Teads Holding Co. Announces Second Quarter 2025 Results

Core Insights - Teads Holding Co. achieved its Q2 guidance on both Ex-TAC gross profit and Adjusted EBITDA, demonstrating strong cash generation and over 80% year-over-year growth in Connected TV (CTV) revenue [1][8]. Financial Performance - For Q2 2025, revenue reached $343.1 million, a 60% increase from $214.1 million in Q2 2024. For the first half of 2025, revenue was $629.5 million, up 46% from $431.1 million in the same period last year [2][6]. - Gross profit for Q2 2025 was $120.3 million, reflecting a 164% increase compared to $45.6 million in Q2 2024. The gross margin improved to 35.1% from 21.3% year-over-year [2][8]. - Ex-TAC gross profit was $144.2 million, a 158% increase from $56.0 million in the prior year period, with an Ex-TAC gross margin of 42.0% [2][8]. - Adjusted EBITDA for Q2 2025 was $27.0 million, up 264% from $7.4 million in Q2 2024 [2][8]. - The company reported a net loss of $14.3 million for Q2 2025, compared to a net loss of $2.2 million in Q2 2024, influenced by acquisition and integration costs [2][8]. Business Highlights - The company repurchased $9.3 million of senior secured notes for approximately $8.0 million in cash, achieving a discount of about 17% [5]. - Teads expects to realize at least $40 million in total synergies in 2025 and $65 million to $75 million in 2026 [5]. - The company expanded its Joint Business Partnerships, signing new agreements with Kia and Zalando, and has over 500 advertisers spending at least $500,000 in the last twelve months, representing about 70% of total customer spend [5][8]. Guidance and Outlook - For Q3 2025, Teads anticipates Ex-TAC gross profit between $133 million and $143 million [7]. - The company aims to generate positive free cash flow for the full year, although it refrained from reaffirming FY 2025 Adjusted EBITDA guidance due to uncertainties related to post-merger integration [9].