Criteo S.A.(US:CRTO)2025-10-29 20:08Financial Performance - Revenue for Q3 2025 was $469.66 million, a 2% increase from $458.89 million in Q3 2024[17] - Gross profit for Q3 2025 reached $256.48 million, up from $231.93 million in Q3 2024, reflecting an increase of 10.6%[17] - Net income for Q3 2025 was $40.08 million, compared to $6.14 million in Q3 2024, representing a significant increase of 552%[17] - Criteo reported a net income of $103.008 million for the nine months ended September 30, 2025, compared to $42.769 million for the same period in 2024, representing a year-over-year increase of approximately 141%[24] - Net income attributable to shareholders for the nine months ended September 30, 2025, was $96.96 million, up from $40.48 million in the same period of 2024, indicating a strong performance[86] - Basic earnings per share for the nine months ended September 30, 2025, was $1.82, compared to $0.74 for the same period in 2024, showing substantial growth[86] - Total revenue for the nine months ended September 30, 2025, was $1.40 billion, an increase from $1.38 billion in the same period of 2024[98] Assets and Liabilities - Total current assets decreased to $1.01 billion as of September 30, 2025, down from $1.22 billion at the end of 2024[15] - Total liabilities decreased to $891.35 million as of September 30, 2025, compared to $1.19 billion at the end of 2024[15] - Cash and cash equivalents were $255.01 million as of September 30, 2025, down from $290.69 million at the end of 2024[15] - The company’s total assets decreased to $2.06 billion as of September 30, 2025, from $2.27 billion at the end of 2024[15] - Trade accounts receivables decreased to $592.14 million from $829.46 million at the end of 2024, with a net book value of $568.73 million[48] - Noncurrent assets as of September 30, 2025, totaled $286.35 million, an increase from $265.61 million as of December 31, 2024[100] Equity and Retained Earnings - Retained earnings increased to $661.50 million as of September 30, 2025, up from $571.74 million at the end of 2024[15] - Criteo's total equity as of September 30, 2025, was $1.170 billion, with a retained earnings balance of $661.496 million[22] - Total equity increased to $1.17 billion as of September 30, 2025, up from $1.08 billion at the end of 2024, an increase of 8.2%[15] Operating Expenses - Operating expenses for Q3 2025 totaled $204.85 million, a decrease from $222.33 million in Q3 2024[17] - Research and development expenses for Q3 2025 were $67.68 million, down from $85.29 million in Q3 2024, a reduction of 20.7%[17] - Total operating lease expense for the nine months ended September 30, 2025, was $27,086,000, down 13.5% from $31,467,000 in 2024[56] - Lease expense for the three months ended September 30, 2025, was $9,313,000, a decrease of 10.5% compared to $10,410,000 for the same period in 2024[56] Cash Flow - The company generated net cash provided by operating activities of $150.544 million for the nine months ended September 30, 2025, up from $88.707 million in the prior year, indicating a significant improvement in cash flow[24] - The company incurred a net cash used in investing activities of $69.123 million for the nine months ended September 30, 2025, compared to $58.966 million in the same period of 2024[24] - Criteo's cash and cash equivalents at the end of the period were $255.335 million, down from $283.990 million at the end of September 2024[24] Share Repurchase and Compensation - The board of directors authorized an extension of the share repurchase program to up to $805 million of the company's outstanding American Depositary Shares on January 31, 2025[22] - The company repurchased 3,643,186 shares at a weighted average price of $31.7, impacting the treasury stock balance[22] - Criteo's share-based compensation expense for the nine months ended September 30, 2025, was $52.037 million, down from $82.193 million in the previous year[24] - Total equity awards compensation expense for the nine months ended September 30, 2025, was $52,037,000, a decrease of 36.7% compared to $82,193,000 in 2024[62] Tax and Legal Matters - The provision for income taxes for the nine months ended September 30, 2025, was $27.7 million, compared to $15.0 million for the same period in 2024, reflecting a significant increase[84] - The company recognized a probable loss of $1.5 million related to a legal settlement in the third quarter of 2025[94] Segment Performance - Retail Media segment revenue reached $67.11 million, up 10% from $60.77 million in the same period last year[42] - Performance Media segment revenue was $402.55 million, slightly up from $398.13 million year-over-year[42] - Contribution ex-TAC for Q3 2025 was $288.13 million, a 8% increase compared to $266.10 million in Q3 2024[44] - Revenue from Retail Media for the three months ended September 30, 2025, was $67.11 million, up from $60.77 million in 2024, reflecting a growth of approximately 5.5%[98] - Revenue from Commerce Growth for the nine months ended September 30, 2025, was $1.13 billion, slightly up from $1.13 billion in 2024, indicating stable performance[98] Future Plans - The company plans to redomicile from France to Luxembourg, which is expected to replace its American Depositary Share structure with ordinary shares directly listed on Nasdaq[102]