Teads Holding Co. Announces Third Quarter 2026 Results

Stockholders’ equity moved from $95.4 million at year-end to a $318.2 million deficit at September 30.

Rhea-AI Summary

Teads Holding (Nasdaq: TEAD) reported third-quarter 2026 revenue of $235.1 million, down year over year as losses and cash outflows widened. Revenue fell 26%, while gross profit declined 42% to $60.9 million and gross margin fell to 25.9% from 33.2%. Net loss widened to $325.5 million from $19.7 million, including a $272.4 million non-cash goodwill impairment and a $6.4 million non-cash publisher agreement impairment.

Adjusted EBITDA, a non-GAAP earnings measure, turned negative at $8.1 million, versus positive $19.2 million. Operating cash use increased to $27.9 million from $23.7 million. Cash totaled $90.3 million and debt obligations totaled $657.2 million at September 30. Connected TV revenue grew 37% year over year and represented 12% of quarterly revenue. Teads reported some improvement in early fourth-quarter trends, but guidance remains suspended.

9 points · 0 major

NegativeiHow this balance works

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Rhea-AI Sentiment measures something else, the tone of the wording.

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4 major · 25 points

How the balance works

Positive

• Moderate pointConnected TV revenue grew 37% year over year, reaching nearly $100 million year to date.
• Moderate pointEarly fourth-quarter trends showed some improvement, Teads said.
• Minor pointConnected TV represented 12% of Q3 revenue and approximately 20% of Enterprise business.
• Minor pointOmnichannel branding campaigns represented 15% of branding revenue, up from 10% in Q3 2025.
• Minor pointJoint Business Partnerships renewed with brands including BMW Group, Lenovo, Shell and Kia.

4 minor points

• Minor pointQ3 research and development expense declined to $10.506 million from $10.743 million a year earlier.
• Minor pointQ3 sales and marketing expense declined to $62.485 million from $68.658 million a year earlier.
• Minor pointQ3 general and administrative expense declined to $23.255 million from $31.970 million a year earlier.
• Minor pointQ3 restructuring charges declined to $349,000 from $657,000 a year earlier.

Negative

• Major pointQ3 revenue fell 26% year over year to $235.1 million, including approximately $1.5 million in unfavorable currency effects.
• Major pointQ3 net loss widened to $325.5 million from $19.7 million a year earlier.
• Major pointDebt obligations totaled $657.2 million at September 30, including 10.000% senior secured notes due 2030.
• Major pointGuidance remains suspended, including full-year 2026 adjusted EBITDA guidance.
• Moderate pointQ3 gross profit fell 42% to $60.9 million; gross margin declined to 25.9% from 33.2% year over year.
• Moderate pointQ3 Ex-TAC gross profit fell 28% to $93.5 million; its non-GAAP margin fell to 39.8% from 40.9%.
• Moderate pointQ3 adjusted EBITDA turned negative at $8.1 million, versus positive $19.2 million a year earlier.
• Moderate pointQ3 operating cash use increased to $27.9 million from $23.7 million a year earlier.
• Moderate pointQ3 adjusted free cash outflow increased to $33.1 million from $24.0 million a year earlier.
• Moderate pointCash and cash equivalents declined to $90.327 million at September 30, 2026, from $128.223 million at year-end 2025.
• Moderate pointStockholders’ deficit reached $318.171 million at September 30, versus $95.437 million equity at year-end 2025.

14 minor points

• Minor pointQ3 non-cash goodwill impairment totaled $272.4 million.
• Minor pointQ3 non-cash publisher commercial agreement impairment totaled $6.4 million.
• Minor pointQ3 loss per diluted share widened to $3.31 from $0.21 a year earlier.
• Minor pointQ3 adjusted net loss widened to $46.7 million from $13.6 million a year earlier.
• Minor pointQ3 free cash flow before interest payments turned negative at $1.4 million, versus positive $3.1 million.
• Minor pointNine-month revenue fell 17% year over year to $785.6 million.
• Minor pointNine-month gross profit fell 22% year over year to $240.1 million.
• Minor pointNine-month net loss widened to $406.7 million from $88.8 million a year earlier.
• Minor pointNine-month Ex-TAC gross profit fell 14% year over year to $324.7 million.
• Minor pointNine-month adjusted EBITDA turned negative at $0.4 million, versus positive $56.8 million a year earlier.
• Minor pointNine-month adjusted net loss widened to $123.0 million from $38.5 million a year earlier.
• Minor pointNine-month operating cash flow turned negative at $53.6 million, versus positive $0.3 million a year earlier.
• Minor pointNine-month adjusted free cash flow turned negative at $71.0 million, versus positive $3.4 million a year earlier.
• Minor pointNine-month free cash flow before interest payments turned negative at $7.2 million, versus positive $18.1 million.

