Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Needham lowered its price target on Teads Holding (NASDAQ:TEAD) to $3.50 from $5.00 on Thursday, while maintaining a Hold rating following the company’s second-quarter results. According to InvestingPro data, the stock has declined over 63% in the past six months, currently trading at $2.06, well below its 52-week high of $7.87.
The digital advertising firm reported second-quarter net revenue of $144 million, representing a 158% year-over-year increase, which aligned with analyst expectations. Adjusted EBITDA reached $27 million, up from $7 million in the same period last year, though this figure fell 12% below Needham’s estimate. The company maintains a gross profit margin of 24.31%, which InvestingPro analysis identifies as relatively weak.
On a pro forma basis, treating the Outbrain merger as if it had occurred in both comparable periods, Teads saw net revenue decline 6% year-over-year in the second quarter of 2025. While disappointing, this represented an improvement from the 8% pro forma decline in the first quarter and 11% drop in the fourth quarter of 2024.
Teads confirmed its cost-cutting targets of $40 million for fiscal year 2025 and an additional $20 million for fiscal year 2026. The company attributed part of the second-quarter revenue decline to legacy Outbrain cutting some low-conversion rate supply partners.
The company provided guidance indicating it expects to return to pro forma net revenue growth by the fourth quarter of 2025, with second-quarter adjusted EBITDA margin reaching 18.7%. InvestingPro data shows analysts expect strong sales growth this year, with revenue forecast to grow by 61%. Subscribers can access 10+ additional exclusive insights about TEAD’s financial health and growth prospects.
In other recent news, Teads Holding Co reported its second-quarter earnings for 2025, which showed a significant shortfall in earnings per share (EPS). The company announced an EPS of -$0.10, which was substantially lower than the forecast of -$0.0107, resulting in a surprise of 834.58%. Revenue was also slightly below expectations, coming in at $343 million compared to the anticipated $352.22 million. These results have raised concerns among investors about the company’s financial performance and future prospects.
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