CRTO · Criteo S.A.

Criteo delivered Q1 2026 results reflecting disciplined execution amid challenges, with revenue declining 6% to $425 million and Contribution ex-TAC down 5% to $250 million on a reported basis, or 9% at constant currency. The downturn was primarily driven by a 32% drop in Retail Media Contribution ex-TAC due to scope changes with two specific clients, creating a $27 million headwind, though excluding this impact, the underlying client base grew 24%. Performance Media Contribution ex-TAC fell 2% at constant currency, amid mixed trends in Commerce Growth offset by SSP momentum and AdTech improvements. Gross profit margin held steady at 52%, but Adjusted EBITDA declined 30% to $65 million, with margin contracting to 26% from 35%, as operating expenses rose 12% to $212 million on planned growth investments in a seasonally weak quarter. Net income dropped sharply to $9 million from $40 million, yielding diluted EPS of $0.15. CEO Michael Komasinski highlighted progress on AI roadmap, GO platform expansion for SMBs, and partnerships like OpenAI integration and expansions with DoorDash and Hyundai. The company deployed $31 million in share repurchases, supporting capital return amid $371 million in cash and marketable securities. Guidance reflects caution, with FY2026 Contribution ex-TAC now expected to decline low-single-digits at constant currency and Q2 at -11% to -9%, incorporating macro volatility, Middle East tensions, and softer U.S. Performance Media budgets. CFO Sarah Glickman emphasized cost discipline. Redomiciliation to Luxembourg, approved by shareholders, is set for Q3 2026 completion.