News Explained

Reported debt includes $608.6 million carrying value of 10.000% senior secured notes due 2030.

Teads Holding Co. has reported third-quarter 2026 results; its balance sheet lists 98,753,042 common shares outstanding at September 30, 2026, versus 95,980,437 at December 31, 2025, so a holder keeping the same share count has a smaller ownership percentage.

Within $657.2 million of total debt, the company lists $608.6 million carrying value of 10.000% senior secured notes due 2030, plus $30.9 million under its accounts-receivable financing facility, $15.0 million under its revolving credit facility and $2.8 million under a short-term overdraft.

Argus 15 min delay 6 alerts

+5.38% vs previous close $0.2901 last price 0.0x rel. volume Open Argus

Details

Market move: TEAD +5.38% vs previous close. 3Q26 earnings report

-12.5% Trough in 9 min

$0.27 – $0.33 Day Range

$28.45M Mkt Cap at Last Price

On Nov 5, the day this news came out, the latest delayed price for TEAD is 5.38% above the previous close. Argus tracked a trough of -12.5% from its starting point during tracking. Our momentum scanner has recorded 6 alerts for this stock so far that day. The latest delayed price is $0.29.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Revenue: $235.1 million; down 26% Gross margin: 25.9% Net loss: $325.5 million +5 more

Revenue

$235.1 million; down 26%

Third quarter 2026 versus prior-year period

Gross margin

25.9%

Compared with 33.2% in the prior-year period

Net loss

$325.5 million

Compared with $19.7 million in the prior-year period

Goodwill impairment charge

$272.4 million

Non-cash charge included in current-period net loss

Adjusted EBITDA

-$8.1 million

Compared with $19.2 million in the prior-year period

Net cash used in operating activities

$27.9 million

Compared with $23.7 million used in the prior-year period

Cash and cash equivalents

$90.3 million

As of September 30, 2026

Total debt obligations

$657.2 million

As of September 30, 2026

Previous Earnings Reports

3 past events · Latest: Aug 06

Same Type 3 events

1. Aug 06

   Quarterly earnings

   24h Move

   -15.8%

   Revenue declined and guidance was suspended, while connected-TV revenue growth remained positive.

2. May 07

   Quarterly earnings

   24h Move

   -24.2%

   Revenue declined year over year, though net loss narrowed and full-year guidance was reiterated.

3. Nov 06

   Quarterly earnings

   24h Move

   -45.9%

   Revenue, gross profit, and adjusted EBITDA increased, and fourth-quarter guidance was provided.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

goodwill impairment, accounts receivable financing facility, senior secured notes, valuation allowances

4 terms

goodwill impairment financial

"a $272.4 million non-cash goodwill impairment charge"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

accounts receivable financing facility financial

"$30.9 million outstanding under our accounts receivable financing facility"

A credit arrangement in which a lender agrees to advance cash to a company using the company’s accounts receivable (outstanding customer invoices) as collateral. The lender typically advances a percentage of eligible invoice value (the advance rate), charges interest and fees, takes a security interest or assignment of the receivables, and collects payments or requires the company to remit collections to repay the facility; terms often specify eligible receivables, advance rates, concentration and aging limits, and whether the facility is recourse or non‑recourse to the borrower.

senior secured notes financial

"carrying value of our 10.000% senior secured notes due 2030"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

valuation allowances financial

"being subject to valuation allowances"

A valuation allowance is an accounting reserve companies set against expected future tax benefits when they doubt those benefits will be realized. Think of it like discounting a coupon you might not be able to use: it reduces the reported value of future tax savings on the balance sheet. For investors, increases or decreases in this allowance signal management’s view of future profitability and can materially change reported earnings and equity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Teads Holding Co. (Nasdaq: TEAD) (“Teads” or the “Company”) announced today financial results for the quarter ended September 30, 2026.

