Criteo Surges 20% After Strong Q2 Earnings and Raised FY Forecast

Criteo, a French adtech firm, has reported Q2 earnings that topped estimates for core metrics and provided an upbeat forecast. Shares surged nearly 20% before the bell but dropped to a 15% gain. The company's results exceeded expectations, boosting investor confidence.

Criteo, a leading global commerce media platform, reported its second-quarter (Q2) 2025 earnings, which exceeded market expectations. The company's stock surged nearly 20% before the bell, but it dropped to a 15% gain as the day progressed. The results underscored the company's operational efficiency and growth prospects, boosting investor confidence.

Criteo reported Q2 2025 revenue of $483 million, marking a 2% increase from $471 million in the same period last year [1]. Gross profit rose to $259 million, an 11% year-over-year improvement from $233 million in Q2 2024 [1]. The company's performance varied across geographic regions, with Americas revenue decreasing 6% to $199.8 million, EMEA posting 10% growth to $186.0 million, and APAC delivering 7% growth to $96.9 million [1].

Contribution ex-TAC, Criteo's primary profitability metric, increased 9% to $292 million [1]. The company's retail media segment accelerated growth, with revenue increasing 11% to $60.9 million [1]. The retail media segment's contribution ex-TAC reached $60.0 million, indicating strong client satisfaction and expanded spending [1]. The company launched auction-based display technology in June 2025, introducing programmatic flexibility into retail media environments [1].

Performance media revenue increased 1% to $421.8 million, while contribution ex-TAC grew 9% to $232.1 million [1]. The company's global integration with Mirakl Ads launched during the quarter to unlock mid-to-long-tail activation and accelerate marketplace revenue growth [1].

Net income totaled $23 million, equivalent to $0.39 per diluted share, compared to $28 million or $0.46 per diluted share in Q2 2024 [1]. Adjusted net income reached $51 million, representing $0.92 per diluted share, compared to $64 million or $1.08 per diluted share in the prior year period [1]. Adjusted EBITDA decreased 4% to $89 million from $93 million in Q2 2024 [1].

Criteo deployed $104 million for share repurchases during the first half of 2025, demonstrating commitment to returning capital to shareholders [1]. The company's balance sheet position provides flexibility for continued investment in platform capabilities while maintaining strategic optionality for acquisitions and partnerships [1].

For fiscal year 2025, Criteo raised its Contribution ex-TAC growth expectations to 3-4% at constant currency, compared to previous guidance of low-single-digit growth [1]. The company maintained Adjusted EBITDA margin guidance of approximately 33-34% of Contribution ex-TAC [1]. Third quarter 2025 guidance projects Contribution ex-TAC between $277 million and $283 million, representing 5-7% year-over-year growth at constant currency [1].

Criteo's results reflect the strength of its diversified offering and global client base. The company's strategic growth plans, including partnerships with dentsu and Mirakl Ads, position it for continued expansion in the retail media landscape [1].

References:
[1] https://ppc.land/criteo-raises-guidance-following-second-quarter-growth-in-retail-media/