---
title: "Outbrain Announces First Quarter 2025 Results | OB Stock News"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/239538935.md"
description: "Outbrain Inc. (Nasdaq: OB) reported its Q1 2025 results, achieving guidance on Ex-TAC gross profit and Adjusted EBITDA. Revenue rose 32% to $286.4 million, driven by the Teads acquisition. CTV revenues grew over 100% year-over-year. The company expects $65-$75 million in synergies by 2026. However, net loss increased to $54.8 million, influenced by acquisition-related costs. Adjusted EBITDA improved to $10.7 million. Outbrain continues to integrate Teads and expand its brandformance platform strategy."
datetime: "2025-05-09T10:30:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/239538935.md)
  - [en](https://longbridge.com/en/news/239538935.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/239538935.md)
---

# Outbrain Announces First Quarter 2025 Results | OB Stock News

05/09/2025 - 06:30 AM

**Achieved Q1 guidance on both Ex-TAC gross profit and Adjusted EBITDA; CTV revenues grow by more than 100% year-over-year on pro forma basis; Integration and synergies remain on track; Reiterates full year 2025 guidance**

NEW YORK, May 09, 2025 (GLOBE NEWSWIRE) -- Outbrain Inc. (Nasdaq: OB), which is operating under the new Teads brand following Outbrain’s acquisition of Teads in February 2025, announced today financial results for the quarter ended March31, 2025.

**First Quarter** **2025** **Key Financial Metrics****1****:**

**Three Months Ended**  
**March 31,**

_(in millions USD)_

**2025**

**2024**

**% Change**

Revenue

$

286.4

$

217.0

32

%

Gross profit

82.7

41.6

99

%

Net loss

(54.8

)

(5.0

)

NM

Net cash (used in) provided by operating activities

(1.0

)

8.6

(111

)%

**Non-GAAP Financial Data**\*

Ex-TAC gross profit

103.1

52.2

98

%

Adjusted EBITDA

10.7

1.4

665

%

Adjusted net loss

(15.3

)

(4.9

)

(211

)%

Free cash flow

(6.6

)

4.6

(242

)%

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1 Incorporates the results of operations for legacy Teads from February 3, 2025 through March 31, 2025  
**\*** See non-GAAP reconciliations below  
NM Not meaningful

“We are off to a strong start following the completion of the combination with Teads. In the first quarter, we delivered financial results above the mid-range of our guidance, while closing the acquisition, issuing five-year senior secured notes, and reaching many major milestones of integration and synergy realization. We are in the early days, but the feedback to our brandformance platform strategy from the hundreds of advertisers and media owners we have met has been highly encouraging,” said David Kostman, CEO of Teads.

**First** **Quarter** **2025** **Business** **Highlights:**

-   Completed the acquisition of Teads, for total consideration of approximately $900 million, comprised of $625 million in cash and 43.75 million shares of Outbrain common stock. The combined company is operating under the name Teads.
-   Expect to realize approximately $65 million to $75 million of synergies in 2026 with further opportunities for expanded synergies. Of this amount, approximately $60 million relates to cost synergies, including approximately $45 million of compensation-related expenses, with approximately 90% of the estimated compensation-related synergies already actioned. For 2025, expect to realize a benefit from cost synergies of approximately $40 million, which represents an increase from initial expectations.
-   Initial cross-selling of legacy Outbrain performance solutions to legacy Teads enterprise brand customers launched in Q2 with several campaigns sold.
-   New strategic Joint Business Partnerships (JBPs) with Ferrero, Haleon, Philip Morris International, and Beiersdorf.
-   ~500 advertisers spending at least a half a million dollars on a rolling 12 month basis, with an average spend of over $2 million annually, which represents approximately 70% of total customer spend.
-   CTV experienced more than 100% year-over-year growth in Q1 2025, and now represents approximately 5% of total ad spend.
-   Continued strong adoption of Moments vertical video offering launched in Q3 2024 and is now live on over 70 publishers, including Axel Springer, Fox News, and Webedia.
-   Premium supply competitive wins include Godo (Spain) WWS (Japan), and renewals include Conde Nast and TMZ (US), Ansa (Italy), Webedia (France) and Sankei (Japan).