Third Quarter 2026 Key Financial Metrics:

	Three Months Ended September 30,											Nine Months Ended September 30,
(in millions USD)		2026				2025			% Change				2026				20251			% Change
Revenue	$	235.1			$	318.8			(26	)%		$	785.6			$	948.2			(17	)%
Gross profit		60.9				105.7			(42	)%			240.1				308.7			(22	)%
Net loss		(325.5	)			(19.7	)		(1,553	)%			(406.7	)			(88.8	)		(358	)%
Net cash (used in) provided by operating activities		(27.9	)			(23.7	)		(17	)%			(53.6	)			0.3			NM
Non-GAAP Financial Data*
Ex-TAC gross profit		93.5				130.5			(28	)%			324.7				377.8			(14	)%
Adjusted EBITDA		(8.1	)			19.2			(142	)%			(0.4	)			56.8			(101	)%
Adjusted net loss		(46.7	)			(13.6	)		(245	)%			(123.0	)			(38.5	)		(219	)%
Adjusted free cash flow		(33.1	)			(24.0	)		(38	)%			(71.0	)			3.4			NM
Free cash flow before interest payments		(1.4	)			3.1			(145	)%			(7.2	)			18.1			(139	)%

_____________________________
¹   Incorporates the results of operations for Legacy Teads (as defined below) from February 3, 2025 through September 30, 2025
*   See non-GAAP reconciliations below
NM  Not meaningful

"In the third quarter, our Connected TV revenue grew 37% year-over-year, outperforming the broader market through our leading position on the CTV HomeScreen — the front door to the living-room experience," said David Kostman, CEO of Teads. "Like many companies across our sector, we are navigating the significant headwinds currently impacting the open internet, and we are using this moment to focus on driving broader adoption of our Enterprise omnichannel offerings. We are seeing some improvement in trends in the early part of the fourth quarter and are taking decisive and appropriate actions to improve our revenue trajectory, optimize our cost structure, and strengthen our balance sheet" added Kostman.

Third Quarter 2026 and Recent Business Highlights:

• CTV Momentum:
  • Delivered CTV revenue growth of 37% year-over-year, with CTV now representing 12% of our Q3 revenue and accounting for approximately 20% of our Enterprise business, reaching year-to-date revenue of nearly $100 million.
  • Expanded global Whale TV partnership to give Teads Ad Manager buyers native HomeScreen access across 100+ countries.
  • Teads selected as the launch DSP for Telly’s persistent, 100% viewable HomeScreen ads, which are integrated programmatically via Magnite.
• Omnichannel Adoption: Branding customers utilizing omnichannel campaigns represented 15% of branding revenue, up from 10% in Q3 2025.
• Joint Business Partnership Renewals: Renewed several Joint Business Partnerships, with brands including BMW Group, Lenovo, Shell, and Kia.
• Teads Ad Manager: Launched the next evolution of our buying platform, which now leverages agentic workflows through Model Context Protocols (MCP) and is designed to address cross-channel fragmentation by bridging upper-funnel CTV branding with lower-funnel conversions in one agentic platform.
  
  

Third Quarter 2026 Financial Highlights:

• Revenue of $235.1 million, a decrease of $83.7 million, or 26%, compared to $318.8 million in the prior year period. Results include net unfavorable foreign currency effects of approximately $1.5 million.
• Gross profit of $60.9 million, a decrease of $44.8 million, or 42%, compared to $105.7 million in the prior year period. Gross margin decreased to 25.9%, compared to 33.2% in the prior year period.
• Ex-TAC gross profit of $93.5 million, a decrease of $37.0 million, or 28%, compared to $130.5 million in the prior year period. Our Ex-TAC gross margin decreased to 39.8%, compared to 40.9% in the prior year period.
• Net loss of $325.5 million, compared to a net loss of $19.7 million in the prior year period. Net loss in the current period included a $272.4 million non-cash goodwill impairment charge and a $6.4 million non-cash impairment of a publisher commercial agreement asset.
• Adjusted net loss of $46.7 million, compared to adjusted net loss of $13.6 million in the prior year period. Adjusted net loss included a $1.7 million income tax expense in the current period, compared to a $6.5 million income tax benefit in the prior period, primarily due to impairment of goodwill and U.S. and various non-U.S. losses for the three months ended September 30, 2026 being subject to valuation allowances.
• Adjusted EBITDA of $(8.1) million, compared to Adjusted EBITDA of $19.2 million in the prior year period, including net unfavorable foreign currency effects of approximately $1.5 million.
• Net cash used in operating activities of $27.9 million, compared to net cash used in operating activities of $23.7 million in the prior year period. Adjusted free cash flow of $(33.1) million, compared to adjusted free cash flow of $(24.0) million in the prior year period. Free cash flow before interest payments of $(1.4) million, compared to free cash flow before interest payments of $3.1 million in the prior year period.
• Cash and cash equivalents were $90.3 million as of September 30, 2026.
• Total debt obligations were $657.2 million, including the $608.6 million carrying value of our 10.000% senior secured notes due 2030 (principal amount of $628.2 million, net of unamortized discount and deferred financing costs), $30.9 million outstanding under our accounts receivable financing facility, $15.0 million outstanding under our revolving credit facility and $2.8 million outstanding under a short-term overdraft facility assumed in the acquisition (the “Acquisition”) of TEADS, a private limited liability company (société à responsabilité limitée) incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Legacy Teads”).
  
