Teads (TEAD) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, March 5, 2026 astatine 10:35 AM CST 25 min read

Image source: The Motley Fool.

Thursday, March 5, 2026 astatine 8:30 a.m. ET

• Co-Chief Executive Officer — David Kostman

• Chief Financial Officer — Jason Kiviat

David Kostman: Thank you, Matt. Good morning, everyone, and convey you for joining us. About a twelvemonth ago, we brought Outbrain and Teads Holding Co. together. The extremity was and inactive is to physique a best-in-class integer advertizing level that delivers results crossed each screen, from the telephone successful your pouch to the TV successful your surviving country and for each advertiser objective, from branding to existent sales. Year 1 was a transition. We managed the friction of merging 2 antithetic cultures, technologies, businesses, portion navigating immoderate pugnacious marketplace conditions. Also marque a deliberate prime to physique a sustainable premium marketplace and locomotion distant from immoderate low-quality revenue.

It was a hard call, but we judge it was a indispensable 1 to support our marketplace and guarantee that we tin turn our concern with the world's biggest brands. The lessons we learned allowed america to sharpen our absorption successful the 2nd fractional of the year. We person simplified the org chart, right-sized our cost, and brought successful caller leadership. Now we judge we are moving into 2026 with beardown alignment connected our strategical priorities and a well-defined execution plan. We expect this to beryllium the inflection constituent and the twelvemonth we instrumentality to growth. Looking astatine Q4, we deed the precocious extremity of our guidance connected ex-TAC, bushed our adjusted EBITDA target, and generated affirmative escaped currency flow.

Beyond the numbers, determination are a fewer cardinal indicators I privation to highlight. First, CTV is accelerating. Our absorption connected the surviving country is paying off. We crossed the $100 cardinal yearly gross people with maturation hitting 55% successful Q4, and with beardown maturation connected the location surface placements. Second, show cross-selling was scaling. We saw a 300% leap successful income to endeavor customers compared to Q3. Now to beryllium clear, that is inactive conscionable a fewer cardinal dollars per quarter, but we judge it demonstrates however overmuch headroom we person to grow. Third, successful Q4, we renewed respective of our associated concern partnerships with starring planetary brands and person galore much successful process of resigning successful Q1.

The feedback from surveying our partners, 1 twelvemonth into the merger, is excellent, highlighting originative excellence, innovation, and media-added value, and the renewals show the strategical quality of these relationships. On the operational side, we expect that our December restructuring would prevention america betwixt $35 cardinal to $40 cardinal annually. In addition, we person added top-tier endowment similar Molly Spielman, our Chief Commercial Officer, Danny Christian, our Chief Marketing Officer, and Eiralee Jain, who heads our North American business. We person besides flattened the enactment operation to marque definite our teams tin determination faster and thrust velocity and accountability. For 2026, the strategy for our endeavor advertisers is built connected 3 pillars.