The 7% revenue decline and 93% Adjusted EBITDA collapse signal fundamental deterioration, despite management's optimistic commentary. With only $98.7M in cash against $623.4M in debt and negative free cash flow, liquidity is a growing concern. Monitor Q2 2026 results closely for any guidance revision or signs of further cash burn.
Price Chart
Executive Summary
Teads reported Q1 2026 revenue of $266.0M, down 7% YoY, and a GAAP net loss of $38.8M, an improvement from a $54.8M loss in the prior year. The company's Ex-TAC gross profit grew 5% YoY to $107.9M, but Adjusted EBITDA collapsed 93% to $0.8M. Guidance for Q2 2026 Ex-TAC gross profit of $121M-$131M and full-year Adjusted EBITDA of ~$100M was maintained, but the sharp drop in profitability and negative free cash flow of -$41.1M are concerning for a $112M market cap company.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $266.0M declined 7% YoY from $286.4M
- GAAP net loss improved to $38.8M from $54.8M, but Adjusted EBITDA fell 93% to $0.8M
- Ex-TAC gross profit grew 5% YoY to $107.9M, with margin expanding to 40.6% from 36.0%
- Adjusted free cash flow was -$41.1M vs +$5.2M in the prior year period
- Q2 2026 guidance: Ex-TAC gross profit $121M-$131M, Adjusted EBITDA $14M-$22M
- Full-year 2026 Adjusted EBITDA guidance maintained at ~$100M
- Cash and marketable securities fell to $98.7M from $138.7M at year-end 2025
- Total debt of $623.4M, including $606.2M carrying value of 10.000% senior secured notes
- CTV revenue grew 50% YoY, representing a bright spot
Financial Impact
Revenue decline of $20.4M YoY, Adjusted EBITDA decline of $9.9M YoY, negative free cash flow of $41.1M
Risk Factors
- Revenue decline of 7% YoY signals weakening top-line momentum
- Adjusted EBITDA nearly wiped out at $0.8M, down 93% YoY
- Negative free cash flow of -$41.1M is burning through cash reserves
- High debt load of $623.4M with 10% interest notes creates significant interest burden
- Cash reserves declining rapidly from $138.7M to $98.7M in one quarter
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001454938-26-000034 |
| Document: tead-20260507.htm | 0001454938-26-000034 |
| Document: 0001454938-26-000034-index-headers.html | 0001454938-26-000034 |
| Document: 0001454938-26-000034-index.html | 0001454938-26-000034 |
| Document: 0001454938-26-000034.txt | 0001454938-26-000034 |
| 8-K Data (Synthetic) | 0001454938-26-000034 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $0.3643 | awaiting T+60 | — | $0.3420 (−6.12%) |
Oct 5, 2026 21d ago | 8-K | $0.5651 | awaiting T+60 | — | $0.3420 (−39.48%) |
Oct 1, 2026 25d ago | 8-K | $0.5590 | awaiting T+60 | — | $0.3420 (−38.82%) |
Sep 29, 2026 27d ago | Press Release | $0.5148 | awaiting T+60 | — | $0.3420 (−33.57%) |
Sep 10, 2026 6w ago | Press Release | $0.4800 | awaiting T+60 | — | $0.3420 (−28.75%) |
Jun 8, 2026 20w ago | 8-K | $1.18 $0.4910 | ▼ −58.39% | ▼ −62.20% | $0.3420 (−71.02%) |
May 7, 2026 24w ago | 8-K | $0.8710 $0.8126 | ▲ +6.70% | ▲ +10.54% | $0.3420 (+60.73%) |
Apr 1, 2026 29w ago | DEFA14A | $0.7040 $0.7669 | ▲ +8.93% | ▼ −5.23% | $0.3420 (−51.42%) |
Mar 5, 2026 33w ago | 8-K | $0.9000 $1.18 | ▲ +30.56% | ▲ +19.26% | $0.3420 (−62.00%) |
Mar 5, 2026 33w ago | Press Release | $0.9000 $1.18 | ▲ +30.56% | ▲ +19.26% | $0.3420 (−62.00%) |
US Market Status
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