Teads (TEAD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $266.0 million, down 7% year-over-year, but Ex-TAC gross profit rose 5% to $107.9 million and gross profit increased 1% to $83.6 million, reflecting strong execution by a new leadership team and successful integration of Outbrain and Teads platforms.

• Net loss narrowed to $38.8 million from $54.8 million year-over-year, driven by lower operating expenses, reduced impairment and restructuring charges, and lower interest expense.

• CTV revenue grew over 50% year-over-year, with notable momentum in EMEA and APAC, expanded partnerships with LG, Samsung, and Google TV, and increased adoption of omnichannel campaigns.

• Renewed major enterprise partnerships and increased omni-channel campaign adoption to 13% from 8% year-over-year.

• Aggressive adoption of AI across product, engineering, and internal functions, driving differentiation and operational efficiency.

Financial highlights

• Ex-TAC gross profit rose 5% to $107.9 million, while gross margin improved to 31.4% from 28.9% year-over-year.

• Adjusted EBITDA for Q1 was $0.8 million, down from $10.7 million prior year, reflecting margin pressure and restructuring costs.

• Adjusted free cash flow was negative $41.1 million, mainly due to a $31.4 million semi-annual bond interest payment and working capital timing.

• Ended Q1 with $98.7 million in cash, cash equivalents, and investments.

• Total debt was $623.4 million, including $606.2 million in senior secured notes and $17.2 million in short-term overdraft.

Outlook and guidance

• Q2 2026 Ex-TAC gross profit expected between $121 million and $131 million; Adjusted EBITDA guidance is $14 million–$22 million.

• Full-year 2026 Adjusted EBITDA expected to be approximately $100 million.

• Management expects continued operational efficiencies and cost savings from the restructuring plan, with actions largely complete in the first half of 2026.

• Anticipates return to year-over-year growth by Q4 2026, with headwinds from prior year cleanups easing in H2.

• The company believes current liquidity is sufficient to fund operations and capital needs for at least the next 12 months.