Core Viewpoint - Criteo is pivoting towards "Agentic Commerce" and AI decisioning, focusing on enhancing consumer engagement through advanced recommendation services and conversational shopping experiences, despite facing growth challenges in 2026 due to retail media client scope reductions [1][2][5][19]. Financial Performance - Criteo reported record revenue of $1.9 billion for 2025, with a 35% adjusted EBITDA margin and $211 million in free cash flow [4][17]. - For Q4 2025, revenue was $541 million, with a contribution ex-TAC of $330 million, reflecting a $25 million headwind from retail media client changes [10][19]. - Performance media revenue for 2025 was $1.7 billion, with a contribution ex-TAC of $915 million, up 4% at constant currency [9][17]. Strategic Initiatives - The company is developing an "Agentic Commerce recommendation service" aimed at enhancing product discovery and purchasing through AI-driven solutions [1][5]. - Criteo's "Go" self-service suite is gaining traction, with campaigns showing over 20% higher return on ad spend compared to traditional methods [3][13]. - The company is testing conversational shopping experiences and embedding agentic capabilities into its marketing solutions, indicating strong client interest [6][7]. Market Outlook - For 2026, Criteo expects contribution ex-TAC to be flat to up 2% at constant currency, with underlying growth anticipated in the high single digits, excluding the impact of retail media client scope reductions [19][20]. - The company guided for Q1 2026 contribution ex-TAC of $245 million to $250 million, down 9% to 11% at constant currency, due to ongoing challenges in specific retail sectors [21]. Partnerships and Collaborations - Criteo has established partnerships with major retailers and platforms, including Google SA360 and Mirakl, enhancing its retail media capabilities [15][16]. - The company is actively pursuing additional testing with large language model partners to further develop its recommendation service [5][6]. Capital Management - Criteo ended December 2025 with $891 million in total liquidity and no long-term debt, indicating a strong financial position [22]. - The company repurchased 5.4 million shares for $152 million in 2025, with an increased share buyback authorization of up to $200 million [22]. Corporate Developments - Criteo is progressing with plans for redomiciliation to Luxembourg and a direct NASDAQ listing, expected to complete in Q3 2026, with a potential further move to the U.S. in early 2027 [23].

Financial Data and Key Metrics Changes - Revenue for 2025 was $1.9 billion, with contribution ex-TAC growing 3.5% at constant currency to $1.2 billion, benefiting from a $14 million tailwind from foreign currencies [20][21] - Adjusted EBITDA margin was 35%, supported by operational leverage and productivity improvements, with free cash flow of $211 million, up 16% year-over-year [21][24] - Adjusted net income reached $253 million, with adjusted diluted EPS increasing to $4.62 in 2025 [21] Business Line Data and Key Metrics Changes - Performance media revenue was $1.7 billion, with contribution ex-TAC at $915 million, up 4% at constant currency; Commerce Growth solution grew 5% while ad tech services declined 3% [20] - Retail media revenue was $264 million, with contribution ex-TAC at $260 million, up 2% year-over-year at constant currency; excluding two clients with scope changes, retail media contribution ex-TAC grew 16% [20][21] Market Data and Key Metrics Changes - Travel was the fastest-growing vertical in performance media, with growth accelerating to 37%, while department stores and fashion saw declines of 13% and 12% respectively [22] - Media spend growth accelerated in EMEA, while trends were softer in the U.S. and Asia Pacific [22] Company Strategy and Development Direction - The company is focusing on commerce intelligence and AI decisioning to simplify operations and scale as a commerce AI platform [4][6] - Priorities include leading in Agentic Commerce, scaling the AI-powered performance engine, and reinforcing retail media leadership [6][11] - The company aims to optimize performance at scale through proprietary commerce intelligence and AI decisioning [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's potential beyond current low growth expectations for 2026, emphasizing the importance of Agentic Commerce [6][19] - The company anticipates a flat to 2% growth in contribution ex-TAC for 2026, with underlying growth expected to be in the high single digits excluding client scope reductions [26][28] Other Important Information - The board increased the share buyback authorization to up to $200 million, reflecting confidence in the business's value [19][25] - The company is progressing with a redomiciliation to Luxembourg, with plans for a further redomiciliation to the U.S. in early 2027 [30][31] Q&A Session Questions and Answers Question: Can you elaborate on the AI recommendation service and its prospects? - Management highlighted the importance of high-quality product recommendations for platforms to compete for users, emphasizing the need for access to commerce data for effective recommendations [34][36] Question: What is the impact of department store weakness? - Management noted that department stores and fashion are experiencing headwinds, with specific declines observed, but did not comment on individual clients [35][39] Question: How will retail media growth progress throughout the year? - Management indicated that growth will be front-loaded, with Q1 and Q2 more impacted by client scope changes, but expects a ramp-up in the second half of the year [42][46] Question: What is the incremental opportunity in CommerceGo with the self-serve offering? - Management explained that the self-service rollout will expand the addressable market among small and medium-sized businesses, enhancing cross-channel full-funnel strategies [44][48] Question: How are retailers adopting internal LLM agentic tools? - Management noted that retailers are aggressively investing in AI-enabled tools to maintain customer journey control, with several pilots underway [53][56]

Group 1 - Mattel has partnered with OpenAI to integrate artificial intelligence into its products, potentially creating digital assistants based on its popular brands like Barbie and Hot Wheels [2][3] - The collaboration aims to enhance interactivity in products such as the Magic 8 Ball and Uno, with an announcement expected towards the end of the year [2][3] - Mattel retains control over the products being developed and is not licensing its intellectual property to OpenAI, with initial discussions starting in late 2024 [3][4] Group 2 - Mattel's CEO Ynon Kreiz is shifting the company's focus from traditional toy manufacturing to producing films, TV shows, and mobile games based on its characters [4] - OpenAI is actively seeking partnerships with companies that have strong intellectual property to create new products based on iconic brands [4][5] - The collaboration is seen as a critical phase in the creative design process, allowing both companies to explore how AI can enhance their capabilities [5]