CRITEO REPORTS SECOND QUARTER 2026 RESULTS
Rhea-AI Summary
Criteo (NASDAQ: CRTO) reported Q2 2026 revenue of $428 million, down 11% year-over-year, with gross profit of $222 million and Contribution ex-TAC of $255 million, all declining double digits. GAAP net income was $12 million (diluted EPS $0.22), and adjusted net income was $41 million (adjusted diluted EPS $0.80). Adjusted EBITDA fell to $73 million and margin to 29% of Contribution ex-TAC. Free Cash Flow was $(38) million, while cash and cash equivalents were $252 million and total financial liquidity about $767 million.
Criteo's last-12-month media spend reached $4.5 billion, including $1.1 billion in Q2, up 9% year-over-year at constant currency. The company repurchased $30 million of shares in Q2 (total $61 million year-to-date) and appointed Connor McGogney as CFO effective August 10, 2026. Criteo updated 2026 guidance to a 10–12% decline in Contribution ex-TAC at constant currency and an Adjusted EBITDA margin of about 30% of Contribution ex-TAC, and expects Q3 2026 Contribution ex-TAC of $237–$241 million and Adjusted EBITDA of $54–$58 million.
Positive
- Media spend $1.1B in Q2 2026, up 9% YoY at constant currency
- Trailing 12-month Free Cash Flow $180 million
- Adjusted EBITDA margin 29% of Contribution ex-TAC in Q2 2026
- Total liquidity ~$767 million including $252 million cash and $464 million revolver
- $61 million deployed to share repurchases in first half 2026
- Underlying Retail Media Contribution ex-TAC +20% YoY excluding two client scope changes
Negative
- Revenue down 11% YoY to $428 million in Q2 2026
- Gross profit down 14% YoY and margin down 2 ppt to 52%
- Net income down 49% YoY to $12 million in Q2 2026
- Contribution ex-TAC down 13% YoY to $255 million in Q2 2026
- Free Cash Flow $(38) million in Q2 2026, slightly worse than prior year
- 2026 outlook cut to -12% to -10% Contribution ex-TAC at constant currency
- Q3 2026 guidance implies -15% to -14% Contribution ex-TAC decline at constant currency
Market Reaction – CRTO
Following this news, CRTO has declined 27.46%, reflecting a significant negative market reaction. Our momentum scanner has triggered 15 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $16.25.
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Appointed Connor McGogney as Chief Financial Officer, Effective August 10, 2026
Q2 2026 Media Spend of
Deployed
Second Quarter 2026 Financial Highlights:
The following table summarizes our consolidated financial results for the three months and six months ended June 30, 2026:
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2026 | 2025 | YoY Change | 2026 | 2025 | YoY Change | |||||
(in millions, except EPS data) | ||||||||||
GAAP Results | ||||||||||
Revenue | (11) % | (9) % | ||||||||
Gross Profit | (14) % | (10) % | ||||||||
Net Income | (49) % | (68) % | ||||||||
Gross Profit margin | 52 % | 54 % | (2)ppt | 52 % | 53 % | (1) ppt | ||||
Diluted EPS | (44) % | (65) % | ||||||||
Cash from operating activities | NM | 12 % | ||||||||
Cash and cash equivalents | 23 % | 23 % | ||||||||
Non-GAAP Results1 | ||||||||||
Contribution ex-TAC | (13) % | (9) % | ||||||||
Adjusted EBITDA | (18) % | (24) % | ||||||||
Adjusted diluted EPS | (13) % | (24) % | ||||||||
Free Cash Flow (FCF) | (3) % | (340) % | ||||||||
FCF / Adjusted EBITDA | (51) % | (41) % | (10)ppt | (16) % | 5 % | (21) ppt | ||||
"While our second quarter top line performance was disappointing, our long-term strategy remains unchanged," said Michael Komasinski, Chief Executive Officer of Criteo. "We remain confident in our Commerce Intelligence strategy and are strengthening execution, diversifying our business and positioning Criteo to help shape the next generation of AI driven commerce."
Operating Highlights
- Criteo appointed Connor McGogney as Chief Financial Officer, effective August 10, 2026. He succeeds Sarah Glickman, who has served as Chief Financial Officer for the past six years and will remain as an advisor through the end of September to support a seamless transition.
