Teads stock in focus after Q3 revenue drops 26%

Teads reported a sharp third-quarter downturn on Thursday, November 5, after revenue fell as weakness in the open internet outweighed continued Connected TV growth. The company also kept its full-year 2026 guidance suspended.

Teads stock traded at 0.18 euros on Lang & Schwarz at 13:36 CET on Tuesday, November 10.

Revenue decline deepens pressure

According to the GlobeNewswire results release published through Yahoo Finance, third-quarter revenue reached USD 235.1 million, down 26% from USD 318.8 million a year earlier. Gross profit declined 42% to USD 60.9 million, while Ex-TAC gross profit, a non-GAAP measure, fell 28% to USD 93.5 million.

Adjusted EBITDA turned to a loss of USD 8.1 million from income of USD 19.2 million in the prior-year quarter. The adjusted net loss widened to USD 46.7 million from USD 13.6 million.

Impairment drives reported loss

Teads posted a net loss of USD 325.5 million, compared with USD 19.7 million in the prior-year period. The reported result included a USD 272.4 million non-cash goodwill impairment and a USD 6.4 million impairment of a publisher commercial agreement asset.

Operating cash use increased to USD 27.9 million from USD 23.7 million. Cash and cash equivalents stood at USD 90.3 million at September 30, while total debt obligations were USD 657.2 million.

CTV growth offers partial offset

Connected TV revenue grew 37% year over year and represented 12% of quarterly revenue, according to the company. Teads said it saw some improvement in early fourth-quarter trends, but it did not provide a renewed full-year outlook.

Advertising demand, publisher traffic and available impressions remain central factors for the next quarterly update. Investors will also watch whether the CTV expansion can offset pressure in Teads' other advertising activities.

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