Teads Holding Co. Announces Third Quarter 2025 Results

Core Insights - Teads Holding Co. reported significant revenue growth in Q3 2025, with revenue reaching $318.8 million, a 42% increase from $224.2 million in the same period last year, primarily driven by acquisitions and favorable foreign currency effects [2][10] - The company experienced a net loss of $19.7 million in Q3 2025, a substantial decline from a net income of $6.7 million in Q3 2024, attributed to acquisition-related costs and restructuring charges [2][10] - Teads is focusing on improving profitability and cash flow generation following a restructuring of its go-to-market organization [3][4] Financial Performance - Revenue for the nine months ended September 30, 2025, was $948.2 million, up 45% from $655.3 million in the prior year [2] - Gross profit for Q3 2025 was $105.7 million, a 116% increase from $48.9 million in Q3 2024, with a gross margin improvement to 33.2% from 21.8% [2][10] - Adjusted EBITDA for Q3 2025 was $19.2 million, a 66% increase from $11.5 million in Q3 2024, indicating improved operational efficiency [2][10] Business Highlights - Connected TV (CTV) revenue grew approximately 40% year-over-year in Q3 2025, with the launch of CTV Performance globally [5][6] - Cross-selling revenue increased by 67% sequentially from Q2 to Q3 2025, demonstrating the effectiveness of the company's integrated platform [5][6] - The company plans to host an Investor Day in March 2026 to further engage with stakeholders [5] Guidance and Future Outlook - For Q4 2025, Teads expects Ex-TAC gross profit to be between $142 million and $152 million, and adjusted EBITDA to range from $26 million to $36 million [11][15] - The company remains confident in the strategic benefits of its recent merger and the potential of its cross-screen advertising platform [4][3]