- Criteo's media spend2 was
$4.5 billion $1.1 billion 9% year-over-year at constant currency3. - Criteo became OpenAI's first advertising technology partner in March 2026 and now has over 2,000 brands advertising on ChatGPT across seven countries, with additional country launches planned, including
Mexico andBrazil . ChatGPT Ads inventory is now available through Criteo's self-service, cross-channel performance platform Criteo GO. - The Company further strengthened its Retail Media footprint with the addition of Loblaw Advance in
Canada , Monoprix and Druni in EMEA, and Olive Young and Golf Digest Online in APAC. - Criteo launched sponsored products into AI-powered conversational search with Albertsons, creating new discovery and monetization opportunities.
- Criteo was named a Leader in the QKS Group SPARK Matrix™ for Retail Media Network and Monetization Platform, Q2 2026.
- The Company deployed
$61 million $30 million - Criteo completed its redomiciliation from
France to Luxembourg, and its Board of Directors approved the subsequent transfer of legal domicile from Luxembourg tothe United States , which is expected to be completed in January 2027, subject to shareholder approval and other customary conditions.
___________________________________________________ |
1 Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted diluted EPS and Free Cash Flow are not measures calculated in accordance with |
Financial Summary
Revenue for Q2 2026 was
Sarah Glickman, Chief Financial Officer, said, "Our updated outlook reflects a more conservative view of our business trends for the remainder of the year. Our strong profitability, cash flow and balance sheet provide the financial flexibility to execute our strategy, maintain disciplined capital allocation and create long term shareholder value."
Second Quarter 2026 Results
Revenue, Gross Profit and Contribution ex-TAC
Revenue decreased (11)% year-over-year in Q2 2026, or decreased (11)% at constant currency, to
- Retail Media revenue decreased (21)%, or (22)% at constant currency, and Retail Media Contribution ex-TAC decreased (21)%, or (22)% at constant currency, reflecting a
$21 million 20% in Q2 across the underlying client base.
- Performance Media revenue decreased (10)%, or decreased (9)% at constant currency, and Performance Media Contribution ex-TAC decreased (10)%, or decreased (10)% at constant currency, reflecting soft performance in Commerce Growth, partially offset by improved year-over-year trends in AdTech Services.
Net Income and Adjusted Net Income
Net income was
Adjusted net income, a non-GAAP financial measure, was
Adjusted EBITDA and Operating Expenses
Adjusted EBITDA was
Operating expenses decreased (9)% year-over-year to
Cash Flow, Cash and Financial Liquidity Position
Cash flow from operating activities was
Free Cash Flow was
Cash and cash equivalents, and marketable securities, were
As of June 30, 2026, the Company had total financial liquidity of approximately
2026 Business Outlook
The following forward-looking statements reflect Criteo's expectations as of August 5, 2026. The Company's outlook is based on year-to-date performance and current business trends.
Fiscal year 2026 guidance:
- We now expect Contribution ex-TAC to decrease -
12% to -10% at constant currency. - We now expect an Adjusted EBITDA margin of approximately
30% of Contribution ex-TAC.
Third quarter 2026 guidance:
- We expect Contribution ex-TAC between
$237 million $241 million 15% to -14% year-over-year at constant-currency. - We expect Adjusted EBITDA between
$54 million $58 million
The Company's third quarter 2026 guidance reflects the temporary impact of previously communicated scope changes with two specific Retail Media clients.
The above guidance for the fiscal year ending December 31, 2026 assumes the following exchange rates for the main currencies impacting our business: a
The above guidance assumes that no acquisitions and dispositions are completed during the third quarter of 2026 or the fiscal year ended December 31, 2026.
Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding
Non-GAAP Financial Measures
This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the
Contribution ex-TAC is a profitability measure akin to gross profit. It is calculated by deducting traffic acquisition costs from revenue and reconciled to gross profit through the exclusion of other costs of revenue. Contribution ex-TAC is not a measure calculated in accordance with
Adjusted EBITDA is our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity related compensation, which includes employee equity awards compensation and director fees for share purchases, employer social contribution expense related to employee equity award compensation, pension service costs, certain acquisition costs, certain restructuring and related costs, integration and transformation costs, and other nonrecurring or noncash items impacting net income that we do not consider indicative of our ongoing business performance. Adjusted EBITDA and Adjusted EBITDA margin are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.
Adjusted Net Income is our net income adjusted to eliminate the impact of equity related compensation, which includes employee equity awards compensation and director fees for share purchases, employer social contribution expense related to employee equity award compensation, amortization of acquisition-related assets, certain restructuring and related costs, integration and transformation costs, certain acquisition costs, other nonrecurring or noncash items impacting net income that we do not consider indicative of our ongoing business performance, and the tax impact of these adjustments. Adjusted Net Income and Adjusted diluted EPS are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that Adjusted Net Income and Adjusted diluted EPS can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted diluted EPS provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.
