CRITEO REPORTS STRONG SECOND QUARTER 2025 RESULTS

Rhea-AI Summary

Criteo (NASDAQ: CRTO) reported strong Q2 2025 financial results, with revenue increasing 2% to $483 million and Contribution ex-TAC growing 9% to $292 million. The company's net income was $23 million, or $0.39 per diluted share.

Key highlights include 11% growth in Retail Media revenue and Contribution ex-TAC, expansion to 4,000 brands, and new retail partnerships. The company deployed $104 million for share repurchases in H1 2025 and raised its full-year 2025 guidance, now expecting Contribution ex-TAC growth of 3-4% at constant currency.

Notable operational achievements include signing a global Commerce Media partnership with dentsu and launching Auction-Based Display technology for Retail Media environments. The company maintains strong liquidity with $746 million in total financial resources.

Positive

• Contribution ex-TAC increased 9% year-over-year to $292 million
• Retail Media revenue and Contribution ex-TAC both grew 11%
• Expanded platform adoption to 4,000 brands with notable new retail partnerships
• Raised full-year 2025 guidance for Contribution ex-TAC growth to 3-4%
• Strong financial position with $746 million in total financial liquidity
• Same-retailer Contribution ex-TAC retention for Retail Media at 112%

Negative

• Net income decreased 18% year-over-year to $23 million
• Operating expenses increased 16% year-over-year to $228 million
• Adjusted EBITDA declined 4% year-over-year to $89 million
• Negative Q2 operating cash flow of $(1) million compared to $17 million in Q2 2024
• Free Cash Flow declined to $(36) million from $(4) million in Q2 2024

Insights

Financial Analyst

Criteo shows solid growth with improved gross margins despite mixed performance metrics; raised 2025 outlook is encouraging.

Criteo delivered 9% year-over-year growth in Contribution ex-TAC (their key revenue metric) to $292 million, with particularly strong performance in their Retail Media segment. The company's gross profit margin improved significantly to 54% from 49% in the prior year, demonstrating improved operational efficiency.

However, beneath these positive headlines lie some concerning metrics. Despite revenue growth, net income decreased 18% year-over-year to $23 million, and diluted EPS fell 15% to $0.39. Even more concerning was the negative operating cash flow of $(1) million compared to $17 million in the same period last year, and Free Cash Flow deteriorated substantially to $(36) million from $(4) million.

The drop in profitability appears to be driven by strategic growth investments, with operating expenses increasing 16% year-over-year. These investments are pressuring near-term margins, with Adjusted EBITDA declining 4% to $89 million and Adjusted EBITDA margin compressing to 31% from 35%.

What's encouraging is management's confidence in their strategy, evidenced by their raising full-year 2025 guidance from "low-single-digit growth" to 3-4% growth in Contribution ex-TAC. The significant $104 million share repurchase in the first half further signals management's belief in the company's long-term prospects.

From a strategic standpoint, Criteo continues to expand its commerce ecosystem, adding major clients like BJ's Wholesale Club and Thermo Fisher, while securing partnerships with global advertising agencies including dentsu. Their client expansion to 4,000 brands and 112% same-retailer Contribution ex-TAC retention rate in Retail Media indicate strong product-market fit in this growing segment.

The balance sheet remains solid with $241 million in cash and marketable securities and approximately $746 million in total financial liquidity, providing ample resources for continued investment in growth initiatives despite the temporary cash flow pressures.

Raises Full Year 2025 Outlook
Deployed $104 Million to Repurchase Shares in the First Half of 2025

NEW YORK, July 30, 2025 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the global platform connecting the commerce ecosystem, today announced financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Financial Highlights:

The following table summarizes our consolidated financial results for the three months and six months ended June 30, 2025:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2025		2024		YoY Change	2025		2024		YoY Change
	(in millions, except EPS data)
GAAP Results
Revenue	$483		$471		2 %	$934		$921		1 %
Gross Profit	$259		$233		11 %	$495		$450		10 %
Net Income	$23		$28		(18) %	$63		$37		72 %
Gross Profit margin	54 %		49 %		5ppt	53 %		49 %		4 ppt
Diluted EPS	$0.39		$0.46		(15) %	$1.05		$0.58		81 %
Cash from operating activities	$(1)		$17		(108) %	$61		$31		95 %
Cash and cash equivalents	$206		$217		(5) %	$206		$217		(5) %
Non-GAAP Results1
Contribution ex-TAC	$292		$267		9 %	$556		$521		7 %
Adjusted EBITDA	$89		$93		(4) %	$182		$164		11 %
Adjusted diluted EPS	$0.92		$1.08		(15) %	$2.02		$1.88		7 %
Free Cash Flow (FCF)	$(36)		$(4)		(823) %	$9		$(3)		386 %
FCF / Adjusted EBITDA	(41) %		(4) %		(37)ppt	5 %		(2) %		7 ppt

