Criteo S.A.

What they do

Criteo operates a Commerce AI Platform that activates media spend for marketers and media owners through two primary channels: Retail Media campaigns and Performance Media for clients. The platform connects approximately 17,000 clients globally with consumers across its network, reaching roughly 740 million Daily Active Users, or more than three billion DAUs across channels including social. The company also operates Criteo GO, a self-service, cross-channel performance platform, and has expanded into AI-powered conversational search advertising.

Revenue drivers

• Retail Media — Working media spend allocated to Retail Media campaigns, with a footprint expanded through partners such as Loblaw Advance in Canada, Monoprix and Druni in EMEA, and Olive Young and Golf Digest Online in APAC.
• Performance Media — Media spend activated on behalf of Performance Media clients, comprising the other major component of the $4.5 billion in media spend over the last 12 months.
• ChatGPT Ads via Criteo GO — AI-powered advertising inventory available through Criteo's self-service platform, with over 2,000 brands advertising on ChatGPT across seven countries as of Q2 2026.

Recent performance

Q2 2026 revenue was $428 million, down 11% year-over-year, with gross profit of $222 million and net income of $12 million, or $0.22 per diluted share. For the first half of 2026, revenue was $853 million, net income was $20 million, and adjusted EBITDA was $138 million. Media spend was $1.1 billion in Q2 2026, up 9% year-over-year at constant currency, and $4.5 billion over the last 12 months. The company deployed $30 million to repurchase shares in Q2 2026 and $61 million in the first six months of 2026.

Strategy

Criteo states its long-term Commerce Intelligence strategy remains unchanged despite disappointing top-line performance, with a focus on strengthening execution and diversifying the business. The company became OpenAI's first advertising technology partner in March 2026 and is expanding ChatGPT Ads availability, including planned launches in Mexico and Brazil. It continues to grow its Retail Media footprint through new partnerships and launched sponsored products into AI-powered conversational search with Albertsons. Criteo completed its redomiciliation from France to Luxembourg in July 2026 and its board approved a subsequent transfer of legal domicile to the United States, expected in January 2027 subject to shareholder approval.

Risks

• Revenue Decline — Revenue fell 11% year-over-year in Q2 2026 and 9% in the first half, with net income down 49% and 68% respectively, indicating pressure on the core business.
• Redomiciliation Execution — The cross-border conversion from France to Luxembourg and planned transfer to the United States in January 2027 introduce legal, regulatory, and operational transition risks.
• Foreign Exchange Exposure — A hypothetical 10% change in the Euro against the U.S. dollar would have impacted net income by approximately $427 thousand in the six months ended June 30, 2026.
• Client Concentration and Retention — The business relies on approximately 17,000 clients with an average quarterly retention rate of approximately 90%, and any deterioration could pressure media spend and revenue.

Outlook

Management said the second quarter top-line performance was disappointing but remains confident in the Commerce Intelligence strategy and is strengthening execution while diversifying the business. The company plans additional ChatGPT Ads country launches, including Mexico and Brazil, and continues to expand its Retail Media partnerships. Criteo expects to complete its transfer of legal domicile from Luxembourg to the United States in January 2027, subject to shareholder approval and customary conditions.