TEAD

Interested in Teads Holding Co.? Here are five stocks we like better. Teads reported $285 million in Q2 revenue, $123 million in ex-TAC gross profit, $7 million in adjusted EBITDA and $3 million in free cash flow. The company suspended its 2026 guidance because of volatility in its direct-response and SME business. The enterprise business stabilized, with flat year-over-year advertiser spending and expectations for mid-single-digit gross-profit growth in the second half of 2026. Connected TV revenue rose 67% to approximately $40 million, while omnichannel adoption increased significantly. The direct-response and SME segment’s ex-TAC gross profit fell 30% to $34 million amid search-related traffic declines, platform changes and weaker publisher page views. Teads is responding with its AI-powered EngageOS platform, cost reductions and a shift toward higher-margin supply channels. Teads (NASDAQ:TEAD) reported second-quarter results that reflected diverging performance between its enterprise advertising business and its direct-response and small-and-medium enterprise segment, as connected TV growth and omnichannel adoption helped support the company’s higher-margin operations. Chief Executive Officer David Kostman said the company generated $123 million in ex-TAC gross profit, $7 million in adjusted EBITDA and $3 million in free cash flow during the quarter. Revenue was approximately $285 million, down 17% from a year earlier, according to Chief Financial Officer Jason Kiviat. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company said it is suspending guidance, including its previously issued full-year 2026 adjusted EBITDA outlook, citing volatility in its direct-response and SME business as it pursues strategic and operational changes. Teads’ enterprise business, which serves global brands and agencies, produced $89 million in ex-TAC gross profit in the second quarter. Kostman said advertiser spending in the segment was flat year over year, stabilizing after headwinds in 2025. The company expects mid-single-digit ex-TAC gross-profit growth in the second half of 2026. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Kiviat said May and June each posted positive year-over-year advertiser-spend growth from enterprise customers. He characterized that trend as an indication that the company has moved beyond the low point in the business and is positioned to return the segment to growth this year. Connected TV was a central contributor to the enterprise strategy. CTV revenue increased 67% year over year to approximately $40 million and represented 13% of second-quarter revenue, compared with 7% in the same period of 2025. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Kostman said Teads’ home-screen offering reaches more than 500 million home screens globally. During the quarter, the company renewed its exclusive LG home-screen partnership across Europe and Asia-Pacific, expanded into additional markets, partnered with TiVo Ads across 5.3 million households in North America and the U.K., and integrated with VIDAA Japan, adding 2.3 million devices as of July 1. The company also cited increased adoption of omnichannel advertising packages. Branding customers using omnichannel campaigns accounted for 16% of second-quarter branding revenue, up from 9% a year earlier and approaching Teads’ 18% full-year target. Teads secured or renewed global joint-business partnerships with Stellantis, Louis Vuitton, Warner Bros. and Dyson, Kostman said. He added that the company has active discussions and early-stage implementations involving artificial intelligence and data collaborations with major agency holding companies. Teads’ direct-response and SME business, which includes affiliate search, performance buyers and direct-to-consumer brands using its Amplify platform, generated $34 million in ex-TAC gross profit, down 30% year over year. Kostman attributed the decline to broader changes in search and open-web traffic, including the growing use of AI-generated summaries that are altering organic referral patterns and reducing publisher impressions. He also cited competition from closed advertising ecosystems and ongoing platform policy changes. During the question-and-answer session, Kostman said page views among Teads’ premium publishers had declined by roughly 15% to 25%, varying by country. He said the changes have not materially affected the company’s ability to sell omnichannel products, because much of that offering is sold in mid-article in-feed placements. The company also said part of the decline was intentional. Teads exited certain low-margin direct-response accounts and removed lower-quality open-web supply as part of a quality reset intended to strengthen brand safety and improve supply standards for strategic brand customers. Most of those actions occurred during 2025, management said. To address the pressures, Teads launched EngageOS, an AI-powered publisher operating system designed to help publishers monetize complete reader sessions rather than depending on search-driven page views. Penske Media, The Arena Group, Scripps and New Post are among publishers testing the product, and Kostman said Teads has seen significant lifts in yield. The company is also pursuing higher-margin programmatic supply channels, holding discussions with AI companies concerning emerging large-language-model channels, enhancing advertiser targeting and campaign efficiency within Amplify, and introducing formats such as vertical video. While Teads met its second-quarter ex-TAC gross-profit guidance, adjusted EBITDA came in below its expected range. Kiviat said a late-quarter increase in expenses contributed to the shortfall. Approximately half of the variance from expectations stemmed from expense timing and cutoffs, including discretionary travel, entertainment and marketing expenses as well as temporary costs related to moving the company’s cloud platform to a new provider. Foreign-exchange movements, particularly involving the Israeli shekel, and elevated bad-debt expenses tied primarily to prior customers also weighed on costs. Kiviat said Teads expects costs to decline in the third quarter and is reviewing the cost structure of lower-profit and more scalable parts of the business. The company is centralizing teams and embedding AI tools to streamline processes and reduce the direct-response segment’s cost base. Teads ended the quarter with $91 million in cash equivalents and investments in marketable securities, along with access to $40 million through its revolving credit facility. Kostman said the company continues to evaluate opportunities to strengthen its balance sheet but did not provide further details on potential transactions. Management said it intends to continue investing in the enterprise business despite possible near-term EBITDA trade-offs, citing CTV, omnichannel products, agency relationships and higher margins as the company’s primary long-term growth opportunities. Teads is a global digital media platform specializing in outstream video advertising and high-impact display formats. Founded in 2007 and listed on the Nasdaq under the ticker TEAD, the company connects advertisers, agencies and publishers through a programmatic marketplace designed to maximize brand engagement across desktop, mobile and connected TV. Teads offers proprietary ad formats such as inRead, outstream expansion units and seamless mobile placements that activate only when visible to the user, helping clients optimize viewability and attention metrics without relying on traditional pre-roll or banner placements. The Teads platform leverages data-driven targeting and machine learning to serve personalized creative in real time. 