"Our second quarter results highlight disciplined execution and a solid foundation for the future," said Michael Komasinski, Chief Executive Officer of Criteo. "We are building a unified, outcome-based advertising platform for the next decade of commerce, anchored on AI innovation, to deliver long-term value for clients, partners, and shareholders."

Operating Highlights

• Criteo's media spend² was $4.3 billion in the last 12 months and $1.0 billion in Q2 2025, flat year-over-year at constant currency³.
• Retail Media Contribution ex-TAC grew 11% year-over-year at constant currency³ and same-retailer Contribution ex-TAC⁴ retention for Retail Media was 112%.
• We expanded our platform adoption to 4,000 brands and added new retailers, including Thermo Fisher, BJ's Wholesale Club, and grocers Weis Markets, Winn-Dixie, and Harveys Supermarkets via our digital commerce partner Mercatus in the U.S.
• We launched our Auction-Based Display technology, bringing programmatic flexibility into Retail Media environments.
• We launched a global integration with Mirakl Ads to unlock mid-to-long-tail activation and accelerate marketplace revenue growth.
• Performance Media Contribution ex-TAC was up 6% year-over-year at constant currency³.
• We signed a global Commerce Media partnership with dentsu, a leading global marketing and advertising agency network, marking the first time a holding company will leverage our complete Commerce Media Platform stack.
• We renewed and expanded our multi-year global partnership with another major holding company, now including all of our platform's powerful commerce solutions.
• We deployed $104 million of capital for share repurchases in the first half of 2025.
• Todd Parsons has been promoted to Chief Product Officer and President, Performance Media, and Sherry Smith to President, Retail Media.
• Stefanie Jay was appointed to the Company's Board of Directors at the 2025 Annual General Meeting of Shareholders.

___________________________________________________

1 Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted diluted EPS and Free Cash Flow are not measures calculated in accordance with U.S. GAAP.

2 Media spend is defined as the media spend activated on behalf of our Retail Media clients and our Performance Media clients.

3 Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the U.S. dollar.

4 Same-retailer Contribution ex-TAC retention is the Contribution ex-TAC generated by clients that were live with us in a given quarter and are still live with us in the same quarter in the following year.

Financial Summary

Revenue for Q2 2025 was $483 million, gross profit was $259 million and Contribution ex-TAC was $292 million. Net income for Q2 2025 was $23 million. This represents $0.39 per share on a diluted basis. Adjusted EBITDA for Q2 2025 was $89 million, resulting in an adjusted diluted EPS of $0.92. As reported, revenue for Q2 increased 2%, gross profit increased 11% and Contribution ex-TAC increased 9%. At constant currency, revenue for Q2 2025 was flat and Contribution ex-TAC increased 7%. Cash flow from operating activities was $(1) million in Q2 2025 and Free Cash Flow was $(36) million in Q2 2025. As of June 30, 2025, we had $241 million in cash and marketable securities on our balance sheet.

Sarah Glickman, Chief Financial Officer, said, "Our second quarter results reflect the strength of our diversified offering and global client base. We are raising our full-year 2025 guidance and remain confident in our business strategy, as demonstrated by the deployment of $104 million for share repurchases in the first half of 2025."

Second Quarter 2025 Results

Revenue, Gross Profit and Contribution ex-TAC

Revenue increased 2% year-over-year in Q2 2025, or was flat at constant currency, to $483 million (Q2 2024: $471 million). Gross profit increased 11% year-over-year in Q2 2025 to $259 million (Q2 2024: $233 million). Gross profit as a percentage of revenue, or gross profit margin, was 54% (Q2 2024: 49%). Contribution ex-TAC in the second quarter increased 9% year-over-year, or increased 7% at constant currency, to $292 million (Q2 2024: $267 million).

