific verticals, particularly travel in Europe and reduced budgets from certain large U.S. clients, primarily driven by client-specific decisions. Sarah will provide more detail shortly. We are proactively responding by focusing on delivering strong outcomes to secure client budgets while executing against our growth priorities. While the near-term environment is challenging, it does not distract us from delivering on the strategy we believe will drive sustained growth and value. We are taking decisive actions to improve execution. Since joining as Chief Customer Officer in January, Ed Dinichert has elevated our commercial team and operating discipline, including bringing in new leadership for Performance Media in the Americas with deep experience in enterprise sales and scaling revenue. We are also deepening and accelerating our engagement with agencies to capture greater share of spend while reinforcing commercial discipline through clearer performance metrics, stronger accountability and more rigorous pipeline management. We are already seeing early signs of progress with new enterprise client wins in the U.S. Our mid-market remains resilient, and our GO self-service offering is increasingly effective in addressing the needs of smaller clients. Starting with self-service, GO launched as planned at the end of Q1. With more than 2/3 of campaigns from small clients now running through GO in the U.S., we are building on the successful transition of existing clients as we roll out self-service to new ones, supported by a comprehensive go-to-market plan, including targeted marketing campaigns with focused commercial support to drive awareness and adoption. GO simplifies activation and optimizes performance across channels, bringing together display, video, native and social into a single campaign environment. AI dynamically allocates budgets to drive outcomes, while built-in generative tools ensure consistent, high-performing creative across formats. We are also embedding agentic onboarding capabilities into GO, further reducing friction and accelerating time to value for our clients. Importantly, GO expands our addressable market, particularly among small- and medium-sized businesses. This is supported by strong industry tailwinds with AI-powered ad buying expected to grow from approximately $35 billion in 2025 to over $140 billion by 2030 according to Madison and Wall. We are already seeing strong interest and expect GO to be a multiyear growth driver. Clients running fully cross-channel campaigns are spending up to 3x more, reinforcing the value of an integrated approach. For example, Wine Country Gift Baskets increased return on ad spend by 28% and average order value by 10%, driving higher spend. We are also extending performance further up the funnel as brand performance becomes increasingly important. Discovery is how we help brands reach new audiences across channels. And as we build toward a more complete full funnel offering, we are introducing Discovery audiences in GO this quarter. Discovery typically represents at least 1/3 of media budgets, creating a meaningful opportunity to expand our addressable market. We are well positioned to capture that spend by connecting upper funnel engagement directly to lower funnel performance. Our cross-channel foundation is what makes this possible. It allows us to execute this full funnel strategy seamlessly, engaging consumers wherever they are and optimizing outcomes across channels rather than in silos. In practice, this means activating discovery across the environments where it is happening today, including social, CTV and emerging surfaces like AI platforms, all supported by AI-driven creative and optimization. Social continues to be a strong driver for our business, providing broad incremental reach and scalable performance. We are expecting -- expanding into high-impact formats like short-form video on Instagram, Facebook and TikTok, where we are seeing encouraging traction. CTV is another important growth channel. Through our recently announced partnership with Roku, we are combining premium inventory with our commerce audiences to drive better performance and simplify activation, and we expect to bring CTV into GO by the end of the year. Taken together, this positions us to capture a greater share of upper funnel budgets while reinforcing our leadership in performance, and we expect these initiatives to build momentum as we move through the year. Turning to Retail Media. We continue to build on our position as a global leader in the fastest-growing segment of digital advertising. Today, we partner with 235 leading retailers worldwide, and our focus is clear: unlock greater demand, scale high-performing formats and bring more intelligent conversational experiences to retail environments. Underlying performance remains strong with contribution ex-TAC up 24% in the first quarter, excluding the impact of the 2 previously communicated scope reductions. On the demand side, we are expanding budgets and deepening engagement with brands and agencies. We drove additional share gains in the quarter, supported by our network of 15 third-party demand API partners and marketplace integrations that continue to unlock additional demand, particularly from long-tail advertisers. We are also seeing new capabilities like conquesting drive incremental spend across multiple retailers. By increasing competition on the digital shelf, it helps brands acquire new customers and defend market share. On the supply side, we expanded our partnership with DoorDash in Canada and added Hyundai department store in Asia Pacific. We also secured many multiyear renewals, including ASOS in the U.K., reflecting the strength and durability of our retailer relationships. Innovation across formats continues to be a major growth driver and a source of share gains with existing and new retailers. Auction-based display remains our fastest-growing format, now live with more than 60 retailers, up from 49 last quarter. This is improving monetization efficiency and driving higher yields for retailers. Shoppable video is also scaling quickly as retailers adopt more full funnel on-site strategies that combine discovery and conversion. AI is an important enabler of how we drive performance and monetization. With Page Intelligence, we are introducing an AI optimization layer that helps retailers balance organic and sponsored content while improving the shopper experience and also to unlock additional revenue opportunities while maintaining full control over product selection and ranking. This positions retailers for a more AI-driven commerce future and reinforces our role as a long-term strategic partner. Collectively, these drivers are strengthening both demand and monetization across our network. We are executing with focus and remain on track for Retail Media revenue to return to growth in the fourth quarter as we move past previously communicated near-term headwinds from 2 [ client scope ] changes. We also continue to expect underlying Retail Media growth to accelerate in 2026 compared to 2025. To close, we are executing with focus in a transition year. Our fundamentals remain strong with solid margins and cash generation while we invest in the capabilities that will drive our next phase of growth. We remain highly confident in the trajectory of our business, including our expectation of a return to growth in the fourth quarter and reacceleration into 2027. We remain committed to shareholder value, including continued share buybacks, reflecting our confidence in the business and its potential. At the same time, we are advancing our portfolio and corporate structure optimization. Our redomiciliation to Luxembourg remains on track for completion in the third quarter, following strong shareholder support and will enhance our strategic and financial flexibility. As a next step, we plan to pursue a subsequent redomiciliation to the United States, which could occur as early as the first quarter of 2027, subject to applicable approvals and other conditions to make Criteo easier to invest in and better positioned for the future. We are building a more scalable Criteo, well positioned to capture the opportunities ahead and deliver sustainable value to our shareholders. With that, I'll hand it over to Sarah, who will provide more details on our financial results and our outlook. Sarah Glickman: Thank you, Michael, and good morning, everyone. Our first quarter performance reflects solid execution and financial discipline. Our first quarter media spend surpassed $1 billion for the first time. Revenue was $425 million and contribution ex-TAC was $250 million. This includes a year-over-year tailwind from foreign currencies of $9 million. At constant currency, Q1 contribution ex-TAC was down 9% as expected, reflecting a $27 million headwind related to previously communicated scope changes with 2 Retail Media clients. Excluding this impact, contribution ex-TAC grew 1% in Q1 and client