CRITEO REPORTS FOURTH QUARTER 2025 RESULTS

Core Insights - Criteo reported a decrease in revenue for Q4 2025 by 2% year-over-year, with a total revenue of $541 million, while the fiscal year 2025 revenue increased by 1% to $1.9 billion [1][2] - The company experienced a significant drop in net income for Q4 2025, down 36% to $46 million, but a 30% increase in net income for the full year to $149 million [1][2] - Criteo's cash flow from operating activities increased by 21% to $311 million in 2025, and free cash flow rose by 16% to $211 million, indicating strong operational performance [1][2] Financial Highlights - Q4 2025 revenue was $541 million, gross profit was $297 million, and contribution ex-TAC was $330 million, reflecting a decrease of 2%, 1%, and 1% respectively year-over-year [1][2] - For the fiscal year 2025, revenue was $1.9 billion, gross profit was $1.0 billion, and contribution ex-TAC was $1.2 billion, with increases of 1%, 7%, and 5% respectively [1][2] - Adjusted EBITDA for Q4 2025 was $120 million, down 17% year-over-year, while for the full year it was $407 million, up 4% [2][3] Operating Performance - Criteo's media spend reached $4.3 billion in 2025, growing 3% year-over-year, with Q4 media spend at $1.4 billion, up 6% [1][2] - The company launched new tools such as the Audience Agent and Insights Agent to enhance audience planning and data-driven decision-making [1] - Retail Media contribution ex-TAC grew by 2% year-over-year in 2025 but decreased by 18% in Q4 2025 due to scope changes with specific clients [1][2] Share Repurchase and Financial Position - Criteo deployed $152 million for share repurchases in 2025 and increased its remaining share buyback authorization to $200 million [1][3] - As of December 31, 2025, the company had $389 million in cash and marketable securities, reflecting an increase of $56 million compared to the previous year [2][3] - The total financial liquidity position was approximately $891 million, including cash, marketable securities, and credit facilities [2] Future Outlook - For fiscal year 2026, Criteo expects an adjusted EBITDA margin of approximately 32% to 34% of contribution ex-TAC, with contribution ex-TAC growth projected to be flat to +2% at constant currency [2][3] - The first quarter of 2026 is anticipated to represent the low point of the year, with adjusted EBITDA guidance between $50 million and $55 million [2][3]