• Retail Media revenue increased 11%, or 11% at constant currency, reflecting continued strength in Retail Media onsite. Retail Media Contribution ex-TAC increased 11%, or 11% at constant currency, driven by continued strength in Retail Media onsite, new client integrations and growing network effects of the platform.
• Performance Media revenue increased 1%, or decreased (1)% at constant currency, and Performance Media Contribution ex-TAC increased 9%, or 6% at constant currency, driven by the traction of our suite of commerce solutions helping advertisers drive measurable performance across the entire buyer journey, partially offset by lower AdTech services.

Net Income and Adjusted Net Income

Net income was $23 million in Q2 2025 (Q2 2024: net income: $28 million). Net income allocated to shareholders of Criteo was $21 million, or $0.39 per share on a diluted basis (Q2 2024: net income allocated to shareholders of $27 million, or $0.46 per share on a diluted basis).

Adjusted net income, a non-GAAP financial measure, was $51 million, or $0.92 per share on a diluted basis (Q2 2024: $64 million, or $1.08 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA was $89 million, representing a decrease of (4)% year-over-year (Q2 2024: $93 million). This was driven by planned growth investments, including investments in our people and marketing events, partially offset by higher Contribution ex-TAC over the period. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 31% (Q2 2024: 35%).

Operating expenses increased 16% year-over-year to $228 million (Q2 2024: $196 million), mostly driven by planned growth investments and the accelerated amortization of intangible assets. Non-GAAP operating expenses increased 18% year-over-year to $175 million (Q2 2024: $149 million).

Cash Flow, Cash and Financial Liquidity Position

Cash flow from operating activities was $(1) million in Q2 2025 (Q2 2024: $17 million).

Free Cash Flow, defined as cash flow from operating activities less acquisition and disposals of intangible assets, property and equipment was $(36) million in Q2 2025: (Q2 2024: $(4) million). On a trailing 12-month basis, Free Cash Flow was $194 million.

Cash and cash equivalents, and marketable securities, were $241 million, a $(91) million decrease compared to December 31, 2024, after spending $(104) million on share repurchases in the six months ended June 30, 2025.

As of June 30, 2025, the Company had total financial liquidity of approximately $746 million, including its cash position, marketable securities, revolving credit facility and treasury shares reserved for M&A.

2025 Business Outlook

The following forward-looking statements reflect Criteo's expectations as of July 30, 2025.

Fiscal year 2025 guidance:

• We now expect Contribution ex-TAC to grow +3% to +4% at constant currency, compared to our previous guidance of low-single-digit growth at constant currency.
• Adjusted EBITDA margin of approximately 33% to 34% of Contribution ex-TAC.

Third quarter 2025 guidance:

• Contribution ex-TAC between $277 million and $283 million, or +5% to +7% year-over-year at constant-currency.
• Adjusted EBITDA between $81 million and $87 million.

The above guidance for the third quarter and fiscal year ending December 31, 2025 assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.909, a U.S. dollar-Japanese Yen rate of 150, a U.S. dollar-British Pound rate of 0.776, a U.S. dollar-Korean Won rate of 1,411 and a U.S. dollar-Brazilian Real rate of 5.81.

The above guidance assumes that no additional acquisitions are completed during the third quarter of 2025.

Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding U.S. GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could potentially have a significant impact on our future U.S. GAAP financial results.

Non-GAAP Financial Measures

This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission ("SEC"): Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted diluted EPS, Free Cash Flow and Non-GAAP Operating Expenses. These measures are not calculated in accordance with U.S. GAAP.

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 U.S. GAAP. We have included Contribution ex-TAC because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions. In particular, we believe that this measure can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Contribution ex-TAC provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors.

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, pension service costs, certain acquisition costs, certain restructuring, 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, amortization of acquisition-related assets, certain restructuring, 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 acquisition of intangible assets, property, plant and equipment and change in accounts payable related to 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 equity related compensation, which includes employee equity awards compensation and director fees for share purchases, amortization of acquisition-related assets, certain restructuring, integration and transformation costs, certain acquisition costs, 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 U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: 1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and 2) other companies may report Contribution ex-TAC, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending September 30, 2025 and the year ending December 31, 2025, 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, 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 materialize as expected, uncertainty regarding international operations and expansion, including related to changes in a specific country's or region's political or economic conditions (such as changes in or new tariffs), the impact of competition or client in-housing, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith, the impact of consumer resistance to the collection and sharing of data, our ability to access data through third parties, failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth, client flexibility to increase or decrease spend, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 10-K filed with the SEC on February 28, 2025, and in subsequent Quarterly Reports on Form 10-Q as well as future filings and reports by the Company. Importantly, at this time, macro-economic conditions including inflation and fluctuating interest rates in the U.S. have impacted and may continue to impact Criteo's business, financial condition, cash flow and results of operations.

