Teads Holding (TEAD) AI Stock Analysis

• Market Cap: $158.60M
• Dividend Yield: N/A
• Average Volume (3M): 475.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 19.67%
• EPS Growth: -1183.48%
• Country: US
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): -0.10
• Shares Outstanding: 94,971,710
• 10 Day Avg. Volume: 353,993
• 30 Day Avg. Volume: 475,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.52
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 79.74
• 1Y Price Target: $2.92
• Price Target Upside: 74.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-10.18% Downside)

Teads Holding's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The company's promising revenue growth is overshadowed by profitability challenges and high leverage. Technical analysis indicates a strong downtrend, further weighing on the stock's attractiveness. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, highlighting the need for improved profitability.

Positive Factors

Cost Synergies

Management is executing well on the cost synergies, now expecting $40 million of the $60 million to come this year.

Revenue Growth

TEAD reported 2Q25 Net Revs of $144mm, up 158% year over year.

Strategic Acquisition

OB's acquisition of Teads is a key upside value driver in 2025, both strategically and financially.

Negative Factors

Execution Risks

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 and valuation that is looking more attractive.

Revenue Decline

On a pro forma basis, as if Outbrain and Teads had been together in both years, PF net revs fell by 6% y/y in 2Q25, which was disappointing.

Sales Force Attrition

Sales force attrition is impacting near-term results.

Teads Holding Business Overview & Revenue Model

Company Description

Teads Holding Co., together with its subsidiaries, operates a technology platform that connects media owners and advertisers with engaged audiences to drive business outcomes in the United States, Europe, the Middle East, Africa, and internationally. The company operates a two-sided marketplace, forming an end-to-end advertising platform with direct media owner and advertiser relationships. It also provides advertising solutions for advertisers, including a CPC performance platform and CPM-based managed and self-service platforms, and bespoke creative studio solutions that provide data-driven creative tailored to various environments and channels. In addition, the company offers budgets spanning video, display, native, and performance advertising services and technology solutions that enable media owners to deeply engage their audiences, increasing the total revenue opportunity media owners can realize. Teads Holding Co. was formerly known as Outbrain Inc. and changed its name to Teads Holding Co. in June 2025. Teads Holding Co. 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.

Teads Holding Financial Statement Overview

Summary

Teads Holding shows promising revenue growth but struggles with profitability and high leverage. The balance sheet indicates significant debt, and while cash flow generation is improving, the company needs to convert revenue growth into sustainable profits.

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	1.09B	889.88M	935.82M	992.08M	1.02B	767.14M
Gross Profit	307.85M	192.10M	184.80M	192.65M	240.26M	165.06M
EBITDA	8.99M	24.83M	42.45M	15.97M	11.98M	26.99M
Net Income	-62.63M	-711.00K	10.24M	-24.58M	10.99M	4.36M
Balance Sheet
Total Assets	1.77B	549.21M	664.64M	781.15M	795.89M	356.49M
Cash, Cash Equivalents and Short-Term Investments	166.14M	166.13M	165.20M	272.49M	455.40M	93.64M
Total Debt	649.02M	15.82M	130.90M	247.68M	239.07M	3.85M
Total Liabilities	1.24B	317.87M	441.57M	563.36M	539.12M	273.86M
Stockholders Equity	531.96M	231.34M	223.06M	217.79M	256.77M	82.63M
Cash Flow
Free Cash Flow	59.21M	51.27M	-6.49M	-22.13M	36.71M	51.48M
Operating Cash Flow	80.40M	68.56M	13.75M	3.81M	56.76M	52.99M
Investing Cash Flow	-480.96M	67.15M	69.64M	-317.90M	-20.10M	-9.42M
Financing Cash Flow	474.34M	-117.70M	-117.07M	-31.70M	325.89M	-4.23M

Teads Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 1.67 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 2.30, and below the 200-day MA of 4.16, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 8.29 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
SSTK	81 Outperform	$730.41M	11.66	11.62%	6.27%	14.20%	38.92%
TBLA	70 Outperform	$996.98M	91.55	1.40%	―	12.01%	―
ZH	63 Neutral	$416.92M	20.82	3.27%	―	-22.16%	―
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%
THRY	58 Neutral	$544.81M	―	-42.15%	―	-13.60%	69.70%
PERI	53 Neutral	$411.19M	41.65	-0.67%	―	-38.18%	-107.00%
TEAD	49 Neutral	$158.60M	―	-16.75%	―	19.67%	-1183.48%