Criteo reported fourth‑quarter revenue of $541 million, a 2 % decline from $555 million in Q4 2024. The drop was driven by a 18 % decline in Retail Media contribution, offset by a 4 % increase in Performance Media. Gross profit fell 1 % to $297 million, reflecting higher cost of sales in the Retail Media segment and modest margin compression in the overall business.
Net income for the quarter was $46 million, or $0.90 per diluted share, down 36 % from $72 million and $1.23 EPS in Q4 2024. The decline was largely due to the Retail Media scope changes that reduced revenue and increased operating expenses, and to higher marketing and technology costs associated with the company’s AI‑driven initiatives. The adjusted diluted EPS of $1.30 missed the consensus estimate of $1.38 by $0.08, a 5.8 % shortfall that weighed on investor sentiment.
For the full year, Criteo generated revenue of $1.945 billion, up 1 % from $1.933 billion in 2024, largely driven by a 2 % constant‑currency gain in Performance Media and a 2 % rise in Retail Media after the scope changes. Gross profit rose 7 % to $1.049 billion, and net income climbed 29.5 % to $149 million, or $2.64 per diluted share. Adjusted EBITDA increased 4 % to $407 million, reflecting continued operational leverage despite the headwinds in Retail Media.
Criteo repurchased $152 million of shares in 2025 and extended its buy‑back authorization to $200 million, underscoring the company’s commitment to returning capital while maintaining a strong balance sheet of $389 million in cash and marketable securities. The firm also reiterated its strategic pivot toward commerce intelligence and AI decisioning, positioning its new Agentic Commerce Recommendation Service and Audience Agent as growth engines for the next phase of the business.
Management guided for 2026 with Contribution ex‑TAC growth flat to 2 % at constant currency and an adjusted EBITDA margin of 32 % to 34 %. For Q1 2026, the company projected Contribution ex‑TAC of $245 million to $250 million, a 9 % to 11 % decline YoY, reflecting cautious demand outlook. Investors reacted negatively, citing the EPS miss and the muted guidance as key concerns, while noting the company’s continued investment in AI and share‑buyback program as tailwinds.
Chief Financial Officer Sarah Glickman said the company “generated strong margins and cash flow in 2025, demonstrating the strength of our operating model” and highlighted the $152 million share repurchase. Chief Executive Officer Michael Komasinski emphasized that “2025 unfolded a bit differently than we had anticipated, but we delivered solid execution and made good progress against our strategy, closing the year with momentum across our key initiatives.”
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