Criteo Reports 6% Revenue Decline and 79% Drop in Net Income for Q1 2026

Criteo S.A. reported a decline in financial performance for the first quarter of 2026, with total revenue decreasing by 6% to $424.6 million compared to $451.4 million in the same period of 2025. The decrease was attributed to declines in both its Retail Media and Performance Media segments, with Retail Media revenue falling by 31% to $41.3 million and Performance Media revenue decreasing by 2% to $383.4 million. The company noted that at constant currency, revenue decreased by 9%. Gross profit also saw a decline of 6%, amounting to $222.7 million, primarily due to lower revenues in both segments.

Net income for the quarter was reported at $8.6 million, a significant drop of 79% from $40.0 million in the prior year. This decline was largely driven by increased operating expenses, which rose to $212.3 million from $188.8 million, reflecting higher costs in research and development, sales and operations, and general administrative expenses. Adjusted EBITDA also decreased by 30% to $64.9 million, indicating challenges in maintaining profitability amid rising costs and declining revenues.

Criteo's operational metrics showed a decrease in customer engagement, with 92% of revenue coming from existing clients and only 8% from new client additions. The company reported a total cash and cash equivalents balance of $320.3 million as of March 31, 2026, down from $342.4 million at the end of 2025. The decrease in cash was primarily due to share repurchases totaling $31.0 million during the quarter, as part of an extended share repurchase program now authorized for up to $959.0 million.

Strategically, Criteo is undergoing a significant transformation, including a planned legal domicile transfer from France to Luxembourg, with intentions to eventually move to the United States. This transition is expected to be completed in the third quarter of 2026. The company is also focusing on enhancing its Commerce Intelligence Platform, which leverages AI and commerce data to improve advertising outcomes for marketers and media owners. Despite the current challenges, Criteo aims to capture more advertising budgets and market share by expanding its product offerings and improving client engagement.

Looking ahead, Criteo acknowledges the impact of macroeconomic conditions, including inflation and geopolitical factors, on marketing budgets and consumer behavior. The company remains cautious about its revenue outlook, anticipating fluctuations due to seasonal trends in advertising and ongoing adjustments in client spending. Criteo's management continues to monitor these conditions closely, indicating that future performance may be influenced by both internal strategic initiatives and external market dynamics.