Outbrain (US:OB)2025-11-06 11:36Financial Performance - Revenue for Q3 2025 was $318.8 million, a 42% increase from $224.2 million in Q3 2024, primarily due to acquisitions and favorable foreign currency effects of approximately $5.0 million[3] - Gross profit reached $105.7 million, up 116% from $48.9 million in the prior year, with gross margin increasing to 33.2% from 21.8%[7] - Adjusted EBITDA for Q3 2025 was $19.2 million, a 66% increase from $11.5 million in Q3 2024[7] - Revenue for Q3 2025 reached $318.77 million, a 42.3% increase from $224.18 million in Q3 2024[31] - Gross profit for Q3 2025 was $105.75 million, compared to $48.87 million in Q3 2024, reflecting a significant improvement in profitability[31] - The net loss for Q3 2025 was $19.69 million, compared to a net income of $6.70 million in Q3 2024, indicating challenges in maintaining profitability[31] - Adjusted EBITDA for Q3 2025 was $19.17 million, compared to $11.53 million in Q3 2024, reflecting a 66.5% increase[38] - Free cash flow for Q3 2025 was $(29.44) million, compared to $8.67 million in Q3 2024[40] - Adjusted diluted net loss per share for Q3 2025 was $(0.17), compared to $0.11 in Q3 2024[40] Cash and Debt Position - Cash, cash equivalents, and investments in marketable securities totaled $138.3 million as of September 30, 2025[7] - Cash and cash equivalents as of September 30, 2025, were $130.75 million, up from $89.09 million at the end of 2024, showing improved liquidity[33] - Total debt obligations amounted to $621.6 million, including $604.0 million in Notes and $17.6 million under a short-term overdraft facility[9] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $131.88 million, down from $150.63 million at the beginning of the quarter[40] Growth and Market Presence - Connected TV (CTV) revenue grew by approximately 40% year-over-year in Q3 2025 on a pro-forma basis, with over 2,500 campaigns run since the launch of the CTV HomeScreen product[6] - Revenue generated through cross-selling increased 67% sequentially from Q2 to Q3 2025, with cross-screen adoption reaching over 10% of branding advertisers[8] - Total assets increased to $1.71 billion as of September 30, 2025, compared to $549.21 million at the end of 2024, reflecting significant growth in the company's balance sheet[33] - Teads is directly partnered with over 10,000 publishers and 20,000 advertisers globally, enhancing its market presence[28] Future Outlook and Strategic Initiatives - The company expects Ex-TAC gross profit for Q4 2025 to be between $142 million and $152 million, and Adjusted EBITDA to be between $26 million and $36 million[14] - The company plans to host an Investor Day in March 2026, with details to be shared closer to the event[8] - The company is focusing on leveraging predictive AI technology to drive advertising effectiveness and improve business outcomes[28] Risks and Challenges - Teads is navigating various risks including economic downturns, geopolitical tensions, and regulatory challenges that may impact advertising demand[31] - Operating expenses increased to $112.03 million in Q3 2025 from $51.82 million in Q3 2024, driven primarily by higher sales and marketing costs[31] - The company incurred $598.32 million in cash outflow for business acquisitions in the nine months ended September 30, 2025[40] - Traffic acquisition costs for Q3 2025 were $188.23 million, an increase from $164.48 million in Q3 2024[38]