**First** **Quarter** **2025** **Financial Highlights:**

-   Revenue of $286.4 million, an increase of $69.4 million, or 32%, compared to $217.0 million in the prior year period primarily due to the acquisition, including net unfavorable foreign currency effects of approximately $2.6 million.
-   Gross profit of $82.7 million, an increase of $41.1 million, or 99%, compared to $41.6 million in the prior year period. Gross margin increased to 28.9%, compared to 19.2% in the prior year period, reflecting the higher gross margin profile of the acquired business.
-   Ex-TAC gross profit of $103.1 million, an increase of $50.9 million, or 98%, compared to $52.2 million in the prior year period, primarily due to the acquisition. Our Ex-TAC gross margin increased to 36.0%, compared to 24.0% in the prior year period, reflecting the higher margin profile of the acquired business.
-   Net loss of $54.8 million, compared to net loss of $5.0 million in the prior year period. Net loss in the current period includes pre-tax acquisition-related costs of $16.4million, impairment charges of $15.6million primarily related to the discontinuance of the vi product offering, restructuring charges of $7.3million related to our previously announced restructuring plan to streamline operations and reduce duplicative roles post-acquisition, and bridge facility related costs of $12.0million.
-   Adjusted net loss of $15.3 million, compared to adjusted net loss of $4.9 million in the prior year period.
-   Adjusted EBITDA of $10.7 million, compared to Adjusted EBITDA of $1.4 million in the prior year period.
-   Net cash used in operating activities of $1.0 million, compared to net cash provided by operating activities of $8.6 million in the prior year period. Free cash flow was $(6.6) million, as compared to $4.6 million in the prior year period, primarily related to cash outflows related to transaction costs and restructuring charges of $16.2 million.
-   Cash, cash equivalents and investments in marketable securities were $155.9 million, comprised of cash and cash equivalents of $136.3 million and short-term investments in marketable securities of $19.6 million as of March31, 2025.
-   Total debt obligations were $627.0 million, including the $610.8 million carrying value of the 10% senior secured notes due 2030 issued in February 2025 (principal amount of $637.5 million, net of unamortized discount and deferred financing costs) and $16.2 million outstanding under a short-term overdraft facility assumed in the acquisition.
-   Entered into a credit agreement with Goldman Sachs Bank, U.S. Bank Trust Company, and certain other lenders, which provided, among other things, for a new $100.0 million super senior secured revolving credit facility, which expires on February 3, 2030, which may be used for working capital and other general corporate purposes. The prior revolving credit facility with Silicon Valley Bank, a division of First Citizens Bank & Trust Company, dated as of November 2, 2021 was terminated.

**Second Quarter Guidance**

The following forward-looking statements reflect our expectations for the second quarter and full year of 2025.

For the second quarter ending June 30, 2025, we expect:

-   Ex-TAC gross profit of $141 million to $150 million
-   Adjusted EBITDA of $26 million to $34 million

For the full year ending December 31, 2025, we continue to expect:

-   Adjusted EBITDA of at least $180 million  
    

The above measures are forward-looking non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See “Non-GAAP Financial Measures” below. In addition, our guidance is subject to risks and uncertainties, as outlined below in this release.

**Conference Call and Webcast Information**

Outbrain will host an investor conference call this morning, Friday, May 9 at 8:30 am ET. Interested parties are invited to listen to the conference call which can be accessed live by phone by dialing 1-877-497-9071 or for international callers, 1-201-689-8727. A replay will be available two hours after the call and can be accessed by dialing 1-877-660-6853, or for international callers, 1-201-612-7415. The passcode for the live call and the replay is 13753068. The replay will be available until May 23, 2025. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investors Relations section of the Company’s website at https://investors.outbrain.com. The online replay will be available for a limited time shortly following the call.

