Teads Holding Co.

All participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Teads Investor Relations. Please go ahead.

Good morning, and thank you for joining us on today's conference call to discuss Teads' third quarter 2025 results. Joining me on the call today, we have David Kosman and Jason Kiviat, the CEO and CFO of Teads. During this conference call, management will make forward-looking statements based on current expectations and assumptions, including statements regarding our business outlook and prospects. These statements are subject to risk and uncertainties that may cause actual results to differ materially from our forward-looking statements. These risk factors are discussed in detail in our Form 10-K, filed for the year December 31, 2024, as updated in our subsequent reports filed with the Securities and Exchange Commission. as of the call's original date, and we do not undertake any duty to update any such statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's third quarter earnings release for additional information and reconciliations of non-GAAP measures to comparable GAAP financial measures. Our earnings release can be found on the IR website, investors.teeds.com, under news and events. With that, let me turn the call over to David.

Thank you, Josh. Good morning, and thank you for joining us. Before diving into the details of the quarter, I'd like to start with an update on the merger, our turnaround actions, and how we're positioning TEETS for renewed growth and sustained profitability. While this quarter presented challenges and our results fell short of expectations, we're taking decisive actions to drive a stronger performance moving forward. The integration of our two scale organizations is complex, but a strategic effort. And we are actively addressing the challenges we encountered. In addition to the merger complexities, we continue to navigate a dynamic and fast evolving ecosystem marked by shifting traffic patterns across the open internet and increasing competition on the demand side. Macro volatility in certain geographies and verticals and shorter planning cycles continue to affect pay sinks. At the same time, we remain confident in the strategic thesis behind our merger and are excited about the long-term opportunity. We believe that the combination of our technology, data capabilities, and deep relationships with enterprise brands and agencies places Thieves in a uniquely strong position to be a strategic partner at the global scale for brands and their agencies. And our cross-screen, outcome-driven ad platform led by our fast-growing connected TV business, is resonating with customers and partners. I've just returned from our strategic product off-site, and I can tell you that the innovation, creativity, and energy of our teams are truly inspiring. This reinforces our confidence in Teaser's future and our ability to lead the industry forward. With this backdrop, we decided to take decisive actions in effort to turn the business around, restore growth, and improve profitability. Over the past two quarters, we've made meaningful progress on the integration and realization of synergies. Operationally, during Q3, we restructured the leadership of our regions and improved our sales team's coverage structure and sales processes. These measures are already yielding some improvements in key leading indicators, though the revenue impact is still in its early stages. In parallel, after working as one merged team for two quarters, we also decided to conduct a comprehensive business review to identify additional opportunities to restore growth, enhance profitability, and generate positive cash flow while building a great company. The plan we developed focuses on three main dimensions. First, portfolio optimization to product, geography, and customer segment evaluation prioritizing investments in innovation and high growth opportunities while taking steps to improve the profitability of the other parts of the business. Second, operational efficiency, refining our organizational structure and processes to enhance agility and accountability. And third, cost optimization, identifying further efficiencies to improve our financial profile and long-term cost structure. We are rapidly moving into execution of these plans with implementation beginning in the coming weeks with the objective of driving immediate impact. These plans should allow us to continue investing in strategic growth while delivering meaningful incremental EBITDA. We are focused on operating as a positive cash flow business. So far, year to date, we've generated positive adjusted free cash flow and our objective is to focus on improving our cost structure and efficiencies to finish the year positive as well. As you may have seen in our separate press release this morning, I'm very excited to welcome on board Molly Spielman as our new Chief Commercial Officer. Molly brings a wealth of experience on the sales and operations side at scale. She served as Chief Revenue Officer and then Chief Operating Officer at Criteo for five years when the company grew revenues from $600 million to over $2 billion. Most recently, Molly was the Chief Revenue Officer at Oracle Advertising, where she helped clients realize value through the activation of third-party audiences and contextual targeting. Prior to that, she held senior leadership roles at Millennial Media and Yahoo! I'm truly excited to welcome Molly to our leadership team She brings exceptional experience, fresh perspective, and a proven ability to lead through transformation. Her insight and commitment to excellence will not only strengthen our leadership team, but also inspire our entire organization as we move forward towards a stronger future. Now, I will turn to some highlights from