Free Cash Flow is defined as cash flow from operating activities less net acquisition of intangible assets, property, and equipment. Free Cash Flow Conversion is defined as free cash flow divided by Adjusted EBITDA. Free Cash Flow and Free Cash Flow Conversion are key measures used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow and Free Cash Flow Conversion permit a more complete and comprehensive analysis of our available cash flows.
Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate depreciation and amortization, equity related compensation, which includes employee equity awards compensation and director fees for share purchases, employer social contribution expense related to employee equity award compensation, pension service costs, certain restructuring and related costs, integration and transformation costs, certain acquisition costs, and other nonrecurring or noncash items. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community.
Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Contribution ex-TAC to gross profit, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable
Forward-Looking Statements Disclosure
This press release contains forward-looking statements, including projected financial results for the quarter ending September 30, 2026 and the year ending December 31, 2026, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, including our use and expected use of AI; uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory; investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions or strategic transactions, including the completed redomiciliation from
Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.
Conference Call Information
Criteo's senior management team will discuss the Company's earnings on a call that will take place today, August 5, 2026, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on the Company's website at https://criteo.investorroom.com/ and will subsequently be available for replay.
United States : +1 800 836 8184- International: +1 646 357 8785
- France 080-094-5120
Please ask to be joined into the "Criteo" call.
About Criteo
Criteo (NASDAQ: CRTO) is the global commerce intelligence platform that drives performance for brands, agencies, retailers, and publishers. Built on proprietary commerce data from more than
Contacts
Investor Relations & Corporate Communications
Melanie Dambre, m.dambre@criteo.com
Public Relations
Amanda Echavarri, a.echavarri@criteo.com
Financial information to follow
CRITEO S.A. Consolidated Statement of Financial Position ( | |||
June 30, 2026 | December 31, 2025 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 252,236 | $ 342,038 | |
Trade receivables, net of allowances of | 455,966 | 582,102 | |
Income taxes | 16,871 | 14,233 | |
Other taxes | 56,767 | 57,050 | |
Marketable securities - current portion | 28,052 | 23,242 | |
Prepaid expenses and other current assets | 63,180 | 53,210 | |
Total current assets | 873,072 | 1,071,875 | |
Property and equipment, net | 168,378 | 139,330 | |
Intangible assets, net | 141,357 | 151,853 | |
Goodwill | 531,794 | 535,761 | |
Right of use assets - operating leases | 134,390 | 134,205 | |
Marketable securities - noncurrent portion | 22,788 | 23,500 | |
Noncurrent financial assets | 8,073 | 8,314 | |
Deferred tax assets | 84,945 | 90,689 | |
Other noncurrent assets | 45,987 | 45,680 | |
Total noncurrent assets | 1,137,712 | 1,129,332 | |
Total assets | $ 2,010,784 | $ 2,201,207 | |
Liabilities and shareholders' equity | |||
Current liabilities: | |||
Trade payables | $ 457,107 | $ 566,046 | |
Contingencies - current portion | 11,505 | 9,229 | |
Income taxes | 8,321 | 27,528 | |
Financial liabilities - current portion | 9,645 | 11,360 | |
Lease liability - operating - current portion | 36,414 | 33,085 | |
Other taxes | 12,338 | 14,713 | |
Employee - related payables | 87,998 | 114,416 | |
Other current liabilities | 54,387 | 68,277 | |