  

Outlook

As previously announced, we have suspended guidance, including our full-year 2026 Adjusted EBITDA guidance, and we are not providing guidance at this time.

Conference Call and Webcast Information

Teads will host an investor conference call this morning, Thursday, November 5 at 8:30 am ET. Interested parties are invited to listen to the conference call which can be accessed live by phone by dialing 1-800-717-1738 or for international callers, 1-646-307-1865. A replay will be available three hours after the call and can be accessed by dialing 1-877-660-6853, or for international callers, 1-201-612-7415. The passcode for the live call and the replay is 13763331. The replay will be available until November 19, 2026. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investors Relations section of the Company’s website at https://investors.teads.com. The online replay will be available for a limited time shortly following the call.

Non-GAAP Financial Measures

In addition to GAAP performance measures, we use the following supplemental non-GAAP financial measures to evaluate our business, measure our performance, identify trends, and allocate our resources: Ex-TAC gross profit, Ex-TAC gross margin, Adjusted EBITDA, free cash flow, adjusted free cash flow, free cash flow before interest payments, adjusted net income (loss), and adjusted diluted EPS. These non-GAAP financial measures are defined and reconciled to the corresponding GAAP measures below. These non-GAAP financial measures are subject to significant limitations, including those we identify below. In addition, other companies in our industry may define these measures differently, which may reduce their usefulness as comparative measures. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue, gross profit, net income (loss), diluted EPS, or cash flows from operating activities presented in accordance with GAAP.

Because we are a global company, the comparability of our operating results is affected by foreign exchange fluctuations. We calculate certain constant currency measures and foreign currency impacts by translating the current year’s reported amounts, excluding new acquisitions, into comparable amounts using the prior year’s exchange rates. All constant currency financial information that may be presented is non-GAAP and should be used as a supplement to our reported operating results. We believe that this information is helpful to our management and investors to assess our operating performance on a comparable basis. However, these measures are not intended to replace amounts presented in accordance with GAAP and may be different from similar measures calculated by other companies.

Forward-looking non-GAAP financial measures are calculated based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. The Company has not provided quantitative reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because it is unable, without unreasonable effort, to predict with reasonable certainty the occurrence or amount of all excluded items that may arise during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Such excluded items could be material to the reported results individually or in the aggregate.

Ex-TAC Gross Profit

Ex-TAC gross profit is a non-GAAP financial measure. Gross profit is the most comparable GAAP measure. In calculating Ex-TAC gross profit, we add back other cost of revenue, including the non-cash impairment of a publisher commercial agreement asset, to gross profit. Ex-TAC gross profit may fluctuate in the future due to various factors, including, but not limited to, seasonality and changes in the number of media partners and advertisers, advertiser demand or user engagements.

We present Ex-TAC gross profit, Ex-TAC gross margin (calculated as Ex-TAC gross profit as a percentage of revenue), and Adjusted EBITDA as a percentage of Ex-TAC gross profit, because they are key profitability measures used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans, and make strategic decisions regarding the allocation of capital. Accordingly, we believe that these measures provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors. There are limitations on the use of Ex-TAC gross profit in that traffic acquisition cost is a significant component of our total cost of revenue but not the only component and, by definition, Ex-TAC gross profit presented for any period will be higher than gross profit for that period. A potential limitation of this non-GAAP financial measure is that other companies, including companies in our industry, which have a similar business, may define Ex-TAC gross profit differently, which may make comparisons difficult. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue or gross profit presented in accordance with GAAP.

Adjusted EBITDA

We define Adjusted EBITDA as net income (loss) before gain on repurchase of long-term debt; interest expense; other expense (income) and interest income, net; provision (benefit) for income taxes; depreciation and amortization; stock-based compensation; and other income or expenses that we do not consider indicative of our core operating performance, including but not limited to, acquisition and integration costs, restructuring, and impairment charges. We present Adjusted EBITDA as a supplemental performance measure because it is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans and make strategic decisions regarding the allocation of capital, and we believe it facilitates operating performance comparisons from period to period.