the quarter. connected TV remains our most important growth area. In Q3, we saw continued growth of approximately 40% year over year. On a standalone basis, assuming continuation of recent trends, our CTV business is expected to hit the $100 million mark by end of year. As a reminder, our CTV business focuses on three key pillars. On screen, the innovative CTV placement where we continue to be a global leader, other proprietary formats such as pause ads and in-play, and cross-screen, which facilitates full funnel activation. Our connected TV home screen product continues to gain traction, establishing Teads as a leader in this market. We've executed over 2,500 home screen campaigns since launch and expanded partnerships with major CTV players, including TCL and Google TV, alongside existing relationships some of which are exclusive, including LG, Samsung, and Hisense, giving us access to over 500 million addressable TVs globally. We believe that new research from the Media Mentor Institute demonstrates the power of our CTV home screen, which, based on early results, achieved a 48% attention rate and delivered a 16% attention premium over YouTube's skippable ads. Cross-screen adoption is strong with over 10% of our branding advertisers now active across both CTV and web. During Q3, we launched CTV Performance, which is designed to enable brands to bridge awareness and performance goals across premium streaming and video environments. For example, in a recent campaign with Men's Warehouse, he's generated over 41,000 site visits and more than 50,000 incremental store visits, which we believe demonstrate that CTV is can now drive measurable outcomes across the funnel. While CTV continues to grow quickly, we continue to experience declining pay views on premium publishers, partly due to increased adoption of AI summaries and volatility in our programmatic supply. However, this has been partially offset by ongoing RPM improvements and by actions taken by publishers to increase engagement of the audiences particularly on their applications. On the cross-sell front, i.e. selling performance solutions to legacy-teached clients, clients such as Homes.com, Lavazza, and Nissan are successfully combining branding and performance campaigns, driving measurable full-funnel results. Encouragingly, we're seeing improvements in new business opportunities and a notable inflection in cross-sell revenue, albeit from a small base. with October revenue and bookings growing by more than 55% month-over-month in cross-sell. It is important to remember the open Internet remains a vital channel for advertisers seeking incremental reach and unique audience engagement. For example, a recent case study with a major US CPG brand demonstrated over 90% incremental reach when extending campaigns beyond social into the open Internet. which we believe is a powerful example of Teads' ability to connect brands with new audiences beyond walled gardens. In addition to our CTV expansion, diversifying beyond traditional publishers into potential high-growth, high-value media environments, our retail media innovation continues to advance, with more updates and partnerships being announced soon, providing enterprise brands with simplified access to multiple retail media networks through Teads Ad Manager. Moving to AI and algorithmic breakthroughs. The acceleration of our AI and algorithmic capabilities stands as one of the most exciting and impactful outcomes of the merger, already yielding tangible improvements and establishing the highly promising trajectory for 2026. First, the combination of the two companies' data science teams, data sets, and know-how is resulting in real benefits for both brand and performance campaigns. with improved conversion rates, click-through rates, auction-level bids, and AI-based campaign pacing. After a testing period, we're in the process of rolling out some of these benefits to the entire network. Second, the adoption of large language foundational models for advertising. Our next-generation approach trains a single, unified advertising foundational model that learns from all available data, user actions, publisher signals, and advertiser goals to deliver exceptional predictive power across the entire advertising lifecycle. This shift represents a transformative step in ad selection and personalization, unlocking performance improvements across every stage of the funnel. We believe the improvements to our platform, driven by this foundational model, could be one of the most significant drivers of performance going forward. To sum it up, we fully acknowledge that our integration journey has come with challenges and the progress has not been linear. However, we remain confident in the strength of our vision, the resilience of our teams, and what we believe is the unique value proposition of our integrated platform. We are enhancing our leadership team, sharpening our execution, focusing resources in the areas of greatest opportunity, and taking decisive steps to build a more efficient, innovative, and profitable business. Looking ahead to 2026, our growth and profitability strategy will center on five key pillars. First, connected TV growth through home screen formats and cross-screen activations. Second, deepened strategic relationships with agencies and enterprise brands. Third, expansion of performance campaigns with enterprise clients. Fourth, algorithmic and AI advancements driving nonlinear improvements in results, and fifth, enhanced profitability in our direct response business. We plan to share a detailed three-year outlook and roadmap at an upcoming Investor Day in March, and we look forward to discussing our progress and vision in more depth at that time. With that, let me now turn it over to Jason to walk through the financials.