Total current liabilities | 677,715 | 844,654 | |
Deferred tax liabilities | 5,131 | 5,285 | |
Defined benefit plans | 6,043 | 5,707 | |
Lease liability - operating - noncurrent portion | 102,128 | 105,277 | |
Contingencies - noncurrent portion | 23,304 | 22,729 | |
Other noncurrent liabilities | 32,332 | 31,826 | |
Total noncurrent liabilities | 168,938 | 170,824 | |
Total liabilities | 846,653 | 1,015,478 | |
Shareholders' equity: | |||
Common shares, | 1,815 | 1,871 | |
Treasury stock, 5,178,442 and 4,508,029 shares at cost as of June 30, 2026 | (108,990) | (120,853) | |
Additional paid-in capital | 706,534 | 706,321 | |
Accumulated other comprehensive loss | (80,120) | (68,879) | |
Retained earnings | 608,276 | 630,750 | |
Equity attributable to the shareholders of Criteo S.A. | 1,127,515 | 1,149,210 | |
Noncontrolling interests | 36,616 | 36,519 | |
Total equity | 1,164,131 | 1,185,729 | |
Total equity and liabilities | $ 2,010,784 | $ 2,201,207 | |
CRITEO S.A. | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Revenue | $ 428,018 | $ 482,671 | $ 852,657 | $ 934,105 | ||||
Cost of revenue | ||||||||
Traffic acquisition cost | 172,545 | 190,602 | 346,816 | 377,664 | ||||
Other cost of revenue | 33,259 | 33,551 | 60,885 | 60,947 | ||||
Gross profit | 222,214 | 258,518 | 444,956 | 495,494 | ||||
Operating expenses: | ||||||||
Research and development expenses | 71,945 | 79,610 | 141,628 | 140,359 | ||||
Sales and operations expenses | 85,539 | 108,215 | 183,040 | 197,104 | ||||
General and administrative expenses | 49,722 | 40,238 | 94,880 | 79,409 | ||||
Total operating expenses | 207,206 | 228,063 | 419,548 | 416,872 | ||||
Income from operations | 15,008 | 30,455 | 25,408 | 78,622 | ||||
Financial and other income (expense) | 319 | (1,801) | 2,192 | 501 | ||||
Income before taxes | 15,327 | 28,654 | 27,600 | 79,123 | ||||
Provision for income taxes | 3,576 | 5,734 | 7,269 | 16,192 | ||||
Net income | $ 11,751 | $ 22,920 | $ 20,331 | $ 62,931 | ||||
Net income available to shareholders of Criteo S.A. | $ 11,190 | $ 21,250 | $ 19,007 | $ 59,178 | ||||
Net income available to noncontrolling interests | $ 561 | $ 1,670 | $ 1,324 | $ 3,753 | ||||
Weighted average shares outstanding used in computing per share | ||||||||
Basic | 49,664,392 | 52,986,068 | 50,007,078 | 53,480,338 | ||||
Diluted | 50,545,915 | 55,133,569 | 50,754,574 | 56,162,459 | ||||
Net income allocated to shareholders per share: | ||||||||
Basic | $ 0.23 | $ 0.40 | $ 0.38 | $ 1.11 | ||||
Diluted | $ 0.22 | $ 0.39 | $ 0.37 | $ 1.05 | ||||
CRITEO S.A. Consolidated Statement of Cash Flows ( | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Cash flows from operating activities | ||||||||
Net income | $ 11,751 | $ 22,920 | $ 20,331 | $ 62,931 | ||||
Noncash and nonoperating items | 25,870 | 28,238 | 66,136 | 70,868 | ||||
- Amortization and provisions | 23,471 | 36,902 | 52,040 | 60,485 | ||||
- Equity awards compensation expense | 16,381 | 21,128 | 29,728 | 36,537 | ||||
- Loss (gain) on disposal of and impairment of long-lived assets | 48 | 845 | (701) | 1,392 | ||||
- Change in uncertain tax positions | 95 | (289) | 522 | (289) | ||||
- Change in deferred taxes | 3,293 | 5,547 | 5,300 | 12,435 | ||||
- Change in income taxes | (17,915) | (39,907) | (21,607) | (44,195) | ||||
- Other | 497 | 4,012 | 854 | 4,503 | ||||
Changes in assets and liabilities: | (17,322) | (52,555) | (17,961) | (72,855) | ||||
- Trade receivables | (1,705) | (2,564) | 130,281 | 161,379 | ||||
- Trade payables | 11,890 | (28,910) | (100,951) | (203,241) | ||||
- Other assets | 9,186 | 20,908 | (15,329) | 12,448 | ||||
- Other liabilities | (36,229) | (42,783) | (32,401) | (42,928) | ||||
- Operating lease liabilities and right of use assets | (464) | 794 | 439 | (513) | ||||
Net cash provided by (used in) operating activities | 20,299 | (1,397) | 68,506 | 60,944 | ||||
