Criteo S.A.(CRTO) - 2025 Q2 - Quarterly Results

Criteo Q2 2025 Earnings Release Financial & Operating Highlights Criteo's Q2 2025 results show strong growth in Contribution ex-TAC and Gross Profit, alongside strategic platform expansion and share repurchases, despite profitability declines Q2 2025 Financial Highlights (YoY) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $483M | $471M | +2% | | Gross Profit | $259M | $233M | +11% | | Net Income | $23M | $28M | -18% | | Contribution ex-TAC | $292M | $267M | +9% | | Adjusted EBITDA | $89M | $93M | -4% | | Adjusted Diluted EPS | $0.92 | $1.08 | -15% | | Free Cash Flow (FCF) | $(36)M | $(4)M | -823% | - The company deployed $104 million for share repurchases in the first half of 2025, signaling confidence in its business strategy[1][4][9] - Retail Media Contribution ex-TAC grew 11% YoY at constant currency, with a strong same-retailer retention rate of 112%[3] - Performance Media Contribution ex-TAC increased by 6% YoY at constant currency[4] - Key operational achievements include launching Auction-Based Display technology, integrating with Mirakl Ads, and signing a global Commerce Media partnership with dentsu[4] Detailed Financial Performance Criteo's Q2 2025 revenue grew 2% with Contribution ex-TAC up 9%, driven by Retail and Performance Media, though profitability declined due to growth investments, resulting in negative operating cash flow Revenue, Gross Profit and Contribution ex-TAC Q2 2025 revenue increased 2% to $483 million, with Gross Profit up 11% to $259 million and Contribution ex-TAC growing 9% to $292 million Q2 2025 Revenue & Profitability Metrics | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $483M | $471M | +2% | | Gross Profit | $259M | $233M | +11% | | Gross Profit Margin | 54% | 49% | +5 ppt | | Contribution ex-TAC | $292M | $267M | +9% | Profitability and Earnings Q2 2025 net income decreased to $23 million and Adjusted EBITDA declined 4% to $89 million, primarily due to planned growth investments increasing operating expenses Q2 2025 Earnings Metrics | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | $23M | $28M | -18% | | Diluted EPS | $0.39 | $0.46 | -15% | | Adjusted EBITDA | $89M | $93M | -4% | | Adjusted EBITDA Margin | 31% | 35% | -4 ppt | - The decline in Adjusted EBITDA was driven by planned growth investments, including investments in people and marketing events[11][12] Cash Flow and Liquidity Q2 2025 saw negative cash flow from operating activities at $(1) million and Free Cash Flow at $(36) million, though total financial liquidity remained strong at $746 million Q2 2025 Cash Flow | Metric | Q2 2025 ($M) | Q2 2024 ($M) | | :--- | :--- | :--- | | Cash flow from operating activities | $(1)M | $17M | | Free Cash Flow | $(36)M | $(4)M | - As of June 30, 2025, the company had total financial liquidity of approximately $746 million, including cash, marketable securities, and its revolving credit facility[15] Segment Performance Retail Media Contribution ex-TAC grew 11% and Performance Media 6% at constant currency, driving overall segment growth despite varied revenue performance Q2 2025 Segment Contribution ex-TAC (Constant Currency) | Segment | YoY Growth (Constant Currency, %) | | :--- | :--- | | Retail Media | +11% | | Performance Media | +6% | 2025 Business Outlook Criteo raised its full-year 2025 Contribution ex-TAC growth guidance to 3-4% at constant currency, projecting an Adjusted EBITDA margin of 33-34%, and provided Q3 2025 guidance Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Contribution ex-TAC Growth (Constant Currency) | +3% to +4% | | Adjusted EBITDA Margin | ~33% to 34% | Third Quarter 2025 Guidance | Metric | Guidance Range ($M) | | :--- | :--- | | Contribution ex-TAC | $277M - $283M | | Adjusted EBITDA | $81M - $87M | - The updated full-year guidance for Contribution ex-TAC growth represents an increase from the previous forecast of low-single-digit growth[19] Appendix: Financial Statements & Reconciliations The appendix provides detailed unaudited financial statements, including the Consolidated Statement of Financial Position, Operations, and Cash Flows, along with non-GAAP reconciliations and segment data Consolidated Statement of Operations (Six Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Revenue | $934.1M | $921.4M | | Gross Profit | $495.5M | $450.1M | | Income from Operations | $78.6M | $47.3M | | Net Income | $62.9M | $36.6M | Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 ($M) | Dec 31, 2024 ($M) | | :--- | :--- | :--- | | Total Assets | $2,114.1M | $2,266.4M | | Total Liabilities | $986.6M | $1,185.4M | | Total Equity | $1,127.5M | $1,081.1M | | Cash and cash equivalents | $205.7M | $290.7M | Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Net cash from operating activities | $60.9M | $31.2M | | Net cash used in investing activities | $(41.7)M | $(35.2)M | | Net cash used in financing activities | $(103.1)M | $(102.1)M |