Criteo Q1 2026 Earnings: Key Details for Investors
Criteo Reports Q1 2026 Earnings: Key Details for Investors
Headline Results and Highlights
- Q1 2026 activated media spend surpassed \$1 billion for the first time in company history.
- Deployed \$31 million for share repurchases in Q1 2026.
- Revenue for the quarter was \$425 million, down 6% year-over-year (down 9% at constant currency).
- Net income fell sharply to \$9 million vs. \$40 million in Q1 2025, with diluted EPS of \$0.15 (down 77%).
- Adjusted EBITDA dropped 30% to \$65 million.
- Free cash flow (FCF) declined 65% year-over-year to \$16 million.
- Gross profit margin remained steady at 52%.
- Cash and marketable securities stood at \$371 million as of March 31, 2026.
- Shareholders overwhelmingly supported the company’s plan to redomicile from France to Luxembourg, expected to complete in Q3 2026.
Key Operational and Strategic Developments
- Criteo became the first ad tech partner to integrate with OpenAI’s advertising solution—a significant innovation milestone.
- The company expanded its GO platform, now offering full self-service access and agentic onboarding for SMBs.
- Retail Media Contribution ex-TAC was down 32% year-over-year at constant currency, due to previously announced scope changes with two large clients. Excluding these, underlying Retail Media Contribution ex-TAC grew 24%.
- Performance Media Contribution ex-TAC was down 2% at constant currency; revenue declined 2% (6% at constant currency).
- Expanded the DoorDash partnership in Canada and added Hyundai Department Store in APAC, strengthening its Retail Media footprint.
Financial Performance Details
| Metric |
Q1 2026 |
Q1 2025 |
YoY Change |
| Revenue |
\$425M |
\$451M |
-6% |
| Gross Profit |
\$223M |
\$237M |
-6% |
| Net Income |
\$9M |
\$40M |
-79% |
| Diluted EPS |
\$0.15 |
\$0.66 |
-77% |
| Adjusted EBITDA |
\$65M |
\$92M |
-30% |
| Adjusted EPS |
\$0.73 |
\$1.10 |
-34% |
| Free Cash Flow |
\$16M |
\$45M |
-65% |
Segment Performance
- Retail Media:
- Revenue: \$41M (down 31%)
- Contribution ex-TAC: \$41M (down 31%)
- Excluding the impact of two clients, underlying growth was strong at 24%.
- Performance Media:
- Revenue: \$383M (down 2%)
- Contribution ex-TAC: \$210M (up 2%)
Liquidity and Capital Allocation
- Total liquidity was approximately \$889 million, including cash and equivalents, marketable securities, a \$468 million revolving credit facility, and \$49 million in treasury shares for M&A.
- Subsequent to Q1, 1.9 million M&A treasury shares (about \$39 million) were cancelled in April 2026.
- Deployed \$31 million to buy back shares in Q1 2026.
Guidance and Outlook
- FY 2026 Guidance (as of May 6, 2026):
- Contribution ex-TAC is expected to decrease low-single-digits at constant currency.
- Adjusted EBITDA margin expected to be around 32%–34% of Contribution ex-TAC.
- Q2 2026 Guidance:
- Contribution ex-TAC expected between \$260M and \$266M (down 11% to 9% YoY at constant currency).
- Adjusted EBITDA expected between \$66M and \$71M.
- Guidance reflects temporary impacts from scope changes with two large Retail Media clients.
- The company’s outlook incorporates ongoing macroeconomic uncertainty, including geopolitical tensions in the Middle East and lower marketing budgets among some large U.S. clients in Q2.
Additional Shareholder-sensitive and Potentially Price-moving Information
- Major strategic initiative: Criteo’s redomiciliation from France to Luxembourg was strongly approved by shareholders and is expected to close in Q3 2026. This move may have long-term impacts on tax, corporate governance, or investor perception.
- AI innovation: Criteo’s integration with OpenAI’s advertising platform marks a significant step in AI-driven ad tech, which could affect future growth and competitive position.
- Temporary revenue headwinds: The significant Retail Media decline is attributed to two major clients, but underlying growth elsewhere remains strong—key for assessing future recovery potential.
- Share buyback and treasury share cancellation (1.9 million shares in April 2026) may be supportive for share price in the medium term.
Risks and Forward-looking Statements
The company noted ongoing risks including macroeconomic volatility, geopolitical tensions, competitive industry pressures, shifts in client marketing spend, and the execution risks associated with redomiciliation and integration of new technologies. The fiscal outlook is subject to change as these factors evolve.
Conference Call Information
- Criteo’s executive team will hold a webcast on May 6, 2026, at 8:00 AM ET / 2:00 PM CET to discuss these results.
- Replay and additional information will be available on the company’s investor relations website.
About Criteo
Criteo (NASDAQ: CRTO) is a global commerce intelligence platform, leveraging data from over \$1 trillion in annual sales and two decades of AI innovation. The company serves thousands of clients and partners across the global retail and digital commerce ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are inherently uncertain and subject to risks described herein and in Criteo’s SEC filings. Investors should conduct their own due diligence before making any investment decisions.
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