Cash flows from investing activities | ||||||||
Acquisition of intangible assets, property and equipment | (58,240) | (35,292) | (91,088) | (52,342) | ||||
Disposal of intangibles assets, property and equipment | 422 | 410 | 1,063 | 369 | ||||
Purchases of investment securities | — | (5,949) | (17,319) | (17,398) | ||||
Maturities and sales of investment securities | 60 | 16,644 | 11,673 | 27,646 | ||||
Net cash used in investing activities | (57,758) | (24,187) | (95,671) | (41,725) | ||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | — | 52 | — | 1,897 | ||||
Repurchase of treasury stocks | (30,353) | (48,328) | (61,322) | (104,496) | ||||
Change in other financing activities | (324) | (73) | (640) | (544) | ||||
Net cash used in financing activities | (30,677) | (48,349) | (61,962) | (103,143) | ||||
Effect of exchange rates changes on cash and cash equivalents | 175 | (6,214) | (891) | (995) | ||||
Net decrease in cash and cash equivalents and restricted cash | (67,961) | (80,147) | (90,018) | (84,919) | ||||
Net cash and cash equivalents and restricted cash at the beginning of the period | 320,302 | 286,171 | 342,359 | 290,943 | ||||
Net cash and cash equivalents and restricted cash at the end of the period | $ 252,341 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash to the | ||||||||
Cash and cash equivalents | $ 252,236 | |||||||
Restricted cash, included in other current assets | $ 105 | $ 321 | $ 105 | $ 321 | ||||
Total cash, cash equivalents, and restricted cash | $ 252,341 | |||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Cash paid for taxes, net of refunds | $ (18,819) | |||||||
Cash paid for interest | $ (467) | $ (344) | $ (994) | $ (588) | ||||
Noncash investing and financing activities | ||||||||
Intangible assets, property and equipment acquired through payables | $ 10,729 | $ 4,633 | $ 10,729 | $ 4,633 | ||||
CRITEO S.A. Reconciliation of Cash from Operating Activities to Free Cash Flow ( | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
CASH FROM (USED IN) OPERATING ACTIVITIES | $ 20,299 | $ (1,397) | $ 68,506 | $ 60,944 | ||||
Acquisition of intangible assets, property and equipment | (58,240) | (35,292) | (91,088) | (52,342) | ||||
Disposal of intangible assets, property and equipment | 422 | 410 | 1,063 | 369 | ||||
FREE CASH FLOW (1) | $ (36,279) | $ (21,519) | $ 8,971 | |||||
(1) Free Cash Flow is defined as cash flow from operating activities less acquisition and disposition of intangible assets, property and equipment. |
CRITEO S.A. Reconciliation of Contribution ex-TAC to Gross Profit ( | ||||||
Three Months Ended | Six Months Ended | |||||
June 30, | June 30, | |||||
2026 | 2025 | 2026 | 2025 | |||
Gross Profit | 222,214 | 258,518 | 444,956 | 495,494 | ||
Other Cost of Revenue | 33,259 | 33,551 | 60,885 | 60,947 | ||
Contribution ex-TAC (1) | $ 255,473 | $ 292,069 | $ 505,841 | $ 556,441 | ||
(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric. |
CRITEO S.A. Segment Information ( | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Segment | 2025 | YoY Change | YoY | 2026 | 2025 | YoY Change | YoY | ||||||||
Revenue | |||||||||||||||
Retail Media | $ 60,913 | (21) % | (22) % | $ 89,178 | $ 120,411 | (26) % | (27) % | ||||||||
Performance Media | 421,758 | (10) % | (9) % | 763,479 | 813,694 | (6) % | (8) % | ||||||||
Total | 482,671 | (11) % | (11) % | 852,657 | 934,105 | (9) % | (10) % | ||||||||
Contribution ex-TAC | |||||||||||||||
Retail Media | 60,009 | (21) % | (22) % | 87,757 | 118,799 | (26) % | (27) % | ||||||||
Performance Media | 232,060 | (10) % | (10) % | 418,084 | 437,642 | (4) % | (6) % | ||||||||
Total (1) | $ 292,069 | (13) % | (12) % | $ 505,841 | $ 556,441 | (9) % | (11) % | ||||||||
(1) Refer to the Non-GAAP Financial Measures section of this filing for the definition of the Non-GAAP metric. |
(2) Constant currency measures exclude the impact of foreign currency fluctuations and are computed by applying the prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the US dollar. |