We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. However, our calculation of Adjusted EBITDA is not necessarily comparable to non-GAAP information of other companies. Adjusted EBITDA should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Diluted EPS

Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss) excluding items that we do not consider indicative of our core operating performance, including but not limited to gain on repurchase of long-term debt, acquisition and integration costs, restructuring charges, impairment charges, bridge facility costs, valuation allowance recognition, as well as the related income tax effects. Adjusted net income (loss), as defined above, is also presented on a per diluted share basis. We present adjusted net income (loss) and adjusted diluted EPS as supplemental performance measures because we believe they facilitate performance comparisons from period to period. However, adjusted net income (loss) or adjusted diluted EPS should not be considered in isolation or as a substitute for net income (loss) or diluted earnings per share reported in accordance with GAAP.

Free Cash Flow

Free cash flow is defined as cash flow provided by (used in) operating activities, less capital expenditures and capitalized software development costs. Adjusted free cash flow is defined as free cash flow plus direct acquisition costs. This quarter we are presenting a new non-GAAP measure, free cash flow before interest payments, which is defined as free cash flow plus cash paid for interest. Free cash flow, adjusted free cash flow and free cash flow before interest payments are supplementary measures used by our management and board of directors to evaluate our ability to generate cash and we believe it allows for a more complete analysis of our cash flows. Free cash flow, adjusted free cash flow and free cash flow before interest payments should be considered as supplemental measures, as the adjustments include actual cash outlays which impact cash flows, and should not be considered in isolation or as a substitute for any measures of our liquidity or financial performance that are calculated and reported in accordance with GAAP.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives, and statements relating to the Acquisition. You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact.

We have based these forward-looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: our ability to successfully integrate Legacy Teads or manage the combined business effectively; overall advertising demand and traffic generated by our media partners; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to compete effectively against current and future competitors; the potential impact of artificial intelligence (“AI”) on our industry, our ability to adapt to advancements in AI and the regulation of generative AI content within the context of the Open Internet and display advertising, and our need to invest in AI-based solutions; our ability to attract and retain customers, management and other key personnel; the volatility of the market price of our common stock and our ability to regain compliance with and satisfy the continued listing requirements of The Nasdaq Stock Market LLC, including the potential adverse effects on market liquidity and share price if our common stock is delisted; our ability to grow our business and manage growth effectively; our ability to raise additional financing in the future to fund our operations or service our existing indebtedness or comply with the covenants and other obligations under our financing arrangements, including our accounts receivable financing facility; the sufficiency of our capital resources to service our debt and satisfy our other liquidity requirements, including our existing cash balances, the ability to generate sufficient operating cash flows and the availability of additional or continued sources of financing; loss of media partners could have a significant impact on our revenue and results of operations; our ability to maintain the integrity of our platform and prevent invalid, low quality or other non-human traffic that does not meet ad quality standards, and the impact of such activity on our relationships with media partners and advertisers; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our ability to realize anticipated benefits and synergies of the Acquisition, including, among other things, operating efficiencies, revenue synergies and other cost savings; unexpected costs, charges or expenses resulting from the Acquisition; our internal controls over financial reporting may not meet the standard required by Section 404 of the Sarbanes-Oxley Act; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, tariffs and trade wars and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the ongoing conflict involving the U.S., Iran, Israel and surrounding nations, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the impact of challenging economic conditions, new or proposed legislation or other political and policy changes or uncertainties in the U.S., the impact of U.S. government shutdowns, and other factors that have and may further impact advertisers’ ability to pay; conditions in Israel, including the conflict between Israel and Hamas and the sustainability of the related cease-fire and any impacts from the ongoing conflict involving the U.S., Iran, Israel and surrounding nations; our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the challenges of compliance with differing and changing regulatory requirements, particularly with respect to privacy and data protection; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the outcome of legal proceedings, which we are subject to from time to time, including intellectual property, commercial and privacy disputes, and specifically our litigation against Google LLC and Alphabet Inc., including, among other things, the uncertainty and timing of any resolution and the amount of damages or other remedies we may recover, if any; the timing and execution of any cost-saving measures and the impact on our business or strategy; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2025, in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and in our subsequent reports filed with the Securities and Exchange Commission (the “SEC”), which are available on our website at https://investors.teads.com/ and on the SEC’s website at www.sec.gov.

Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law.

About Teads

Teads (Nasdaq: TEAD) is a leading omnichannel advertising platform focused on driving outcomes for brand and performance advertisers across screens. With a focus on meaningful business outcomes for full funnel objectives, Teads drives value by leveraging predictive AI technology to connect quality media, beautiful brand creative, and context-driven addressability and measurement. Teads is directly partnered with more than 10,000 publishers and 20,000 advertisers globally. The Company is headquartered in New York, New York, with a global team of around 1,700 people in 30+ countries.

For more information, visit www.teads.com.

