Outbrain stock hits 52-week low at $2.67 amid market challenges

Published 20/05/2025, 14:34
© Noam Galai, Outbrain PR

Outbrain Inc. (OB), a leading recommendation platform for the open web, has seen its stock price touch a 52-week low, dipping to $2.67. According to InvestingPro data, technical indicators suggest the stock is currently in oversold territory, with a market capitalization of $259 million. This latest price level reflects a significant downturn for the company, which has experienced a 1-year change with a decrease of 42.35%. While the company currently shows weak gross profit margins at 24.3%, analysts tracked by InvestingPro expect both sales and net income growth this year. The decline in Outbrain’s stock value is indicative of broader market trends and challenges faced by the ad-tech industry, as companies navigate shifting advertising budgets and increased competition. Investors and analysts are closely monitoring Outbrain’s performance and strategic initiatives as the company strives to adapt and innovate in a rapidly evolving digital landscape. With 16 additional exclusive ProTips and comprehensive financial analysis available, investors can access deeper insights through InvestingPro’s detailed research report.

In other recent news, Outbrain Inc. reported its Q1 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of -$0.20, which was below the expected -$0.14. Revenue also fell short, coming in at $286.4 million compared to the anticipated $298.95 million. Despite these shortfalls, Outbrain’s management remains optimistic, projecting a Q2 Ex-TAC Gross Profit between $141 million and $150 million, and an Adjusted EBITDA of $26 million to $34 million. For the full year 2025, the company expects Adjusted EBITDA to reach at least $180 million, with anticipated growth in the latter half of the year.

Citi analysts have maintained a Neutral rating on Outbrain’s shares, though they adjusted the stock price target from $4.00 to $3.90. This adjustment follows the company’s Q1 results and an underwhelming performance in Q2’s adjusted EBITDA, which fell short of Wall Street’s estimates. However, Outbrain’s management has reaffirmed its full-year outlook and highlighted progress in achieving cost synergies from a recent acquisition, expecting $40 million in synergies within the year.

Outbrain’s strategic initiatives, such as the launch of its "Moments" vertical video solution, have gained traction, with adoption by over 70 publishers. The company’s resilience amidst macroeconomic conditions and its focus on integration and efficiency are noted as positive factors. Despite the earnings miss, Outbrain’s stock rose 4.75% in premarket trading, indicating investor confidence in its strategic direction and potential for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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