retention remains high at close to 90%. Starting with Performance Media, revenue was $383 million and contribution ex-TAC was $210 million, down 2% at constant currency. This reflects mixed performance in Commerce growth, continued momentum in our Commerce Grid SSP and improving trends in Ad Tech Services. Within Commerce Grid, we have a diversified client base and a global footprint. By region, we delivered low growth in media spend in EMEA, while budgets declined in the U.S. and to a lesser extent, in APAC. By vertical, travel remains our fastest-growing category, up 20% on top of 43% growth in Q1 last year, followed by solid performance in our marketplaces. We continue to see lower spending in retail, especially in discretionary categories such as fashion, which was down 18%. As the quarter progressed, spend from certain large enterprise clients softened in the U.S., while the broader client base remained stable and resilient. In Retail Media, revenue was $41 million and contribution ex-TAC was also $41 million, reflecting the previously communicated $27 million headwind in the quarter. Excluding this impact, trends improved compared to last quarter and contribution ex-TAC grew 24% in Q1 across the underlying client base. This growth was driven by continued strength in Retail Media onsite. We benefited from the traction of our auction-based display offering and new retailers. Growth from existing clients was strong with same retailer contribution ex-TAC retention at 88% or 110%, excluding our largest retailer, driven by multiyear contracts and exclusive partnerships with most of our retailer clients. Media spend in Q1 grew 30% year-over-year, accelerating from 25% last quarter as our 4,150 global brands continue to prioritize retail media as a key channel for their investments to reach relevant audiences and sell more products. We delivered adjusted EBITDA of $65 million in Q1 2026, reflecting lower top line along with planned growth investments in our seasonally lowest quarter, partially offset by lower-than-expected RSU social charges and onetime tax refunds recognized in Q1 that were originally expected in Q2. Non-GAAP operating expenses increased 10% year-over-year, primarily driven by planned growth investments, return to office costs and a foreign exchange headwind on our euro-based cost structure with productivity gains partially mitigating the increase. AI deployment continues to improve efficiency, streamlining execution and enabling better resource allocation. Moving down the P&L, depreciation and amortization was $28 million and share-based compensation expense was $14 million. Our income from operations was $10 million, and our net income was $9 million in Q1 2026. Our weighted average diluted share count was 51 million, which resulted in diluted earnings per share of $0.15 compared to $0.66 last year. Our adjusted diluted EPS was $0.73 in Q1 2026 compared to $1.10 last year. Operating cash flow was $48 million and free cash flow was $16 million in Q1, reflecting planned higher CapEx and improved working capital in a seasonally low quarter. Criteo continues to be a resilient cash-generative business with the financial strength to invest for growth and return capital to shareholders. We have a strong balance sheet with no long-term debt. We had $889 million in total liquidity as of the end of March, which gives us significant financial flexibility to execute on our strategy and enable disciplined and balanced capital allocation. Our priorities are to invest in high ROI organic investments and value-enhancing acquisitions and to return capital to shareholders via our share buyback program. We are confident in our business strategy, and we are committed to driving shareholder value. We deployed $31 million to repurchase 1.6 million shares this quarter, and there was $190 million remaining under the current authorized share repurchase program as of the end of March. In April, we canceled a total of 1.9 million shares, increasing our capacity for additional share repurchases. Turning to our financial outlook, which reflects our expectations as of today, May 6, 2026. Our guidance incorporates softer performance media trends seen so far in Q2, while our Retail Media outlook remains unchanged. For 2026, we now expect contribution ex-TAC to decline by low single digits at constant currency. This reflects the previously communicated Retail Media client scope reductions as well as a more cautious view of the volatile macro environment and the reduced budgets from certain large enterprise performance media clients in the U.S. At the midpoint, our full year outlook is down approximately 300 basis points, reflecting several factors impacting Performance Media. About half of that or roughly 150 basis points relates to indirect macro impact. Our direct exposure to the Middle East is limited at around 1% of our business, but we are seeing broader effects. This includes slower travel growth in Europe, which has been the region's fastest growth driver, softness in discretionary retail due to inflation and weaker consumer sentiment and slower adoption of newer products as advertisers concentrate spend on established solutions in a more cautious environment. It's important to note that these dynamics are largely concentrated in our international markets, EMEA and Asia Pac, which represent close to 2/3 of our media spend for commerce growth. The remaining approximately 150 basis points is driven by U.S. client-specific dynamics. Taken together, these factors are pushing our return to growth into the fourth quarter. Excluding the $75 million Retail Media headwind, underlying contribution ex-TAC is expected to grow at a mid-single-digit rate. Our guidance does not assume any material revenue contribution from Agentic AI initiatives given their early stage, although we are seeing strong early traction. We estimate ForEx changes to drive a positive year-over-year impact of about $6 million to $8 million on contribution ex-TAC for the full year. In Retail Media, we are confident in our outlook that remains unchanged. We continue to expect media spend growth ahead of the market with contribution ex-TAC declining in the mid- to high teens year-over-year at constant currency due to the $75 million client scope reduction impact. Excluding the 2 clients, the underlying Retail Media contribution ex-TAC growth for 2026 is expected to accelerate towards the high end of the high teens to 20% range that we previously provided compared to 16% in 2025. In Performance Media, we now expect contribution ex-TAC to be flat to up low single digits at constant currency in 2026. This reflects the expected ramp-up of GO over the course of the year, offset by macro headwinds and reduced spend from certain large U.S. clients. We have taken actions to reinforce execution, including new sales leadership. Overall, we continue to anticipate an adjusted EBITDA margin of approximately 32% to 34% for 2026. Despite lower top line, we expect to maintain margins in line with our prior view through disciplined cost management and productivity gains, while we continue to invest in Agentic AI and key growth initiatives and absorbing foreign exchange headwinds on our euro-based costs. We anticipate that the investments we are making this year will position us for sustainable top line growth and strong cash flow generation for the coming years. We expect a normalized tax rate of 27% to 32% under current rules, driven by our evolving revenue mix and certain onetime items related to our redomiciliation. As previously communicated, we anticipate higher CapEx in 2026, primarily related to the renewal of certain data centers with total CapEx expected to be approximately $190 million. We expect operational cash flow conversion from adjusted EBITDA to improve to approximately 85% in 2026, up from 76% in 2025, driven by continued improvements in working capital. We also expect free cash flow conversion of about 35% of adjusted EBITDA. For Q2 2026, we expect contribution ex-TAC $260 million to $264 million, down 11% to 9% at constant currency. Our range reflects a more volatile environment shaped by geopolitical tensions and reduced spend from certain large U.S. Performance Media clients, which has translated into softer April trends. We estimate foreign exchange to be a modest headwind in Q2, reflecting more unfavorable rates compared to 3 months ago. We now expect up to a $2 million negative year-over-year impact on contribution ex-TAC in Q2, about $3 million worse than under the rates assumed in our prior guidance. We expect adjusted EBITDA between $67 million and $71 million, reflecting lower top line, continued high ROI investments in Agentic AI and growth areas, annualized employee costs and our annual promotion cycle and foreign exchange rate headwinds on our European cost base. We are pleased that our proposed redomiciliation for Luxembourg and direct listing are progressing as planned, following strong shareholder support. This