Outbrain (OB) AI Stock Analysis

• Market Cap: $250.84M
• Dividend Yield: N/A
• Average Volume (3M): 462.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 4.15%
• EPS Growth: -394.93%
• Country: US
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): -0.20
• Shares Outstanding: 94,300,095
• 10 Day Avg. Volume: 426,048
• 30 Day Avg. Volume: 462,977
• PEG Ratio: 0.00
• Price to Book (P/B): -12.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 169.54
• Enterprise Value/Market Cap: 4.11
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 14.92
• 1Y Price Target: $4.38
• Price Target Upside: 64.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: $2.50 ▼(-6.02%Downside)

The overall stock score of 52.7 reflects moderate financial performance, with significant challenges in profitability and valuation. Technical indicators suggest potential further downside, but positive corporate actions and earnings call sentiment point to strategic efforts for improvement. The company's fundamental restructuring and cost-saving initiatives could potentially enhance future performance.

Positive Factors

Financial Performance

Outbrain's shares are currently considered undervalued.

Market Expansion

Outbrain has been proactive in expanding beyond traditional ad placements, attracting a wider variety of advertisers.

Revenue Growth

1Q25 guidance is for Net Revenues up 97% year-over-year at the midpoint.

Negative Factors

Execution Risk

M&A and large integrations carry heightened execution risk which has been the primary reason behind the analyst remaining Neutral despite liking the deal strategically for Outbrain.

Revenue Growth Challenges

There is concern about the negative revenue growth at Teads legacy business, which may indicate negative synergies from combining these two cultures.

Sales Force Issues

Sales force attrition is impacting near-term results.

Outbrain Business Overview & Revenue Model

Company Description

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company's Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company's Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.

How the Company Makes Money

Outbrain makes money primarily through its native advertising platform, which connects advertisers with digital publishers. The company earns revenue by placing sponsored content and advertisements on the websites of its publishing partners. Advertisers pay Outbrain based on the performance of these ads, typically using a cost-per-click (CPC) or cost-per-mille (CPM) model. Outbrain shares a portion of this advertising revenue with its publisher partners, while retaining a margin for its services. Significant partnerships with major publishers and media companies, as well as advancements in data analytics and machine learning for better ad targeting, contribute to Outbrain's earnings.

Outbrain Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
959.27M	889.88M	935.82M	992.08M	1.02B	767.14M
	Gross Profit
233.16M	192.10M	184.80M	192.65M	240.26M	165.06M
	EBIT
-50.48M	-12.64M	-8.64M	-13.55M	34.56M	10.18M
	EBITDA
-6.44M	24.83M	42.45M	15.97M	11.98M	26.99M
	Net Income Common Stockholders
-50.51M	-711.00K	10.24M	-24.58M	10.99M	4.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
155.88M	166.13M	165.20M	272.49M	455.40M	93.64M
	Total Assets
1.69B	549.21M	664.64M	781.15M	795.89M	356.49M
	Total Debt
647.37M	15.82M	130.90M	247.68M	239.07M	3.85M
	Net Debt
511.06M	-73.28M	60.01M	142.10M	-216.33M	-89.79M
	Total Liabilities
1.21B	317.87M	441.57M	563.36M	539.12M	436.30M
	Stockholders Equity
474.67M	231.34M	223.06M	217.79M	256.77M	-79.81M
Cash Flow		Free Cash Flow
42.74M	51.27M	-6.49M	-22.13M	36.71M	42.48M
	Operating Cash Flow
58.99M	68.56M	13.75M	3.81M	56.76M	52.99M
	Investing Cash Flow
-474.94M	67.15M	69.64M	-317.90M	-20.10M	-9.42M
	Financing Cash Flow
482.66M	-117.70M	-117.07M	-31.70M	325.89M	-4.23M

Outbrain Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OB, the sentiment is Negative. The current price of 2.66 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 3.13, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OB.

Outbrain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	74 Outperform	$1.16B	93.44	1.35%	―	16.62%	―
SSTK	70 Outperform	$669.82M	17.51	7.07%	6.95%	10.30%	-57.87%
PERI	66 Neutral	$459.83M	41.65	-1.03%	―	-43.13%	-107.18%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
THRY	54 Neutral	$600.09M	―	-51.21%	―	-14.71%	66.24%
OB	53 Neutral	$250.84M	―	-14.61%	―	4.15%	-394.93%
ZH	48 Neutral	$360.68M	―	-0.39%	―	-19.68%	99.02%

Outbrain Corporate Events

Outbrain Rebrands to Teads Holding Co. After Acquisition

On June 6, 2025, Outbrain Inc. officially changed its corporate name to Teads Holding Co. following its acquisition of Teads in February 2025. This rebranding marks a significant milestone for the company, which will now trade under the new ticker symbol ‘TEAD’ on Nasdaq starting June 10, 2025. The name change will not affect current stockholders, contracts, or operations, and no action is required from shareholders. Teads aims to enhance its market positioning as one of the largest platforms on the premium open internet, combining strengths in performance and branding to deliver measurable outcomes for advertisers.

The most recent analyst rating on (OB) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Outbrain stock, see the OB Stock Forecast page.

Outbrain Holds 2025 Annual Meeting of Stockholders

On June 5, 2025, Outbrain Inc. conducted its 2025 Annual Meeting of Stockholders, where key decisions included the election of Nithya B. Das, Kathryn Taneyhill Jhaveri, and Mark Zagorski as Class I directors for a three-year term until 2028. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating continued stability and strategic direction for the company.

The most recent analyst rating on (OB) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Outbrain stock, see the OB Stock Forecast page.

Outbrain Strengthens Financial Structure with New Guarantors

On May 30, 2025, Outbrain, through its subsidiary OT Midco, entered into a series of supplemental indentures with various entities, including Teads Australia Pty Ltd and Outbrain Italy S.r.l., to formally add them as guarantors of the Notes on a secured, unsubordinated basis. This strategic move, finalized with additional agreements on June 3, 2025, strengthens Outbrain’s financial structure by ensuring a broader base of guarantors, potentially enhancing the company’s creditworthiness and operational stability.

The most recent analyst rating on (OB) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Outbrain stock, see the OB Stock Forecast page.

Outbrain Appoints Dexter Goei and Mark Mullen to Board

Outbrain Inc. announced the appointment of Dexter Goei and Mark Mullen to its Board of Directors, effective March 12, 2025. This strategic move, under the Stockholders Agreement with Altice Teads S.A., allows both executives to bring their extensive experience in corporate strategy, operations, and finance to the company, potentially enhancing its industry positioning and operational effectiveness.