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Teads Holding (TEAD)
NASDAQ:TEAD
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Teads Holding
(NASDAQ:TEAD)
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Rating:45Neutral
Price Target:
$0.61
▼(-19.61% Downside)
Teads Holding's overall stock score reflects significant challenges in financial performance and valuation, with ongoing losses and high leverage. Technical analysis indicates bearish momentum, while the earnings call and corporate events show efforts to address these issues. However, the immediate outlook remains cautious due to operational challenges and restructuring impacts.
Positive Factors
Connected TV Growth
The strong growth in the Connected TV segment indicates a successful expansion into a high-demand market, potentially driving future revenue and market share increases.
AI and Algorithmic Advancements
Enhanced AI capabilities can improve ad performance and customer targeting, strengthening competitive positioning and supporting long-term growth.
Strategic Restructuring Plan
The restructuring plan aims to reduce costs and improve margins, enhancing operational efficiency and supporting sustainable profitability.
Negative Factors
Revenue Decline
A significant revenue decline indicates challenges in maintaining market position and could impact long-term financial stability if not addressed.
High Leverage
High leverage can strain financial resources, limiting strategic flexibility and increasing risk during economic downturns.
Operational Challenges
Ongoing operational challenges may hinder efficiency and growth, requiring effective management to avoid long-term negative impacts.
Teads Holding (TEAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.17M
Dividend YieldN/A
Average Volume (3M)2.01M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth30.91%
EPS Growth-1632.95%
CountryUS
Employees1,800
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.17
Shares Outstanding95,470,825
10 Day Avg. Volume672,893
30 Day Avg. Volume2,013,217
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)0.64
Price to Sales (P/S)0.17
P/FCF Ratio2.90
Enterprise Value/Market Cap10.08
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda133.28
Forecast
1Y Price Target
$1.00Price Target Upside31.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.73
Revenue Forecast (FY)$1.31B
Teads Holding Business Overview & Revenue Model
Company DescriptionTeads 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 MoneyTeads 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted substantial growth in connected TV and promising advancements in AI and algorithms. However, these were tempered by significant revenue declines, operational challenges, and client losses. The company is actively addressing these issues, but the immediate outlook remains cautious.Q3-2025 Updates
Positive Updates
Connected TV Growth
Connected TV remains a significant growth area with approximately 40% year-over-year growth in Q3. It is expected to hit $100 million by the end of the year.
Cross-Screen and CTV Performance
Over 10% of branding advertisers are now active across both CTV and web. A campaign with Men's Wearhouse generated over 41,000 site visits and more than 50,000 incremental store visits.
AI and Algorithmic Advancements
The merger has accelerated AI and algorithmic capabilities, improving conversion rates, click-through rates, and ad selection personalization, setting a promising trajectory for 2026.
Leadership Strengthening
Mollie Spilman was appointed as the new Chief Commercial Officer, bringing extensive experience and expected to lead transformation.
Negative Updates
Revenue Decline
Pro forma revenue saw a year-over-year decline of 15% in Q3, with volatility in top-line and challenges in key markets like the U.S., UK, and France.
Page View Decline
Declining page views on premium publishers attributed partly to increased adoption of AI summaries and volatility in programmatic supply.
Operational Challenges
Integration complexities from the merger and execution challenges have led to slower-than-expected improvements, particularly in the U.S., UK, and France.
Client Losses in DSP Business
A few large clients significantly reduced spending in the DSP business, leading to a $5 million decline in Ex-TAC revenue year-over-year.
Company Guidance
During the Teads Third Quarter 2025 Earnings Conference Call, the company provided guidance reflecting both challenges and strategic actions for improvement. Despite experiencing a 15% year-over-year decline on a pro forma basis, Teads highlighted a 40% year-over-year growth in their Connected TV (CTV) segment, projecting it to reach $100 million by the end of 2025. The company is focused on portfolio optimization, operational efficiency, and cost optimization to drive growth and profitability. In terms of financial metrics, Teads reported Q3 revenue of approximately $319 million, with Ex-TAC gross profit at $131 million, and adjusted EBITDA at $19 million. Looking ahead to Q4, Teads expects Ex-TAC gross profit between $142 million and $152 million and adjusted EBITDA between $26 million and $36 million. They aim to achieve positive adjusted free cash flow for the year, following $3 million year-to-date, and project at least $35 million in annualized EBITDA improvement from their strategic initiatives.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.45
Neutral
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.50
Neutral
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.55
Neutral
| 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
Neutral
0.76
Price Trends
1.04
Negative
1.43
Negative
2.29
Negative
Market Momentum
-0.08
Negative
47.87
Neutral
51.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAD, the sentiment is Neutral. The current price of 0.76 is above the 20-day moving average (MA) of 0.67, below the 50-day MA of 1.04, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 51.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEAD.
Teads Holding Risk Analysis
Teads Holding disclosed 65 risk factors in its most recent earnings report. Teads Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teads Holding Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $720.48M | 451.14 | 4.45% | ― | 22.97% | 49.49% | |
61 Neutral | $653.08M | -13.88 | -26.69% | ― | 13.09% | 32.34% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $414.02M | -49.32 | -2.85% | ― | -0.68% | -146.14% | |
53 Neutral | $2.51B | -36.95 | -171.54% | ― | 28.97% | -4.18% | |
51 Neutral | $388.95M | -1.83 | -25.34% | ― | -7.43% | 61.36% | |
45 Neutral | $66.17M | -0.71 | -23.85% | ― | 30.91% | -1632.95% |
* Communication Services Sector Average
TEAD
Teads Holding
0.76
-6.59
-89.65%
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GRND
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DSP
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11.91
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Teads Holding Corporate Events
Business Operations and Strategy
Teads Holding Initiates Strategic Restructuring Plan
Negative
Dec 8, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.