Teads Q3 Revenue Falls 26% to $235M; Posts $326M Net Loss

Teads Holding Co. said Thursday that third-quarter revenue fell 26% to $235.1 million from $318.8 million a year earlier, and that it recorded a net loss of $325.5 million, or $3.31 a share, compared with a $19.7 million loss a year ago.

The New York-based digital advertising company said the quarter’s net loss included a $272.4 million non-cash goodwill impairment and a $6.4 million non-cash write-down of a publisher commercial-agreement asset. Gross profit was $60.9 million, down 42% from $105.7 million, and gross margin narrowed to 25.9% from 33.2%.

Adjusted results and cash

Adjusted EBITDA, a non-GAAP measure Teads emphasizes, was a loss of $8.1 million, compared with income of $19.2 million a year earlier. Adjusted net loss was $46.7 million, or $0.48 a share, versus $13.6 million, or $0.14 a share, in the year-ago quarter. Cash and cash equivalents were $90.3 million as of Sept. 30, and total debt obligations stood at $657.2 million.

Connected TV revenue rose 37% year over year and accounted for 12% of third-quarter revenue, the company said. Branding customers using omnichannel campaigns made up 15% of branding revenue, up from 10% a year earlier.

Guidance and leadership

Teads said it has suspended guidance, including full-year 2026 adjusted EBITDA guidance, and is not providing an outlook. Separately, the company named Michael Coyle as chief financial officer effective Nov. 11, succeeding Jason B. Kiviat, who will move to an advisory role.

Teads shares trade on Nasdaq under the ticker TEAD. The results were also detailed in a Form 8-K filed with the Securities and Exchange Commission.

Sources: Nasdaq, Teads Holding Co., Form 8-K