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 "Teads Q2 Earnings Call Highlights" was originally published by MarketBeat. 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NEW YORK, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Teads Holding Co. (Nasdaq: TEAD) (“Teads” or the “Company”) announced today financial results for the quarter ended June 30, 2026. Second Quarter 2026 Key Financial Metrics: “We are pleased with the results across our strategic growth drivers in Q2, highlighted by 67% CTV growth and expanding omnichannel wins in our Enterprise business,” said David Kostman, CEO of Teads. "Our Direct Response and SME business faced open-web headwinds, which we are actively mitigating. We plan to leverage the momentum in our Enterprise business to continue investments to accelerate high-margin growth," added Kostman. Second Quarter 2026 and Recent Business Highlights: CTV Momentum: Omnichannel Adoption: Branding customers utilizing omnichannel campaigns represented 16% of CTV spend, up from 9% in Q2 2025. Joint Business Partnership Renewals: Renewed several Joint Business Partnerships, with brands including Stellantis, LVMH, Warner Brothers and Dyson. Launched Teads EngageOS, an AI-powered operating system for publishers, which unifies editorial content and ad inventory to optimize total revenue across an entire reader session—designed to protect audience engagement while delivering higher yield. Second Quarter 2026 Financial Highlights: Revenue of $284.6 million, a decrease of $58.5 million, or 17%, compared to $343.1 million in the prior year period. Results include net favorable foreign currency effects of approximately $0.8 million. Gross profit of $95.6 million, a decrease of $24.7 million, or 21%, compared to $120.3 million in the prior year period. Gross margin decreased to 33.6%, compared to 35.1% in the prior year period. Ex-TAC gross profit of $123.4 million, a decrease of $20.8 million, or 14%, compared to $144.2 million in the prior year period. Our Ex-TAC gross margin increased to 43.4%, compared to 42.0% in the prior year period. Net loss of $42.5 million, compared to a net loss of $14.3 million in the prior year period. Net loss in the current period included a $7.3 million income tax provision, $1.6 million of acquisition and integration costs and $1.2 million of restructuring costs. Net loss in the prior period included a $5.8 million income tax benefit, $5.4 million of acquisition and integration costs, $1.7 million of restructuring charges and a $1.2 million gain on repurchase of debt. Adjusted net loss of $40.0 million, compared to adjusted net loss of $9.7 million in the prior year period. Adjusted net loss included a $7.3 million income tax provision in the current period, compared to a $5.8 million income tax benefit in the prior period, due to certain losses being subject to valuation allowances in the current period. Adjusted EBITDA of $7.0 million, compared to Adjusted EBITDA of $27.0 million in the prior year period, including net unfavorable foreign currency effects of approximately $2.5 million. Net cash provided by operating activities of $9.2 million, compared to net cash provided by operating activities of $25.0 million in the prior year period. Adjusted free cash flow of $3.2 million, compared to adjusted free cash flow of $22.1 million in the prior year period. Cash, cash equivalents and investments in marketable securities were $91.0 million, comprised of cash and cash equivalents of $88.0 million and short-term investments in marketable securities of $3.0 million as of June 30, 2026. Total debt obligations were $614.5 million, including the $607.4 million carrying value of our 10.000% senior secured notes due 2030 (principal amount of $628.2 million, net of unamortized discount and deferred financing costs) and $7.1 million outstanding under a short-term overdraft facility assumed in the acquisition (the “Acquisition”) of TEADS, a private limited liability company (société à responsabilité limitée) incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Legacy Teads”). Outlook Given the volatility of the Direct Response and SME business, and as we execute on our strategic initiatives, we are suspending guidance, including with respect to our previously provided full-year 2026 Adjusted EBITDA guidance. Conference Call and Webcast Information Teads will host an investor conference call this morning, Thursday, August 6 at 8:30 am ET. Interested parties are invited to listen to the conference call which can be accessed live by phone by dialing 1-888-396-8049 or for international callers, 1-416-764-8646. A replay will be available three hours after the call and can be accessed by dialing 1-877-660-6853, or for international callers, 1-201-612-7415. The passcode for the live call and the replay is 13761778. The replay will be available until August 20, 2026. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investors Relations section of the Company’s website at https://investors.teads.com. The online replay will be available for a limited time shortly following the call. Non-GAAP Financial Measures In addition to GAAP performance measures, we use the following supplemental non-GAAP financial measures to evaluate our business, measure our performance, identify trends, and allocate our resources: Ex-TAC gross profit, Ex-TAC gross margin, Adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted net income (loss), and adjusted diluted EPS. These non-GAAP financial measures are defined and reconciled to the corresponding GAAP measures below. These non-GAAP financial measures are subject to significant limitations, including those we identify below. In addition, other companies in our industry may define these measures differently, which may reduce their usefulness as comparative measures. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue, gross profit, net income (loss), diluted EPS, or cash flows from operating activities presented in accordance with GAAP. Because we are a global company, the comparability of our operating results is affected by foreign exchange fluctuations. We calculate certain constant currency measures and foreign currency impacts by translating the current year’s reported amounts, excluding new acquisitions, into comparable amounts using the prior year’s exchange rates. All constant currency financial information that may be presented is non-GAAP and should be used as a supplement to our reported operating results. We believe that this information is helpful to our management and investors to assess our operating performance on a comparable basis. However, these measures are not intended to replace amounts presented in accordance with GAAP and may be different from similar measures calculated by other companies. Forward-looking non-GAAP financial measures are calculated based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. The Company has not provided quantitative reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because it is unable, without unreasonable effort, to predict with reasonable certainty the occurrence or amount of all excluded items that may arise during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Such excluded items could be material to the reported results individually or in the aggregate. Ex-TAC Gross Profit Ex-TAC gross profit is a non-GAAP financial measure. Gross profit is the most comparable GAAP measure. In calculating Ex-TAC gross profit, we add back other cost of revenue to gross profit. Ex-TAC gross profit may fluctuate in the future due to various factors, including, but not limited to, seasonality and changes in the number of media partners and advertisers, advertiser demand or user engagements. We present Ex-TAC gross profit, Ex-TAC gross margin (calculated as Ex-TAC gross profit as a percentage of revenue), and Adjusted EBITDA as a percentage of Ex-TAC gross profit, because they are key profitability measures used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans, and make strategic decisions regarding the allocation of capital. Accordingly, we believe that these measures provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors. There are limitations on the use of Ex-TAC gross profit in that traffic acquisition cost is a significant component of our total cost of revenue but not the only component and, by definition, Ex-TAC gross profit presented for any period will be higher than gross profit for that period. A potential limitation of this non-GAAP financial measure is that other companies, including companies in our industry, which have a similar business, may define Ex-TAC gross profit differently, which may make comparisons difficult. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue or gross profit presented in accordance with GAAP. Adjusted EBITDA We define Adjusted EBITDA as net income (loss) before gain on repurchase of long-term debt; interest expense; other expense (income) and interest income, net; provision (benefit) for income taxes; depreciation and amortization; stock-based compensation; and other income or expenses that we do not consider indicative of our core operating performance, including but not limited to, acquisition and integration costs, restructuring, and impairment charges. We present Adjusted EBITDA as a supplemental performance measure because it is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans and make strategic decisions regarding the allocation of capital, and we believe it facilitates operating performance comparisons from period to period. We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. However, our calculation of Adjusted EBITDA is not necessarily comparable to non-GAAP information of other companies. Adjusted EBITDA should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP. Adjusted Net Income (Loss) and Adjusted Diluted EPS Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss) excluding items that we do not consider indicative of our core operating performance, including but not limited to gain on repurchase of long-term debt, acquisition and integration costs, restructuring charges, impairment of intangible assets, goodwill impairment, bridge facility costs, valuation allowance recognition, as well as the related income tax effects. Adjusted net income (loss), as defined above, is also presented on a per diluted share basis. We present adjusted net income (loss) and adjusted diluted EPS as supplemental performance measures because we believe they facilitate performance comparisons from period to period. However, adjusted net income (loss) or adjusted diluted EPS should not be considered in isolation or as a substitute for net income (loss) or diluted earnings per share reported in accordance with GAAP. Free Cash Flow Free cash flow is defined as cash flow provided by (used in) operating activities, less capital expenditures and capitalized software development costs. Adjusted free cash flow is defined as free cash flow plus direct acquisition costs. Free cash flow and adjusted free cash flow are supplementary measures used by our management and board of directors to evaluate our ability to generate cash and we believe it allows for a more complete analysis of our available cash flows. Free cash flow and adjusted free cash flow should be considered as supplemental measures and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives, and statements relating to the Acquisition. You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward-looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: our ability to successfully integrate Legacy Teads or manage the combined business effectively; overall advertising demand and traffic generated by our media partners; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to compete effectively against current and future competitors; the potential impact of artificial intelligence (“AI”) on our industry, our ability to adapt to advancements in AI and the regulation of generative AI content within the context of the Open Internet and display advertising, and our need to invest in AI-based solutions; our ability to attract and retain customers, management and other key personnel; the volatility of the market price of our common stock and our ability to satisfy the continued listing requirements of The Nasdaq Stock Market LLC, including the potential adverse effects on market liquidity and share price if our common stock is delisted; our ability to grow our business and manage growth effectively; our ability to raise additional financing in the future to fund our operations or service our existing indebtedness; loss of media partners could have a significant impact on our revenue and results of operations; our ability to maintain the integrity of our platform and prevent invalid, low quality or other non-human traffic that does not meet ad quality standards, and the impact of such activity on our relationships with media partners and advertisers; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our ability to realize anticipated benefits and synergies of the Acquisition, including, among other things, operating efficiencies, revenue synergies and other cost savings; unexpected costs, charges or expenses resulting from the Acquisition; our internal controls over financial reporting may not meet the standard required by Section 404 of the Sarbanes-Oxley Act; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, tariffs and trade wars and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the ongoing conflict involving the U.S., Iran, Israel and surrounding nations, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the impact of challenging economic conditions, new or proposed legislation or other political and policy changes or uncertainties in the U.S., the impact of U.S. government shutdowns, and other factors that have and may further impact advertisers’ ability to pay; conditions in Israel, including the conflict between Israel and Hamas and the sustainability of the related cease-fire and any impacts from the ongoing conflict involving the U.S., Iran, Israel and surrounding nations; our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the challenges of compliance with differing and changing regulatory requirements, particularly with respect to privacy and data protection; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the outcome of legal proceedings, which we are subject to from time to time, including intellectual property, commercial and privacy disputes, and specifically our litigation against Google LLC and Alphabet Inc., including, among other things, the uncertainty and timing of any resolution and the amount of damages or other remedies we may recover, if any; the timing and execution of any cost-saving measures and the impact on our business or strategy; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2025, and in our subsequent reports filed with the Securities and Exchange Commission (the “SEC”), which are available on our website at https://investors.teads.com/ and on the SEC’s website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law. About Teads Teads (Nasdaq: TEAD) is a leading omnichannel advertising platform focused on driving outcomes for brand and performance advertisers across screens. With a focus on meaningful business outcomes for full funnel objectives, Teads drives value by leveraging predictive AI technology to connect quality media, beautiful brand creative, and context-driven addressability and measurement. Teads is directly partnered with more than 10,000 publishers and 20,000 advertisers globally. The Company is headquartered in New York, New York with a global team of around 1,700 people in 30+ countries. For more information, visit www.teads.com. Media [email protected] Investor Relations [email protected](332) 205-8999

