Teads (TEAD) Q1 2026 earnings summary

Executive summary

• Achieved a pivotal quarter with Ex-TAC revenue and profit exceeding guidance, driven by strong execution from a new leadership team and successful integration of Outbrain and Teads platforms.

• CTV revenue grew over 50% year-over-year, with notable momentum in EMEA and APAC, and expanded partnerships with LG, Samsung, and Google TV.

• Renewed major enterprise partnerships and increased omni-channel campaign adoption to 13% from 8% year-over-year.

• Net loss narrowed to $38.8 million from $54.8 million year-over-year, with adjusted EBITDA at $0.8 million.

• Aggressive adoption of AI across product and internal functions, driving differentiation and operational efficiency.

Financial highlights

• Q1 2026 revenue was $266.0 million, down 7% year-over-year, with Ex-TAC gross profit up 5% to $107.9 million.

• Gross margin improved to 31.4% from 28.9% year-over-year; Ex-TAC gross margin rose to 40.6% from 36.0%.

• Adjusted EBITDA for Q1 was $0.8 million; adjusted free cash flow was $(41.1) million, mainly due to timing of bond interest payments and working capital.

• Cost of sales and operating expenses decreased year-over-year, reducing compensation run rate by over 20%.

• Ended Q1 with $98.7 million in cash equivalents and marketable securities.

Outlook and guidance

• Q2 2026 Ex-TAC gross profit expected between $121 million and $131 million; Adjusted EBITDA guidance of $14 million to $22 million.

• Full year 2026 Adjusted EBITDA expected to be approximately $100 million.

• Anticipates return to year-over-year growth by Q4 2026, with headwinds from direct response business cleanups easing in H2.