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, July 30, 2025, 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 platform connecting the commerce ecosystem for brands, agencies, retailers, and media owners. Its AI-powered advertising platform has unique access to more than $1 trillion in annual commerce sales—powering connections with shoppers, inspiring discovery, and enabling highly personalized experiences. With thousands of clients and partnerships spanning global retail to digital commerce, Criteo delivers the technology, tools, and insights businesses need to drive performance and growth. For more information, please visit www.criteo.com. 

Contacts

Criteo Investor Relations
Melanie Dambre, m.dambre@criteo.com 

Criteo Public Relations
Jessica Meyers, j.meyers@criteo.com 

Financial information to follow

 

CRITEO S.A. Consolidated Statement of Financial Position (U.S. dollars in thousands, unaudited)
	June 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$                         205,703		$                         290,693
Trade receivables, net of allowances of $ 26.7 million and $ 28.6 million at June 30, 2025 and December 31, 2024, respectively	667,763		800,859
Income taxes	24,180		1,550
Other taxes	58,849		53,883
Other current assets	51,617		50,887
Marketable securities - current portion	17,884		26,242
Total current assets	1,025,996		1,224,114
Property and equipment, net	126,359		107,222
Intangible assets, net	160,098		158,384
Goodwill	534,901		515,188
Right of Use Asset - operating lease	113,846		99,468
Marketable securities - noncurrent portion	17,580		15,584
Noncurrent financial assets	5,378		4,332
Other noncurrent assets	59,830		61,151
Deferred tax assets	70,147		81,006
Total noncurrent assets	1,088,139		1,042,335
Total assets	$                     2,114,135		$                     2,266,449
Liabilities and shareholders' equity
Current liabilities:
Trade payables	$                         628,833		$                         802,524
Contingencies - current portion	4,174		1,882
Income taxes	8,796		34,863
Financial liabilities - current portion	13,096		3,325
Lease liability - operating - current portion	29,051		25,812
Other taxes	17,106		19,148
Employee - related payables	89,779		109,227
Other current liabilities	42,713		49,819
Total current liabilities	833,548		1,046,600
Deferred tax liabilities	4,550		4,067
Defined benefit plans	5,471		4,709
Financial liabilities - noncurrent portion	335		297
Lease liability - operating - noncurrent portion	88,459		77,584
Contingencies - noncurrent portion	31,688		31,939
Other noncurrent liabilities	22,560		20,156
Total noncurrent liabilities	153,063		138,752
Total liabilities	986,611		1,185,352
Shareholders' equity:
Common shares, €0.025 par value, 57,854,895 and 57,744,839 shares authorized, issued and outstanding at June 30, 2025  and December 31, 2024, respectively.	1,933		1,931
Treasury stock, 5,527,535 and 3,467,417 shares at cost as of June 30, 2025 and December 31, 2024, respectively.	(190,834)		(125,298)
Additional paid-in capital	715,243		709,580
Accumulated other comprehensive loss	(64,451)		(108,768)
Retained earnings	627,084		571,744
Equity attributable to the shareholders of Criteo S.A.	1,088,975		1,049,189
Noncontrolling interests	38,549		31,908
Total equity	1,127,524		1,081,097
Total equity and liabilities	$                     2,114,135		$                     2,266,449

 