This article first appeared on GuruFocus. Revenue: Approximately $285 million in Q2, a 17% decline year-over-year. Ex-TAC Gross Profit: $123 million in Q2, a 14% decrease year-over-year. Adjusted EBITDA: $7 million in Q2, below the expected guidance range. Free Cash Flow: $3 million generated in Q2. Cash and Investments: $91 million in cash equivalents and marketable securities at quarter-end, with access to a $40 million revolving credit facility. Enterprise Ex-TAC Gross Profit: $89 million in Q2, in line with plan; advertiser spend flat year-over-year. Direct Response & SME Ex-TAC Gross Profit: $34 million in Q2, a 30% year-over-year decline. Connected TV (CTV) Revenue: Approximately $40 million in Q2, up 67% year-over-year; accounted for 13% of Q2 revenue versus 7% in Q2 2025. Omnichannel Adoption: Branding customers using omnichannel campaigns represented 16% of Q2 branding revenue, up from 9% in Q2 2025. Warning! GuruFocus has detected 4 Warning Signs with TEAD. Is TEAD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enterprise business delivered $89 million in extra gross profit in Q2, with advertiser spend stabilizing and expected mid-single-digit growth in H2. Connected TV (CTV) revenue surged 67% year-over-year to approximately $40 million, now representing 13% of total revenue, up from 7%. Expanded CTV home screen reach to over 500 million screens globally, with new partnerships including LG, T-Bold ads, and Vida Japan. Omnichannel adoption is growing, with branding customers using omnichannel campaigns rising to 16% of branding revenue, up from 9%. Secured and renewed major global partnerships with premier brands like Stellantis, Louis Vuitton, Warner Brothers, and Dyson. Launched Teams Engage Operating System, an AI-powered publisher OS, showing significant yield lifts with premium publishers. Generated positive free cash flow of $3 million and ended the quarter with $91 million in cash and marketable securities. Direct response and SME business saw a 30% year-over-year decline in extra gross profit, reaching only $34 million. Overall revenue declined 17% year-over-year to approximately $285 million, reflecting ongoing headwinds. Adjusted EBITDA of $7 million came in below guidance due to a spike in expenses, including timing issues, FX fluctuations, and bad debts. Suspended full-year 2026 EBITDA guidance due to volatility in the DR and SME business. AI summaries and closed ecosystems are reducing publisher impressions and impacting native advertising industry-wide. Deliberate quality reset actions, such as exiting low-margin accounts and improving supply standards, contributed to revenue decline. FX fluctuations, particularly in the Israeli shekel, continue to negatively impact costs. Q: Can you update us on the evaluation of potential transactions and how you are balancing investments in the enterprise business against profitability and liquidity?A: David Kostman (CEO) stated that the company continues to evaluate opportunities to strengthen its balance sheet and will report any specific updates. Regarding investments, he emphasized focusing on growth drivers like CTV, omnichannel, and AI integrations with agencies. The enterprise business is a higher-margin segment with tremendous return opportunities, so Teads plans to continue investing there. In contrast, the legacy Outbrain-related business is being run for profitability and improved operating leverage. Q: How much of the 30% decline in the direct response and SME business is traffic-related due to AI summaries and Google's shift, and does this hurt the ability to sell omnichannel products?A: David Kostman (CEO) explained that page view declines vary by publisher, generally in the 15% to 25% range, impacting the business. However, he clarified that the focus and growth are now on the higher-margin brand and enterprise segment. The decline does not impact omnichannel sales, as most omnichannel inventory is in in-read placements (after the first or second paragraph), which are not affected by these trends. The launch of Engage OS is also changing how end-of-article inventory is treated. Q: Can you update us on the traction you are getting with large ad agencies and where you see success in placing products?A: David Kostman (CEO) noted that over 90% of enterprise billings come through major agencies. Investments in the Teads Ad Manager platform are driving increased traction around AI-level integrations for activation and planning. While traction varies by holding company, the platform's unique ability to deliver branding and performance, CTV, online video, measurement, and attributionincluding exclusive home screen inventorypositions Teads well. This confidence supports expectations for growth in the second half of the year and potential acceleration into 2027. Q: What were the primary drivers behind adjusted EBITDA coming in below the expected range in Q2, and what steps are being taken?A: Jason Kiviat (CFO) attributed the shortfall to a confluence of factors: timing and cutoff of expenses (approximately half the variance) in discretionary areas like T&E and marketing, temporary transitionary costs from migrating cloud platforms, FX fluctuations (particularly the Israeli shekel), elevated bad debts from prior quality initiatives, and continued investments in the enterprise business. He expects costs to step down in Q3 and noted the company is scrutinizing cost structures in lower-profit areas to fund enterprise growth. Q: What is the outlook for the enterprise business, and what evidence supports the return to growth?A: Jason Kiviat (CFO) highlighted that May and June both showed positive year-over-year growth in advertiser spend from enterprise customers, aligning with the budget plan to return this business to growth. The momentum is expected to continue into Q3, with a forecast for H2 year-over-year growth in ex-TAC from this segment. This is driven by CTV acceleration, omnichannel adoption, and higher margins from the enterprise customer mix. Q: What are the key drivers of CTV growth, and how significant is this segment to the overall strategy?A: David Kostman (CEO) reported CTV top-line revenue growth of 67% year-over-year in Q2, reaching approximately $40 million, and now representing 13% of total revenue (up from 7% in Q2 2025). Growth is driven by a global home screen leadership position (over 500 million home screens), the rollout of the CED ensemble (full-funnel branding and performance suite), and expanded supply partnerships, including renewed LG partnerships and new integrations with T-Bold ads and Vida Japan. Q: How is the omnichannel adoption progressing, and what is the target?A: David Kostman (CEO) stated that branding customers utilizing omnichannel campaigns represented 16% of Q2 branding revenue, up from 9% in Q2 2025, and approaching the 18% full-year target. Home screen growth is actively reinforcing broader omnichannel packages, and the company remains focused on higher-margin mid-article placements within its premium publisher base. Q: What is the strategy for the direct response and SME business amid the secular headwinds?A: David Kostman (CEO) outlined a plan focused on client outcomes, new supply, and operational efficiency. Key initiatives include the launch of Teads Engage Operating System (an AI-powered publisher OS to monetize complete reader sessions), entering new higher-margin programmatic environments (including dialogues with AI players), enhancing the Amplify platform with new formats like vertical video, and reorganizing internal structures with AI tools to reduce costs. The company is actively addressing near-term headwinds while resolving temporary cost pressures. Q: What is the company's cash position and liquidity profile?A: Jason Kiviat (CFO) reported ending Q2 with $91 million in cash equivalents and investments in marketable securities, plus access to a $40 million revolving credit facility. The company generated $3 million of free cash flow in the quarter and continues to evaluate its cost and capital structure for opportunities to improve its financial profile and strengthen the balance sheet. Q: Why is the company suspending guidance, and what does this mean for the full-year outlook?A: Jason Kiviat (CFO) explained that given the volatility in the direct response and SME business and as the company executes on strategic initiatives, Teads is suspending guidance, including the previously provided full-year 2026 EBITDA guidance. This decision reflects the uncertainty in the DR/SME segment while the enterprise business shows positive momentum. