Teads Holding Co. Reports First Quarter 2026 Results: A Mixed Bag of Growth and Losses

Teads reported a revenue of $266.0 million for Q1 2026, down 7% from $286.4 million in the same quarter of 2025. This decrease was partially offset by favorable foreign currency effects amounting to $11.6 million.

Despite the revenue drop, the company achieved a slight increase in gross profit, which reached $83.6 million, up 1% from $82.7 million in the prior year. As a result, the gross margin improved to 31.4%, compared to 28.9% a year ago.

Teads reported a net loss of $38.8 million, significantly improving from a net loss of $54.8 million in Q1 2025. The reduction in net loss was attributed to lower restructuring and acquisition-related costs, which were $1.7 million and $1.3 million respectively in the current period, compared to much higher costs in the previous year.

However, net cash used in operating activities surged to $34.9 million from just $1.0 million in Q1 2025, primarily due to a $31.4 million interest payment for the company’s senior secured notes. Adjusted free cash flow was reported at $(41.1) million, a stark contrast to $5.2 million in Q1 2025.

Teads also reported its non-GAAP metrics, which showed an Ex-TAC gross profit of $107.9 million, reflecting a 5% increase year-over-year. However, adjusted EBITDA fell sharply to $0.8 million, down 93% from $10.7 million in Q1 2025, impacted by unfavorable foreign currency effects of $1.6 million.

David Kostman, CEO of Teads, emphasized the company's momentum in the CTV space, reporting a remarkable 50% year-over-year growth in CTV revenue. The branding customers employing omnichannel campaigns increased their CTV spending to 13%, up from 8% in Q1 2025, indicating stronger engagement from major agencies and holding companies.

Teads has also strengthened its position in the CTV sector by expanding partnerships with leading brands such as LG and Samsung, enhancing its global footprint.

Teads renewed several Joint Business Partnerships with global brands including McDonald’s, Heineken, and Volkswagen, reinforcing its strategic alliances. The company also saw growth in cross-selling campaigns, with 16% of spend from Enterprise Brand advertisers directed towards performance-based goals, marking a shift in focus toward measurable outcomes.

Looking forward, Teads provided guidance for the second quarter ending June 30, 2026, forecasting Ex-TAC gross profit between $121 million to $131 million and an adjusted EBITDA of $14 million to $22 million. For the full year ending December 31, 2026, the company continues to expect an adjusted EBITDA of approximately $100 million.

Kostman remains optimistic, stating, “Our Q1 results represent a significant milestone for Teads, characterized by an Ex-TAC revenue beat and accelerating momentum in CTV.” The CEO’s confidence in the company’s trajectory is buoyed by the successful integration of their performance technology within the Teads Ad Manager platform, promising a unique full-funnel solution that connects branding with conversion.

Teads Holding Co. navigates a complex environment as it adjusts to market dynamics. While the revenue decline raises concerns, significant advancements in CTV and strategic partnerships may position the company for recovery in the upcoming quarters. Investors will be keen to observe how these developments unfold as the year progresses.