is expected to enhance our flexibility for share repurchases by removing current structural constraints. We remain on track to complete the redomiciliation in the third quarter of 2026. Looking ahead, we plan to pursue a subsequent redomiciliation to the U.S. as early as the first quarter of 2027, subject to applicable approvals and other conditions with the objective of further broadening our access to U.S. capital markets. In closing, we have strong conviction in our strategy. We are excited for Agentic AI, and we are laser-focused on disciplined execution and capital allocation while delivering strong margins and cash flow generation. And with that, I will open up the call for questions. Operator: [Operator Instructions] Your first question is from Mark Kelley with Stifel. Mark Kelley: I appreciate all the color on the macro headwinds that you're seeing by vertical and by region. I guess I had 2 questions there. One is, is it fair to assume that the majority of the headwinds are outside of retargeting? Or is it kind of spread across the whole performance business? And number two, you mentioned slower adoption of some of the newer products given some of the worries that people have out there from a macro perspective. I feel like we've been worried about collectively across the digital advertising industry. We've been worried about a lot of things for a handful of years here with ongoing conflicts and plenty of things to be mindful of. I guess what do you think your clients need to see in order for them to start adopting some of these newer tools that you've put into the market a bit more -- in a more meaningful way? Michael Komasinski: Yes. Sure, Mark. Happy to take that, and Todd probably add a little color to some of the product adoption parts of that question. The slowdown with the U.S. clients is across the Performance Media segment at large. So not just retargeting sort of across the whole portfolio. And that sort of leads to maybe the more important point, which is there wasn't any common denominator of those decisions. No sort of red thread running between them other than we need to build a stronger pipeline. We need to execute better with the way that we convert that pipeline on large U.S. clients. And that's something that we think we've already addressed. We've got a great new leadership team in place. We brought on a new Chief Customer Officer and Ed Dinichert at the beginning of the year. And Ed, in turn, has revamped his entire commercial organization globally, in fact, but especially in the United States, where he brought on several key hires, many of whom started in the March or April time frame. So we feel like we've got the right team in place to jump start growth with that portfolio. And it's really more at an account level, just making sure that we're right there with our clients, driving strategic decisions, maintaining the right share of budget across our product set. And in terms of adoption of new clients or products, and Todd, if you wanted to comment on that part. Todd Parsons: Yes, I can add to that, Mark. We're seeing a very healthy mix of new and existing advertisers adopting the capabilities that we're shipping. And as Michael said, we're shipping a lot of product at a very quick rate here. What you're seeing is early days in that adoption. And with large clients, it really goes to our commercial and selling motion and the work that Dinichert and the new organization are doing. With self-service products like GO, it's just simply early. We're a month into it. our focus is what you'd expect from a launch, very tight feedback loops from our users, continuous improvements in customer experience and so forth, and we're seeing all positive signs there. Operator: Your next question comes from Matthew Cost with Morgan Stanley. Matthew Cost: Maybe one for Michael, one for Sarah. Michael, just on the ChatGPT partnership, you talked about incremental spend, which is very encouraging. How are you defining success for that product? And what are the milestones that investors should be watching as you continue to work through that launch? That's question one. And then for Sarah, you've talked about how travel in Europe is softer, but EMEA was still a growth driver in 1Q. And obviously, that's been -- travel in Europe has been a very fast-growing category for you, as you pointed out. So what are your assumptions for the rest of the year for that category? And how conservative are you choosing to be given the uncertainty in the macro? Michael Komasinski: Sure. Thanks, Matthew. I can start with the OpenAI question and then the second part to Sarah. On OpenAI, definitely the leading KPI right now is client count. And that's why we published the update yesterday on the 1,000 clients that we now have live. And we expect that number to continue to scale nicely over the course of the year as they open up additional markets. And what's going to be really interesting is how our value proposition coexists along OpenAI as they develop their own self-service platform, right? And so we continue to see really strong engagement with clients where they need our expertise and our service to help them with adopting a new ad unit, a new surface, right? How does it work? How do they optimize? How should they think about that alongside their other investments and touch points? We're developing our data management feeds to help them scale their product data into that environment because that's a real key part of driving ad performance in that unit. And then, of course, the cross-channel setup will always be a unique proposition that we'll be able to offer. And so we're really excited about getting that supply into our cross-channel setup and go over the course of the year. And that is something that we'll continue to provide updates on publicly in terms of making progress on that product rollout. So a lot to be excited about. I think key client count is the main KPI for now as we get into '27, we probably would start to guide more around contribution and some additional disclosure. But Sarah, do you want to take the second half of Matthew's question? Sarah Glickman: Yes. So just on travel, that was our highest growing vertical this time last year at 43% and in Q1, it was at 20%. We did anticipate growth, including in the Middle East. We actually won some really good new clients there, and they just have been floated for obvious reasons. So we are taking a prudent approach on travel, assuming that we won't see the growth profile that we had anticipated. And maybe if I can just take one minute on other verticals. We talked about fashion being down kind of year-on-year. Last year, that was down about 6%. This year, it's down like 18%. So we are seeing these trends from our clients. Even if I just go one more marketplaces, real estate classified was an amazing growth driver for us last year. And it's just much more muted. So that's what we've put into our guide, and we've just assumed a European and Asia Pac impact as well as a U.S., I would say, slower spend impact as well. Operator: Your next question comes from Justin Patterson with KeyBanc. Justin Patterson: Great. I appreciate the details on Agentic. I guess one thing that our team has been wondering is that how you think about some of the new device types and multimodal search, more visual search as an opportunity in there. Is that something Criteo can address today? Or is that just another area you would need to invest in down the road? And then separately, the 1,000 clients is a nice milestone with Agentic. I'm curious how that's changed the pipeline of client engagements and how you think that might build up over the course of the year? Michael Komasinski: Yes. So I can jump in to start with. So the answer is absolutely yes. We see that as an opportunity for us, and it's a very natural one, Justin. Our job overall is to bring performance discipline to the LLM surface. And as Michael laid out, that's not just client count, but from a product functionality standpoint, it's relevance, it's outcomes, it's measurement. Those surfaces or additional creative types or ways that users are engaging them are absolutely baked into our strategy. But at the core, we're really focused on enabling those 3 things consistently across the surfaces so that we're not running towards an interaction or engagement that might not scale. But yes, it absolutely represents an opportunity, and we're well prepared to take advantage of it. And Justin, just on the kind of incrementality part of OpenAI, a couple of different thoughts there. One, I mean, it's been the fastest-growing partnership that Criteo has ever had. I think it's probably sort of obvious from some of the statistics that we're sharing. We do find that, by and large, the budgets that go into it are incremental. And the pipeline is increasingly incremental as well. In the early stages, a lot of existing clients then wanting to use their Criteo pipes and service model to get into that