AcuityAds Holdings Inc.

Q3 2025 revenue was $38.2 million, up 5.2% from $36.3 million in Q3 2024 and up 15.4% from $33.1 million in the prior quarter. Gross profit was $14.4 million versus $17.2 million a year ago, and gross margin was 38% compared with 47% in Q3 2024. Adjusted EBITDA was $0.2 million versus $1.9 million last year, and net loss was $2.1 million versus a net loss of $1.1 million. Exchange service revenue was $20.5 million, Self service was $8.3 million, and Managed service was $9.4 million. On guidance, management did not provide formal quarterly or full-year financial guidance, but said gross margin should return to a more normal level in Q4, and that Q4 Managed pipeline is already showing better performance; they also expect the paused Self service client impact to have been concentrated in Q1, with management expecting 2026 to benefit from product changes and restructuring.

Simon Cairns framed the quarter as evidence that the company’s strategic pivot toward an integrated outcomes-based platform is working, especially in Exchange and Self service. He emphasized a shift in the ad market away from input-based buying toward outcome measurement, calling incrementality and generative AI key differentiators for 2026. His tone was confident and explanatory, but he was candid that Managed services remains a challenge and needs repositioning.

Elliot Muchnik focused on the numbers and the drivers behind them: $38.2 million in revenue, $14.4 million in gross profit, 38% gross margin, $0.2 million adjusted EBITDA, and a $2.1 million net loss. He said lower gross margin reflected product mix, particularly the larger Exchange contribution, and noted Exchange margins are in the low-to-mid-30% gross take range with added SG&A and hosting costs. Cash ended the quarter at $43.2 million versus $48.3 million last quarter, with the decline attributed to platform investment, lease payments, share repurchases, and negative operating cash flow; he said the company still has a strong balance sheet and that operating cash flow is typically seasonal and reverses in Q4. He also noted the NCIB had repurchased 744,108 shares at an average price of $1.65 per share for a total cost of $1.228 million.

Analysts pressed management on the product roadmap, FX exposure, margin differences across business lines, the persistence of Managed weakness, and whether the large Self service client pause had lapped. Simon said the new AI and incrementality tools are designed to make the platform more outcomes-focused and less frictional, while Elliot said the FX move was partly helped by a stronger U.S. dollar versus the Canadian dollar and that Exchange has a lower margin profile than Self and Managed. On Managed, Simon argued some weakness is cyclical because marketers pulled back from full-funnel campaigns amid tariff and trade uncertainty, but also structural because the company is seeing more interest from larger premium agencies that require a different pitch. Management said the paused Self service customer was concentrated in Q1, and both executives said Q3 is not representative of the business going forward.