Teads | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 318.77 M

Revenue: As of FY2025 Q3, the actual value is USD 318.77 M, missing the estimate of USD 335.38 M.

EPS: As of FY2025 Q3, the actual value is USD -0.21.

EBIT: As of FY2025 Q3, the actual value is USD -7.274 M.

Revenue

• Three Months Ended September 30, 2025: $318.8 million, compared to $224.2 million for the same period in 2024.
• Nine Months Ended September 30, 2025: $948.2 million, compared to $655.3 million for the same period in 2024.

Gross Profit

• Three Months Ended September 30, 2025: $105.7 million, compared to $48.9 million for the same period in 2024.
• Nine Months Ended September 30, 2025: $308.7 million, compared to $136.0 million for the same period in 2024.

Operating Expenses

• Three Months Ended September 30, 2025: $112.0 million, compared to $51.8 million for the same period in 2024.
• Nine Months Ended September 30, 2025: $361.6 million, compared to $151.2 million for the same period in 2024.

Net Income (Loss)

• Three Months Ended September 30, 2025: Net loss of $19.7 million, compared to net income of $6.7 million for the same period in 2024.
• Nine Months Ended September 30, 2025: Net loss of $88.8 million, compared to net loss of $0.5 million for the same period in 2024.

Adjusted EBITDA

• Three Months Ended September 30, 2025: $19.2 million, compared to $11.5 million for the same period in 2024.
• Nine Months Ended September 30, 2025: $56.8 million, compared to $20.3 million for the same period in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: $0.3 million for the nine months ended September 30, 2025, compared to $25.9 million for the same period in 2024.
• Free Cash Flow: -$16.5 million for the nine months ended September 30, 2025, compared to $13.6 million for the same period in 2024.
• Adjusted Free Cash Flow: $3.4 million for the nine months ended September 30, 2025, compared to $13.6 million for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue investing in AI technology to enhance its advertising platform and drive business outcomes for advertisers. The focus will be on expanding omnichannel capabilities, improving user engagement, and retaining and growing relationships with media partners.
• Non-Core Business: The company is undergoing a restructuring plan to streamline operations and reduce duplicative roles, with expected charges of $11 million to $14 million, primarily in 2025. The plan involves a reduction in workforce by approximately 15% and is expected to be completed by the first quarter of 2026.