CRITEO S.A. Reconciliation of Adjusted EBITDA to Net Income ( | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2026 | 2025 | YoY Change | 2026 | 2025 | YoY Change | |||||||
Net income | $ 11,751 | $ 22,920 | (49) % | $ 20,331 | $ 62,931 | (68) % | ||||||
Adjustments: | ||||||||||||
Financial expense (income) | (319) | 1,796 | (118) % | (2,192) | (152) | NM | ||||||
Provision for income taxes | 3,576 | 5,734 | (38) % | 7,269 | 16,192 | (55) % | ||||||
Equity related compensation, and related social | 16,626 | 21,543 | (23) % | 30,448 | 37,423 | (19) % | ||||||
Pension service costs | 196 | 195 | 1 % | 394 | 378 | 4 % | ||||||
Depreciation and amortization expense | 31,581 | 35,764 | (12) % | 59,948 | 61,457 | (2) % | ||||||
Restructuring, integration and transformation costs | 9,888 | 556 | NM | 20,050 | 2,427 | 726 % | ||||||
Other noncash or nonrecurring events (2) | — | 872 | (100) % | 1,950 | 872 | 124 % | ||||||
Total net adjustments | 61,548 | 66,460 | (7) % | 117,867 | 118,597 | (1) % | ||||||
Adjusted EBITDA (3) | $ 73,299 | $ 89,380 | (18) % | (24) % | ||||||||
(1) Beginning in the second quarter of 2026, we are excluding employer social contribution expense related to employee equity award compensation. This recurring payroll cash expense is directly impacted by fluctuations in our stock price and therefore may not be indicative of our core operating performance. Prior period comparative amounts were not material and were not recast to conform to this new presentation. |
(2) Includes costs related to nonrecurring litigation matters. |
(3) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric. |
CRITEO S.A. Reconciliation from Non-GAAP Operating Expenses to Operating Expenses under GAAP ( | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2026 | 2025 | YoY | 2026 | 2025 | YoY | |||||||
Research and Development expenses | $ 71,945 | $ 79,610 | (10) % | $ 141,628 | $ 140,359 | 1 % | ||||||
Equity related compensation, and related social | 6,003 | 5,398 | 11 % | 10,892 | 9,732 | 12 % | ||||||
Depreciation and Amortization expense | 21,463 | 25,739 | (17) % | 40,602 | 42,412 | (4) % | ||||||
Pension service costs | 116 | 109 | 6 % | 232 | 210 | 10 % | ||||||
Restructuring, integration and transformation costs | 380 | 16 | NM | 695 | 89 | 681 % | ||||||
Other noncash or nonrecurring events | — | 872 | (100) % | — | 872 | (100) % | ||||||
Non-GAAP - Research and Development expenses | 43,983 | 47,476 | (7) % | 89,207 | 87,044 | 2 % | ||||||
Sales and Operations expenses | 85,539 | 108,215 | (21) % | 183,040 | 197,104 | (7) % | ||||||
Equity related compensation, and related social | 2,727 | 7,354 | (63) % | 5,679 | 12,775 | (56) % | ||||||
Depreciation and Amortization expense | 623 | 3,574 | (83) % | 2,040 | 6,913 | (70) % | ||||||
Pension service costs | 20 | 24 | (17) % | 41 | 48 | (15) % | ||||||
Restructuring, integration and transformation costs | 663 | (12) | NM | 5,202 | 54 | NM | ||||||
Non-GAAP - Sales and Operations expenses | 81,506 | 97,275 | (16) % | 170,078 | 177,314 | (4) % | ||||||
General and Administrative expenses | 49,722 | 40,238 | 24 % | 94,880 | 79,409 | 19 % | ||||||
Equity related compensation, and related social | 7,896 | 8,791 | (10) % | 13,877 | 14,916 | (7) % | ||||||
Depreciation and Amortization expense | 329 | 350 | (6) % | 709 | 683 | 4 % | ||||||
Pension service costs | 60 | 62 | (3) % | 121 | 120 | 1 % | ||||||
Restructuring, integration and transformation costs | 8,845 | 552 | NM | 14,153 | 2,284 | 520 % | ||||||
Other noncash or nonrecurring events (2) | — | — | NM | 1,950 | — | NM | ||||||
Non-GAAP - General and Administrative expenses | 32,592 | 30,483 | 7 % | 64,070 | 61,406 | 4 % | ||||||
Total Operating expenses | 207,206 | 228,063 | (9) % | 419,548 | 416,872 | 1 % | ||||||