CRITEO S.A. Consolidated Statement of Operations (U.S. dollars in thousands, except share and per share data, unaudited)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2025		2024		2025		2024
Revenue		$    482,671		$    471,307		$       934,105		$       921,362
Cost of revenue
Traffic acquisition cost		190,602		204,214		377,664		400,381
Other cost of revenue		33,551		34,248		60,947		70,913
Gross profit		258,518		232,845		495,494		450,068
Operating expenses:
Research and development expenses		79,610		59,639		140,359		126,497
Sales and operations expenses		108,215		95,069		197,104		187,911
General and administrative expenses		40,238		41,199		79,409		88,368
Total operating expenses		228,063		195,907		416,872		402,776
Income from operations		30,455		36,938		78,622		47,292
Financial and other income (expense)		(1,801)		(284)		501		897
Income before taxes		28,654		36,654		79,123		48,189
Provision for income taxes		5,734		8,595		16,192		11,564
Net income		$       22,920		$       28,059		$         62,931		$          36,625
Net income available to shareholders of Criteo S.A.		$       21,250		$       26,987		$         59,178		$          34,231
Net income available to noncontrolling interests		$         1,670		$         1,072		$            3,753		$            2,394
Weighted average shares outstanding used in computing per share amounts:
Basic		52,986,068		54,684,560		53,480,338		54,915,140
Diluted		55,133,569		58,974,186		56,162,459		59,151,582
Net income allocated to shareholders per share:
Basic		$           0.40		$           0.49		$              1.11		$              0.62
Diluted		$           0.39		$           0.46		$              1.05		$              0.58

 

CRITEO S.A. Consolidated Statement of Cash Flows (U.S. dollars in thousands, unaudited)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2025		2024		2025		2024
Cash flows from operating activities
Net income		$    22,920		$    28,059		$     62,931		$    36,625
Noncash and nonoperating items		28,238		22,413		70,868		82,574
- Amortization and provisions		36,902		21,089		60,485		46,324
- Equity awards compensation expense		20,059		20,686		37,194		47,978
- Net (gain) or loss on disposal of noncurrent assets		41		574		41		574
- Change in uncertain tax positions		(289)		875		(289)		1,757
- Net change in fair value of earn-out		—		(50)		—		3,187
- Change in deferred taxes		5,547		4,915		12,435		8,089
- Change in income taxes		(39,907)		(26,165)		(44,195)		(28,420)
- Other		5,885		489		5,197		3,085
Changes in assets and liabilities:		(52,555)		(33,285)		(72,855)		(87,995)
- Trade receivables		(2,564)		(21,536)		161,379		136,520
- Trade payables		(28,910)		8,711		(203,241)		(193,210)
- Other current assets		20,908		10,333		12,448		3,743
- Other current liabilities		(42,783)		(28,703)		(42,928)		(32,236)
- Change in operating lease liabilities and right of use assets		794		(2,090)		(513)		(2,812)
Net cash provided by operating activities		(1,397)		17,187		60,944		31,204
Cash flows from investing activities
Acquisition of intangible assets, property and equipment		(35,292)		(21,229)		(52,342)		(35,073)
Disposal of intangibles assets, property and equipment		410		110		369		730
Payment for business, net of cash acquired		—		—		—		(527)
Purchases of marketable securities		(5,949)		(153)		(17,398)		(824)
Maturities and sales of marketable securities		16,644		14		27,646		537
Net cash used in investing activities		(24,187)		(21,258)		(41,725)		(35,157)
Cash flows from financing activities
Proceeds from exercise of stock options		52		812		1,897		1,207
Repurchase of treasury stocks		(48,328)		(40,352)		(104,496)		(102,495)
Change in other financing activities		(73)		(378)		(544)		(810)
Net cash used in financing activities		(48,349)		(39,918)		(103,143)		(102,098)
Effect of exchange rates changes on cash and cash equivalents		(6,214)		(6,175)		(995)		(13,507)
Net decrease in cash and cash equivalents and restricted cash		(80,147)		(50,164)		(84,919)		(119,558)
Net cash and cash equivalents and restricted cash at the beginning of the period		286,171		341,862		290,943		411,257
Net cash and cash equivalents and restricted cash at the end of the period		$ 206,024		$ 291,698		$   206,024		$  291,698
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for taxes, net of refunds		$  (40,383)		$  (23,403)		$    (48,241)		$   (24,571)
Cash paid for interest		$       (344)		$       (326)		$         (588)		$        (653)
Noncash investing and financing activities
Intangible assets, property and equipment acquired through payables		$      4,633		$      5,146		$        4,633		$       5,146

 

CRITEO S.A. Reconciliation of Cash from Operating Activities to Free Cash Flow (U.S. dollars in thousands, unaudited)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2025		2024		2025		2024
CASH FROM OPERATING ACTIVITIES		$     (1,397)		$     17,187		$     60,944		$     31,204
Acquisition of intangible assets, property and equipment		(35,292)		(21,229)		(52,342)		(35,073)
Disposal of intangible assets, property and equipment		410		110		369		730
FREE CASH FLOW (1)		$   (36,279)		$     (3,932)		$       8,971		$     (3,139)