Media Contact
press@teads.com

Investor Relations Contact
IR@teads.com
(332) 205-8999

TEADS HOLDING CO. Condensed Consolidated Statements of Operations (In thousands, except for share and per share data)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
	(Unaudited)
Revenue	$	235,073			$	318,772			$	785,645			$	948,225
Cost of revenue:
Traffic acquisition costs		148,039				188,230				467,348				570,392
Other cost of revenue		26,167				24,794				78,214				69,171
Total cost of revenue		174,206				213,024				545,562				639,563
Gross profit		60,867				105,748				240,083				308,662
Operating expenses:									​
Research and development		10,506				10,743				32,543				38,007
Sales and marketing		62,485				68,658				199,195				202,071
General and administrative		23,255				31,970				78,238				96,335
Impairment of intangible assets		—				—				—				15,614
Impairment of goodwill		272,432				—				272,432				—
Restructuring charges		349				657				3,290				9,610
Total operating expenses		369,027				112,028				585,698				361,637
Loss from operations		(308,160	)			(6,280	)			(345,615	)			(52,975	)
Other (expense) income:
Gain on repurchase of long-term debt		—				—				—				1,225
Interest expense		(17,407	)			(17,084	)			(52,233	)			(57,732	)
Other income (expense) and interest income, net		27				(994	)			(2,645	)			(2,984	)
Total other (expense) income, net		(17,380	)			(18,078	)			(54,878	)			(59,491	)
Loss before income taxes		(325,540	)			(24,358	)			(400,493	)			(112,466	)
(Benefit) provision for income taxes		(72	)			(4,668	)			6,240				(23,620	)
Net loss	$	(325,468	)		$	(19,690	)		$	(406,733	)		$	(88,846	)
Weighted average shares outstanding:
Basic		98,259,847				95,113,669				97,286,984				89,249,913
Diluted		98,259,847				95,113,669				97,286,984				89,249,913
Net loss per common share:
Basic	$	(3.31	)		$	(0.21	)		$	(4.18	)		$	(1.00	)
Diluted	$	(3.31	)		$	(0.21	)		$	(4.18	)		$	(1.00	)

TEADS HOLDING CO. Condensed Consolidated Balance Sheets (In thousands, except for number of shares and par value)
	September 30, 2026				December 31, 2025
	(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents	$	90,327			$	128,223
Short-term investments in marketable securities		—				10,476
Accounts receivable, net of allowances		237,040				342,352
Prepaid expenses and other current assets		29,938				49,347
Total current assets		357,305				530,398
Non-current assets:
Property, equipment and capitalized software, net		55,010				50,998
Operating lease right-of-use assets, net		28,504				28,810
Intangible assets, net		327,988				376,578
Goodwill		—				280,991
Deferred tax assets		9,469				10,485
Indemnification asset		29,402				27,789
Other assets		23,567				21,925
TOTAL ASSETS	$	831,245			$	1,327,974
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT):
Current liabilities:
Accounts payable	$	200,919			$	258,634
Accrued compensation and benefits		31,960				40,192
Deferred revenue		11,940				14,930
Short-term debt		17,752				17,595
Accrued and other current liabilities		116,160				152,710
Total current liabilities		378,731				484,061
Non-current liabilities:
Long-term debt		639,429				605,113
Operating lease liabilities, non-current		20,263				21,674
Deferred tax liabilities		61,481				73,101
Contingent tax liabilities		37,626				35,078
Other liabilities		11,886				13,510
TOTAL LIABILITIES	$	1,149,416			$	1,232,537
STOCKHOLDERS’ EQUITY (DEFICIT):
Common stock, par value of $0.001 per share − one billion shares authorized; 99,064,762 shares issued and 98,753,042 shares outstanding as of September 30, 2026; 96,171,331 shares issued and 95,980,437 shares outstanding as of December 31, 2025		99				96
Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of September 30, 2026 and December 31, 2025		—				—
Additional paid-in capital		692,279				685,778
Treasury stock, at cost − 311,720 shares as of September 30, 2026 and 190,894 shares as of December 31, 2025		(652	)			(533	)
Accumulated other comprehensive income		83,399				96,659
Accumulated deficit		(1,093,296	)			(686,563	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(318,171	)			95,437
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	831,245			$	1,327,974

