Teads (TEAD) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $235.1M, down 26.3% YoY; gross profit fell 42.4% to $60.9M and Adjusted EBITDA was $(8.1)M.

• Net loss of $325.5M included a $272.4M non-cash goodwill impairment; CTV revenue grew 37% amid open-internet headwinds.

Financial highlights

• Q3 Ex-TAC Gross Profit was $93.5M, down 28% YoY; Ex-TAC margin was 39.8% vs. 40.9%.

• Q3 diluted loss per share was $3.31 vs. $0.21; adjusted diluted loss per share was $0.48 vs. $0.14.

• 9M revenue was $785.6M, down 17.1%; Adjusted EBITDA was $(0.4)M vs. $56.8M.

• Q3 adjusted free cash flow was $(33.1)M, including a $31M semi-annual interest payment; free cash flow before interest was $(1.4)M.

Outlook and guidance

• Guidance, including FY2026 Adjusted EBITDA guidance, was suspended; management cited some improvement in early Q4 trends.

• Current forecasts and plans within management’s control are expected to cover obligations for at least 12 months, subject to uncertainty; absent those actions, additional liquidity would be required.

• FY2026 capex guidance is $3M–$5M; capitalized software development costs are expected at $20M–$27M, including AI and machine-learning investment.

• Cost-saving measures continue, alongside exploration of transactions to strengthen the balance sheet and reduce leverage and interest expense.