Teads Holding (TEAD) AI Stock Analysis

• Market Cap: $139.61M
• Dividend Yield: N/A
• Average Volume (3M): 600.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 30.91%
• EPS Growth: -1632.95%
• Country: US
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): -0.17
• Shares Outstanding: 94,971,710
• 10 Day Avg. Volume: 1,111,275
• 30 Day Avg. Volume: 600,324
• PEG Ratio: 1.95
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 2.90
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $1.37
• Price Target Upside: 73.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $0.50 ▼(-36.71% Downside)

Teads Holding's overall stock score reflects a challenging financial and operational environment. While there is promising growth in certain segments like Connected TV, the company faces significant profitability issues and high leverage. Technical indicators suggest bearish momentum, and the valuation is unattractive due to negative earnings. Strategic initiatives are in place to address these challenges, but the immediate outlook remains cautious.

Positive Factors

Connected TV Growth

The strong growth in the Connected TV segment indicates a successful expansion into high-demand areas, potentially driving future revenue and market share.

AI and Algorithmic Advancements

Enhanced AI capabilities can lead to better ad performance and personalization, strengthening competitive advantage and customer retention.

Cash Flow Generation

Improved cash generation provides financial flexibility for strategic investments and debt reduction, supporting long-term growth.

Negative Factors

Revenue Decline

A significant revenue decline suggests challenges in maintaining market position and could impact profitability if not addressed.

High Leverage

High leverage increases financial risk and limits the company's ability to invest in growth opportunities or weather economic downturns.

Operational Challenges

Operational difficulties can hinder strategic initiatives and delay improvements in efficiency and profitability, affecting long-term performance.

Teads Holding Business Overview & Revenue Model

Company Description

Teads Holding (TEAD) is a global media platform specializing in video advertising and digital marketing solutions. Founded in 2011, the company operates in the ad tech sector, providing innovative advertising solutions that enhance brand visibility and user engagement across various digital mediums. Teads offers a range of products including outstream video ads, branded content solutions, and programmatic advertising capabilities, enabling advertisers to reach their target audiences effectively on premium publishers' websites.

How the Company Makes Money

Teads generates revenue primarily through the sale of advertising space on its platform. The company operates on a cost-per-impression (CPI) and cost-per-click (CPC) model, charging advertisers based on the number of impressions or clicks their ads receive. Key revenue streams include direct sales to brands and agencies, as well as programmatic advertising through partnerships with demand-side platforms (DSPs). Additionally, Teads collaborates with premium publishers, sharing ad revenues generated from their inventory. Strategic partnerships with major media companies and technology providers also enhance its offerings and drive revenue growth.

Teads Holding Financial Statement Overview

Summary

Teads Holding shows a mixed financial performance. Revenue growth is promising at 13.44%, but profitability is a challenge with negative net profit margins. The balance sheet indicates high leverage with a debt-to-equity ratio of 1.38, posing potential risks. Cash flow generation is improving with a strong free cash flow growth rate of 47.88%, but operating cash flows are not fully supporting net income.

Income Statement

Teads Holding shows a mixed performance in its income statement. The TTM data indicates a revenue growth rate of 13.44%, which is a positive sign. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has improved to 24.31% in the TTM, but the net profit margin remains negative, indicating ongoing challenges in cost management and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.38 in the TTM, suggesting significant leverage. This could pose a risk if not managed carefully. The equity ratio is relatively stable, but the return on equity is negative, reflecting the company's struggle to generate profits from its equity base. Overall, the balance sheet shows a need for improved financial stability.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 47.88% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, suggesting that operating cash flows are not yet fully supporting net income. However, the free cash flow to net income ratio is relatively healthy, showing that the company is generating cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	889.88M	935.82M	992.08M	1.02B	767.14M
Gross Profit	364.72M	192.10M	184.80M	192.65M	240.26M	165.06M
EBITDA	5.00M	24.83M	42.45M	15.97M	11.98M	26.99M
Net Income	-89.01M	-711.00K	10.24M	-24.58M	10.99M	4.36M
Balance Sheet
Total Assets	1.71B	549.21M	664.64M	781.15M	795.89M	356.49M
Cash, Cash Equivalents and Short-Term Investments	138.25M	166.13M	165.20M	272.49M	455.40M	93.64M
Total Debt	639.92M	15.82M	130.90M	247.68M	239.07M	3.85M
Total Liabilities	1.19B	317.87M	441.57M	563.36M	539.12M	273.86M
Stockholders Equity	519.34M	231.34M	223.06M	217.79M	256.77M	82.63M
Cash Flow
Free Cash Flow	63.92M	51.27M	-6.49M	-22.13M	36.71M	51.48M
Operating Cash Flow	73.81M	68.56M	13.75M	3.81M	56.76M	52.99M
Investing Cash Flow	-553.80M	67.15M	69.64M	-317.90M	-20.10M	-9.42M
Financing Cash Flow	553.75M	-117.70M	-117.07M	-31.70M	325.89M	-4.23M

Teads Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAD, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.57, and below the 200-day MA of 3.06, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 22.87 is Positive, neither overbought nor oversold. The STOCH value of 11.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEAD.

Teads Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUBM	63 Neutral	$337.46M	―	-0.65%	―	3.53%	-109.03%
SPT	61 Neutral	$603.27M	―	-26.69%	―	13.09%	32.34%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DSP	59 Neutral	$547.05M	255.95	5.20%	―	30.92%	―
GRND	53 Neutral	$2.61B	―	-76.08%	―	28.35%	24.57%
TEAD	50 Neutral	$139.61M	―	-23.85%	―	30.91%	-1632.95%
BMBL	50 Neutral	$563.74M	―	-25.34%	―	-7.43%	61.29%

Teads Holding Corporate Events

Teads Holding Co. Reports Strong Revenue Growth

Teads Holding Co., formerly known as Outbrain Inc., is a prominent player in the digital advertising industry, specializing in omnichannel outcomes for the open internet, and is known for its predictive AI technology that enhances media and advertising effectiveness.

Outbrain’s Earnings Call: Growth Amid Challenges

The recent earnings call for Outbrain, Inc. presented a mixed sentiment, with notable highlights in growth areas tempered by significant challenges. While the company showcased impressive advancements in connected TV and AI, it also faced revenue declines and operational hurdles, leading to a cautious outlook.

Teads Holding Co. Reports Strong Q2 2025 Results

Teads Holding Co., formerly known as Outbrain Inc., is a prominent player in the digital advertising industry, specializing in omnichannel outcomes for the open internet. The company leverages predictive AI technology to connect advertisers with premium media and creative content, fostering meaningful business outcomes.