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. While management highlighted the transition into a unified omnichannel platform bridging CTV and mobile screens, Q1 revenue actually declined 7% year-over-year to approximately EUR 266 million. The enterprise business, which generated approximately $900 million in 2025 revenue, remains the core driver, contributing roughly 80% of Ex-TAC due to its higher margin profile. Strategic positioning is being reinforced through approximately 50 global joint business partnerships (JBPs) that represented over $200 million in spend during 2025. The company is winning against major DSPs by offering an end-to-end stack featuring exclusive supply, first-party data signals for a cookie-less world, and AI-driven creative optimization. Operational focus has shifted toward integrating performance algorithms into the Teads Ad Manager (TAM) to allow agencies to manage high-gloss branding and high-velocity conversion in one environment. CTV momentum is driven by a shift in advertiser demand from simple reach to video that drives measurable action, supported by home screen leadership with LG, Samsung, and Google TV. Management expects a return to year-over-year revenue growth by Q4 2026, supported by the easing of quality-related cleanup headwinds in the direct response business. Full-year 2026 adjusted EBITDA guidance is maintained at approximately $100 million, assuming continued realization of synergy-related cost reductions. The Q2 outlook for Ex-TAC gross profit of $121 million to $131 million accounts for the year's hardest comparison period before comps significantly ease in H2. Strategic initiatives for the remainder of the year focus on scaling 'agentic' campaign setups and automated workflows within TAM to increase agency share of wallet. The company is evaluating opportunistic alternatives to strengthen the balance sheet and build a more durable capital structure, though specific transactions were not disclosed. Restructuring efforts have successfully reduced the compensation run rate by over 20% year-over-year, creating a more streamlined cost structure. A quality-related cleanup in the direct response business is expected to be a $20 million Ex-TAC headwind for the year, with the vast majority occurring in H1. Q1 free cash flow was a use of $41 million, primarily driven by a $31 million semi-annual bond interest payment and typical low seasonality in working capital. Management identified a minimum comfortable operating cash level in the $70 million to $80 million range, down from approximately $100 million at the time of the merger. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is deepening strategic integrations with agencies around data and ID while moving toward 'agentic' campaign management. The goal is to enable agencies to run both branding and conversion campaigns on a single dashboard to improve their operational efficiency. A new leadership team for North America was installed in February to replicate the momentum seen in EMEA and APAC. Management expressed confidence that the U.S. business will see a greater positive impact in coming quarters as operational changes take hold. CTV margins are consistent with the company average in the 40% range and serve as an entry point for broader omnichannel spend. Beyond home screen exclusivity, Teads is expanding into in-stream, in-play, and pause ads to capture more of the CTV funnel.

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) -- Teads Holding Co. (Nasdaq: TEAD) (“Teads” or the “Company”) announced today financial results for the quarter ended March 31, 2026. _____________________________ 1 Incorporates the results of operations for Legacy Teads (as defined below) from February 3, 2025 through March 31, 2025 * See non-GAAP reconciliations below NM Not meaningful “Our Q1 results represent a significant milestone for Teads, characterized by an Ex-TAC revenue beat and accelerating momentum in CTV,” said David Kostman, CEO of Teads. “By unifying our performance technology within Teads Ad Manager, we are positioned to deliver a unique, full-funnel solution that bridges the gap between branding and conversion across CTV and the Open Internet. This differentiated proposition is resonating well with our global partners, and, as we continue to execute with agility and focus, we remain confident in our trajectory” added Kostman. First Quarter 2026 and Recent Business Highlights: Delivered CTV revenue growth of >50% year-over-year. Branding customers utilizing omnichannel campaigns represented 13% of CTV spend, up from 8% in Q1 2025, driven by increased traction among the world's leading holding companies and agencies. Solidified Teads as a leading adtech platform in CTV HomeScreen with global access; this includes the exclusive expansion into additional markets with LG, Samsung and other partners. Continued growth in cross-selling conversion focused campaigns, with approximately 16% of spend from Enterprise Brand advertisers directed toward performance-based business goals. Renewed several Joint Business Partnerships with global brands, including McDonald’s, Heineken, and Volkswagen. First Quarter 2026 Financial Highlights: Revenue of $266.0 million, a decrease of $20.4 million, or 7%, compared to $286.4 million in the prior year period. Results include net favorable foreign currency effects of approximately $11.6 million. Gross profit of $83.6 million, an increase of $0.9 million, or 1%, compared to $82.7 million in the prior year period. Gross margin increased to 31.4%, compared to 28.9% in the prior year period. Ex-TAC gross profit of $107.9 million, an increase of $4.8 million, or 5%, compared to $103.1 million in the prior year period. Our Ex-TAC gross margin increased to 40.6%, compared to 36.0% in the prior year period. Net loss of $38.8 million, compared to a net loss of $54.8 million in the prior year period. Net loss in the current period included, $1.7 million of restructuring costs and $1.3 million of costs related to the acquisition (the “Acquisition”) and integration of TEADS, a private limited liability company (société à responsabilité limitée) incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Legacy Teads”). Net loss in the prior period included, $16.4 million of Acquisition and integration costs, $15.6 million in impairment charges, $12.0 million bridge facility related costs and $7.3 million of restructuring charges. Adjusted net loss of $36.2 million, compared to adjusted net loss of $15.3 million in the prior year period. Adjusted EBITDA of $0.8 million, compared to Adjusted EBITDA of $10.7 million in the prior year period, including net unfavorable foreign currency effects of approximately $1.6 million. Net cash used in operating activities of $34.9 million, compared to net cash used in operating activities of $1.0 million in the prior year period, primarily driven by the $31.4 million semi-annual interest payment made in February 2026 for our Senior Secured Notes. Adjusted free cash flow of $(41.1) million, compared to adjusted free cash flow of $5.2 million in the prior year period. Cash, cash equivalents and investments in marketable securities were $98.7 million, comprised of cash and cash equivalents of $85.5 million and short-term investments in marketable securities of $13.2 million as of March 31, 2026. Total debt obligations were $623.4 million, including the $606.2 million carrying value of our 10.000% senior secured notes due 2030 (principal amount of $628.2 million, net of unamortized discount and deferred financing costs) and $17.2 million (unchanged at €15.0 million) outstanding under a short-term overdraft facility assumed in the Acquisition. 