Teads Holding Co. Q1 FY2026 earnings call

Framed market position after one year of combination; enterprise business with global brands and agencies generated $900M in 2025 (80% of ad stack); direct response engine $500M (20% of ad stack); Q1 was pivotal, exceeded revenue guidance, CTV revenue up over 50% YOY with strong EMEA and APAC momentum; solidified home screen leadership via partnerships; 13% of campaigns omnichannel vs 8% last year Q1; renewed partnerships with enterprise brands; launched vertical video formats in direct response business; aggressive AI adoption.

Enterprise business generated approximately $900 million in revenue in 2025, accounting for approximately 80% of the company's ad stack. The direct response engine represented approximately $500 million in revenue and 20% of the ad stack. Q1 revenue was approximately $266 million, down 7% year over year. XTAC gross profit in the quarter was $108 million, an increase of 5% year-over-year, but on a pro forma basis, it represents a decline of 11% year over year. Adjusted EBITDA for Q1 was approximately $1 million, and adjusted free cash flow was a use of cash of $41 million.

For Q2 2026, expect ex-tech gross profit of $121 million to $131 million, and adjusted EBITDA of $14 million to $22 million. For full year 2026, continue to expect adjusted EBITDA of approximately $100 million.

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Risk factors are discussed in detail in the company's annual report on Form 10-K for the year ended December 31, 2020-25, as updated in subsequent reports filed with the Securities and Exchange Commission.

Q: Laura Martin asks about work with ad agencies and free cash flow progress.

A: David talks about strengthening strategic integrations with agencies; Jason explains cash flow related to timing and working capital.

Q: Brianna Diaz asks about go-to-market model changes and balance sheet evaluation.

A: David mentions changes in go-to-market coverage model; Jason talks about evaluating capital structure and minimum cash.

Q: Ed Alter asks about CTV business impact on ex-tech gross margins and CTV format expansion.

A: Related person explains CTV's impact on margins and focus on CTV format optimization.