Criteo Cuts 2026 Contribution Outlook After Retail Scope Hits

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter revenue fell 11% to $428 million and the company now expects full-year Contribution ex-TAC to decline 12% to 10% at constant currency.

Criteo S.A. (CRTO), the global commerce intelligence platform, reported a steeper year-over-year revenue decline in the second quarter and cut its full-year Contribution ex-TAC outlook, citing a temporary hit from previously communicated scope changes with two Retail Media clients.

Revenue was $428 million, down 11% from a year earlier, a larger drop than the 6% year-over-year decline in the first quarter. Contribution ex-TAC fell 13% to $255 million. Gross profit was $222 million, and gross margin was 52%. Net income was $12 million, or $0.22 a share. Adjusted EBITDA was $73 million, and adjusted diluted EPS was $0.80.

Chief Executive Officer Michael Komasinski said second-quarter top-line performance was disappointing and that the company’s long-term strategy remains unchanged. He said Criteo is strengthening execution, diversifying the business, and positioning the company to help shape AI-driven commerce.

Retail Media was the sharper break. Retail Media revenue and Contribution ex-TAC each declined 21%, including a $21 million headwind from the two client scope changes. Excluding that impact, Contribution ex-TAC grew 20% across the underlying client base, after 24% ex-scope-change growth in the first quarter.

Performance Media also weakened. Performance Media revenue and Contribution ex-TAC each decreased 10%, after Performance Media Contribution ex-TAC was down only 2% year-over-year at constant currency in the first quarter. The second-quarter Performance Media result reflected soft Commerce Growth, partly offset by improved year-over-year trends in AdTech Services.

Operating expenses decreased 9% year-over-year to $207 million. Non-GAAP operating expenses decreased 10% year-over-year to $158 million. The GAAP decline was attributed mostly to rigor on resource allocation, productivity gains, and the non-recurrence of a company-wide event held in the previous year, partly offset by planned growth investments.

Cash from operating activities was $20 million. Free Cash Flow was $(38) million, and FCF as a percentage of Adjusted EBITDA was (51)%. Cash and cash equivalents were $252 million. Cash and marketable securities were $303 million, down $86 million from December 31, 2025, after $61 million of share repurchases in the first six months of 2026, including $30 million in the second quarter. Total financial liquidity was approximately $767 million, including $464 million available through a revolving credit facility.

Media spend was $1.1 billion in the second quarter, up 9% year-over-year at constant currency. Criteo became OpenAI’s first advertising technology partner in March 2026 and now has more than 2,000 brands advertising on ChatGPT across seven countries, with additional country launches planned, including Mexico and Brazil. ChatGPT Ads inventory is available through Criteo GO. Retail Media additions included Loblaw Advance in Canada, Monoprix and Druni in EMEA, and Olive Young and Golf Digest Online in APAC.

Criteo appointed Connor McGogney as Chief Financial Officer, effective August 10, 2026, succeeding Sarah Glickman, who will remain an advisor through the end of September. The company completed its redomiciliation from France to Luxembourg, and the board approved a subsequent transfer of legal domicile to the United States, expected in January 2027, subject to shareholder approval and other customary conditions.

For the full year 2026, the company now expects Contribution ex-TAC to decrease 12% to 10% at constant currency and an Adjusted EBITDA margin of approximately 30% of Contribution ex-TAC. For the third quarter, it expects Contribution ex-TAC between $237 million and $241 million, or down 15% to 14% year-over-year at constant currency, and Adjusted EBITDA between $54 million and $58 million. Third-quarter guidance reflects the temporary impact of the two Retail Media scope changes.

Glickman said the updated outlook reflects a more conservative view of business trends for the remainder of the year and that profitability, cash flow, and the balance sheet provide flexibility to execute the strategy and maintain disciplined capital allocation.