(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 (U.S. dollars in thousands, unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025	2024
Gross Profit	258,518		232,845		495,494	450,068
Other Cost of Revenue	33,551		34,248		60,947	70,913
Contribution ex-TAC (1)	$     292,069		$     267,093		$   556,441	$     520,981

(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

 

CRITEO S.A. Segment Information (U.S. dollars in thousands, unaudited)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
	Segment		2025		2024		YoY Change		YoY Change at Constant Currency (2)		2025		2024		YoY Change		YoY Change at Constant Currency (2)
Revenue
	Retail Media		$       60,913		$       54,777		11 %		11 %		$    120,411		$    105,649		14 %		14 %
	Performance Media		421,758		416,530		1 %		(1) %		813,694		815,713		— %		— %
	Total		482,671		471,307		2 %		— %		934,105		921,362		1 %		1 %
Contribution ex-TAC
	Retail Media		60,009		53,866		11 %		11 %		118,799		104,035		14 %		15 %
	Performance Media		232,060		213,227		9 %		6 %		437,642		416,946		5 %		5 %
	Total (1)		$    292,069		$    267,093		9 %		7 %		$    556,441		$    520,981		7 %		7 %

(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 (U.S. dollars in thousands, unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2025		2024		YoY Change		2025		2024		YoY Change
Net income		$       22,920		$     28,059		(18) %		$        62,931		$       36,625		72 %
Adjustments:
Financial income		1,796		284		532 %		(152)		(897)		83 %
Provision for income taxes		5,734		8,595		(33) %		16,192		11,564		40 %
Equity related compensation		21,543		21,877		(2) %		37,423		49,168		(24) %
Pension service costs		195		172		13 %		378		344		10 %
Depreciation and amortization expense(2)		35,764		25,077		43 %		61,457		49,995		23 %
Restructuring, integration and transformation costs		556		9,366		(94) %		2,427		17,309		(86) %
Other noncash or nonrecurring events (2)		872		—		NM		872		—		NM
Total net adjustments		66,460		65,371		2 %		118,597		127,484		(7) %
Adjusted EBITDA (1)		$     89,380		$     93,430		(4) %		$      181,528		$     164,109		11 %

(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

(2) During the second quarter of 2025, the Company recorded accelerated amortization of $7.9 million, included in depreciation and amortization expense, and a nonrecurring impairment charge of approximately $0.9 million, recorded in other noncash or nonrecurring events, related to internally developed intangible assets, triggered by Alphabet Inc.'s decision not to proceed with the deprecation of third-party cookies in its Chrome browser.

 

CRITEO S.A. Reconciliation from Non-GAAP Operating Expenses to Operating Expenses under GAAP (U.S. dollars in thousands, unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2025		2024		YoY Change		2025		2024		YoY Change
Research and Development expenses		$        79,610		$        59,639		33 %		$     140,359		$     126,497		11 %
Equity related compensation		5,398		9,059		(40) %		9,732		23,653		(59) %
Depreciation and Amortization expense (2)		25,739		12,275		110 %		42,412		24,603		72 %
Pension service costs		109		90		21 %		210		181		16 %
Restructuring, integration and transformation costs		16		2,237		(99) %		89		2,708		(97) %
Other noncash or nonrecurring events		872		—		NM		872		—		NM
Non-GAAP - Research and Development expenses		47,476		35,978		32 %		87,044		75,352		16 %
Sales and Operations expenses		108,215		95,069		14 %		197,104		187,911		5 %
Equity related compensation		7,354		5,334		38 %		12,775		11,061		15 %
Depreciation and Amortization expense		3,574		3,137		14 %		6,913		6,370		9 %
Pension service costs		24		26		(8) %		48		52		(8) %
Restructuring, integration and transformation costs		(12)		4,144		(100) %		54		4,639		(99) %
Non-GAAP - Sales and Operations expenses		97,275		82,428		18 %		177,314		165,789		7 %
General and Administrative expenses		40,238		41,199		(2) %		79,409		88,368		(10) %
Equity related compensation		8,791		7,483		17 %		14,916		14,454		3 %
Depreciation and Amortization expense		350		435		(20) %		683		888		(23) %
Pension service costs		62		56		11 %		120		111		8 %
Restructuring, integration and transformation costs		552		2,984		(82) %		2,284		9,962		(77) %
Non-GAAP - General and Administrative expenses		30,483		30,241		1 %		61,406		62,953		(2) %
Total Operating expenses		228,063		195,907		16 %		416,872		402,776		3 %
Equity related compensation		21,543		21,877		(2) %		37,423		49,168		(24) %
Depreciation and Amortization expense		29,663		15,847		87 %		50,008		31,861		57 %
Pension service costs		195		172		13 %		378		344		10 %
Restructuring, integration and transformation costs		556		9,365		(94) %		2,427		17,309		(86) %
Other noncash or nonrecurring events		872		—		NM		872		—		NM
Total Non-GAAP Operating expenses (1)		175,234		$     148,646		18 %		325,764		304,094		7 %