2026 Full Year and Second Quarter Guidance The following forward-looking statements reflect our expectations for 2026. For the second quarter ending June 30, 2026, we expect: Ex-TAC gross profit of $121 million to $131 million Adjusted EBITDA of $14 million to $22 million For the full year ending December 31, 2026, we continue to expect: Adjusted EBITDA of approximately $100 million The above measures are forward-looking non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See “Non-GAAP Financial Measures” below. In addition, our guidance is subject to risks and uncertainties, as outlined below in this release. Conference Call and Webcast Information Teads will host an investor conference call this morning, Thursday, May 7 at 8:30 am ET. Interested parties are invited to listen to the conference call which can be accessed live by phone by dialing 1-877-497-9071 or for international callers, 1-201-689-8727. A replay will be available three hours after the call and can be accessed by dialing 1-877-660-6853, or for international callers, 1-201-612-7415. The passcode for the live call and the replay is 13759438. The replay will be available until May 21, 2026. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investors Relations section of the Company’s website at https://investors.teads.com. The online replay will be available for a limited time shortly following the call. Non-GAAP Financial Measures In addition to GAAP performance measures, we use the following supplemental non-GAAP financial measures to evaluate our business, measure our performance, identify trends, and allocate our resources: Ex-TAC gross profit, Ex-TAC gross margin, Adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted net income (loss), and adjusted diluted EPS. These non-GAAP financial measures are defined and reconciled to the corresponding GAAP measures below. These non-GAAP financial measures are subject to significant limitations, including those we identify below. In addition, other companies in our industry may define these measures differently, which may reduce their usefulness as comparative measures. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue, gross profit, net income (loss), diluted EPS, or cash flows from operating activities presented in accordance with GAAP. Because we are a global company, the comparability of our operating results is affected by foreign exchange fluctuations. We calculate certain constant currency measures and foreign currency impacts by translating the current year’s reported amounts, excluding new acquisitions, into comparable amounts using the prior year’s exchange rates. All constant currency financial information that may be presented is non-GAAP and should be used as a supplement to our reported operating results. We believe that this information is helpful to our management and investors to assess our operating performance on a comparable basis. However, these measures are not intended to replace amounts presented in accordance with GAAP and may be different from similar measures calculated by other companies. The Company is also providing second quarter and full year guidance. These forward-looking non-GAAP financial measures are calculated based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. The Company has not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because it is unable, without unreasonable effort, to predict with reasonable certainty the occurrence or amount of all excluded items that may arise during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Such excluded items could be material to the reported results individually or in the aggregate. Ex-TAC Gross Profit Ex-TAC gross profit is a non-GAAP financial measure. Gross profit is the most comparable GAAP measure. In calculating Ex-TAC gross profit, we add back other cost of revenue to gross profit. Ex-TAC gross profit may fluctuate in the future due to various factors, including, but not limited to, seasonality and changes in the number of media partners and advertisers, advertiser demand or user engagements. We present Ex-TAC gross profit, Ex-TAC gross margin (calculated as Ex-TAC gross profit as a percentage of revenue), and Adjusted EBITDA as a percentage of Ex-TAC gross profit, because they are key profitability measures used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans, and make strategic decisions regarding the allocation of capital. Accordingly, we believe that these measures provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors. There are limitations on the use of Ex-TAC gross profit in that traffic acquisition cost is a significant component of our total cost of revenue but not the only component and, by definition, Ex-TAC gross profit presented for any period will be higher than gross profit for that period. A potential limitation of this non-GAAP financial measure is that other companies, including companies in our industry, which have a similar business, may define Ex-TAC gross profit differently, which may make comparisons difficult. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue or gross profit presented in accordance with GAAP. Adjusted EBITDA We define Adjusted EBITDA as net income (loss) before gain on repurchase of long-term debt; interest expense; interest income and other income (expense), net; provision for income taxes; depreciation and amortization; stock-based compensation; and other income or expenses that we do not consider indicative of our core operating performance, including but not limited to, acquisition and integration costs, restructuring, and impairment charges. We present Adjusted EBITDA as a supplemental performance measure because it is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans and make strategic decisions regarding the allocation of capital, and we believe it facilitates operating performance comparisons from period to period. We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. However, our calculation of Adjusted EBITDA is not necessarily comparable to non-GAAP information of other companies. Adjusted EBITDA should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP. Adjusted Net Income (Loss) and Adjusted Diluted EPS Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss) excluding items that we do not consider indicative of our core operating performance, including but not limited to gain on repurchase of long-term debt, acquisition and integration costs, restructuring charges, impairment of intangible assets, goodwill impairment, bridge facility costs, valuation allowance recognition, as well as the related income tax effects. Adjusted net income (loss), as defined above, is also presented on a per diluted share basis. We present adjusted net income (loss) and adjusted diluted EPS as supplemental