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].

Core Insights - Teads has launched Connected Ads, a new branding solution aimed at enhancing creative possibilities and engagement across premium publisher environments, reinforcing its commitment to delivering brand-to-performance outcomes at scale [1][3]. Group 1: Product Features - Connected Ads offers a unified ad experience with two complementary placements: one embedded within the article and another at the end, maximizing brand visibility during a single content session [2][3]. - The format allows advertisers to utilize high-impact messaging and interactive elements, creating opportunities for deeper engagement and storytelling [2][3]. Group 2: Market Implementation - The beta launch of Connected Ads is currently live across major publishers in Germany, France, Italy, Japan, the UK, and the US, with several enterprise advertisers participating in the testing phase [4]. Group 3: Company Overview - Teads operates as an omnichannel outcomes platform for the open internet, focusing on delivering full-funnel results for marketers through predictive AI technology and partnerships with over 10,000 publishers and 20,000 advertisers globally [5].