Criteo started 2026 with $425 million in first-quarter revenue, down 6% from $451 million a year earlier, while gross profit fell 6% to $223 million from $237 million. Contribution ex-TAC declined 5% to $250 million from $264 million.
Net income dropped sharply to $9 million from $40 million, and diluted earnings per share fell to $0.15 from $0.66. Adjusted diluted EPS came in at $0.73, down from $1.10.
Adjusted EBITDA decreased 30% to $65 million from $92 million, with adjusted EBITDA margin slipping to 26% from 35%. Free cash flow fell to $16 million from $45 million, while cash from operating activities declined to $48 million from $62 million.
Operating expenses rose 12% to $212 million from $189 million. Non-GAAP operating expenses increased 10% to $165 million from $151 million.
The company said retail media contributed the biggest drag in the quarter. Retail media revenue fell 31%, and retail media contribution ex-TAC also declined 31%, reflecting a $27 million headwind from scope changes with two clients. Excluding that impact, contribution ex-TAC grew 24% across the underlying client base.
Performance media revenue slipped 2%, while performance media contribution ex-TAC rose 2% on a reported basis and fell 2% at constant currency.
Criteo said media spend reached $1.0 billion in the quarter, up 8% year over year at constant currency, and $4.4 billion over the last 12 months. The company also said it deployed $31 million to repurchase shares in the quarter.
Cash and cash equivalents plus marketable securities totaled $371 million at March 31, up from $286 million a year earlier, though down $17 million from December 31, 2025. Total financial liquidity was about $889 million. As a result of these announcements, the company's shares have moved -18.89% on the market, and are now trading at a price of $16.32. For the full picture, make sure to review Criteo's 8-K report.