performance measures because we believe they facilitate performance comparisons from period to period. However, adjusted net income (loss) or adjusted diluted EPS should not be considered in isolation or as a substitute for net income (loss) or diluted earnings per share reported in accordance with GAAP. Free Cash Flow Free cash flow is defined as cash flow provided by (used in) operating activities, less capital expenditures and capitalized software development costs. Adjusted free cash flow is defined as free cash flow plus direct acquisition costs. Free cash flow and adjusted free cash flow are supplementary measures used by our management and board of directors to evaluate our ability to generate cash and we believe it allows for a more complete analysis of our available cash flows. Free cash flow and adjusted free cash flow should be considered as supplemental measures and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives, and statements relating to the Acquisition. You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward-looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: our ability to successfully integrate Legacy Teads or manage the combined business effectively; overall advertising demand and traffic generated by our media partners; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to compete effectively against current and future competitors; the potential impact of artificial intelligence (“AI”) on our industry, our ability to adapt to advancements in AI and the regulation of generative AI content within the context of the Open Internet and display advertising, and our need to invest in AI-based solutions; our ability to attract and retain customers, management and other key personnel; the volatility of the market price of our common stock and our ability to satisfy the continued listing requirements of The Nasdaq Stock Market LLC, including the potential adverse effects on market liquidity and share price if our common stock is delisted; our ability to grow our business and manage growth effectively; our ability to raise additional financing in the future to fund our operations or service our existing indebtedness; loss of media partners could have a significant impact on our revenue and results of operations; our ability to maintain the integrity of our platform and prevent invalid, low quality or other non-human traffic that does not meet ad quality standards, and the impact of such activity on our relationships with media partners and advertisers; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our ability to realize anticipated benefits and synergies of the Acquisition, including, among other things, operating efficiencies, revenue synergies and other cost savings; unexpected costs, charges or expenses resulting from the Acquisition; our internal controls over financial reporting may not meet the standard required by Section 404 of the Sarbanes-Oxley Act; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, tariffs and trade wars and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the conflict involving Israel, the U.S., Iran and surrounding nations, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the impact of challenging economic conditions, new or proposed legislation or other political and policy changes or uncertainties in the U.S., the impact of U.S. government shutdowns, and other factors that have and may further impact advertisers’ ability to pay; conditions in Israel, including the conflict between Israel and Hamas and the sustainability of the related cease-fire; our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the challenges of compliance with differing and changing regulatory requirements, particularly with respect to privacy and data protection; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the outcome of legal proceedings, which we are subject to from time to time, including intellectual property, commercial and privacy disputes; the timing and execution of any cost-saving measures and the impact on our business or strategy; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2025, and in our subsequent reports filed with the Securities and Exchange Commission (the “SEC”), which are available on our website at https://investors.teads.com/ and on the SEC’s website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law. About Teads Teads (Nasdaq: TEAD) is a leading omnichannel advertising platform focused on driving outcomes for brand and performance advertisers across screens. With a focus on meaningful business outcomes for full funnel objectives, Teads drives value by leveraging predictive AI technology to connect quality media, beautiful brand creative, and context-driven addressability and measurement. Teads is directly partnered with more than 10,000 publishers and 20,000 advertisers globally. The company is headquartered in New York, New York with a global team of around 1,700 people in 30+ countries. For more information, visit www.teads.com. Media Contact [email protected] Investor Relations Contact [email protected] (332) 205-8999 The following table presents the reconciliation of net loss to Adjusted EBITDA, for the periods presented: The following table presents the reconciliation of net cash used in operating activities to free cash flow, for the periods presented:

This article first appeared on GuruFocus. Q4 Revenue: Approximately $352 million, a 50% increase year-over-year on an as-reported basis. Pro-forma Revenue Decline: 17% year-over-year decline in Q4. Ex-TAC Gross Profit: $152 million in Q4, a 122% increase year-over-year on an as-reported basis, and a 19% decline on a pro-forma basis. Adjusted EBITDA: $37 million in Q4. Adjusted Free Cash Flow: Approximately $3 million in Q4 and $6 million for the full year. Goodwill Impairment: Recorded an impairment to goodwill of around $350 million. Restructuring Charges: $6 million in Q4, expected to save $35 million to $40 million annually. Cash Equivalents and Investments: $139 million at the end of Q4. Long-term Debt: $628 million with a 10% coupon due in 2030. Q1 2026 Guidance: Ex-TAC gross profit of $102 million to $106 million; adjusted EBITDA of breakeven to $3 million. Full Year 2026 Guidance: Adjusted EBITDA of approximately $100 million. Warning! GuruFocus has detected 3 Warning Signs with TEAD. Is TEAD fairly valued? Test your thesis with our free DCF calculator. Release Date: March 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Teads Holding Co (NASDAQ:TEAD) achieved the high end of their guidance on Ex-TAC and exceeded their adjusted EBITDA target, generating positive free cash flow. The company saw a 55% growth in CTV revenue in Q4, crossing the $100 million annual revenue mark. Performance cross-selling is scaling, with a 300% increase in sales to enterprise customers compared to Q3. Teads renewed several joint business partnerships with leading global brands, highlighting strong strategic relationships. The company expects annual savings of $35 million to $40 million from their December restructuring efforts. On a pro-forma basis, Teads experienced a 17% year-over-year decline in Q4 revenue. The company recorded a non-cash impairment to goodwill of around $350 million due to recent declines in share price and market capitalization. Teads anticipates a year-over-year comparison headwind of approximately $20 million of Ex-TAC, primarily impacting H1 2026. Operational challenges and distractions from the merger led to a deceleration in top-line growth, particularly in key markets like the US and UK. The proactive cleanup of inventory and trimming of low-quality revenue sources will continue to impact financial comparisons in the first half of 2026. Q: Are you fully staffed on the sales force after the integration, and