Q2 2026 Teads Holding Co Earnings Call Transcript
Key Points
- Enterprise business delivered $89 million in extra gross profit in Q2, with advertiser spend stabilizing and expected mid-single-digit growth in H2.
- Connected TV (CTV) revenue surged 67% year-over-year to approximately $40 million, now representing 13% of total revenue, up from 7%.
- Expanded CTV home screen reach to over 500 million screens globally, with new partnerships including LG, T-Bold ads, and Vida Japan.
- Omnichannel adoption is growing, with branding customers using omnichannel campaigns rising to 16% of branding revenue, up from 9%.
- Secured and renewed major global partnerships with premier brands like Stellantis, Louis Vuitton, Warner Brothers, and Dyson.
- Launched Teams Engage Operating System, an AI-powered publisher OS, showing significant yield lifts with premium publishers.
- Generated positive free cash flow of $3 million and ended the quarter with $91 million in cash and marketable securities.
- Direct response and SME business saw a 30% year-over-year decline in extra gross profit, reaching only $34 million.
- Overall revenue declined 17% year-over-year to approximately $285 million, reflecting ongoing headwinds.
- Adjusted EBITDA of $7 million came in below guidance due to a spike in expenses, including timing issues, FX fluctuations, and bad debts.
- Suspended full-year 2026 EBITDA guidance due to volatility in the DR and SME business.
- AI summaries and closed ecosystems are reducing publisher impressions and impacting native advertising industry-wide.
- Deliberate quality reset actions, such as exiting low-margin accounts and improving supply standards, contributed to revenue decline.
- FX fluctuations, particularly in the Israeli shekel, continue to negatively impact costs.
Good day, and welcome to Tead's second quarter 2026 earnings conference call.
At this time, all participants are in listen-only mode.
A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.
I would like to turn the call over to Tead's Investor Relations. Please go ahead.
Good morning and thank you for joining us on today's conference call to discuss Tead's second quarter results.
Joining me on the call today, we have David Kaufman and Jason Kivia, the CEO and CFO of Tead's.
During this conference call, managers will make forward-looking statements based on current expectations and assumptions, including statements regarding our business outlook and prospects.
The statements are subject to risks and uncertainties that may cause actual results to differ materially from our forward-looking statements.
Risk factors are discussed in detail
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