Outbrain (US:OB)2026-03-05 11:36Financial Performance - Revenue for Q4 2025 was $352.2 million, a 50% increase from $234.6 million in Q4 2024, and full-year revenue reached $1,300.5 million, up 46% from $889.9 million in 2024[2][7] - Gross profit for Q4 2025 was $120.4 million, representing a 115% increase from $56.1 million in Q4 2024, with a gross margin of 34.2% compared to 23.9% in the prior year[2][6] - Adjusted EBITDA for Q4 2025 was $36.5 million, a 115% increase from $17.0 million in Q4 2024, with an adjusted net income of $9.5 million compared to $3.5 million in the prior year[2][6] - Revenue for the year ended December 31, 2025, was $1,300,461,000, up 46.1% from $889,875,000 in 2024[39] - Gross profit for 2025 was $429,052,000, a 123.8% increase compared to $192,102,000 in 2024[39] - Adjusted EBITDA for 2025 was $93,374,000, compared to $37,300,000 in 2024, reflecting a significant increase[39] Net Loss and Expenses - The net loss for Q4 2025 was $428.2 million, compared to a net loss of $0.2 million in Q4 2024, primarily due to nonrecurring expenses related to goodwill impairment and acquisition costs[2][6] - Total operating expenses for Q4 2025 were $466.434 million, up from $53.527 million in Q4 2024, primarily due to goodwill impairment of $352.130 million[32] - Net loss for the year ended December 31, 2025, was $517,070,000, compared to a loss of $711,000 in 2024[39] - The net loss for Q4 2025 was $428.224 million, compared to a net loss of $167 thousand in Q4 2024[32] Cash Flow and Assets - Cash, cash equivalents, and investments in marketable securities totaled $138.7 million as of December 31, 2025[9] - Cash and cash equivalents increased to $129,700,000 at the end of 2025 from $89,725,000 at the end of 2024[37] - The company reported a cash outflow from investing activities of $554,184,000 in 2025, compared to an inflow of $67,153,000 in 2024[37] - Net cash provided by operating activities for Q4 2025 was $7.262 million, down from $42.663 million in Q4 2024[41] Operational Metrics - Connected TV (CTV) revenue crossed the $100 million annual mark, with a year-over-year growth of 55% in Q4 2025[4] - Branding customers utilizing omnichannel campaigns grew to 10% in Q4 2025, up from 7% in Q1 2025, with expectations to reach at least 15% by the end of 2026[4] - The company reduced headcount by approximately 10%, aiming for annualized cost savings of $35 million to $40 million[6] - Teads has a global workforce of approximately 1,700 employees across more than 30 countries, indicating a strong operational presence[28] Future Outlook - The company expects adjusted EBITDA of approximately $100 million for the full year 2026, indicating a positive outlook for growth[10] - The company anticipates challenges related to integrating acquisitions and managing growth effectively, alongside potential impacts from economic conditions and market volatility[24] Shareholder Information - The company reported a weighted average of 95,620,706 diluted shares outstanding for Q4 2025[32] - The diluted net loss per share reported for Q4 2025 was $(4.48), while the adjusted diluted net income per share was $0.10[41] Adjustments and Non-GAAP Measures - Adjusted net income (loss) is a non-GAAP measure that excludes certain items not indicative of core operating performance, such as acquisition costs and impairment charges[21] - Free cash flow is defined as cash flow from operating activities minus capital expenditures, with adjusted free cash flow including direct acquisition costs[22] - Total adjustments after tax for Q4 2025 amounted to $437.736 million, compared to $3.625 million in Q4 2024[41] - The total adjustments before tax for the twelve months ended December 31, 2025, were $422.734 million, compared to $6.216 million in 2024[41] - Adjusted free cash flow for the twelve months ended December 31, 2025, was $5.969 million, compared to $55.259 million in 2024[41]