Criteo (CRTO) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with revenue of $451 million, contribution ex-TAC of $264 million (up 7% at constant currency), and net income of $40 million, up 367% year-over-year.

• Retail Media saw $335 million in media spend, up 21% year-over-year, with contribution ex-TAC up 18% at constant currency, and strong agency partnerships and global expansion.

• Performance Media benefited from AI-driven automation and new product rollouts, with sequential growth in media spend and contribution ex-TAC up 4% at constant currency.

• Announced a reduction in managed services from the largest retail media client starting November 2025, impacting growth rates for 12 months.

• Maintains a robust, diversified client base and strong financial position with no long-term debt and $810 million in liquidity.

Financial highlights

• Q1 2025 revenue: $451 million; contribution ex-TAC: $264 million, up 7% at constant currency; adjusted EBITDA: $92 million, up 30% year-over-year.

• Net income: $40 million, up from $9 million last year; adjusted diluted EPS: $1.10, up 38%; diluted EPS: $0.66.

• Free cash flow: $45 million, up from $0.8 million in Q1 2024; operating cash flow: $62 million.

• Gross profit increased 9% to $237 million; gross margin improved to 52% from 48% year-over-year.

• Media spend for Q1 was $919 million, flat year-over-year at constant currency.

Outlook and guidance

• 2025 contribution ex-TAC expected to grow low single digits year-over-year at constant currency; adjusted EBITDA margin anticipated at 33%-34%.

• Retail Media growth projected in the low to mid-single digits; Performance Media contribution ex-TAC also up low single digits.

• Q2 2025 contribution ex-TAC guidance: $270-$278 million, down 2% to flat at constant currency; adjusted EBITDA $60-$66 million.

• Free cash flow conversion rate expected above 45% of adjusted EBITDA; CapEx around $100 million.

• FX expected to have a $10-$12 million positive impact year-over-year.