Criteo — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP revenue for Q3 2026 was $416 million, a 11% year-over-year decrease (10% at constant currency) compared to $470 million in Q3 2025; for the nine months ended September 30, 2026, revenue was $1,269 million, down 10% year-over-year.
• GAAP gross profit was $208 million in Q3 2026 (50% margin), down 19% year-over-year from $256 million (55% margin); for the nine months, gross profit was $653 million, down 13% year-over-year.
• GAAP net income was $6 million ($0.11 diluted EPS) in Q3 2026, down 85% year-over-year from $40 million ($0.70 diluted EPS); for the nine months, net income was $26 million ($0.49 diluted EPS), down 74% year-over-year.
• Non-GAAP Contribution ex-TAC was $240 million in Q3 2026, down 17% year-over-year (15% at constant currency); for the nine months, it was $746 million, down 12% year-over-year.
• Non-GAAP Adjusted EBITDA was $65 million in Q3 2026 (27% margin), down 39% year-over-year from $105 million; for the nine months, Adjusted EBITDA was $203 million, down 29% year-over-year.
• Non-GAAP Adjusted diluted EPS was $0.43 in Q3 2026, down 67% year-over-year from $1.31; for the nine months, it was $1.96, down 41% year-over-year.
• Free Cash Flow was $21 million in Q3 2026, down 69% year-over-year from $67 million; for the nine months, Free Cash Flow was negative $0.4 million (reported as $— in the summary table, though the reconciliation shows a negative value), down 100% year-over-year from $76 million.
• Cash flow from operating activities was $57 million in Q3 2026, down 36% year-over-year from $90 million; for the nine months, it was $125 million, down 17% year-over-year.
• Cash and cash equivalents were $275 million as of September 30, 2026, an 8% increase year-over-year from $255 million.
• Total financial liquidity was approximately $788 million, including $275 million in cash and cash equivalents, $51 million in marketable securities, and $462 million available through a revolving credit facility.
• Operating expenses decreased 9% year-over-year to $187 million in Q3 2026; Non-GAAP operating expenses decreased 3% year-over-year to $153 million.

Guidance and Future Outlook:

• Full-year 2026 guidance expects Contribution ex-TAC to decrease 12% to 10% year-over-year at constant currency.
• Full-year 2026 guidance expects an Adjusted EBITDA margin of approximately 30% of Contribution ex-TAC.
• Q4 2026 guidance expects Contribution ex-TAC between $292 million and $298 million, representing a 11% to 9% year-over-year decrease at constant currency.
• Q4 2026 guidance expects Adjusted EBITDA between $105 million and $111 million.
• Guidance assumes no acquisitions or dispositions in the last quarter of 2026 and incorporates unfavorable foreign exchange rates (USD/EUR 0.87, USD/JPY 159, USD/GBP 0.75, USD/KRW 1,441, USD/BRL 5.16).
• Management noted foreign exchange is expected to be a greater headwind in Q4 2026 than previously reflected in guidance.

Business Segments and Product Lines:

• Retail Media revenue decreased 23% year-over-year (22% at constant currency) to $51.9 million in Q3 2025; Contribution ex-TAC decreased 23% year-over-year. A $20 million headwind from scope changes with two specific clients impacted results; excluding this, underlying client base Contribution ex-TAC grew 10%.
• Performance Media revenue decreased 9% year-over-year (8% at constant currency) to $364.6 million in Q3 2026; Contribution ex-TAC decreased 15% year-over-year, primarily due to soft performance in Commerce Growth.
• Media spend was $1.2 billion in Q3 2026, up 9% year-over-year at constant currency; total media spend for the last 12 months was $4.6 billion.
• Criteo expanded Performance Connected TV capabilities beyond the U.S. to Brazil and Mexico by year-end 2026, with Canada, the UK, France, Germany, Italy, Spain, Australia, and select additional markets planned for 2027.
• Criteo became OpenAI's first advertising technology partner in March 2026, enabling advertising on ChatGPT in 89 countries.
• Retail Media adoption expanded to approximately 4,700 brands, with new partners including Notino (EMEA), El Puerto de Liverpool (Mexico), ONIGO (Japan), Adore Beauty (Australia), and PayU (India).
• Criteo is developing sponsored products for AI-powered conversational search with THG Ingenuity.
• Criteo received Frost & Sullivan's 2026 Global New Product Innovation Recognition in the commerce media supply-side platform category.

Market and Competitive Landscape:

• The company noted "near-term headwinds" but highlighted momentum in newer channels and a growing pipeline of opportunities.
• Softness in Performance Media and scope changes with specific Retail Media clients were identified as primary drivers for revenue and contribution declines.
• The company operates in a competitive environment where client in-housing and changes in advertising industry conditions are cited as potential risks.

Risks and Challenges:

• Risks include failure to innovate or respond to technology changes, uncertainty in accessing consistent display advertising inventory, and the impact of client in-housing.
• Regulatory and legislative developments regarding data privacy, consumer concerns over data collection, and limitations in accessing third-party data pose risks.
• The completion of the transfer of legal domicile from Luxembourg to the United States is subject to shareholder approval and other conditions; failure to obtain approval or satisfy conditions could disrupt operations.
• Macroeconomic conditions, including inflation and fluctuating interest rates, may continue to impact business, financial condition, and cash flow.
• Foreign exchange fluctuations are expected to be a headwind, particularly in the fourth quarter.

Management Commentary and Tone:

• CEO Michael Komasinski stated, "Despite near-term headwinds, we are making tangible progress across our business, with momentum in newer channels and a growing pipeline of opportunities," emphasizing a focus on sharpening execution and operating with discipline.
• CFO Connor McGogney noted, "We maintained cost discipline in the third quarter while investing in our growth priorities, and we see further opportunities to improve efficiency," expressing confidence in translating strengths into consistent growth and greater shareholder value.
• Management highlighted lower employee costs and lower share-based compensation as factors partially offsetting revenue declines in Adjusted EBITDA.

Other Key Points:

• The Company deployed $65 million for share repurchases in the first nine months of 2026, including $4 million in the third quarter.
• The transfer of legal domicile from Luxembourg to the United States is expected to be completed on January 1, 2027, subject to shareholder approval.
• Criteo appointed former Google and Microsoft executive Jianchang "JC" Mao to its Board of Directors as an independent director.
• Clients decreased 2% year-over-year to 16,703 as of September 30, 2026.
• Headcount decreased 4% year-over-year to 3,504 as of September 30, 2026.
• Days Sales Outstanding was 58 days as of September 30, 2026, down 6 days year-over-year.