$TEAD

Teads Holding Co.

CIK:0001454938|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 284,589	$ 343,096	$ 550,572	$ 629,453
Cost of revenue:
Traffic acquisition costs	161,200	198,927	319,309	382,162
Other cost of revenue	27,789	23,905	52,047	44,377
Total cost of revenue	188,989	222,832	371,356	426,539
Gross profit	95,600	120,264	179,216	202,914
Operating expenses:
Research and development	11,355	13,285	22,037	27,264
Sales and marketing	70,253	79,676	136,710	133,413
General and administrative	28,403	27,888	54,983	64,365
Impairment of intangible assets	0	0	0	15,614
Restructuring charges	1,238	1,674	2,941	8,953
Total operating expenses	111,249	122,523	216,671	249,609
Loss from operations	(15,649)	(2,259)	(37,455)	(46,695)
Other (expense) income:
Gain on repurchase of long-term debt	0	1,225	0	1,225
Interest expense	(17,417)	(17,524)	(34,826)	(40,648)
Other (expense) income and interest income, net	(2,113)	(1,506)	(2,672)	(1,990)
Total other (expense) income, net	(19,530)	(17,805)	(37,498)	(41,413)
Loss before income taxes	(35,179)	(20,064)	(74,953)	(88,108)
Provision (benefit) for income taxes	7,300	(5,751)	6,312	(18,952)
Net loss	$ (42,479)	$ (14,313)	$ (81,265)	$ (69,156)
Weighted average shares outstanding:
Basic (in shares)	97,299,602	94,492,931	96,792,491	86,269,441
Diluted (in shares)	97,299,602	94,492,931	96,792,491	86,269,441
Net loss per common share:
Basic (in usd per share)	$ (0.44)	$ (0.15)	$ (0.84)	$ (0.80)
Diluted (in usd per share)	$ (0.44)	$ (0.15)	$ (0.84)	$ (0.80)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (81,265)	$ (69,156)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Gain on repurchase of long-term debt	0	(1,225)
Depreciation and amortization of property and equipment	4,091	4,896
Amortization of capitalized software development costs	4,689	4,775
Amortization of intangible assets	26,201	21,539
Amortization of discount on marketable securities	(286)	(721)
Stock-based compensation	4,431	6,731
Non-cash operating lease expense	6,543	5,198
Provision for credit losses	4,758	1,464
Amortization of debt discount and issuance costs	2,273	14,087
Deferred income taxes	(4,661)	(31,847)
Impairment of intangible assets	0	15,614
Unrealized foreign currency transaction losses	2,153	4,145
Other	18	25
Changes in operating assets and liabilities:
Accounts receivable	51,818	38,572
Prepaid expenses and other current assets	16,616	13,344
Accounts payable, accrued expenses and other current liabilities	(58,244)	(2,150)
Operating lease liabilities	(6,646)	(5,426)
Deferred revenue	93	(2,850)
Other non-current assets and liabilities	1,706	7,063
Net cash (used in) provided by operating activities	(25,712)	24,078
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of a business, net of cash acquired	0	(598,319)
Purchases of property and equipment	(1,841)	(4,064)
Capitalized software development costs	(10,356)	(7,105)
Purchases of marketable securities	(13,081)	(16,603)
Proceeds from sales and maturities of marketable securities	20,739	77,221
Other	422	1
Net cash used in investing activities	(4,117)	(548,869)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the Bridge Facility	0	625,000
Repayments of borrowings under the Bridge Facility	0	(625,000)
Proceeds from senior secured notes	0	625,305
Partial repayment of long-term debt	0	(7,674)
Payments of deferred financing and debt issuance costs	(763)	(30,801)
Payment of stock issuance costs	0	(775)
Treasury stock repurchases and share withholdings on vested awards	(113)	(553)
(Repayments of) proceeds from bank overdrafts, net	(10,232)	51
Net cash (used in) provided by financing activities	(11,108)	585,553
Effect of exchange rate changes	199	147
Net (decrease) increase in cash, cash equivalents and restricted cash	(40,738)	60,909
Cash, cash equivalents and restricted cash — Beginning	129,700	89,725
Cash, cash equivalents and restricted cash — Ending	88,962	150,634
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
Cash and cash equivalents	88,016	149,449
Restricted cash, included in other assets	946	1,185
Total cash, cash equivalents, and restricted cash	88,962	150,634
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Income tax (refunds) payments, net	(8,117)	13,014
Cash paid for interest	32,158	2,095
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Stock consideration issued for acquisition of a business	0	262,938
Purchases of property and equipment included in accounts payable	11	1,405
Operating lease right-of-use assets obtained in exchange for lease obligations	2,036	13,614
Stock-based compensation capitalized for software development costs	239	328
Unpaid deferred financing costs in accounts payable and accrued expenses	$ 0	$ 242

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 88,016	$ 128,223
Short-term investments in marketable securities	2,995	10,476
Accounts receivable, net of allowances	282,179	342,352
Prepaid expenses and other current assets	32,934	49,347
Total current assets	406,124	530,398
Non-current assets:
Property, equipment and capitalized software, net	54,302	50,998
Operating lease right-of-use assets, net	28,622	28,810
Intangible assets, net	342,516	376,578
Goodwill	273,826	280,991
Deferred tax assets	9,404	10,485
Indemnification asset	28,742	27,789
Other assets	18,708	21,925
TOTAL ASSETS	1,162,244	1,327,974
Current liabilities:
Accounts payable	214,824	258,634
Accrued compensation and benefits	35,370	40,192
Deferred revenue	14,958	14,930
Short-term debt	7,081	17,595
Accrued and other current liabilities	140,767	152,710
Total current liabilities	413,000	484,061
Non-current liabilities:
Long-term debt	607,386	605,113
Operating lease liabilities, non-current	20,442	21,674
Deferred tax liabilities	64,894	73,101
Contingent tax liabilities	36,780	35,078
Other liabilities	12,389	13,510
TOTAL LIABILITIES	1,154,891	1,232,537
Commitments and Contingencies (Note 10)
STOCKHOLDERS’ EQUITY:
Common stock, par value of $0.001 per share − one billion shares authorized; 98,364,526 shares issued and 98,065,162 shares outstanding as of June 30, 2026; 96,171,331 shares issued and 95,980,437 shares outstanding as of December 31, 2025	98	96
Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Additional paid-in capital	690,446	685,778
Treasury stock, at cost − 299,364 shares as of June 30, 2026 and 190,894 shares as of December 31, 2025	(646)	(533)
Accumulated other comprehensive income	85,283	96,659
Accumulated deficit	(767,828)	(686,563)
TOTAL STOCKHOLDERS’ EQUITY	7,353	95,437
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,162,244	$ 1,327,974