TEADS HOLDING CO. Condensed Consolidated Statements of Cash Flows
		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
		(In thousands) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(325,468	)		$	(19,690	)		$	(406,733	)		$	(88,846	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Gain on repurchase of long-term debt			—				—				—				(1,225	)
Depreciation and amortization of property and equipment			2,136				1,867				6,227				6,763
Amortization of capitalized software development costs			2,578				2,266				7,267				7,041
Amortization of intangible assets			13,127				13,364				39,328				34,903
Amortization of discount on marketable securities			(4	)			(63	)			(290	)			(784	)
Stock-based compensation			1,744				3,641				6,175				10,372
Non-cash operating lease expense			3,079				2,977				9,622				8,175
Provision for credit losses			2,000				4,150				6,758				5,614
Amortization of debt discount and issuance costs			1,185				1,250				3,458				15,337
Deferred income taxes			(3,345	)			(10,862	)			(8,006	)			(42,709	)
Impairment of intangible assets			—				—				—				15,614
Impairment of goodwill			272,432				—				272,432				—
Unrealized foreign currency transaction losses			507				2,532				2,660				6,677
Other			(1	)			—				17				25
Changes in operating assets and liabilities:
Accounts receivable			42,882				19,255				94,700				57,827
Prepaid expenses and other current assets			1,924				3,519				18,540				16,863
Accounts payable, accrued expenses and other current liabilities			(41,542	)			(42,857	)			(99,786	)			(45,007	)
Operating lease liabilities			(3,220	)			(3,019	)			(9,866	)			(8,445	)
Deferred revenue			(3,029	)			(1,092	)			(2,936	)			(3,942	)
Other non-current assets and liabilities			5,139				(972	)			6,845				6,091
Net cash (used in) provided by operating activities			(27,876	)			(23,734	)			(53,588	)			344
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of a business, net of cash acquired			—				—				—				(598,319	)
Purchases of property and equipment			(508	)			(789	)			(2,349	)			(4,853	)
Capitalized software development costs			(4,715	)			(4,915	)			(15,071	)			(12,020	)
Purchases of marketable securities			—				—				(13,081	)			(16,603	)
Proceeds from sales and maturities of marketable securities			3,000				9,250				23,739				86,471
Other			21				(57	)			443				(56	)
Net cash (used in) provided by investing activities			(2,202	)			3,489				(6,319	)			(545,380	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the Bridge Facility			—				—				—				625,000
Repayments of borrowings under the Bridge Facility			—				—				—				(625,000	)
Proceeds from senior secured notes			—				—				—				625,305
Proceeds from the 2025 Revolving Facility			15,000				—				15,000				—
Proceeds from the A/R Facility			30,858				—				30,858				—
Partial repayment of long-term debt			—				—				—				(7,674	)
Payments of deferred financing and debt issuance costs			(6,821	)			(168	)			(7,584	)			(30,969	)
Payment of stock issuance costs			—				—				—				(775	)
Treasury stock repurchases and share withholdings on vested awards			(6	)			(86	)			(119	)			(639	)
(Repayments of) proceeds from bank overdrafts, net			(4,353	)			59				(14,585	)			110
Net cash provided by (used in) financing activities			34,678				(195	)			23,570				585,358
Effect of exchange rate changes			549				1,687				748				1,834
Net increase (decrease) in cash, cash equivalents and restricted cash		$	5,149			$	(18,753	)		$	(35,589	)		$	42,156
Cash, cash equivalents and restricted cash — Beginning			88,962				150,634				129,700				89,725
Cash, cash equivalents and restricted cash — Ending		$	94,111			$	131,881			$	94,111			$	131,881

TEADS HOLDING CO.
Non-GAAP Reconciliations
(In thousands)
(Unaudited)

The following table presents the reconciliation of Gross profit to Ex-TAC gross profit and Ex-TAC gross margin, for the periods presented:

​	Three Months Ended September 30,								Nine Months Ended September 30,
​		2026				2025				2026				2025
Revenue	$	235,073			$	318,772			$	785,645			$	948,225
Traffic acquisition costs		(148,039	)			(188,230	)			(467,348	)			(570,392	)
Other cost of revenue		(26,167	)			(24,794	)			(78,214	)			(69,171	)
Gross profit		60,867				105,748				240,083				308,662
Other cost of revenue(1)		32,598				24,794				84,645				69,171
Ex-TAC gross profit	$	93,465			$	130,542			$	324,728			$	377,833
Gross margin (gross profit as % of revenue)		25.9	%			33.2	%			30.6	%			32.6	%
Ex-TAC gross margin (Ex-TAC gross profit as % of revenue)		39.8	%			41.0	%			41.3	%			39.8	%

_____________________
⁽¹⁾   The three and nine months ended September 30, 2026 include $6.4 million non-cash impairment of a publisher commercial agreement asset.

