Criteo (CRTO) Q1 2026 earnings summary

Executive summary

• Q1 2026 media spend surpassed $1 billion for the first time, up 8% year-over-year, with revenue of $425 million and Contribution ex-TAC of $250 million, reflecting solid execution amid a transition year and strong client retention.

• Net income dropped 79% year-over-year to $9 million, with adjusted EBITDA at $65 million, down 30% year-over-year but above guidance.

• Strategic focus on building a leading commerce intelligence and AI decisioning platform, with significant progress in agentic AI, partnerships, and product innovation, including expanded partnership with OpenAI and launch of Criteo GO.

• Despite macroeconomic headwinds, client-specific budget reductions, and higher operating expenses, fundamentals remain strong with high client retention and resilient mid-market performance.

• Continued leadership in Retail Media, with 75% of top 30 U.S. and 40% of top 50 EMEA retailers as clients.

Financial highlights

• Q1 2026 revenue: $425 million, down 6% year-over-year; Contribution ex-TAC: $250 million, down 5% year-over-year, including a $9 million FX tailwind.

• Adjusted EBITDA: $65 million; net income: $9 million; diluted EPS: $0.15 (adjusted EPS: $0.73).

• Gross profit: $223 million, down 6% year-over-year; gross margin stable at 52%.

• Free cash flow: $16 million, down 65% year-over-year; total liquidity: $889 million; no long-term debt.

• Share buybacks: $31 million deployed in Q1, with $190 million remaining under the program.

Outlook and guidance

• FY 2026: Contribution ex-TAC expected to decline by low single digits at constant currency, reflecting Retail Media client reductions and macro headwinds; underlying Contribution ex-TAC (excluding $75 million Retail Media headwind) expected to grow mid-single digits.

• Retail Media Contribution ex-TAC to decline mid to high teens year-over-year due to client scope reductions, but underlying growth to accelerate toward high teens-20%.

• Performance Media Contribution ex-TAC expected to be flat to up low single digits.

• Adjusted EBITDA margin anticipated at 32%-34% for 2026; CapEx expected at $190 million, mainly for data center renewals.

• Q2 2026 Contribution ex-TAC guidance: $260-$264 million, down 9%-11% year-over-year at constant currency; adjusted EBITDA expected between $67 million and $71 million.