(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

(2) During the second quarter of 2025, the Company recorded accelerated amortization of $7.9 million, included in depreciation and amortization expense, and a nonrecurring impairment charge of approximately $0.9 million, recorded in other noncash or nonrecurring events, related to internally developed intangible assets, triggered by Alphabet Inc.'s decision not to proceed with the deprecation of third-party cookies in its Chrome browser.

 

CRITEO S.A. Reconciliation of Adjusted Net Income to Net Income (Loss) (U.S. dollars in thousands except share and per share data, unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2025		2024		YoY Change		2025		2024		YoY Change
Net income		$        22,920		$        28,059		(18) %		$        62,931		$        36,625		72 %
Adjustments:
Equity related compensation		21,543		21,877		(2) %		37,423		49,168		(24) %
Amortization of acquisition-related intangible assets		9,637		8,613		12 %		18,635		17,292		8 %
Restructuring related and transformation costs		556		9,366		(94) %		2,427		17,309		(86) %
Other noncash or nonrecurring events (2)		872		—		NM		872		—		NM
Tax impact of the above adjustments (3)		(4,739)		(4,198)		(13) %		(8,669)		(9,186)		6 %
Total net adjustments		27,869		35,658		(22) %		50,688		74,583		(32) %
Adjusted net income (1)		$        50,789		$        63,717		(20) %		$     113,619		$     111,208		2 %
Weighted average shares outstanding
- Basic		52,986,068		54,684,560				53,480,338		54,915,140
- Diluted		55,133,569		58,974,186				56,162,459		59,151,582
Adjusted net income per share
- Basic		$            0.96		$            1.17		(18) %		$            2.12		$            2.03		4 %
- Diluted		$            0.92		$            1.08		(15) %		$            2.02		$            1.88		7 %

(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

(2) During the second quarter of 2025, the Company recorded a nonrecurring impairment charge of approximately $0.9 million related to internally developed intangible assets,  triggered by Alphabet Inc.'s decision not to proceed with the deprecation of third-party cookies in its Chrome browser.

(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.

 

CRITEO S.A. Constant Currency Reconciliation(1) (U.S. dollars in thousands, unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2025		2024		YoY Change		2025		2024		YoY Change
Gross Profit as reported		$        258,518		$        232,845		11 %		$        495,494		$        450,068		10 %
Other cost of revenue as reported		33,551		34,248		(2) %		60,947		70,913		(14) %
Contribution ex-TAC as reported(2)		292,069		267,093		9 %		556,441		520,981		7 %
Conversion impact U.S. dollar/other currencies		(6,137)		—				59
Contribution ex-TAC at constant currency		285,932		267,093		7 %		556,500		520,981		7 %
Traffic acquisition costs as reported		190,602		204,214		(7) %		377,664		400,381		(6) %
Conversion impact U.S. dollar/other currencies		(3,810)		—				577
Traffic acquisition costs at constant currency		186,792		204,214		(9) %		378,241		400,381		(6) %
Revenue as reported		482,671		471,307		2 %		934,105		921,362		1 %
Conversion impact U.S. dollar/other currencies		(9,947)		—				636
Revenue at constant currency		$        472,724		$        471,307		— %		$        934,741		$        921,362		1 %

(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 US dollar.