what are the details of your exclusive deals with Samsung and LG? A: David Kostman, CEO: We are confident in our current sales force and leadership team. Regarding the exclusive deals, we have exclusive relationships with LG and Samsung in certain geographies, focusing on home screen integration. Our advantage lies in direct integration with Teads Ad Manager, creative adaptation, and premium brand relationships, which provide a significant head start in the market. Q: Can you provide more details on the stabilization of the business and organizational changes? A: Jason Kiviat, CFO: We are seeing improvements in Q1, with better performance in CTV and performance sales. The UK market has stabilized, and we have new leadership in the US. We are cautiously optimistic about the changes we've made, which are starting to show positive results. David Kostman, CEO, added that the team is well-defined with specific goals and targets. Q: What are the assumptions behind the full-year EBITDA guidance, and how should we think about growth and margin linearity? A: Jason Kiviat, CFO: Our guidance of approximately $100 million EBITDA does not imply full-year ex-TAC growth on a pro-forma basis. We expect to reach growth by Q4. The year-over-year comp headwind of $20 million from quality cleanup will impact Q1 and Q2, but will diminish by Q4. We anticipate improvement each quarter, with Q4 achieving positive growth. Q: Can you elaborate on the Google TV opportunity and its growth potential for CTV home screens? A: David Kostman, CEO: CTV home screen is a significant opportunity, with Google TV recently added to our OEM base. It accounts for a large percentage of our CTV business, which grew 55% in Q4. Our direct access and premium advertiser relationships are key differentiators, making this a major area of investment and growth. Q: Is the proactive cleanup of inventory behind you, and do you have the ideal mix of inventory now? A: David Kostman, CEO: The cleanup process is largely complete, with a healthier network now in place. We walked away from about $20 million in revenue, impacting the first half of this year. The network is now better suited for premium brands, delivering improved ROAS for performance advertisers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Management characterized 2025 as a transition year focused on merging Outbrain and Teads cultures while deliberately walking away from low-quality revenue to protect the premium marketplace. Performance attribution for the pro forma revenue decline was linked to merger-related operational friction and leadership distractions, particularly in the U.S. and U.K. markets. The company executed a significant restructuring in December to flatten leadership and improve accountability, aiming for $35 million to $40 million in annual cost savings. Strategic positioning is now centered on a 'full-funnel' offering, using CTV home screens for brand awareness and retargeting on mobile to drive measurable purchase intent. The 'supply path shortening' architecture is highlighted as a core differentiator, providing direct lines to premium OEMs like LG and Samsung rather than relying on intermediaries. AI integration is being leveraged to lower advertiser cost-per-acquisition while simultaneously expanding internal margins through predictive delivery and agentic goal setting. Management expects 2026 to be an inflection point, projecting a return to year-over-year growth by the fourth quarter as operational changes take full effect. Guidance for 2026 assumes a $20 million ex-TAC headwind from the prior year's quality cleanup, with the vast majority of this impact occurring in the first half of the year. The company is prioritizing CTV home screen leadership, expecting continued high growth rates following a 55% increase in Q4 2025. Financial strategy for the year focuses on maintaining a cash-flow-generating business, with a target of approximately $100 million in adjusted EBITDA. Management is evaluating opportunistic alternatives to strengthen the balance sheet and address the $628 million long-term debt due in 2030. A non-cash goodwill impairment charge of approximately $350 million was recorded due to market capitalization declines and a longer-than-anticipated integration timeline. The company recognized $6 million in restructuring charges in Q4, primarily related to a global reduction in force executed in December. Currency fluctuations, specifically the weakening dollar against the euro and shekel, are expected to present a headwind of several million dollars to the 2026 expense base. Management noted a deliberate exit from arbitrage-based customer segments, which significantly impacted Q4 revenue but is expected to result in a healthier long-term ecosystem. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Teads maintains exclusive geographic relationships with LG and Samsung, providing direct integration between the Teads Ad Manager and the TV home screen. Management claims a two-year head start in this space, citing creative adaptation services and direct relationships with 50+ global brands as barriers to entry for competitors. Management expressed confidence that the 'heavy lifting' of personnel changes is complete after replacing specific roles and bringing in new regional leadership. The company has flattened its leadership structure to increase speed and accountability, while simultaneously implementing operational changes to address challenges in key markets like the U.S. and U.K. The $8 million quarterly ex-TAC headwind from the quality cleanup will persist through Q1 and Q2 before tapering off in Q3 and becoming de minimis by Q4. Pro forma growth is expected to improve sequentially each quarter, with Q4 targeted as the first period of positive year-over-year growth. The company recently added Google TV, TCL, and Vewd to its CTV footprint, which now reaches over 500 million addressable TVs globally. CTV home screen placements are being used as a 'lead-in' for omnichannel sales, allowing advertisers to buy across multiple OEMs through a single platform. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Teads Holding Co. (TEAD) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of a loss of $0.19 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +152.63%. A quarter ago, it was expected that this company would post a loss of $0.15 per share when it actually produced a loss of $0.17, delivering a surprise of -13.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Teads Holding Co., which belongs to the Zacks Advertising and Marketing industry, posted revenues of $151.83 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.73%. This compares to year-ago revenues of $68.34 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Teads Holding Co. shares have added about 24.8% since the beginning of the year versus the S&P 500's gain of 0.4%. While Teads Holding Co. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Teads Holding Co. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.37 on $107.13 million in revenues for the coming quarter and -$0.63 on $516.72 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Advertising and Marketing is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Stagwell (STGW), is yet to report results for the quarter ended December 2025. The results are expected to be released on March 10. This marketing communications company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +20.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Stagwell's revenues are expected to be $804.64 million, up 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teads Holding Co. (TEAD) : Free Stock Analysis Report Stagwell Inc. (STGW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research