platform. But it opened up a lot of traction for us on the new business front. And so increasingly, that's net new in our pipeline. Now we need to go convert that over the course of the year and then cross-sell those clients into our cross-channel setup or to our other products. But we see a lot of potential in kind of a flywheel coming off this partnership. So helping our partners scale their product, but certainly bringing new folks into the Criteo platform more broadly. So more to come on that in the second half of the year. Operator: Your next question comes from Alec Brondolo with Wells Fargo. Alec Brondolo: Maybe two for me. On the large client softness that you've experienced year-to-date, I guess, what is the level of confidence that it's a sales execution issue and not an issue that's more structural with the underlying performance of the advertising products? So that would be a helpful place to start. And then maybe secondly, can you speak to the GO self-service rollout? Has it been a material new customer driver thus far? And could you help us understand what's implied in the guide for contribution from that product specifically in 2Q and the back half of the year? Michael Komasinski: Sure. Great questions, Alec. Yes, look, on the U.S. clients, we do not think that, that's structural. As I said, we've not lost any clients there. And as I mentioned, there really isn't like a common theme running through those other than we've got to be closer to those clients and jockey for position amongst other vendors that they work with. And as they make decisions, be able to move budget from, say, one Criteo product into another, right? If someone wants to pull budget from, say, lower funnel conversion into mid-funnel customer acquisition, we need to be right there at the table to suggest the right alternatives and move that from left pocket to right pocket. We also need to continue to build more pipeline at that scale. And we've started to do that. But we have to convert it, and we need to get those net new clients scaled up so that when we have these fluctuations, in that segment. We've got new growth and revenue coming in to offset it. So we're a little out of sync for the quarter on that. We feel like we've brought in the right leadership to address it. And the underlying metrics on pipeline growth and certainly stability with those U.S. clients is there. So we think that this will resolve itself in another quarter or two. In terms of GO, maybe I'll let Todd take that one. Todd Parsons: Yes. Just to reinforce what I was saying earlier, we're a month into the launch there, and we can't say now exactly what's going to happen for the rest of the year. But I can say that the interest for the product is outstanding. And as I mentioned, we are really focused on making sure that smooth onboarding and customer retention, so we're ensured with product market fit is there. That's the stage that we're at in launching a new product, but it looks very good at the beginning. And of course, we're brokering on a year worth of experience in G campaign success in the company. So we feel very good about that, but it's just very early. Operator: Your next question comes from Brian Pitz with BMO Capital Markets. Unknown Analyst: This is David Lustberg on for Brian. Two quick ones, if I may. The first one, just to touch on some of the macro impacts that obviously impacted the full year guidance. I was just curious if you could kind of pinpoint when you started to see those impacts kind of come on and hit the model? And then secondarily, just on the client retention, I think it's kind of remained in the strong kind of like 90% range. But just kind of curious if you can kind of touch on the customers that do churn off the platform, where are you finding that they're either replacing you or they kind of just with a vendor would be helpful. Sarah Glickman: Yes. Just -- I mean, on the macro, we started to see it within Q1. So we were seeing, I would say, March and then April, we are seeing that impact. And it does -- it is quite broad reaching, obviously, Asia PAC and especially Europe. It's definitely a conversation with our clients. And then in the U.S., notwithstanding all the comments that Michael made, we are seeing some lower growth in, for example, large U.S. department stores and some other areas. So it's a trend that we have seen over the last few months and hence, why we felt that we needed to take Q2 guide down and there for the year. Michael Komasinski: Yes, I can take the second part on the churn question. The good news on that one is that there really isn't sort of a dominant or even a couple of different places that people typically go. I think the market for performance products and even branded products to be more measurable and performance like has definitely accelerated. So when we churn something or when we lose a budget, it can go to a variety of places because even brand products are measurable these days. And thus our move into the full funnel, our plan to launch Discovery audiences next quarter, we need to be wherever those budgets are going to shift. And again, I think that's why we feel good about our strategy to be full funnel cross-channel so we can catch those dollars wherever they move. So no common denominator of where people typically churn to other than maybe, like I said, some validation of our strategy to be in the right places to catch things. Operator: Your next question comes from Mark Zgutowicz with Benchmark. Mark Zgutowicz: Sarah, just a couple of clarifications, if I could. Your PR mentioned certain large performance media U.S. clients in terms of some of the weakness that you're seeing. Is that multiple clients or 1 or 2? And if you think about the '26 guide, how wide is the scope of, I guess, those weakening budgets that you're seeing? And how does that translate into the level of conservatism that's now set in the '26 guide? And then perhaps for Todd and/or Michael, is there a first-mover advantage with ChatGPT versus a steep learning curve that you may be carrying for others to follow? And then, Michael, you mentioned regarding initial client spend being incremental there. I suspect that, that's test budgets. But as you -- as this evolves over time, why is that budget not a replacement versus remaining incremental? Sarah Glickman: Yes. So to comment on the clients, it's a -- yes, a number of, I would say, extra large U.S. clients, and they're all kind of down. So that is having an impact and some of those were key growth drivers for us. So that is the impact, but it's a number -- a small number, but a number of U.S. clients. The rest of the base is resilient. So our medium, large, small kind of clients are all resilient, but there have been some client-specific reasons why the spend is down on those certain large U.S. clients. Todd Parsons: Yes. On the ChatGPT question, absolutely. Yes, it's a competitive advantage for us in two ways. One, in terms of just time to be in market. And as Michael mentioned, we're crossing 1,000 clients on that, many of which are new to the company. That gives us a really neat advantage to grow the Criteo portfolio. Technically speaking, though, it gives us an advantage to already be at the table, having our tech and the value we add to ChatGPT's integration, developing faster than others so that when OpenAI launches new features, CPC being a good example or a new measurement feature, as you saw announced yesterday, we're ready for that. And in fact, we're ahead of the pack on that. So we're really excited about the timing of things, and we're doing what we're really good at, which is bringing performance to a new surface and making it cross channel and full funnel. So we're right in our sweet spot there and competitively, it feels quite good. Michael Komasinski: Yes. In terms of incrementality, it's definitely incremental for Criteo even as we move past test budgets because in its current format, that's a discovery budget. And so that, again, is an example of us wanting to move up funnel. This partnership accelerates that. So CPM and even the CPC model that they currently have in place, and that's why they call it a test program right now. We'll see if that's the model that they persist with. But let's take as an example, if they did move to like a full optimization model off of this CAPI that they introduced this week, that would then compete for search budgets, which again, for Criteo would be truly incremental. So we're incremental off this platform either way. If it stays a discovery surface with kind of the model that you see now or if they really go performance-oriented, that's a channel that we've been blocked out of. So I think for us, it's incremental either way. Operator: Your next question comes from Tim Nolan with [ SSR ]. Timothy Nolan: It's actually a bit of a follow-on to the last one regarding OpenAI, again, surprise, surprise. Could you please just clarify what the business model is for you? If it's a demand