Criteo S.A. (NASDAQ:CRTO) shares surged nearly 9% on Wednesday after the commerce media platform delivered third-quarter results that far exceeded analyst forecasts, fueled by robust Retail Media growth and stronger operational execution.
The company reported adjusted earnings of $1.31 per share, easily beating the consensus estimate of $0.93 by 38 cents. Revenue totaled $470 million, well ahead of expectations of $281.33 million and up 2% year over year.
Contribution ex-TAC — a profitability measure comparable to gross profit — rose 8% year over year to $288.1 million.
Criteo’s Retail Media division was a standout, with Contribution ex-TAC climbing 11% at constant currency, reflecting continued momentum with retail partners. The Performance Media segment also performed well, posting 5% growth in Contribution ex-TAC at constant currency.
“Our growth in media spend this quarter reflects steady progress on our strategy with strong execution. Our ability to deliver measurable outcomes across channels continues to differentiate Criteo and build momentum,” said Michael Komasinski, Criteo’s Chief Executive Officer.
The company also raised its full-year 2025 margin guidance, now targeting an Adjusted EBITDA margin of approximately 34% of Contribution ex-TAC, compared with its prior range of 33% to 34%. For the fourth quarter, Criteo expects Contribution ex-TAC between $325 million and $331 million.
In a strategic move, Criteo announced plans to redomicile from France to Luxembourg and later to the United States, which would allow the company to list its ordinary shares directly on Nasdaq rather than through American Depositary Shares (ADSs). The relocation is expected to be completed by the third quarter of 2026.
Free cash flow for the quarter reached $67.3 million, marking a 74% year-over-year increase and underscoring Criteo’s strong cash generation.
“We delivered strong top-line growth and Adjusted EBITDA margin, with robust Free Cash Flow, demonstrating the power of our operating model,” said Sarah Glickman, the company’s Chief Financial Officer.