The following table presents the reconciliation of net loss to Adjusted EBITDA, for the periods presented:

​	Three Months Ended September 30,								Nine Months Ended September 30,
​		2026				2025				2026				2025
Net loss	$	(325,468	)		$	(19,690	)		$	(406,733	)		$	(88,846	)
Gain on repurchase of long-term debt		—				—				—				(1,225	)
Interest expense		17,407				17,084				52,233				57,732
Other expense (income) and interest income, net		(27	)			994				2,645				2,984
(Benefit) provision for income taxes		(72	)			(4,668	)			6,240				(23,620	)
Depreciation and amortization		17,841				17,497				52,822				48,707
Stock-based compensation		1,744				3,641				6,175				10,372
Acquisition and integration costs		1,266				3,656				4,115				25,508
Restructuring charges		349				657				3,290				9,610
Impairment of intangible assets		—				—				—				15,614
Impairment of goodwill		272,432				—				272,432				—
Impairment of publisher commercial agreement asset		6,431				—				6,431				—
Adjusted EBITDA	$	(8,097	)		$	19,171			$	(350	)		$	56,836
Net loss as % of gross profit	(534.7		)%		(18.6		)%		(169.4		)%		(28.8		)%
Adjusted EBITDA as % of Ex-TAC Gross Profit	(8.7		)%			14.7	%		(0.1		)%			15.0	%

TEADS HOLDING CO.
Non-GAAP Reconciliations
(In thousands)
(Unaudited)

The following table presents the reconciliation of net loss and diluted loss per share to adjusted net loss and adjusted diluted loss per share, respectively, for the periods presented:

​	Three Months Ended September 30,								Nine Months Ended September 30,
​		2026				2025				2026				2025
Net loss	$	(325,468	)		$	(19,690	)		$	(406,733	)		$	(88,846	)
Adjustments:
Acquisition and integration costs		1,266				3,656				4,115				25,508
Restructuring charges		349				657				3,290				9,610
Goodwill impairment		272,432				—				272,432				—
Impairment of publisher commercial agreement asset		6,431				—				6,431				—
Impairment of intangible assets		—				—				—				15,614
Gain on repurchase of long-term debt		—				—				—				(1,225	)
Bridge facility costs		—				—				—				11,996
Total adjustments, before tax		280,478				4,313				286,268				61,503
Income tax effect		(1,757	)			1,820				(2,512	)			(11,165	)
Total adjustments, after tax		278,721				6,133				283,756				50,338
Adjusted net loss	$	(46,747	)		$	(13,557	)		$	(122,977	)		$	(38,508	)
Basic and diluted weighted average shares		98,259,847				95,113,669				97,286,984				89,249,913
Diluted net loss per share - reported	$	(3.31	)		$	(0.21	)		$	(4.18	)		$	(1.00	)
Adjustments, after tax		2.83				0.07				2.92				0.57
Diluted net loss per share - adjusted	$	(0.48	)		$	(0.14	)		$	(1.26	)		$	(0.43	)

The following table presents the reconciliation of net cash (used in) provided by operating activities to free cash flow, adjusted free cash flow and free cash flow before interest payments, for the periods presented:

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net cash (used in) provided by operating activities	$	(27,876	)		$	(23,734	)		$	(53,588	)		$	344
Purchases of property and equipment		(508	)			(789	)			(2,349	)			(4,853	)
Capitalized software development costs		(4,715	)			(4,915	)			(15,071	)			(12,020	)
Free cash flow	$	(33,099	)		$	(29,438	)		$	(71,008	)		$	(16,529	)
Free cash flow	$	(33,099	)		$	(29,438	)		$	(71,008	)		$	(16,529	)
Direct acquisition costs		—				5,471				—				19,918
Adjusted free cash flow	$	(33,099	)		$	(23,967	)		$	(71,008	)		$	3,389
Free cash flow	$	(33,099	)		$	(29,438	)		$	(71,008	)		$	(16,529	)
Cash interest payments		31,698				32,566				63,856				34,661
Free cash flow before interest payments	$	(1,401	)		$	3,128			$	(7,152	)		$	18,132

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Teads’ third-quarter 2026 revenue and net loss?

Teads reported $235.1 million in revenue and a $325.5 million net loss for the quarter ended September 30, 2026. Revenue declined 26% from $318.8 million a year earlier, while net loss widened from $19.7 million.

Is Teads providing full-year 2026 guidance?

Teads is not providing guidance, and its previously announced suspension includes full-year 2026 adjusted EBITDA guidance.

What makes up Teads’ debt at September 30, 2026?

Teads’ debt obligations included $608.6 million in carrying value for its 10.000% senior secured notes due 2030, with $628.2 million principal. Other borrowings were $30.9 million under accounts receivable financing, $15.0 million under its revolving credit facility and $2.8 million under a short-term overdraft facility assumed in the Legacy Teads acquisition.