integration, which I understand it is, then is it a similar business model as any other partner that you'd be placing ads on or maybe not placing ads but providing the data for the ad placements? And relatedly, if OpenAI, if ChatGPT is successful with however you've explained the model may work out, how might that change the retail media business? Meaning if consumers are doing -- spending more and more of their time on ChatGPT and not doing searches and clicking links to the publisher sites and going on to the retailer sites, how does that change the retail media business model for you? Todd Parsons: So to answer your question, it's both data and placements, and it's a normal course of doing business for us. So there's really nothing to say that is out of the ordinary there, Tim, except that when it comes to cross-channel, the point -- the second point that you make, we are very set up to catch users as they traverse channels. So whether it's OpenAI or whether it's retail media or whether it's the open web, we're there with our performance setups to make sure that we find those users and we're able to convert them into outcomes for advertisers. Also, I think it's important to say that traffic continues to grow on retailer sites for us. So we're not seeing deterioration in places that would signal weakness to us, and that feels quite good. So cross-channel helps us find users where they're engaging, and we're seeing traffic go to the places where we have the greatest strength as a company. Those are 2 good patterns. Michael Komasinski: Yes. And I'll just build on that second point, Tim. I think you really see the vision that we have for how this all plays out is that retailers continue to own the transaction. And I think that, that's supported by some of the different product moves that you've seen in the market over the last few months. even with ChatGPT itself with the pullback on instant checkout. We see discovery offerings like OpenAI's product being complementary to retail media, right, providing more high-intent traffic. And so people may land in a customer journey in a different state of mind or in a different part of the sort of site infrastructure. We published some thought leadership about product detail pages being the new homepage or the new landing page. But retailers still then have the opportunity to do a lot with that high-intent traffic. There's different ad units that you can play around with on the PDP or certainly the introduction of shopping assistance conversational ads. I think the transition from keyword search to semantic interaction is a powerful trend. So as long as high-intent traffic is landing in retail environments, retailers are going to figure out ways to optimize that, both for organic and paid objectives. So we're a big believer in that future. So -- and we think that the OpenAI products are complementary to that, not cannibalistic. Operator: Your last question comes from the line of Richard Kramer with Arete Research. Richard Kramer: Just a couple of quick ones that haven't really been addressed yet. First one, activated media spend grew 8% constant currency and topped $1 billion, but contribution ex-TAC declined against that. Maybe Michael or Sarah, can you give us some details on what impacted take rates across retail and Performance Media? And then equally, excluding the headwind, you had 24% growth in retail media, and you mentioned the sort of 20% growth in retailers to 60 adopting auction-based formats. What's the pipeline look like for expanding retail media networks? And where should that 60 number get to relative to your 235 retailers that you mentioned? Sarah Glickman: Yes. I mean just to take the take rate question, it's actually quite stable on the Performance Media side. There is some mix there, but that was pretty stable quarter-on-quarter, year-on-year. The biggest impact is the retail media client impact that took the take rate down for Retail Media quite significantly, which I think we've communicated. The underlying take rate of all other clients is at the high end of the previous communicated range of the 10% to 15%. So we feel -- we do see that the only big impact being that retail media dynamic. Michael Komasinski: Yes. Happy to take the second part of that on the display product and retail. Look, it's already a key growth driver and definitely a source of share gains. It represents 64% of on-site display spend. And as we mentioned, the 60% versus the 49% last quarter in terms of retailers. We think that, that will continue to grow significantly across that client base. And what you see is a lot more monetization and growth happening in that existing base. So there definitely is still a pipeline for net new retailers standing up new networks. But certainly, the growth of the business is tilted towards new products like conquesting, like display and now some of the new things like Page Intelligence, where retailers continue to gain traffic and we'll get more out of that and make those networks work harder. Melanie Dambre: Thank you, Michael, Sarah and Todd. That concludes our call for today. Thanks again to everyone for joining. If you have any follow-up questions, we're available to assist. Have a great day. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Criteo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Criteo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Criteo. The Motley Fool has a disclosure policy. Criteo (CRTO) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Q1 Activated Media Spend Surpasses $1 Billion for the First Time Deployed $31 Million to Repurchase Shares in Q1 2026 NEW YORK, May 6, 2026 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the global commerce intelligence platform, today announced financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights: The following table summarizes our consolidated financial results for the three months ended March 31, 2026: "We delivered a solid start to 2026 with disciplined execution and meaningful progress against our strategy," said Michael Komasinski, Chief Executive Officer of Criteo. "While the near-term outlook reflects a more challenging environment, we are advancing our AI roadmap, strengthening our commercial organization, and scaling our AI-driven solutions across Performance Media and Retail Media. We remain confident in our path to reacceleration and the opportunity ahead." Operating Highlights Criteo became the first advertising technology partner integrating with OpenAI's advertising solution. We expanded our GO platform with full self-service access and agentic onboarding for small and mid-sized businesses (SMBs). Criteo's media spend2 was $4.4 billion in the last 12 months and $1.0 billion in Q1 2026, up 8% year-over-year at constant currency3. Retail Media Contribution ex-TAC was down (32)% year-over-year at constant currency3, as expected, reflecting the impact of previously communicated scope changes with two specific Retail Media clients. Excluding this impact, Contribution ex-TAC grew 24% in Q1 across the underlying client base. We expanded our DoorDash partnership in Canada and added Hyundai Department Store in APAC, further strengthening our Retail Media footprint. Performance Media Contribution ex-TAC was down (2)% year-over-year at constant currency3. We deployed $31 million of capital for share repurchases in the first three months of 2026. We received overwhelming shareholder support to redomicile from France to Luxembourg, with completion expected in the third quarter of 2026. Financial Summary Revenue for Q1 2026 was $425 million, gross profit was $223 million and Contribution ex-TAC was $250 million. Net income for Q1 2026 was $9 million, representing $0.15 per share on a diluted basis. Adjusted EBITDA for Q1 2026 was $65 million, resulting in an adjusted diluted EPS of $0.73. As reported, revenue for Q1 decreased (6)%, gross profit decreased (6)% and Contribution ex-TAC decreased (5)%. At constant currency, revenue for Q1 2026 decreased (9)% and Contribution ex-TAC decreased (9)%. Cash flow from operating activities was $48 million in Q1 2026 and Free Cash Flow was $16 million in Q1 2026. As of March 31, 2026, we had $371 million in cash and marketable securities on our balance sheet. Sarah Glickman, Chief Financial Officer, said, "Our first quarter results reflect strong execution, while our outlook incorporates macro volatility, including geopolitical tensions in the Middle East and the lower marketing budgets for certain large Performance Media U.S. clients so far in the second quarter. We are taking a prudent approach, with a continued focus on execution and cost discipline." First Quarter 2026 Results Revenue, Gross Profit and Contribution ex-TAC Revenue decreased (6)% year-over-year in Q1 2026, or decreased (9)% at constant currency, to $425 million (Q1 2025: $451 million). Gross profit decreased (6)% year-over-year in Q1 2026 to $223 million (Q1 2025: $237 million). Gross profit as a percentage of