Criteo S.A. (NASDAQ:CRTO) shares dropped 5.08% in pre-market trading Wednesday after the ad-tech group posted fourth-quarter earnings that came in below expectations, despite delivering stronger-than-forecast revenue.
The commerce media company reported adjusted earnings per share of $1.30 for the quarter, missing the $1.38 consensus estimate. Revenue, however, reached $541 million, comfortably ahead of the $328.96 million analysts had projected. Contribution ex-TAC — a key metric akin to gross profit — slipped 1% year over year to $330 million, or down 4% on a constant-currency basis.
Performance in the Retail Media division was notably soft, with revenue falling 17% from a year earlier to $76.3 million. The company attributed the decline to “the temporary impact of previously communicated scope changes with two specific Retail Media clients.”
“Criteo delivered strong performance for the year,” said Michael Komasinski, Chief Executive Officer. “We are advancing our position at the forefront of agentic commerce, with differentiated commerce data, AI driven decisioning, and global reach that provide durable advantages and support sustainable growth and long term shareholder value.”
For full-year 2025, Criteo generated revenue of $1.94 billion, up 1% compared with the prior year, while adjusted EBITDA rose 4% to $407 million.
Looking to 2026, management struck a cautious tone, guiding for flat to 2% growth in Contribution ex-TAC at constant currency for the year. In the first quarter of 2026, the company expects Contribution ex-TAC in the range of $245 million to $250 million, implying a 9% to 11% year-over-year decline at constant currency.
“We generated strong margins and cash flow in 2025, demonstrating the strength of our operating model,” said Sarah Glickman, Chief Financial Officer. “We returned $152 million to shareholders through share repurchases while maintaining a strong balance sheet.”
In February 2026, Criteo’s board boosted the remaining share repurchase authorization to as much as $200 million, underscoring management’s longer-term confidence even as near-term headwinds persist.