Criteo (CRTO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue declined 11% year-over-year to $428 million, with gross profit down 14% to $222 million and net income falling 49% to $12 million, driven by spending reductions from large enterprise clients and scope changes in Retail Media.

• Adjusted EBITDA dropped 18% to $73 million, with adjusted diluted EPS down 13% to $0.80, but cost discipline and productivity gains supported profitability.

• Media spend in Q2 reached $1.1 billion, up 9% year-over-year, with Retail Media spend up 31% despite headwinds from two clients.

• Leadership transition: CFO Sarah Glickman stepping down, succeeded by Connor McGogney, effective August 2026.

• Strategic focus on Commerce Intelligence, AI-driven innovation, and expanding partnerships, notably with OpenAI, now the fastest-growing channel.

Financial highlights

• Q2 2026: Revenue $428M (down 11% YoY), gross profit $222M (down 14%), Contribution ex-TAC $255M (down 12%), net income $12M (down 49%), adjusted EBITDA $73M (down 18%), diluted EPS $0.22 (down 44%), adjusted diluted EPS $0.80 (down 13%).

• Free cash flow was -$38M in Q2; trailing 12-month free cash flow was $180M; cash and equivalents at June 30, 2026, totaled $252M.

• Operating expenses decreased 9% year-over-year; non-GAAP operating expenses down 10% due to productivity improvements.

Outlook and guidance

• FY 2026: Contribution ex-TAC expected to decline 10–12% at constant currency, with no recovery assumed from large enterprise clients and a $75M Retail Media headwind.

• Q3 2026: Contribution ex-TAC guidance of $237M–$241M (down 14–15% YoY); Adjusted EBITDA of $54M–$58M.

• Adjusted EBITDA margin anticipated at ~30% for 2026; normalized tax rate expected at 27%–32%.

• CapEx for 2026 projected at $190M, mainly for data center renewals.