Criteo Q4 revenue at $541M vs $553M last year, retail media revenue down 17% in Q4

New Delhi: Criteo’s revenue for the fourth quarter ended December 31, 2025 stood at $541 million, marking a 2% decline from $553 million in the same period last year. Gross profit slipped 1% to $297 million, while contribution ex-TAC (Traffic Acquisition Costs) also fell 1% to $330 million. Net income dropped 36% to $46 million compared with $72 million a year earlier, and diluted earnings per share declined 27% to $0.90.

Adjusted EBITDA for the quarter decreased 17% to $120 million, and adjusted diluted earnings per share fell 26% to $1.30. Free cash flow declined 8% to $134 million during the quarter.

The quarterly decline was largely influenced by weakness in the retail media segment. 

Retail Media revenue fell 17%, and Retail Media Contribution ex-TAC also dropped 17%, reflecting previously communicated scope changes with two major clients. In contrast, Performance Media revenue increased 1%, while Performance Media Contribution ex-TAC rose 5%, supported by traction in full-funnel and cross-channel activation.

Despite the softer quarter, Criteo delivered stable growth for the full year 2025. Annual revenue reached about $1.9 billion, up 1% from the previous year. Gross profit increased 7% to $1.05 billion, and contribution ex-TAC grew 5% to about $1.17 billion. Net income rose 30% to $149 million, while diluted earnings per share climbed 39% to $2.64.

Adjusted EBITDA for the full year increased 4% to $407 million, and adjusted diluted earnings per share edged up 1% to $4.62. Free cash flow improved 16% to $211 million, reflecting stronger operating discipline and fewer days' sales outstanding.

Cash flow from operating activities grew 21% to $311 million for the year. The company ended 2025 with $389 million in cash and marketable securities and deployed $152 million toward share repurchases. Its board has now increased the remaining buyback authorisation to up to $200 million.

Michael Komasinski, Chief Executive Officer of Criteo, said, “Criteo delivered strong performance for the year. We are advancing our position at the forefront of agentic commerce, with differentiated commerce data, AI-driven decision-making, and global reach that provide durable advantages and support sustainable growth and long-term shareholder value.”

Sarah Glickman, Chief Financial Officer, added, “We generated strong margins and cash flow in 2025, demonstrating the strength of our operating model. We returned $152 million to shareholders through share repurchases while maintaining a strong balance sheet, highlighting our confidence in the business and commitment to long-term shareholder value.”

Operationally, the company continued investing in artificial intelligence-driven commerce solutions. It introduced an Agentic Commerce Recommendation Service for AI shopping assistants and expanded testing with large language model partners and conversational shopping formats. 

These initiatives are aimed at strengthening purchase-driven discovery and advertiser performance.

Criteo also scaled its AI-powered performance engine and expanded cross-channel activation, including growing adoption of social campaigns and self-service campaign tools. In retail media, the company added new partners such as Lidl and JB Hi-Fi while increasing onsite display adoption and retailer integrations globally.

Looking ahead, the company expects limited near-term growth due to the same retail media client scope changes. For the first quarter of 2026, contribution ex-TAC is projected between $245 million and $250 million, representing a decline of 11% to 9%. 

Full-year 2026 contribution ex-TAC growth is expected to range from flat to 2%, with adjusted EBITDA margin estimated at 32% to 34%.

Overall, while the fourth quarter reflected client-related headwinds in retail media and pressure on profitability, Criteo’s full-year results showed steady revenue, stronger margins, and improved cash flow, supported by continued investment in AI-driven commerce and performance media capabilities.