Criteo SA (CRTO) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic AI Initiatives

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Thu, February 12, 2026 at 4:03 AM GMT+9 4 min read

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CRTO

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**Revenue:** $1.9 billion for 2025.

**Contribution ex-TAC:** $1.2 billion, up 3.5% at constant currency.

**Performance Media Revenue:** $1.7 billion.

**Retail Media Revenue:** $264 million.

**Adjusted EBITDA Margin:** 35% for 2025.

**Free Cash Flow:** $211 million, up 16% year over year.

**Adjusted Net Income:** $253 million.

**Adjusted Diluted EPS:** $4.62 for 2025.

**Q4 Revenue:** $541 million.

**Q4 Contribution ex-TAC:** $330 million.

**Client Retention Rate:** 90%.

**Q4 Adjusted EBITDA:** $120 million.

**Q4 Net Income:** $46 million.

**Total Liquidity:** $891 million as of December 2025.

**Share Buyback Authorization:** Increased to up to $200 million.

**2026 Contribution ex-TAC Growth Expectation:** Flat to up 2% at constant currency.

**2026 Adjusted EBITDA Margin Expectation:** 32% to 34%.

**Q1 2026 Contribution ex-TAC Guidance:** $245 million to $250 million.

**Q1 2026 Adjusted EBITDA Guidance:** $50 million to $55 million.

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Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Criteo SA (NASDAQ:CRTO) delivered record results in 2025 with strong margins and robust cash flow generation, achieving a revenue of $1.9 billion and a contribution ex-TAC growth of 3.5% at constant currency.

The company has a unique commerce Data Foundation, providing visibility into over $1 trillion in e-commerce transactions annually, which supports its AI-driven performance engine.

Criteo SA (NASDAQ:CRTO) is prioritizing agentic commerce, developing an agentic commerce recommendation service that has shown a 60% uplift in prioritizing products most likely to be purchased.

The company is expanding its self-service offerings with the launch of 'Go', an AI-powered automation and optimization tool set, which is expected to drive significant growth among small and medium-sized business advertisers.

Retail media remains a growth engine for Criteo SA (NASDAQ:CRTO), with a leadership position and unmatched supply at scale, including partnerships with 70% of the top 30 retailers in the US.

Negative Points

Criteo SA (NASDAQ:CRTO) anticipates low overall growth in 2026 due to retail media client scope reductions, with a $75 million headwind impacting contribution ex-TAC.

The company is experiencing lower spend in certain categories, including fashion and department stores in the US, which are expected to continue into 2026.

There is a mixed issue in retail media as the company continues to add more display advertising, which typically has a lower take rate than on-site sponsored ads.

Criteo SA (NASDAQ:CRTO) has not yet monetized its agentic commerce initiatives, and its financial outlook does not assume any revenue contributions from these early-stage initiatives.

The company faces a foreign exchange headwind on its euro-based costs, impacting its adjusted EBITDA margin expectations for 2026.

 






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Q & A Highlights

Q: Can you elaborate on the prospects for Criteo’s AI recommendation service and its impact on search results? A: Michael Komasinski, CEO, explained that the AI recommendation service aims to enhance product recommendations’ fidelity and relevance, crucial for platforms competing for daily active users. The service relies on commerce data to provide high-quality recommendations, which semantic scraping alone cannot achieve. Todd Parsons, Chief Product Officer, added that the service is application agnostic, extending its benefits across the ecosystem, including social platforms and CTV, supporting multiple monetization models.

Q: Could you discuss the department store weakness and its potential link to Saks Global bankruptcy? A: Sarah Glickman, CFO, noted that department stores were down 13% and fashion down 12%, indicating ongoing headwinds that began in Q4 and are expected to continue into 2026. She did not specifically comment on the Saks Global bankruptcy’s impact.

Q: How do you expect retail media growth to progress throughout the year, and what is the incremental opportunity in Commerce Go? A: Michael Komasinski, CEO, stated that retail media growth will be driven by scaling auction-based display products, winning new retailers, and rolling out features like Commerce Max. Sarah Glickman, CFO, added that growth is expected to pace throughout the year, with Q1 and Q2 more impacted by client scope reductions. Regarding Commerce Go, Komasinski highlighted its potential to transition Criteo from a managed service to a self-serve model, enhancing cross-channel optimization for all client bases.

Q: How are retailers adopting internal LLM agentic tools, and how is AI personalizing ads for international markets? A: Michael Komasinski, CEO, explained that retailers are investing in AI-enabled front ends to maintain customer journey ownership, with Criteo powering relevant sponsored opportunities. Todd Parsons, Chief Product Officer, noted that AI is used for localization and personalization, with auto-generated content driving higher performance rates, particularly in self-service contexts.

Q: What is the pricing model for AI initiatives, and how do you monetize relationships with AI companies? A: Michael Komasinski, CEO, stated that monetization varies; for retailers, it’s a take rate model similar to current structures. For LLMs, the focus is on embedding Criteo’s offering into the ecosystem, with future monetization potentially ranging from API access fees to participation in economic models as they develop. Todd Parsons added that brands seek discovery, whether paid or organic, and Criteo is exploring both paths for monetization.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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