Criteo Raises 2025 Contribution Ex-TAC Growth Outlook to 3%-4%, Focusing on AI Innovation and Retail Media Expansion.

Criteo has raised its 2025 ex-TAC growth outlook to 3%-4%, focusing on AI innovation and Retail Media expansion. CEO Michael Komasinski described the company as "resilient" and emphasized a strategy centered on full-funnel, cross-channel, self-service advertising. The company aims to build on its unique assets and enormous potential, with a focus on delivering high-performing ads.

Criteo S.A. (CRTO) has raised its full-year 2025 ex-TAC (contribution ex-traffic acquisition cost) growth outlook to a range of 3% to 4%, reflecting strong performance and strategic initiatives. The company's CEO, Michael Komasinski, described Criteo as "an incredibly resilient company with unique assets and enormous potential," emphasizing a strategy centered on delivering "full-funnel, cross-channel, self-service advertising that performs."

Criteo reported Q2 2025 revenue of $483 million, a 2% increase over the same period in 2024. Contribution ex-TAC, the company's primary profitability metric, reached $292 million, up 9% year-over-year at constant currency. This growth was driven by robust performance in the Retail Media segment, which saw an 11% increase in revenue to $60.9 million and a 11% growth in Contribution ex-TAC to $60.0 million at constant currency [1].

Komasinski highlighted three strategic growth levers: cross-channel reach, full-funnel capabilities, and self-service tools. The company has expanded partnerships, including a renewal and expansion with a major holding company, now leveraging Criteo’s full Commerce Media Platform stack. Additionally, Criteo has appointed Todd Parsons as Chief Product Officer and President, Performance Media, and Sherry Smith as President, Retail Media, aiming for greater agility and clearer accountability.

The company's financial results demonstrate a disciplined approach to execution and a solid foundation for future growth. Adjusted diluted EPS for Q2 2025 was $0.92, while free cash flow was negative by $36 million, reflecting the company's investment in growth initiatives. Criteo reported $746 million in total liquidity as of the end of June, with $115 million remaining on the buyback authorization.

Criteo's outlook for 2025 projects growth in each of its segments, with a positive year-over-year foreign exchange impact of about $1 million to $3 million on contribution ex-TAC. The company expects Performance Media to grow at mid-single digits and Retail Media to grow at low to mid-single digits at constant currency. For Q3 2025, contribution ex-TAC is projected between $277 million and $283 million, up 5% to 7% at constant currency, with adjusted EBITDA expected between $81 million and $87 million.

Management's tone in the Q2 earnings call was optimistic and confident, with Komasinski emphasizing the company's ability to drive resilience and long-term value. The increased guidance reflects the company's strategic progress in AI-driven product innovation and expanded agency partnerships.

References:
[1] https://seekingalpha.com/news/4474475-criteo-raises-2025-contribution-ex-tac-growth-outlook-to-3-percentminus-4-percent-with-focus
[2] https://ppc.land/criteo-raises-guidance-following-second-quarter-growth-in-retail-media/