**Non-GAAP Financial Measures**

In addition to GAAP performance measures, we use the following supplemental non-GAAP financial measures to evaluate our business, measure our performance, identify trends, and allocate our resources: Ex-TAC gross profit, Ex-TAC gross margin, Adjusted EBITDA, free cash flow, adjusted net income (loss), and adjusted diluted EPS. These non-GAAP financial measures are defined and reconciled to the corresponding GAAP measures below. These non-GAAP financial measures are subject to significant limitations, including those we identify below. In addition, other companies in our industry may define these measures differently, which may reduce their usefulness as comparative measures. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue, gross profit, net income (loss), diluted EPS, or cash flows from operating activities presented in accordance with GAAP.

Because we are a global company, the comparability of our operating results is affected by foreign exchange fluctuations. We calculate certain constant currency measures and foreign currency impacts by translating the current year’s reported amounts into comparable amounts using the prior year’s exchange rates. All constant currency financial information that may be presented is non-GAAP and should be used as a supplement to our reported operating results. We believe that this information is helpful to our management and investors to assess our operating performance on a comparable basis. However, these measures are not intended to replace amounts presented in accordance with GAAP and may be different from similar measures calculated by other companies.

The Company is also providing second quarter and full year guidance. These forward-looking non-GAAP financial measures are calculated based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. The Company has not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because it is unable, without unreasonable effort, to predict with reasonable certainty the occurrence or amount of all excluded items that may arise during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Such excluded items could be material to the reported results individually or in the aggregate.

**_Ex-TAC Gross Profit_**

Ex-TAC gross profit is a non-GAAP financial measure. Gross profit is the most comparable GAAP measure. In calculating Ex-TAC gross profit, we add back other cost of revenue to gross profit. Ex-TAC gross profit may fluctuate in the future due to various factors, including, but not limited to, seasonality and changes in the number of media partners and advertisers, advertiser demand or user engagements.

We present Ex-TAC gross profit, Ex-TAC gross margin (calculated as Ex-TAC gross profit as a percentage of revenue), and Adjusted EBITDA as a percentage of Ex-TAC gross profit, because they are key profitability measures used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans, and make strategic decisions regarding the allocation of capital. Accordingly, we believe that these measures provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors. There are limitations on the use of Ex-TAC gross profit in that traffic acquisition cost is a significant component of our total cost of revenue but not the only component and, by definition, Ex-TAC gross profit presented for any period will be higher than gross profit for that period. A potential limitation of this non-GAAP financial measure is that other companies, including companies in our industry, which have a similar business, may define Ex-TAC gross profit differently, which may make comparisons difficult. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue or gross profit presented in accordance with GAAP.

**_Adjusted EBITDA_**

We define Adjusted EBITDA as net income (loss) before gain on convertible debt; interest expense; interest income and other income (expense), net; provision for income taxes; depreciation and amortization; stock-based compensation; and other income or expenses that we do not consider indicative of our core operating performance, including but not limited to, acquisition-related costs, restructuring, and impairment charges. We present Adjusted EBITDA as a supplemental performance measure because it is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans and make strategic decisions regarding the allocation of capital, and we believe it facilitates operating performance comparisons from period to period.

We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. However, our calculation of Adjusted EBITDA is not necessarily comparable to non-GAAP information of other companies. Adjusted EBITDA should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP.

**_Adjusted Net Income (Loss) and Adjusted Diluted EPS_**

Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss) excluding items that we do not consider indicative of our core operating performance, including but not limited to gain on convertible debt, merger and acquisition costs, regulatory matter costs, and severance costs related to our cost saving initiatives. Adjusted net income (loss), as defined above, is also presented on a per diluted share basis. We present adjusted net income (loss) and adjusted diluted EPS as supplemental performance measures because we believe they facilitate performance comparisons from period to period. However, adjusted net income (loss) or adjusted diluted EPS should not be considered in isolation or as a substitute for net income (loss) or diluted earnings per share reported in accordance with GAAP.

