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Teads Holding (TEAD)
NASDAQ:TEAD
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Teads Holding
(NASDAQ:TEAD)
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Rating:49Neutral
Price Target:
$1.50
▲(0.67% Upside)
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
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion potential.
Cash Flow Generation
Improved cash flow generation enhances financial flexibility, enabling investment in growth opportunities and debt reduction.
Gross Profit Margin
An improving gross profit margin suggests better cost management and pricing power, contributing to potential profitability improvements.
Negative Factors
Profitability Challenges
Ongoing profitability issues indicate challenges in cost control and revenue conversion, which could hinder long-term financial health.
High Leverage
High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.
Negative Return on Equity
Negative return on equity reflects inefficiencies in generating profits from shareholders' investments, impacting investor confidence.
Teads Holding (TEAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$141.51M
Dividend YieldN/A
Average Volume (3M)359.39K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth19.67%
EPS Growth-1183.48%
CountryUS
Employees1,800
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.10
Shares Outstanding94,971,710
10 Day Avg. Volume398,080
30 Day Avg. Volume359,392
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap5.07
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit2.33
Enterprise Value/Ebitda79.74
Forecast
1Y Price Target
$3.28Price Target Upside120.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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 MoneyOutbrain 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
Outbrain Inc. delivered strong financial results in Q1 2025, achieving significant revenue and profit growth due to the successful integration of Teads. The company is effectively realizing cost synergies and expanding its client base with positive feedback from advertisers. However, there are concerns about pro forma revenue decline and macroeconomic uncertainties impacting future visibility. Despite these challenges, the overall sentiment is positive, driven by strong operational performance and strategic partnerships.Q1-2025 Updates
Positive Updates
Strong Q1 Performance
Outbrain Inc. achieved its Q1 guidance for Ex-TAC gross profit and adjusted EBITDA, marking a successful integration of Teads and realizing financial benefits from the merger.
Revenue Growth
The company reported Q1 revenue of approximately $286 million, reflecting an increase of 32% year over year on an as-reported basis, driven by the acquisition of Teads.
Ex-TAC Gross Profit Increase
Ex-TAC gross profit for Q1 was $103.1 million, marking a 98% increase year over year, driven by the acquisition and favorable revenue mix changes.
CTV Revenue Growth
Connected TV (CTV) revenue grew over 50% year over year in Q1, now representing approximately 5% of total ad spend.
Cost Synergies
The company is on track to achieve $60 million in annualized cost savings by 2026, with $40 million expected in 2025. 90% of compensation-related cost synergies have already been actioned.
Positive Advertiser Feedback
Outbrain reported positive feedback from clients and closed Q1 with over 50 joint business partnerships (JBPs), including new commitments with major brands like Ferrero, Halion, and Philip Morris International.
Negative Updates
Pro Forma Revenue Decline
On a pro forma basis, the company estimates a year-over-year revenue decline of approximately 7% for the full quarter, despite the acquisition impact.
Acquisition-Related Costs
Q1 included $16 million of acquisition-related costs, $16 million from the impairment of intangible assets, and $7 million of restructuring charges.
Macro Economic Uncertainty
Some advertisers are shortening their planning and buying cycles due to macroeconomic uncertainty, causing potential challenges in forecasting and budgeting.
Company Guidance
In the first quarter of 2025, Outbrain Inc. reported strong financial performance, meeting its guidance for Ex-TAC gross profit and adjusted EBITDA following its merger with Teads on February 3. The company achieved an Ex-TAC gross profit of $103.1 million, marking a 98% increase year-over-year, and an adjusted EBITDA of $10.7 million, which represents a more than sevenfold increase from the previous year. Revenue for Q1 was approximately $286 million, up 32% year-over-year, primarily due to the merger. Outbrain aims to achieve $60 million in annualized cost savings by 2026, with $40 million expected in 2025. The company also reported significant growth in its CTV segment, with revenue rising over 50% year-over-year, now accounting for about 5% of total ad spend. Looking ahead to the second quarter, Outbrain provided guidance for Ex-TAC gross profit between $141 million and $150 million, and adjusted EBITDA between $26 million and $34 million, maintaining its full-year adjusted EBITDA target of at least $180 million for 2025.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.55
Neutral
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.60
Neutral
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.65
Positive
| 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
Negative
1.49
Price Trends
1.69
Negative
2.15
Negative
3.45
Negative
Market Momentum
-0.07
Positive
32.49
Neutral
9.18
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 1.49 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.69, and below the 200-day MA of 3.45, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.49 is Neutral, neither overbought nor oversold. The STOCH value of 9.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $367.64M | 124.65 | -0.65% | ― | 3.53% | -109.03% | |
61 Neutral | $636.81M | ― | -32.50% | ― | 14.79% | 27.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $521.86M | 246.73 | 5.20% | ― | 30.92% | ― | |
50 Neutral | $2.44B | ― | -76.08% | ― | 28.35% | 24.57% | |
49 Neutral | $554.38M | ― | -75.71% | ― | -5.06% | -2318.18% | |
49 Neutral | $141.51M | ― | -16.75% | ― | 19.67% | -1183.48% |
* Communication Services Sector Average
TEAD
Teads Holding
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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.