Equity related compensation, and related social | 16,626 | 21,543 | (23) % | 30,448 | 37,423 | (19) % | ||||||
Depreciation and Amortization expense | 22,415 | 29,663 | (24) % | 43,351 | 50,008 | (13) % | ||||||
Pension service costs | 196 | 195 | 1 % | 394 | 378 | 4 % | ||||||
Restructuring, integration and transformation costs | 9,888 | 556 | NM | 20,050 | 2,427 | 726 % | ||||||
Other noncash or nonrecurring events (2) | — | 872 | (100) % | 1,950 | 872 | 124 % | ||||||
Total Non-GAAP Operating expenses (3) | 158,081 | $ 175,234 | (10) % | $ 323,355 | $ 325,764 | (1) % | ||||||
(1) Beginning in the second quarter of 2026, we are excluding employer social contribution expense related to employee equity award compensation. This recurring payroll cash expense is directly impacted by fluctuations in our stock price and therefore may not be indicative of our core operating performance. Prior period comparative amounts were not material and were not recast to conform to this new presentation. |
(2) Includes costs related to nonrecurring litigation matters. |
(3) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric. |
CRITEO S.A. | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2026 | 2025 | YoY | 2026 | 2025 | YoY | |||||||
Net income | $ 11,751 | $ 22,920 | (49) % | $ 20,331 | $ 62,931 | (68) % | ||||||
Adjustments: | ||||||||||||
Equity related compensation, and related social | 16,626 | 21,543 | (23) % | 30,448 | 37,423 | (19) % | ||||||
Amortization of acquisition-related intangible assets | 6,661 | 9,637 | (31) % | 13,296 | 18,635 | (29) % | ||||||
Restructuring, integration and transformation costs | 9,888 | 556 | NM | 20,050 | 2,427 | 726 % | ||||||
Other noncash or nonrecurring events (2) | — | 872 | (100) % | 1,950 | 872 | 124 % | ||||||
Tax impact of the above adjustments (3) | (4,409) | (4,739) | 7 % | (8,430) | (8,669) | 3 % | ||||||
Total net adjustments | 28,766 | 27,869 | 3 % | 57,314 | 50,688 | 13 % | ||||||
Adjusted net income (4) | $ 40,517 | $ 50,789 | (20) % | $ 77,645 | $ 113,619 | (32) % | ||||||
Weighted average shares outstanding | ||||||||||||
- Basic | 49,664,392 | 52,986,068 | 50,007,078 | 53,480,338 | ||||||||
- Diluted | 50,545,915 | 55,133,569 | 50,754,574 | 56,162,459 | ||||||||
Adjusted net income per share | ||||||||||||
- Basic | $ 0.82 | $ 0.96 | (15) % | $ 1.55 | $ 2.12 | (27) % | ||||||
- Diluted | $ 0.80 | $ 0.92 | (13) % | $ 1.53 | $ 2.02 | (24) % | ||||||
(1) Beginning in the second quarter of 2026, we are excluding employer social contribution expense related to employee equity award compensation. This recurring payroll cash expense is directly impacted by fluctuations in our stock price and therefore may not be indicative of our core operating performance. Prior period comparative amounts were not material and were not recast to conform to this new presentation. | |
(2) Includes costs related to nonrecurring litigation matters. | |
(3) We consider the nature of the adjustment to determine its tax treatment in the various tax jurisdictions we operate in. The tax impact is calculated by applying the actual tax rate for the entity and period to which the adjustment relates. | |
(4) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric. |
CRITEO S.A. Constant Currency Reconciliation(1) ( | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2026 | 2025 | YoY Change | 2026 | 2025 | YoY Change | |||||||
Gross Profit as reported | $ 222,214 | $ 258,518 | (14) % | $ 444,956 | $ 495,494 | (10) % | ||||||
Other cost of revenue as reported | 33,259 | 33,551 | (1) % | 60,885 | 60,947 | — % | ||||||
Contribution ex-TAC as reported(2) | 255,473 | 292,069 | (13) % | 505,841 | 556,441 | (9) % | ||||||
Conversion impact | 1,241 | — | (8,233) | — | ||||||||
Contribution ex-TAC at constant currency | 256,714 | 292,069 | (12) % | 497,608 | 556,441 | (11) % | ||||||
Traffic acquisition costs as reported | 172,545 | 190,602 | (9) % | 346,816 | 377,664 | (8) % | ||||||