**_Free Cash Flow_**

Free cash flow is defined as cash flow provided by (used in) operating activities, less capital expenditures and capitalized software development costs. Free cash flow is a supplementary measure used by our management and board of directors to evaluate our ability to generate cash and we believe it allows for a more complete analysis of our available cash flows. Free cash flow should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP.

**Forward-Looking** **Statements**  
This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives, and statements relating to our recently completed acquisition (the “Acquisition”) of TEADS, a private limited liability company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Teads”). You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward- looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: the ability of Outbrain to successfully integrate Teads or manage the combined business effectively; our ability to realize anticipated benefits and synergies of the Acquisition, including, among other things, operating efficiencies, revenue synergies and other cost savings; our due diligence investigation of Teads may be inadequate or risks related to Teads’ business may materialize; unexpected costs, charges or expenses resulting from the Acquisition; our ability to raise additional financing in the future to fund our operations, which may not be available to us on favorable terms or at all; our ability to attract and retain customers, management and other key personnel; the volatility of the market price of the Common Stock, $.001 par value per share (the “Common Stock”); overall advertising demand and traffic generated by our media partners; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, tariffs and trade wars and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the ongoing war between Ukraine-Russia and conditions in Israel and the Middle East, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the impact of challenging economic conditions, political and policy changes or uncertainties in the U.S., and other factors that have and may further impact advertisers’ ability to pay; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the potential impact of artificial intelligence (“AI”) on our industry and our need to invest in AI-based solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to grow our business and manage growth effectively; our ability to compete effectively against current and future competitors; the loss or decline of one or more of our large media partners, and our ability to expand our advertiser and media partner relationships; conditions in Israel, including the ongoing conflict between Israel and Hamas and any conflicts with other terrorist organizations or other countries; our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the challenges of compliance with differing and changing regulatory requirements, including with respect to privacy; the timing and execution of any cost-saving measures and the impact on our business or strategy; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2024. Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law.

**About The Combined Company**

Outbrain Inc. (Nasdaq: OB) and Teads combined on February 3, 2025 and are operating under the new Teads brand. The new Teads is the omnichannel outcomes platform for the open internet, driving full-funnel results for marketers across premium media. With a focus on meaningful business outcomes, the combined company ensures value is driven with every media dollar by leveraging predictive AI technology to connect quality media, beautiful brand creative, and context-driven addressability and measurement. One of the most scaled advertising platforms on the open internet, the new Teads is directly partnered with more than 10,000 publishers and 20,000 advertisers globally. The company is headquartered in New York, New York, with a global team of nearly 1,800 people in 36 countries.

**Media Contact  
**press@outbrain.com

**Investor Relations Contact  
**IR@outbrain.com  
(332) 205-8999

**OUTBRAIN INC.**  
**Condensed Consolidated Statements of Operations**  
**_(In thousands, except for share and per share data)_**

**Three Months Ended**  
**March 31,**

**2025**

**2024**

**(Unaudited)**

Revenue

$

286,357

$

216,964

Cost of revenue:

Traffic acquisition costs

183,235

164,810

Other cost of revenue

20,472

10,559

Total cost of revenue

203,707

175,369

Gross profit

82,650

41,595

Operating expenses:

Research and development

13,979

9,193

Sales and marketing

53,737

23,617

General and administrative

36,477

15,215

Impairment charges

15,614

—

Restructuring charges

7,279

167

Total operating expenses

127,086

48,192

Loss from operations

(44,436

)

(6,597

)

Other (expense) income:

Interest expense

(23,124

)

(937

)

Other (expense) income and interest income, net

(484

)

1,405

Total other (expense) income, net

(23,608

)

468

Loss before income taxes

(68,044

)

(6,129

)

Benefit from income taxes

(13,201

)

(1,088

)

Net loss

$

(54,843

)

$

(5,041

)

Weighted average shares outstanding:

Basic

77,954,579

49,265,012

Diluted

77,954,579

49,265,012

Net loss per common share:

Basic

$

(0.70

)

$

(0.10

)

Diluted

$

(0.70

)

$

(0.10

)

