TechTarget (TTGT) investor relations material

Executive summary

• Q3 revenue was $119.2M, up 2.6% sequentially but down 2.5% YoY; slower pipeline conversion and customer caution weighed on results.

• Q3 Adjusted EBITDA was $18.6M versus $22.6M YoY; net loss narrowed to $18.2M from $76.8M, primarily reflecting lower goodwill impairment charges.

• Audience membership exceeded 59M, up mid-single digits YoY, and bookings from the largest-client cohort grew double digits.

• FY 2026 revenue is expected modestly below 2025, with Adjusted EBITDA guidance reduced to $80M–$85M.

Financial highlights

• Q3 gross profit was $67.8M, down 10% YoY; cost of revenue rose 9% to $51.4M, reflecting higher content, editorial and data costs.

• Nine-month revenue was $341.4M versus $346.1M; gross profit declined 6% to $190.3M as cost of revenue rose 6% to $151.1M.

• Q3 operating loss was $15.2M versus $107.9M; nine-month net loss narrowed to $110.7M from $998.8M.

• Nine-month Adjusted EBITDA was $41.0M versus $45.7M; selling and marketing expense fell 11% to $94.0M, mainly on lower labor costs and marketing spend.

• Nine-month Free Cash Flow was negative $18.7M versus negative $8.0M; Adjusted Free Cash Flow was positive $15.0M versus $25.7M.

Outlook and guidance

• FY 2026 revenue is expected modestly below prior year, replacing the prior outlook for a return to growth; Adjusted EBITDA guidance is $80M–$85M versus prior $95M–$100M.

• Q4 revenue and profitability are expected to improve sequentially on seasonal strength, supported by regional channel partner forums and live events across EMEA, the Americas and APAC.

• 2027 priorities include returning to top-line growth, gaining market and wallet share, and shifting more resources toward sales and marketing.

• Acquisition, integration and restructuring cash costs are expected to be behind entering 2027; cash and remaining revolver availability are expected to cover anticipated needs for at least 12 months.