Criteo Q3 net income drops 85% as revenue falls 11%
· 2h ago · Originally reported by PPC Land
Criteo reported an 11% revenue decline in the third quarter, with net income down 85%. Contribution ex-TAC fell 17% to $240 million as large advertisers and fashion brands reduced spending. The company maintained its 2026 guidance while betting on CTV and ChatGPT ads for 2027.
Why it matters
Criteo is a major ad tech player built on retargeting, so a steep profit drop signals pressure on that business model and on advertiser budgets generally.
Explain it like I’m new here
It's like a store that makes most of its money from one service seeing fewer customers buy it, so its profits shrank a lot and it's hoping new products will help.
Terms in this story
Contribution ex-TAC
Contribution ex-TAC is a non-GAAP metric, headlined notably by Criteo, that measures revenue after subtracting traffic acquisition costs and other direct costs of delivering the service.
Revenue ex-TAC
Revenue ex-TAC is revenue minus traffic acquisition costs (TAC), the amounts paid to publishers and partners for the ad space or traffic, showing what an ad company keeps.
Advertiser
An advertiser is the company, organisation or person that pays to place ads in order to sell products, build a brand, recruit, or spread a message.
Guidance (forecast)
Guidance is a public company's own forecast of its future results, such as next quarter's revenue or full-year adjusted EBITDA, usually given as a range alongside an earnings report.
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