revenue, or gross profit margin, was 52% (Q1 2025: 52%). Contribution ex-TAC in the first quarter decreased (5)% year-over-year, or decreased (9)% at constant currency, to $250 million (Q1 2025: $264 million). Retail Media revenue decreased (31)%, or (32)% at constant currency, and Retail Media Contribution ex-TAC decreased (31)%, or (32)% at constant currency, reflecting a $27 million headwind from previously communicated scope changes with two specific Retail Media clients, partially offset by strong growth across the broader retail partner base. Excluding this impact, Contribution ex-TAC grew 24% in Q1 across the underlying client base. Performance Media revenue decreased (2)%, or decreased (6)% at constant currency, and Performance Media Contribution ex-TAC increased 2%, or decreased (2)% at constant currency, reflecting mixed trends in Commerce Growth, continued momentum in our SSP, and improvement in AdTech services. Net Income and Adjusted Net Income Net income was $9 million in Q1 2026 (Q1 2025: net income: $40 million). Net income allocated to shareholders of Criteo was $8 million, or $0.15 per share on a diluted basis (Q1 2025: net income allocated to shareholders of $38 million, or $0.66 per share on a diluted basis). Adjusted net income, a non-GAAP financial measure, was $37 million, or $0.73 per share on a diluted basis (Q1 2025: $63 million, or $1.10 per share on a diluted basis). Adjusted EBITDA and Operating Expenses Adjusted EBITDA was $65 million (Q1 2025: $92 million), reflecting lower Contribution ex-TAC due to the temporary impact of previously communicated scope changes with two specific Retail Media clients, along with planned growth investments in a seasonally low quarter. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 26% (Q1 2025: 35%). Operating expenses increased 12% year-over-year to $212 million (Q1 2025: $189 million), mostly driven by planned growth investments. Non-GAAP operating expenses increased 10% year-over-year to $165 million (Q1 2025: $151 million). Cash Flow, Cash and Financial Liquidity Position Cash flow from operating activities was $48 million in Q1 2026 (Q1 2025: $62 million). Free Cash Flow was $16 million in Q1 2026 (Q1 2025: $45 million). On a trailing 12-month basis, Free Cash Flow was $181 million. Cash and cash equivalents, and marketable securities, were $371 million, a $(17) million decrease compared to December 31, 2025, after spending $31 million on share repurchases in the three months ended March 31, 2026. As of March 31, 2026, the Company had total financial liquidity of approximately $889 million, including $320 million of cash and cash equivalents, $51 million of marketable securities, $468 million available through its revolving credit facility, and $49 million of treasury shares reserved for M&A. Subsequent to March 31, 2026, the Company cancelled 1.9 million of M&A treasury shares in April, representing approximately $39 million. 2026 Business Outlook The following forward-looking statements reflect Criteo's expectations as of May 6, 2026, including current macro-economic conditions, ongoing geopolitical tensions in the Middle East, and a prudent approach to guidance based on quarter-to-date trends. Fiscal year 2026 guidance: We now expect Contribution ex-TAC to decrease low-single-digit at constant currency. We continue to expect an Adjusted EBITDA margin of approximately 32% to 34% of Contribution ex-TAC. Second quarter 2026 guidance: We expect Contribution ex-TAC between $260 million and $264 million, or -11% to -9% year-over-year at constant-currency. We expect Adjusted EBITDA between $67 million and $71 million. The Company's second quarter 2026 guidance reflects the temporary impact of previously communicated scope changes with two specific Retail Media clients. The above guidance for the fiscal year ending December 31, 2026 assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.862, a U.S. dollar-Japanese Yen rate of 154, a U.S. dollar-British Pound rate of 0.750, a U.S. dollar-Korean Won rate of 1,500 and a U.S. dollar-Brazilian Real rate of 5.300. The above guidance assumes that no acquisitions and dispositions are completed during the second quarter of 2026 or the fiscal year ended December 31, 2026. Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding U.S. GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could potentially have a significant impact on our future U.S. GAAP financial results. Non-GAAP Financial Measures This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission ("SEC"): Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted diluted EPS, Free Cash Flow and Non-GAAP Operating Expenses. These measures are not calculated in accordance with U.S. GAAP. Contribution ex-TAC is a profitability measure akin to gross profit. It is calculated by deducting traffic acquisition costs from revenue and reconciled to gross profit through the exclusion of other costs of revenue. Contribution ex-TAC is not a measure calculated in accordance with U.S. GAAP. We have included Contribution ex-TAC because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions. In particular, we believe that this measure can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Contribution ex-TAC provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Adjusted EBITDA is our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity related compensation, which includes employee equity awards compensation and director fees for share purchases, pension service costs, certain acquisition costs, certain restructuring and related costs, integration and transformation costs, and other nonrecurring or noncash items impacting net income that we do not consider indicative of our ongoing business performance. Adjusted EBITDA and Adjusted EBITDA margin are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors. Adjusted Net Income is our net income adjusted to eliminate the impact of equity related compensation, which includes employee equity awards compensation and director fees for share purchases, amortization of acquisition-related assets, certain restructuring and related costs, integration and transformation costs, certain acquisition costs, other nonrecurring or noncash items impacting net income that we do not consider indicative of our ongoing business performance, and the tax impact of these adjustments. Adjusted Net Income and Adjusted diluted EPS are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that Adjusted Net Income and Adjusted diluted EPS can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted diluted EPS provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors. Free Cash Flow is defined as cash flow from operating activities less net acquisition of intangible assets, property, and equipment. Free Cash Flow Conversion is defined as free cash flow divided by Adjusted EBITDA. Free Cash Flow and Free Cash Flow Conversion are key measures used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow and Free Cash Flow Conversion permit a more complete and comprehensive analysis of our available cash flows. Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate depreciation and amortization, equity related compensation, which includes employee equity awards compensation and director fees for share purchases, pension service costs, certain restructuring and related costs, integration and transformation costs, certain acquisition costs, and other nonrecurring or noncash items. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community. Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Contribution ex-TAC to gross profit, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: 1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and 2) other companies may report Contribution ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income. Forward-Looking Statements Disclosure This press release contains forward-looking statements, including projected financial results for the quarter ending December 31, 2026 and the year ending December 31, 2026, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, including our use and expected use of AI; uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory; investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions or strategic transactions, including the redomiciliation from France to Luxembourg (the "Conversion"), materialize as expected; uncertainty regarding our international operations and expansion, including related to changes in a specific country's or region's political or economic conditions or policies and related uncertainties (such as the imposition and enforceability of tariffs); the impact of competition or client in-housing; uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith; our ability to obtain and utilize certain data as a result of consumer concerns regarding data collection and sharing, as well as potential limitations in accessing data from third parties; failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth; client