**OUTBRAIN INC.**  
**Condensed Consolidated Balance Sheets**  
**_(In thousands, except for number of shares and par value)_**

**March 31,**  
**2025**

**December 31,**  
**2024**

**(Unaudited)**

**ASSETS:**

Current assets:

Cash and cash equivalents

$

136,312

$

89,094

Short-term investments in marketable securities

19,567

77,035

Accounts receivable, net of allowances

328,386

149,167

Prepaid expenses and other current assets

49,817

27,835

Total current assets

534,082

343,131

Non-current assets:

Property, equipment and capitalized software, net

47,879

45,250

Operating lease right-of-use assets, net

26,874

15,047

Intangible assets, net

391,022

16,928

Goodwill

587,494

63,063

Deferred tax assets

49,957

40,825

Indemnification asset

26,556

—

Other assets

24,176

24,969

TOTAL ASSETS

$

1,688,040

$

549,213

**LIABILITIES AND STOCKHOLDERS’EQUITY:**

Current liabilities:

Accounts payable

$

274,060

$

206,920

Accrued compensation and benefits

50,760

19,430

Deferred revenue

13,066

6,932

Short-term debt

16,202

—

Accrued and other current liabilities

118,457

56,189

Total current liabilities

472,545

289,471

Non-current liabilities:

Long-term debt

610,816

—

Operating lease liabilities, non-current

20,356

11,783

Deferred tax liabilities

62,099

1,554

Contingent tax liabilities

36,632

9,343

Other liabilities

10,927

5,719

TOTAL LIABILITIES

$

1,213,375

$

317,870

STOCKHOLDERS’ EQUITY:

Common stock, par value of $0.001 per share − one billion shares authorized; 94,349,511 shares issued and 94,293,190 shares outstanding as of March31, 2025; 63,503,274 shares issued and 50,090,114 shares outstanding as of December31, 2024

94

64

Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of March31, 2025 and December31, 2024

—

—

Additional paid-in capital

674,442

484,541

Treasury stock, at cost − 56,321 shares as of March31, 2025 and 13,413,160 shares as of December31, 2024

(242

)

(74,289

)

Accumulated other comprehensive income (loss)

24,707

(9,480

)

Accumulated deficit

(224,336

)

(169,493

)

TOTAL STOCKHOLDERS’ EQUITY

474,665

231,343

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,688,040

$

549,213

**OUTBRAIN INC.**  
**Condensed Consolidated Statements of Cash Flows**  
**_(In thousands)_**

**Three Months Ended March 31,**

**2025**

**2024**

**(Unaudited)**

**CASH FLOWS FROM OPERATING ACTIVITIES:**

Net loss

$

(54,843

)

$

(5,041

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization of property and equipment

1,935

1,639

Amortization of capitalized software development costs

2,472

2,409

Amortization of intangible assets

8,466

852

Amortization of discount on marketable securities

(425

)

(642

)

Stock-based compensation

2,941

2,927

Non-cash operating lease expense

2,307

1,195

Provision for credit losses

298

1,693

Amortization of debt issuance costs

12,843

—

Deferred income taxes

(17,786

)

(174

)

Impairment of assets

15,614

—

Unrealized foreign currency transaction (gains) losses

1,688

312

Other

30

26

Changes in operating assets and liabilities:

Accounts receivable

37,605

30,398

Prepaid expenses and other current assets

5,901

7,262

Accounts payable and other current liabilities

(22,374

)

(31,875

)

Operating lease liabilities

(2,614

)

(1,205

)

Deferred revenue

(830

)

(1,471

)

Other non-current assets and liabilities

5,806

300

Net cash (used in) provided by operating activities

(966

)

8,605

**CASH FLOWS FROM INVESTING ACTIVITIES:**

Acquisition of a business, net of cash acquired

(598,319

)

(181

)

Purchases of property and equipment

(2,921

)

(1,335

)

Capitalized software development costs

(2,699

)

(2,627

)

Purchases of marketable securities

(16,602

)

(31,578

)

