--- title: "Teads | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 265.98 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285771524.md" datetime: "2026-05-08T20:20:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285771524.md) - [en](https://longbridge.com/en/news/285771524.md) - [zh-HK](https://longbridge.com/zh-HK/news/285771524.md) --- # Teads | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 265.98 M Revenue: As of FY2026 Q1, the actual value is USD 265.98 M, missing the estimate of USD 269.97 M. EPS: As of FY2026 Q1, the actual value is USD -0.4, beating the estimate of USD -0.43. EBIT: As of FY2026 Q1, the actual value is USD -22.37 M. Teads Holding Co. operates as a single segment, representing 100% of its consolidated revenue and profit . #### Segment Revenue For the three months ended March 31, 2026, Teads Holding Co. reported total revenue of $265,983 thousand, a decrease of $20.4 million, or 7.1%, compared to $286,357 thousand in the prior year . On a constant currency basis, revenue decreased by $32.0 million, or 11.2%, with net favorable foreign currency effects of approximately $11.6 million . This decline was primarily due to lower volumes in direct response offerings, reflecting an initiative in 2025 to enhance quality by exiting certain supply and demand sources, partially offset by growth in CTV offerings and the impact of a full quarter of consolidated operations in 2026 compared to a partial period in 2025 . Revenue by geographic region for the three months ended March 31, 2026, included $73,248 thousand from The Americas (with U.S. revenues of $67.0 million), $161,914 thousand from EMEA, and $30,821 thousand from Asia . In the prior year period, The Americas contributed $90,285 thousand (with U.S. revenues of $79.2 million), EMEA $164,945 thousand, and Asia $31,127 thousand . #### Operational Metrics **Traffic Acquisition Costs (TAC)** decreased by $25.1 million, or 13.7%, to $158,109 thousand for the three months ended March 31, 2026, from $183,235 thousand in the prior year . As a percentage of revenue, TAC decreased to 59.4% in 2026 from 64.0% in 2025, driven by lower revenue volumes and a favorable shift in revenue mix towards higher-margin offerings . On a constant currency basis, TAC decreased by $31.5 million, or 17.2%, including net unfavorable foreign currency effects of approximately $6.4 million . **Other Cost of Revenue** increased by $3.8 million, or 18.5%, to $24,258 thousand for the three months ended March 31, 2026, compared to $20,472 thousand in the prior year, primarily due to a full quarter of consolidated operations and higher amortization expense . As a percentage of revenue, other cost of revenue increased to 9.1% from 7.1% . **Gross Profit** increased by $0.9 million, or 1.1%, to $83,616 thousand for the three months ended March 31, 2026, from $82,650 thousand in the prior year . The **Gross Profit Margin** improved to 31.4% in 2026 from 28.9% in 2025 . **Total Operating Expenses** decreased by $21.7 million, or 17.1%, to $105,422 thousand for the three months ended March 31, 2026, from $127,086 thousand in the prior year, including net unfavorable foreign currency effects of approximately $6.9 million . As a percentage of revenue, total operating expenses declined to 39.6% from 44.4% . This decrease was primarily due to the absence of $15.6 million in impairment charges recorded in 2025, a $15.1 million decrease in strategic, transaction, and integration-related costs within general and administrative expenses (from $16.4 million in Q1 2025 to $1.3 million in Q1 2026), and a $3.3 million decrease in Research and Development expense . These reductions were partially offset by a $12.7 million increase in Sales and Marketing expenses . **Restructuring Charges** were $1,703 thousand for the three months ended March 31, 2026, down from $7,279 thousand in the prior year . **Loss from Operations** was - $21,806 thousand for the three months ended March 31, 2026, an improvement from - $44,436 thousand in the prior year . **Interest Expense** decreased by $5.7 million to - $17,409 thousand for the three months ended March 31, 2026, from - $23,124 thousand in the prior year . This was mainly due to the absence of $13.3 million in fees and interest related to the Bridge Facility incurred in Q1 2025, partially offset by a $7.6 million increase in interest expense related to the Senior Secured Notes, totaling $16.8 million in Q1 2026 compared to $9.2 million in Q1 2025 . **Net Loss** for the three months ended March 31, 2026, was - $38,786 thousand, compared to - $54,843 thousand in the prior year . #### Cash Flow **Net Cash Used in Operating Activities** increased to - $34,871 thousand for the three months ended March 31, 2026, from - $966 thousand in the prior year, primarily due to a $31.4 million semi-annual interest payment for Senior Secured Notes made in February 2026 .**Net Cash Used in Investing Activities** decreased by $537.7 million to - $8,613 thousand for the three months ended March 31, 2026, from - $546,320 thousand in the prior year, mainly due to the $598.3 million cash consideration paid for the Acquisition in 2025 .**Net Cash Used in Financing Activities** was - $136 thousand for the three months ended March 31, 2026, a decrease of $596.2 million from $596,094 thousand provided in the prior year, which included significant activity related to the Acquisition financing .**Free Cash Flow** was - $41,134 thousand for the three months ended March 31, 2026, compared to - $6,586 thousand in the prior year . **Adjusted Free Cash Flow** was - $41,134 thousand for the three months ended March 31, 2026, compared to $5,218 thousand in the prior year . #### Unique Metrics **Ex-TAC Gross Profit** increased by $4.8 million, or 4.6%, to $107,874 thousand for the three months ended March 31, 2026, from $103,122 thousand in the prior year .**Adjusted EBITDA** decreased by $9.9 million to $761 thousand for the three months ended March 31, 2026, from $10,689 thousand in the prior year, including net unfavorable foreign currency effects of approximately $1.6 million . Adjusted EBITDA as a percentage of Ex-TAC Gross Profit was 0.7% in 2026 compared to 10.4% in 2025 . #### Future Outlook and Strategy Teads Holding Co. is executing a strategic restructuring plan, initiated in December 2025, to reduce operating costs, improve operating margins, and achieve profitable growth . This plan includes a global workforce reduction of approximately 10%, expected to incur $8.0 million to $12.0 million in severance and legal costs, with $7.0 million recognized to date and the remainder anticipated in Q2 2026 . The company expects annualized cost savings of approximately $35.0 million to $40.0 million from this plan, with actions largely completed by the first half of 2026 . Teads Holding Co. plans to continue investments in technology and infrastructure, with projected capital expenditures between $3 million and $5 million and capitalized software development costs between $20 million and $27 million for the year ending December 31, 2026, primarily focused on AI, machine learning, and internal software development . The company believes its operating cash flows, cash and cash equivalents, investments, and available borrowing capacity will be sufficient to fund anticipated operating expenses and capital expenditures for at least the next 12 months . ### Related Stocks - [TEAD.US](https://longbridge.com/en/quote/TEAD.US.md) ## Related News & Research - [Analyst Reiterates Buy Rating on Teads, Maintains $1 Price Target on AI-Driven Growth and Agency Integration](https://longbridge.com/en/news/286286865.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Autohome Inc. to Announce First Quarter 2026 Financial Results on May 28, 2026 | ATHM Stock News](https://longbridge.com/en/news/286390966.md) - [Keysight Technologies Reports Second Quarter 2026 Results | KEYS Stock News](https://longbridge.com/en/news/286959830.md)