Teads Holding Co.

Q2 revenue was approximately $285 million, down 17% year over year. Ex-TAC gross profit was $123 million, down 14% year over year, and adjusted EBITDA was approximately $7 million. Free cash flow was $3 million. Enterprise delivered $89 million in ex-TAC gross profit, while Direct Response and SME delivered $34 million, down 30% year over year. CTV revenue grew 67% year over year to approximately $40 million and represented 13% of revenue versus 7% in Q2 2025. Management said Enterprise advertiser spend was flat year over year in Q2 and positive year over year in May and June, and it expects mid-single-digit ex-TAC growth in H2 for Enterprise. However, adjusted EBITDA came below the expected range, and the company suspended guidance, including previously provided full-year 2026 EBITDA guidance.

David Kostman framed the quarter as a tale of two businesses: a growing, higher-margin Enterprise/CTV franchise and a challenged Direct Response/SME business that is being actively reworked. He emphasized continued investment in CTV, omnichannel, agency relationships, and AI-enabled products like Teads Engage, saying the company wants to capture share and improve long-term operating leverage. His tone was constructive on the Enterprise opportunity and candid about deliberate trade-offs in profitability to support that growth.

Jason Kiviat said Q2 met ex-TAC gross profit guidance but adjusted EBITDA fell below the expected range because of higher expenses in the back half of the quarter. He attributed the variance to timing/cutoff of discretionary spend such as T&E and marketing, temporary cloud migration costs, FX pressure from the Israeli shekel, and elevated bad debts tied to prior customers affected by last year’s quality actions. He noted $91 million of cash, cash equivalents and marketable securities, plus access to $40 million on the revolving credit facility, and said the company is evaluating cost and capital structure alternatives to strengthen the balance sheet.

Analysts focused on potential transactions, the trade-off between Enterprise investment and profitability, the 30% decline in Direct Response/SME, and traction with large agencies. Management said it continues to evaluate opportunities to strengthen the balance sheet and would report any specific transaction updates if available. On the DR/SME decline, management said page-view drops of roughly 15% to 25% for some premium publishers and lower monetization were pressuring the business, but omnichannel selling was not materially impaired. On agencies, management said more than 90% of Enterprise billings flow through big agencies and that Teads is seeing stronger traction from Teads Ad Manager and AI-related integrations, which supports confidence in H2 growth and possible acceleration into 2027.