Conversion impact | 744 | — | (4,948) | — | ||||||||
Traffic acquisition costs at constant currency | 173,289 | 190,602 | (9) % | 341,868 | 377,664 | (9) % | ||||||
Revenue as reported | 428,018 | 482,671 | (11) % | 852,657 | 934,105 | (9) % | ||||||
Conversion impact | 1,985 | — | (13,182) | — | ||||||||
Revenue at constant currency | $ 430,003 | $ 482,671 | (11) % | $ 839,475 | $ 934,105 | (10) % | ||||||
(1) Constant currency measures exclude the impact of foreign currency fluctuations and are computed by applying the prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the | |
(2) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric. |
CRITEO S.A. Information on Share Count (unaudited) | ||||
Six Months Ended | ||||
2026 | 2025 | |||
Shares outstanding as at January 1, | 51,151,866 | 54,277,422 | ||
Weighted-average effect of changes in shares outstanding during the period | (1,144,788) | (797,084) | ||
Basic number of shares - Basic EPS basis | 50,007,078 | 53,480,338 | ||
Dilutive effect of share-based awards - Treasury method | 747,496 | 2,682,121 | ||
Diluted number of shares - Diluted EPS basis | 50,754,574 | 56,162,459 | ||
Shares issued as at June 30, before Treasury stocks | 53,728,895 | 57,854,895 | ||
Treasury stocks as of June 30, | (5,178,442) | (5,527,535) | ||
Shares outstanding as of June 30, after Treasury stocks | 48,550,453 | 52,327,360 | ||
CRITEO S.A. Supplemental Financial Information and Operating Metrics ( | |||||||||||
YoY Change | QoQ Change | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
Clients | (2) % | 1 % | 16,752 | 16,528 | 16,786 | 16,977 | 17,142 | 17,084 | 17,269 | 17,162 | 17,744 |
Revenue | (11) % | 1 % | 428,018 | 424,639 | 541,136 | 469,660 | 482,671 | 451,434 | 553,035 | 458,892 | 471,307 |
(12) % | 11 % | 175,983 | 158,629 | 241,987 | 201,978 | 199,797 | 192,908 | 274,620 | 206,816 | 212,374 | |
EMEA | (8) % | (2) % | 171,349 | 175,330 | 202,901 | 174,335 | 185,955 | 164,861 | 183,372 | 161,745 | 168,496 |
APAC | (17) % | (11) % | 80,686 | 90,680 | 96,248 | 93,347 | 96,919 | 93,665 | 95,043 | 90,331 | 90,437 |
Revenue | (11) % | 1 % | 428,018 | 424,639 | 541,136 | 469,660 | 482,671 | 451,434 | 553,035 | 458,892 | 471,307 |
Retail Media | (21) % | 16 % | 47,907 | 41,271 | 76,347 | 67,114 | 60,913 | 59,498 | 91,889 | 60,765 | 54,777 |
Performance Media | (10) % | (1) % | 380,111 | 383,368 | 464,789 | 402,546 | 421,758 | 391,936 | 461,146 | 398,127 | 416,530 |
TAC | (9) % | (1) % | 172,545 | 174,271 | 211,094 | 181,526 | 190,602 | 187,062 | 218,636 | 192,789 | 204,214 |
Retail Media | (18) % | 8 % | 739 | 682 | 1,727 | 849 | 904 | 708 | 1,661 | 1,182 | 911 |
Performance Media | (9) % | (1) % | 171,806 | 173,589 | 209,367 | 180,677 | 189,698 | 186,354 | 216,975 | 191,607 | 203,303 |
Contribution ex-TAC (1) | (13) % | 2 % | 255,473 | 250,368 | 330,042 | 288,134 | 292,069 | 264,372 | 334,399 | 266,103 | 267,093 |
Retail Media | (21) % | 16 % | 47,168 | 40,589 | 74,620 | 66,265 | 60,009 | 58,790 | 90,228 | 59,583 | 53,866 |
Performance Media | (10) % | (1) % | 208,305 | 209,779 | 255,422 | 221,869 | 232,060 | 205,582 | 244,171 | 206,520 | 213,227 |
Cash flow from (used for) | NM | (58) % | 20,299 | 48,207 | 160,688 | 89,600 | (1,397) | 62,341 | 169,454 | 57,503 | 17,187 |
Capital expenditures | 66 % | 80 % | 57,818 | 32,207 | 26,495 | 22,258 | 34,882 | 17,091 | 23,394 | 18,899 | 21,119 |
Net cash position | 22 % | (21) % | 252,341 | 320,302 | 342,359 | 255,335 | 206,024 | 286,171 | 290,943 | 283,990 | 291,698 |
Headcount | (2) % | — % | 3,543 | 3,553 | 3,649 | 3,650 | 3,621 | 3,533 | 3,507 | 3,504 | 3,498 |
Days Sales Outstanding | (7) days | (2) days | 58 | 60 | 57 | 64 | 65 | 68 | 62 | 65 | 64 |
(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric. |
View original content:https://www.prnewswire.com/news-releases/criteo-reports-second-quarter-2026-results-302843149.html
SOURCE Criteo Corp