For the quarter, Teads generated $352.2 million in revenue, a 50% increase over the $234.6 million posted in Q4 2024. Annual revenue climbed to $1,300.5 million, up 46% from $889.9 million the prior year. Gross profit rose to $120.4 million in Q4 (‑115% YoY) and $429.1 million for the year, lifting the overall gross margin from 21.6% to 33.0%.
The company’s “Ex‑TAC” gross profit—gross profit after subtracting traffic‑acquisition costs—reached $151.8 million in Q4 and $529.7 million for the full year, representing 122% and 124% growth respectively. This metric pushed the Ex‑TAC margin to 43.1% in the quarter and 40.7% across the year, reflecting the higher‑margin profile of the acquired assets.
Adjusted EBITDA, a non‑GAAP profitability indicator, surged to $36.5 million in Q4 (‑115% YoY) and $93.4 million for 2025, driven largely by the Outbrain merger and cost‑structure improvements. Adjusted net income turned positive in the quarter at $9.5 million, though the full year still posted an adjusted loss of $31.7 million.
Despite a GAAP net loss of $(428.2) million in Q4 and $(517.1) million for the year—primarily due to a $352.1 million goodwill impairment, acquisition‑related costs, and restructuring charges—the company reported $7.3 million of cash generated from operations in Q4 and $7.6 million for the year, indicating a modest cash‑flow recovery.
Cash position and debt
At year‑end, Teads held $138.7 million in cash, cash equivalents, and short‑term marketable securities. Total debt stood at $622.7 million, dominated by 10.000% senior secured notes due 2030 (principal $628.2 million, net $605.1 million) and a modest overdraft facility.
Executive perspective
CEO David Kostman highlighted the quarter’s results, saying, “We finished 2025 delivering Q4 results at the high end of our guidance and generating positive Adjusted Free Cash Flow.” He added that the company’s recent restructuring, leadership refresh, and cost‑base optimization have positioned it for “an inflection point” in 2026.
Operational highlights
CTV momentum
- Connected TV (CTV) revenue surpassed the $100 million annual threshold, with a 55% YoY increase in Q4.
- Expansion of HomeScreen inventory on LG and Samsung platforms, including exclusive LG deals in Italy and Greece and Samsung roll‑outs across select Asian markets.
- Google TV partnership broadened CTV reach, delivering the first visual impression on Google TV devices in major markets such as the United States and United Kingdom.
Omnichannel adoption
- Brands employing omnichannel campaigns grew to 10% of the client base in Q4, up from 7% in Q1 2025, with a target of at least 15% by the end of 2026.
Cross‑selling and renewals
- Performance‑driven ads were successfully cross‑sold to enterprise accounts, adding names like McDonald’s, Deutsche Bahn, and Porsche.
- Several joint‑business partnership renewals were secured across consumer goods, automotive, and technology sectors, underscoring longer‑term client commitment.
AI‑driven monetization
- The company launched a beta conversational‑AI ads SDK, enabling large language model (LLM)‑powered applications to monetize AI interactions while preserving user experience.
Organizational restructuring
- A leadership overhaul introduced a new Chief Commercial Officer, Chief Marketing Officer, and Managing Director for North America.
- Headcount was trimmed by roughly 10%, projected to save $35 million–$40 million annually once fully realized.
Guidance for 2026
- Q1 2026 (ending March 31): Ex‑TAC gross profit expected between $102 million and $106 million; Adjusted EBITDA projected to range from breakeven to $3 million.
- Full year 2026: Adjusted EBITDA target set at approximately $100 million.
Conference call details
An investor call was scheduled for Thursday, March 5 at 8:30 am ET. Participants could join via telephone (U.S.: 1‑877‑497‑9071; International: 1‑201‑689‑8727) using passcode 13757587, or listen to a simultaneous webcast on the Teads Investor Relations portal. A replay was made available until March 19, 2026.
Non‑GAAP metrics explained
Teads reiterated its reliance on several supplemental measures—Ex‑TAC gross profit, Adjusted EBITDA, adjusted net income, and adjusted free cash flow—to assess operational performance. The company noted that these figures exclude items it deems non‑core, such as goodwill impairments, acquisition costs, restructuring charges, and certain tax effects. While useful for internal analysis, the firm warned that comparability with peers may be limited due to differing definitions.
Forward‑looking statements and risk factors
The press release contained the standard disclaimer that forward‑looking statements involve risks, including integration challenges post‑Outbrain acquisition, fluctuations in advertising demand, AI‑related regulatory developments, competition, currency volatility, and broader macroeconomic headwinds such as geopolitical tensions and potential recessions. Teads emphasized that actual results could differ materially from the projections provided.
Get in touch with our Adtech experts