(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
		2025		2024
Shares outstanding as at January 1,		54,277,422		55,765,091
Weighted average number of shares issued during the period		(797,084)		(849,951)
Basic number of shares - Basic EPS basis		53,480,338		54,915,140
Dilutive effect of share-based awards - Treasury method		2,682,121		4,236,442
Diluted number of shares - Diluted EPS basis		56,162,459		59,151,582
Shares issued as at June 30, before Treasury stocks		57,854,895		59,063,486
Treasury stocks as of June 30,		(5,527,535)		(4,461,517)
Shares outstanding as of June 30, after Treasury stocks		52,327,360		54,601,969
Total dilutive effect of share-based awards		6,484,393		7,618,460
Fully diluted shares as at June 30,		58,811,753		62,220,429

 

CRITEO S.A. Supplemental Financial Information and Operating Metrics (U.S. dollars in thousands except where stated, unaudited)
	YoY Change	QoQ Change	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Clients	(3) %	— %	17,142	17,084	17,269	17,162	17,744	17,767	18,197	18,423	18,646
Revenue	2 %	7 %	482,671	451,434	553,035	458,892	471,307	450,055	566,302	469,193	468,934
Americas	(6) %	4 %	199,797	192,908	274,620	206,816	212,374	198,365	280,597	219,667	208,463
EMEA	10 %	13 %	185,955	164,861	183,372	161,745	168,496	162,842	189,291	158,756	163,969
APAC	7 %	3 %	96,919	93,665	95,043	90,331	90,437	88,848	96,414	90,770	96,502
Revenue	2 %	7 %	482,671	451,434	553,035	458,892	471,307	450,055	566,302	469,193	468,934
Retail Media	11 %	2 %	60,913	59,498	91,889	60,765	54,777	50,872	76,583	49,813	44,590
Performance Media	1 %	8 %	421,758	391,936	461,146	398,127	416,530	399,183	489,719	419,380	424,344
TAC	(7) %	2 %	190,602	187,062	218,636	192,789	204,214	196,167	249,926	223,798	228,717
Retail Media	(1) %	28 %	904	708	1,661	1,182	911	703	2,429	1,377	1,072
Performance Media	(7) %	2 %	189,698	186,354	216,975	191,607	203,303	195,464	247,497	222,421	227,645
Contribution ex-TAC (1)	9 %	10 %	292,069	264,372	334,399	266,103	267,093	253,888	316,376	245,395	240,217
Retail Media	11 %	2 %	60,009	58,790	90,228	59,583	53,866	50,169	74,154	48,436	43,518
Performance Media	9 %	13 %	232,060	205,582	244,171	206,520	213,227	203,719	242,222	196,959	196,699
Cash flow from operating activities	(108) %	(102) %	(1,397)	62,341	169,454	57,503	17,187	14,017	161,340	19,614	1,328
Capital expenditures	65 %	104 %	34,882	17,091	23,394	18,899	21,119	13,224	19,724	15,849	45,519
Net cash position	(29) %	(28) %	206,024	286,171	290,943	283,990	291,698	341,862	411,257	269,857	298,183
Headcount	4 %	2 %	3,621	3,533	3,507	3,504	3,498	3,559	3,563	3,487	3,514
Days Sales Outstanding (days - end of month) (2)	(1) days	3 days	65	68	62	65	64	66	58	61	69

(1)  Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

(2) From September 2023, we have amended the calculation of Days Sales Outstanding to consider the Iponweb acquisition. Days Sales Outstanding excluding Iponweb would have been 71 days for the same period.

 

View original content:https://www.prnewswire.com/news-releases/criteo-reports-strong-second-quarter-2025-results-302516709.html

SOURCE Criteo Corp

FAQ

What were Criteo's (CRTO) key financial results for Q2 2025?

Criteo reported Q2 2025 revenue of $483 million (up 2%), net income of $23 million, and Contribution ex-TAC of $292 million (up 9% year-over-year).

How much did Criteo spend on share repurchases in H1 2025?

Criteo deployed $104 million for share repurchases in the first half of 2025.

What is Criteo's updated guidance for fiscal year 2025?

Criteo raised its 2025 guidance, expecting Contribution ex-TAC growth of 3-4% at constant currency and Adjusted EBITDA margin of 33-34% of Contribution ex-TAC.

How did Criteo's Retail Media segment perform in Q2 2025?

Retail Media revenue and Contribution ex-TAC both increased 11% year-over-year, with same-retailer Contribution ex-TAC retention at 112%.

What is Criteo's current financial liquidity position?

As of June 30, 2025, Criteo had $746 million in total financial liquidity, including cash, marketable securities, revolving credit facility, and treasury shares reserved for M&A.