Proceeds from sales and maturities of marketable securities

74,221

31,492

Net cash used in investing activities

(546,320

)

(4,229

)

**CASH FLOWS FROM FINANCING ACTIVITIES:**

Proceeds from the Bridge Facility

625,000

—

Repayments of borrowings under the Bridge Facility

(625,000

)

—

Proceeds from senior secured notes

625,305

—

Payment of deferred financing costs

(28,155

)

—

Payment of stock issuance costs

(775

)

—

Treasury stock repurchases and share withholdings on vested awards

(355

)

(4,015

)

Principal payments on finance lease obligations

—

(255

)

Proceeds from bank overdrafts, net

74

—

Net cash provided by (used in) financing activities

596,094

(4,270

)

Effect of exchange rate changes

(57

)

363

Net increase in cash, cash equivalents and restricted cash

$

48,751

$

469

Cash, cash equivalents and restricted cash — Beginning

89,725

71,079

Cash, cash equivalents and restricted cash — Ending

$

138,476

$

71,548

**OUTBRAIN INC.**  
**Non-GAAP Reconciliations**  
**_(In thousands)_**  
**(Unaudited)**

The following table presents the reconciliation of Gross profit to Ex-TAC gross profit and Ex-TAC gross margin, for the periods presented:

**Three Months Ended** **March 31,**

**2025**

**2024**

Revenue

$

286,357

$

216,964

Traffic acquisition costs

(183,235

)

(164,810

)

Other cost of revenue

(20,472

)

(10,559

)

Gross profit

82,650

41,595

Other cost of revenue

20,472

10,559

Ex-TAC gross profit

$

103,122

$

52,154

Gross margin (gross profit as % of revenue)

28.9

%

19.2

%

Ex-TAC gross margin (Ex-TAC gross profit as % of revenue)

36.0

%

24.0

%

The following table presents the reconciliation of net loss to Adjusted EBITDA, for the periods presented:

**Three Months Ended** **March 31,**

**2025**

**2024**

Net loss

$

(54,843

)

$

(5,041

)

Interest expense

23,124

937

Other expense (income) and interest income, net

484

(1,405

)

Benefit from income taxes

(13,201

)

(1,088

)

Depreciation and amortization

12,873

4,900

Stock-based compensation

2,941

2,927

Acquisition-related costs

16,418

—

Restructuring charges

7,279

167

Impairment charges

15,614

—

Adjusted EBITDA

$

10,689

$

1,397

Net loss as % of gross profit

(66.4

)%

(12.1

)%

Adjusted EBITDA as % of Ex-TAC Gross Profit

10.4

%

2.7

%

**OUTBRAIN INC.**  
**Non-GAAP Reconciliations**  
**_(In thousands)_**  
**(Unaudited)**

The following table presents the reconciliation of net loss and diluted EPS to adjusted net loss and adjusted diluted EPS, respectively, for the periods presented:

**Three Months Ended** **March 31,**

**2024**

**2023**

Net loss

$

(54,843

)

$

(5,041

)

Adjustments:

Acquisition-related costs

16,418

—

Restructuring charges

7,279

167

Impairment charges

15,614

—

Bridge facility costs

11,996

—

Total adjustments, before tax

51,307

167

Income tax effect

(11,759

)

(41

)

Total adjustments, after tax

39,548

126

Adjusted net loss

$

(15,295

)

$

(4,915

)

Basic and diluted weighted-average shares

77,954,579

49,265,012

Diluted net loss per share - reported

$

(0.70

)

$

(0.10

)

Adjustments, after tax

0.50

—

Diluted loss per share - adjusted

$

(0.20

)

$

(0.10

)

The following table presents the reconciliation of net cash provided by (used in) operating activities to free cash flow, for the periods presented:

**Three Months Ended** **March 31,**

**2025**

**2024**

Net cash (used in) provided by operating activities

$

(966

)

$

8,605

Purchases of property and equipment

(2,921

)

(1,335

)

Capitalized software development costs

(2,699

)

(2,627

)

Free cash flow

$

(6,586

)

$

4,643

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