Criteo Expects Contribution ex-TAC to Fall 10% to 12% in 2026
Key Facts
On August 5, Criteo lowered its 2026 forecast for Contribution ex-TAC, a non-GAAP measure, to a decline of 10% to 12% in constant currency. On February 11, the company had targeted growth of 0% to 2% in the measure, before forecasting a slight decline on May 6. The trajectory marks a shift from targeted growth to a double-digit contraction in less than six months. The company issued the revised guidance alongside its second-quarter results, and CFO Sarah Glickman said the outlook "reflects a more conservative view of our business trends for the remainder of the year." The new full-year results guidance was based on performance year to date and current business trends, according to the company’s disclosure.
Criteo’s second-quarter revenue fell 11% year over year to $428 million, compared with $483 million in the same period of 2025. Contribution ex-TAC declined 13% to $255 million. The company said the decline included a $21 million impact from previously announced scope changes at two Retail Media clients. Excluding that impact, Contribution ex-TAC grew 20% across the core client base in the second quarter. This difference puts the impact of the specific changes at the two clients in the context of the overall result, without changing the reported direction of decline in revenue and the financial measure.
Retail Media revenue fell 21% in the second quarter, while Performance Media revenue declined 10%. The differing rates mean weakness was not confined to one business, although the company’s disclosure linked the $21 million impact to scope changes at two Retail Media clients. Criteo reported growth in Contribution ex-TAC across its core client base after excluding that impact, but at the same time recorded year-over-year declines in total revenue and the adjusted measure. Net income was $12 million for the quarter. Adjusted earnings before interest, taxes, depreciation and amortization were $73 million, compared with $89 million in the second quarter of 2025.
Amid management changes, Criteo appointed Conor McGugney CFO effective August 10, succeeding Sarah Glickman. The appointment followed the announcement of revised guidance on August 5; the sequence does not establish that the leadership change caused the forecast cut. On October 28, board member Edmund Mesrobian resigned effective immediately, and the board appointed Jianchang Mao to fill the seat the same day. The company’s disclosure said Mao has more than 30 years of experience in artificial intelligence, digital advertising and search. It added that he has more than 20 years of experience leading research, product and engineering organizations.
Criteo shares closed at $14.65 in the October 30 session, according to EL7 data. The closing price came about three months after the company announced its lowered annual forecast; verified data on the session’s high or low are not available here. Criteo reported second-quarter results in August, then disclosed a change in board membership in October. The company is scheduled to report third-quarter results on November 4. Those results will provide a more recent reading on revenue trends and Contribution ex-TAC performance following the revised annual guidance.