Teads Holding (TEAD) AI Stock Analysis

• Market Cap: $59.16M
• Dividend Yield: N/A
• Average Volume (3M): 636.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• 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: 95,470,825
• 10 Day Avg. Volume: 615,499
• 30 Day Avg. Volume: 636,457
• 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: 11.27
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 133.28
• 1Y Price Target: $1.00
• Price Target Upside: 61.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $0.61 ▼(-1.61% Downside)

The score is held down primarily by weak profitability and elevated leverage, alongside a strong bearish technical trend. Offsetting factors include improving cash flow trends and earnings-call initiatives (notably CTV growth and cost actions), but near-term risks are amplified by the Nasdaq bid-price compliance issue and restructuring execution.

Positive Factors

Connected TV (CTV) Growth

Sustained ~40% CTV growth and a $100M run rate indicate durable demand shift toward streaming inventory. Scaling CTV diversifies revenue away from declining web impressions, supports higher CPMs, and provides a structural avenue for margin recovery and product differentiation over 2–6 months.

Improving Free Cash Flow

An 8% TTM rise in free cash flow reflects improving cash generation despite losses. Stronger FCF enhances ability to fund restructuring, invest in CTV and AI, and reduces reliance on external financing, providing greater financial flexibility while profitability is being restored.

AI and Algorithmic Advancements

Accelerated AI/algorithmic improvements create a sustainable competitive advantage by boosting ad effectiveness and yield. Better targeting and conversion lift advertiser ROI, supporting higher retention and pricing power, which can structurally improve unit economics and margins over the medium term.

Negative Factors

Elevated Leverage

A 1.22 debt/equity ratio signals elevated financial risk and interest burden. High leverage constrains investment flexibility, limits runway for product and market development, and increases vulnerability if cash flow softness persists, complicating durable recovery plans and strategic execution.

Negative Profitability

A sustained negative net margin and negative ROE indicate the company is not converting revenue into shareholder returns. Continued losses erode equity and require either sustained top-line growth, structural margin improvement, or significant cost reductions to reach durable profitability.

Nasdaq Bid-Price Noncompliance Risk

A Nasdaq minimum bid-price notice creates structural listing risk that can force a reverse split or transfer, distract management, and impair liquidity and employee/partner confidence. The potential delisting or remedial actions could materially affect long-term access to capital and stakeholder stability.

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

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 faces challenges with profitability and leverage, as indicated by negative net income and a high debt-to-equity ratio. While there are signs of revenue growth and improved cash flow, the company needs to address operational inefficiencies and manage its debt levels to enhance financial stability and profitability.

Income Statement

Teads Holding's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin of 28.3% indicates a reasonable level of profitability, but the net profit margin is negative at -5.8%, reflecting ongoing losses. Revenue growth is positive at 8.7% TTM, suggesting some recovery, but historical volatility in revenue growth rates indicates instability. The EBIT and EBITDA margins are low, with EBIT being negative, highlighting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.22 TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative at -17.1% TTM, reflecting poor profitability relative to shareholder equity. However, the equity ratio is moderate, suggesting some level of financial stability.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 8.0% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.16 TTM, suggesting some operational cash flow efficiency. However, the free cash flow to net income ratio of 0.74 TTM indicates that free cash flow is not fully covering net losses, which could be a concern.

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: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.62 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.82, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 6.45 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
DSP	65 Neutral	$725.48M	440.15	4.45%	―	22.97%	49.49%
SPT	61 Neutral	$629.99M	-13.15	-26.69%	―	13.09%	32.34%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PUBM	59 Neutral	$397.31M	-46.80	-2.85%	―	-0.68%	-146.14%
GRND	53 Neutral	$2.44B	-35.63	-171.54%	―	28.97%	-4.18%
BMBL	51 Neutral	$396.84M	-1.85	-25.34%	―	-7.43%	61.36%
TEAD	47 Neutral	$59.16M	-0.58	-23.85%	―	30.91%	-1632.95%

Teads Holding Corporate Events

Teads Holding Receives Nasdaq Notice on Bid Price Noncompliance

On December 22, 2025, Teads Holding Co. disclosed that it had received a notice from Nasdaq stating the company was out of compliance with the exchange’s minimum bid price requirement, after its shares traded below $1.00 for 30 consecutive business days, though the notice does not immediately affect trading, operations, or SEC reporting obligations. Teads has until June 22, 2026, to regain compliance—potentially through measures such as a reverse stock split—or it may seek an additional 180-day grace period by transferring to the Nasdaq Capital Market, but faces the risk of delisting, and a possible appeal process, if it fails to restore its share price to the required level for at least ten consecutive trading days within the allowed time frames.

The most recent analyst rating on (TEAD) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on Teads Holding stock, see the TEAD Stock Forecast page.

Teads Holding Initiates Strategic Restructuring Plan

On December 3, 2025, Teads Holding Co. initiated a strategic restructuring plan aimed at reducing operating costs and improving margins to support profitable growth. The plan will affect around 10% of the company’s global workforce, with expected annual savings of $35 million to $40 million. The restructuring involves estimated charges of $8 million to $12 million, primarily for severance and employee benefits, to be incurred mainly in late 2025 and early 2026. Completion is anticipated by the first quarter of fiscal year 2026, though outcomes may vary due to local laws and unforeseen events.

The most recent analyst rating on (TEAD) stock is a Hold with a $0.61 price target. To see the full list of analyst forecasts on Teads Holding stock, see the TEAD Stock Forecast page.