flexibility to increase or decrease spend; our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the advertising industry; changes in applicable laws or accounting practices; the Conversion not being completed; the impact or outcome of any legal proceedings or regulatory actions that may be instituted against us in connection with the Conversion; failure to list our shares on Nasdaq following the Conversion or maintain our listing thereafter; inability to take advantage of the potential strategic opportunities provided by, and realize the potential benefits of, the Conversion; the disruption of current plans and operations by the Conversion; the disruption to the Company's relationships, including with employees, landowners, suppliers, lenders, partners, governments and shareholders; the future financial performance of Criteo following the Conversion, including our anticipated growth rate and market opportunity; changes in shareholders' rights as a result of the Conversion; inability to terminate the deposit agreement and withdraw our ordinary shares from the depositary so as to terminate our ADS program in connection with the Conversion; difficulty in adapting to operating under the laws of Luxembourg; following the completion of the Conversion, a delay or failure in our ability to redomicile to the United States via the merger into a newly incorporated and wholly-owned U.S. subsidiary for any reason; costs or taxes related to the Conversion; and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 26, 2026, and in subsequent Quarterly Reports on Form 10-Q, as well as future filings and reports by the Company. Importantly, at this time, macro-economic conditions including inflation and fluctuating interest rates in the U.S. have impacted and may continue to impact Criteo's business, financial condition, cash flow and results of operations. Accordingly, a forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise. Conference Call Information Criteo's senior management team will discuss the Company's earnings on a call that will take place today, May 6, 2026, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on the Company's website at https://criteo.investorroom.com/ and will subsequently be available for replay. United States: +1 800 836 8184 International: +1 646 357 8785 France 080-094-5120 Please ask to be joined into the "Criteo" call. About Criteo Criteo (NASDAQ: CRTO) is the global commerce intelligence platform that drives performance for brands, agencies, retailers, and publishers. Built on proprietary commerce data from more than $1 trillion in annual sales and two decades of AI innovation, Criteo helps companies across the ecosystem make smarter decisions and achieve better outcomes, while delivering more relevant experiences for shoppers. With thousands of clients and deep partnerships across global retail and digital commerce, Criteo provides the technology and insights businesses need to compete and grow. For more information, please visit www.criteo.com. Contacts Investor Relations & Corporate Communications Melanie Dambre, [email protected] Public Relations Jessica Meyers, [email protected] Financial information to follow View original content:https://www.prnewswire.com/news-releases/criteo-reports-first-quarter-2026-results-302763512.html

Q1 results & guidance: Revenue was $425 million and Contribution ex‑TAC was $250 million (down 9% at constant currency, including a $27M headwind from two Retail Media client scope reductions); Criteo now expects 2026 Contribution ex‑TAC to decline by low single digits at constant currency and guided Q2 to $260–$264M. The company ended March with $889M in liquidity, no long‑term debt, repurchased $31M of shares in Q1 and has $190M of buyback authorization remaining. AI & product traction: Criteo named OpenAI its first ad‑tech partner and has “over 1,000 brands” live with incremental budgets, reporting that AI platform traffic (e.g., ChatGPT) converts at about 1.5x other referral channels, and it launched Criteo GO, with more than two‑thirds of U.S. small‑client campaigns already on the platform. Macro and client dynamics: Management flagged softer demand in Performance Media—notably travel in Europe and reduced budgets from several very large U.S. clients—while stressing Retail Media’s underlying strength (Contribution ex‑TAC +24% excluding scope changes; media spend +30% YoY) and expecting Retail Media revenue to return to growth by Q4. Interested in Criteo S.A.? Here are five stocks we like better. Trade Desk Pops on Possible OpenAI Deal—Game Changer or Headfake? Criteo (NASDAQ:CRTO) reported first-quarter 2026 results marked by continued progress on its strategic shift toward “commerce intelligence and AI decisioning,” alongside macro-related pressure in parts of its Performance Media business and previously disclosed Retail Media client scope reductions. Chief Executive Officer Michael Komasinski said the company is one year into his tenure and is focused on “building Criteo into the leading commerce intelligence and AI decisioning platform for an increasingly complex and fragmented ecosystem.” While he noted the transformation “is not yet reflected in our results,” Komasinski highlighted execution in the quarter, including a third consecutive quarter of media spend growth and milestones tied to agentic AI, self-service, and Retail Media product innovation. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries The $100 Million Tell: Following Smart Money Into DoorDash Chief Financial Officer Sarah Glickman said first-quarter media spend surpassed $1 billion for the first time. Criteo posted revenue of $425 million and Contribution ex-TAC of $250 million, which included a $9 million year-over-year foreign exchange tailwind. At constant currency, Contribution ex-TAC declined 9%, which Glickman said was “as expected,” due primarily to a $27 million headwind tied to “previously communicated scope changes with two Retail Media clients.” Excluding that impact, Glickman said Contribution ex-TAC grew 1% in the quarter, and client retention remained “close to 90%.” Adjusted EBITDA was $65 million, reflecting lower top line and planned investments in what she called the company’s “seasonally lowest quarter,” partially offset by lower-than-expected RSU-related social charges and one-time tax refunds recognized in Q1. Performance Media: Revenue was $383 million and Contribution ex-TAC was $210 million, down 2% at constant currency. Glickman cited “mixed performance in Commerce Growth,” momentum in Commerce Grid SSP, and “improving trends in ad tech services.” Retail Media: Revenue was $41 million and Contribution ex-TAC was $41 million, reflecting the $27 million scope-change headwind. Excluding that impact, Glickman said Contribution ex-TAC grew 24% across the underlying client base, driven by strength in on-site Retail Media. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Glickman said operating cash flow was $48 million and free cash flow was $16 million in Q1. The company ended March with $889 million in total liquidity and no long-term debt. Management emphasized a softer demand environment in certain areas, particularly in Performance Media. Komasinski pointed to “softer demand in specific verticals, particularly travel in Europe,” along with reduced budgets from “certain large U.S. clients,” which he said were driven by client-specific decisions. During Q&A, he told Stifel analyst Mark Kelley that the slowdown among U.S. clients is “across the Performance Media segment at large,” not limited to retargeting. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Glickman said the company began seeing macro impacts within Q1, “March and then April,” describing the effect as “quite broad reaching” in Europe and APAC. In Q&A with Morgan Stanley analyst Matthew Kost, she noted travel growth decelerated versus last year and said the company is taking a “prudent approach” in its assumptions. She also cited weakness in discretionary retail categories such as fashion. On client dynamics, Glickman told Benchmark analyst Mark Zgutowicz that the weakness involves “a number of…extra large U.S. clients,” describing it as “a small number, but a number of U.S. clients,” while saying the rest of the base is resilient. Despite the softness, Komasinski said the company does not view the U.S. situation as structural. He said Criteo has “not lost any clients” and framed the issue as needing to be “closer to those clients” and improve pipeline conversion at the enterprise level. He also referenced changes under Chief Customer Officer Ed Dinichert, including revamped commercial leadership and new hires that started in March and April. Komasinski and Chief Product Officer Todd Parsons repeatedly highlighted agentic AI initiatives, including Criteo’s partnership with OpenAI. Komasinski said Criteo became OpenAI’s “first ad tech partner,” integrating demand into ChatGPT’s advertising offering. He said momentum is building, with “over 1,000 