Criteo Reports 2% Revenue Growth to $482.7 Million in Q2 2025

Criteo S.A. reported its financial results for the second quarter of 2025, revealing a revenue increase of 2% to $482.7 million compared to $471.3 million in the same period last year. The growth was primarily driven by an 11% rise in Retail Media revenue, which reached $60.9 million, and a slight 1% increase in Performance Media revenue, totaling $421.8 million. For the first half of 2025, total revenue was $934.1 million, reflecting a 1% increase from $921.4 million in the prior year. The company noted that 91% of its quarterly revenue came from existing clients, with the remaining 9% from new client acquisitions.

Despite the revenue growth, Criteo's net income for the second quarter decreased by 18% to $22.9 million, down from $28.1 million in the previous year. This decline was attributed to increased growth investments and higher amortization expenses related to intangible assets. Adjusted EBITDA also fell by 4% to $89.4 million, primarily due to planned growth investments. The company reported cash flows from operating activities of $(1.4) million for the quarter, a significant decrease from $17.2 million in the same period last year, driven by reduced trade payables and higher income tax payments.

Criteo's operational metrics showed a mixed performance. The company experienced a decrease in traffic acquisition costs, which fell by 7% to $190.6 million, contributing to an increase in gross profit of 11% to $258.5 million. The company also reported a 9% increase in Contribution ex-TAC, a key profitability measure, which reached $292.1 million. However, the overall employee headcount increased due to planned company-wide events, contributing to higher operating expenses, which rose by 16% to $228.1 million.

Geographically, Criteo's revenue performance varied, with the Americas region experiencing a 6% decline to $199.8 million, while EMEA saw a 10% increase to $185.9 million, and Asia-Pacific revenue rose by 7% to $96.9 million. The company continues to focus on expanding its Commerce Media platform, leveraging its unique commerce data and AI capabilities to enhance client engagement and drive growth.

Looking ahead, Criteo remains cautious about the macroeconomic environment, which includes factors such as inflation and geopolitical tensions that could impact advertising demand. The company is committed to monitoring these conditions closely and adapting its strategies accordingly. Criteo's management expressed confidence in its ability to capture more market share and drive future growth through its innovative advertising solutions and strategic investments.