Teads (TEAD) investor relations material

Executive summary

• Q2 2026 revenue declined 17% year-over-year to $284.6 million, with Ex-TAC gross profit at $123.4 million and adjusted EBITDA at $7.0 million.

• Net loss widened to $42.5 million from $14.3 million in Q2 2025, reflecting lower revenue, higher technology and restructuring costs, and increased tax provision.

• CTV revenue grew 67% year-over-year to $40 million, now representing 13% of Q2 revenue, with omnichannel adoption and partnerships expanding.

• The business is split between enterprise brands/agencies and direct response/SME, with enterprise as the primary growth engine and direct response/SME facing significant headwinds.

• Strategic restructuring plan completed, reducing global workforce by 10% and expected to yield $35–$40 million in annualized cost savings.

Financial highlights

• Q2 2026 revenue was $284.6 million, down 17% year-over-year; six-month revenue $550.6 million, down 12.5%.

• Ex-TAC gross profit was $123.4 million, down 14% year-over-year; gross profit was $95.6 million, down 21%.

• Adjusted EBITDA was $7.0 million, down from $27.0 million, with margin compressing to 5.7% of Ex-TAC gross profit.

• Net loss was $42.5 million, compared to $14.3 million loss last year; net loss margin (44.4%).

• Ended Q2 with $91 million in cash equivalents and marketable securities, plus $40 million available via revolving credit.

Outlook and guidance

• Guidance suspended for full-year 2026 Adjusted EBITDA due to volatility in direct response/SME segment.

• Enterprise business expected to return to year-over-year Ex-TAC growth in H2, with CTV growth accelerating into 2027.

• Strategic initiatives and investments in AI-powered solutions and new ad formats underway to address direct response/SME declines.

• Capital expenditures for 2026 projected at $3–$5 million; capitalized software development costs at $20–$27 million.

• Strategic restructuring plan expected to yield $35–$40 million in annualized cost savings.