brands live with incremental budgets from both existing and new clients,” plus early international expansion. As a performance indicator, Komasinski told Morgan Stanley that the “leading KPI right now is client count,” and said the company expects that figure to scale as additional markets open. He added that the company is working on data management feeds to help clients scale product data into the environment, and plans to incorporate that supply into its cross-channel setup in Criteo GO over the course of the year. Management also shared early performance signals: Komasinski said traffic from AI platforms like ChatGPT “converts at approximately one and a half times the rate of other referral channels.” Parsons told KeyBanc analyst Justin Patterson that new device types and multimodal or visual engagement are “absolutely baked into our strategy,” with a focus on “relevance,” “outcomes,” and “measurement” across emerging surfaces. On the business model, Parsons told SSR analyst Tim Nollen the OpenAI integration involves “both data and placements,” and described it as “a normal course of doing business for us.” Komasinski said Criteo views AI discovery as complementary to Retail Media, arguing retailers “continue to own the transaction,” and that high-intent traffic landing on retailer sites can create additional opportunities for on-site monetization. Komasinski said Criteo launched Criteo GO—its AI-powered self-service offering—at the end of Q1. He said GO unifies display, video, native, and social into a single campaign environment with AI budget allocation and generative creative tools. He also said “more than 2/3 of campaigns from small clients now running through GO in the U.S.” Parsons emphasized the launch is still early, noting on multiple questions that Criteo is “a month into it,” with a focus on feedback loops and onboarding to ensure product-market fit. Komasinski said Criteo plans to introduce “discovery audiences in GO this quarter” as part of an effort to move further up the funnel, and expects to bring CTV into GO by the end of the year. Komasinski also cited a partnership with Roku aimed at combining “premium inventory with our commerce audiences” to drive performance, and said social is a “strong driver” with expansion into short-form video on Instagram, Facebook, and TikTok. In Retail Media, management reiterated that reported results are being held back by the two scope reductions previously disclosed. Komasinski said underlying performance remained strong and that Contribution ex-TAC was up 24% in Q1 excluding the scope changes. Glickman added that media spending in Retail Media grew 30% year-over-year, accelerating from 25% in the prior quarter, as “4,150 global brands continue to prioritize Retail Media.” Criteo said it partners with 235 retailers worldwide. Komasinski highlighted supply-side and partnership developments including an expanded DoorDash relationship in Canada, the addition of Hyundai Department Store in Asia-Pacific, and multi-year renewals including ASOS in the U.K. On product format momentum, Komasinski said Auction-Based Display remains the fastest-growing format and is now live with more than 60 retailers, up from 49 in the prior quarter. In response to questions about take rates, Glickman said Performance Media take rate was “quite stable,” and attributed Retail Media take rate pressure primarily to the scope-change impact; she said the underlying take rate for other clients is at the “high end” of the previously communicated 10% to 15% range. Looking ahead, Komasinski said the company remains on track for Retail Media revenue to return to growth in the fourth quarter as it moves past the scope reductions, and said it expects underlying Retail Media growth to accelerate in 2026 compared to 2025. Glickman said Criteo’s updated 2026 outlook reflects softer Performance Media trends seen so far in Q2, while Retail Media expectations are unchanged. For 2026, the company now expects Contribution ex-TAC to decline by low single digits at constant currency. She said the change reflects the Retail Media client scope reductions, a “more cautious view of the volatile macro environment,” and reduced budgets from certain large U.S. Performance Media clients. At the midpoint, she said the full-year outlook is down “approximately 300 basis points.” For Q2 2026, Criteo guided Contribution ex-TAC of $260 million to $264 million, down 11% to 9% at constant currency, and adjusted EBITDA of $67 million to $71 million. On capital allocation, Glickman said the company repurchased $31 million of shares in Q1 (1.6 million shares), with $190 million remaining under the existing authorization at the end of March. She also said the company canceled 1.9 million shares in April, increasing capacity for additional repurchases. Finally, management reiterated corporate structure plans. Komasinski and Glickman said the company’s redomiciliation to Luxembourg remains on track for completion in the third quarter of 2026 following shareholder support. They also said the company plans to pursue a subsequent redomiciliation to the U.S. as early as the first quarter of 2027, subject to approvals and other conditions, with the stated goal of making the company easier to invest in and improving access to U.S. capital markets. Criteo is a global technology company specializing in digital performance advertising and commerce media solutions. The company provides a range of AI-driven ad products designed to help brands, retailers, and agencies deliver personalized promotional messages to consumers across web, mobile, and connected TV environments. By leveraging large-scale data analytics and machine learning algorithms, Criteo's platform optimizes the timing, placement, and creative of ads to drive engagement and conversions. At the core of Criteo's offering is its dynamic retargeting solution, which enables advertisers to automatically generate and display personalized product recommendations based on user behavior. The article "Criteo Q1 Earnings Call Highlights" was originally published by MarketBeat.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Criteo (CRTO) just released its fourth quarter and full year 2025 results, alongside updates on new AI driven products, giving investors fresh numbers on profitability and a clearer view of its evolving ad tech focus. See our latest analysis for Criteo. Despite the new AI driven product launches and full year 2025 earnings, Criteo’s share price return has been weak, with a 1 year total shareholder return decline of 58.6%, signaling fading momentum and a more cautious market stance. If Criteo’s AI push has caught your attention, it could be worth scanning a wider set of AI focused names through our screener of 58 profitable AI stocks that aren't just burning cash to see how other companies compare. With Criteo trading at US$18.21 after a 1 year total return decline of 58.6%, yet sitting at a sizeable discount to the average analyst price target, is this punished AI ad tech name a potential opportunity, or is the market already discounting its future growth? With Criteo last closing at $18.21 and the most followed narrative fair value sitting at $35.75, the gap between price and modeled worth is wide enough to make the underlying assumptions worth a closer look. Read the complete narrative. Curious what kind of revenue reset, margin lift, and future earnings multiple have to line up to justify that valuation gap? The narrative blends shrinking top line expectations with a profit profile and valuation multiple that look more like a selective quality play than a pure growth story, and the numbers behind it may surprise you. Result: Fair Value of $35.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on Criteo scaling Retail Media and AI offerings, holding its ground against larger ad platforms, and avoiding prolonged pressure from cautious client ad budgets. Find out about the key risks to this Criteo narrative. If you see the numbers differently or simply want to stress test your own thesis, you can build a custom Criteo story yourself in just a few minutes, starting with Do it your way. A great starting point for your Criteo research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. If you stop your research with just one stock, you risk missing other opportunities that better fit your goals and comfort with risk. Spot potential value opportunities early by scanning our list of 55 high quality undervalued stocks that pair quality fundamentals with appealing pricing signals. Prioritise resilience by reviewing 85 resilient stocks with low risk scores, focusing on companies with characteristics that may help limit downside when conditions get choppy. Hunt for under followed potential by checking our screener containing 23 high quality undiscovered gems, where strong financial profiles have not yet attracted broad attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CRTO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]