Teads Holding Co.

Good day. Welcome to TEAD's fourth quarter and full year 2025 earnings conference call. At this time, all participants are on 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 TEAD's investor relations. Please go ahead.

Good morning, and thank you for joining us on today's conference call to discuss TEAD's fourth quarter and full year 2025 results. Joining me on the call today, we have David Kossman and Jason Kiviat, the CEO and CFO of TEAS. 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 risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. These risk factors are discussed in detail in our annual report on Form 10-K for the year ended December 31, 2024, as updated in our subsequent reports filed with the Securities and Exchange Commission. Forward-looking statements speak only 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 fourth quarter and full year 2025 results announcement for definitional information and reconciliation of non-GAAP measures to the comparable GAAP financial measures. Our earnings release can be found on our IR website, investors.teeds.com, under News and Events. With that, let me turn the call over to David. Thank you, Matt.

Good morning, everyone, and thank you for joining us. About a year ago, we brought outgoing and teach together. The goal was and still is to build a best-in-class digital advertising platform that delivers results across every screen, from the phone in your pocket to the TV in your living room, and for every advertiser objective, from branding to actual sales. Year one was a transition. We manage the friction of merging two different cultures, technologies, and businesses while navigating some tough market conditions. We also make a deliberate choice to build a sustainable, premium marketplace and walk away from some low-quality revenue. It was a hard call, but we believe it was a necessary one to protect our marketplace and ensure that we can grow our business with the world's biggest brands. The lessons we learned allowed us to sharpen our focus. In the second half of the year, we've simplified the org chart, right-sized our cost, and brought in fresh leadership. Now, we believe we are moving into 2026 with strong alignment on our strategic priorities and a well-defined execution plan. We expect this to be the inflection point in the year we return to growth. Looking at Q4, we hit the high end of our guidance on XTAC, beat our adjusted EBITDA target, and generated positive free cash flow. Beyond the numbers, there are a few key indicators I want to highlight. First, CTV is accelerating. Our focus on the living room is paying off. We crossed the $100 million annual revenue mark with growth hitting 55% in Q4 and with strong growth on the home screen placements. Second, performance cross-selling is scaling. We saw a 300% jump in sales to enterprise customers compared to Q3. Now, to be clear, that is still just a few million dollars per quarter, but we believe it demonstrates how much headroom we have to grow. Third, in Q4, we renewed several of our joint business partnerships with leading global brands and have many more in process of resigning in Q1. The feedback from surveying our partners one year into the merger is excellent, highlighting creative excellence, innovation, and media added value, and the renewals demonstrate the strategic nature of these relationships. On the operational side, we expect that our December restructuring will save us between $35 to $40 million annually. In addition, We've added top-tier talent like Molly Spielman, our chief commercial officer, Danny Cushion, our chief marketing officer, and Irali Jane, who heads our North American business. We've also flattened the leadership structure to make sure our teams can move faster and drive speed and accountability. For 2026, the strategy for our enterprise advertisers is built on three pillars. First, we will continue to lead with our CTV offerings by focusing on two clear differentiators, home screen leadership and omnichannel branding to performance. On the home screen, we're continuing to win. We are not just another add-in stream. We are an entry point to the living room and TVs. And our leadership is anchored by our strategic partnerships with leading OEMs like LG, Samsung, and Vida, now V. In Q4, we further solidified our position by expanding our relationships with LG, signing exclusive partnerships in Italy and Greece. And in Q1 of this year, we expanded our footprint to an exclusive partnership with Samsung TV in certain regions in Asia Pacific. We're further expanding this reach through new integrations with Google TV and Rakuten, all focusing on integration of these OEMs and bringing these premium, highly visible, and valuable placements directly into Teads Ad Manager. In terms of scale, we have access now to well over 500 million addressable TVs globally and already ran well over 3,500 campaigns on home screens. What we hear from our partners is that they choose to work with Teads due to the unique combination of our direct relationships with the most premium brands of the world through our 50-plus joint business partnerships, the quality of our creative services in ensuring the creatives are well-adapted to the unique environment of the home screen, and the integration with our platform, TZ Manager, which makes transacting on multiple OEMs easier and faster. And we're proving that CTV Plus Web is a winning combination. Our thesis is simple. Using the big screen for awareness, then retargeting on a mobile drives measurable sales. For example, our recent partnership with All Accor, a global hotel operator, demonstrated that omnichannel activation on feeds not only drove 23% lift in brand favorability, but also a 17-point increase in purchase intent. That's a massive win for our advertisers and a differentiator for teams. Second point on enterprise. We are deepening our strategic relationships with agencies. We're working on integration of our audiences with the world's leading agencies and on other data collaborations. A great example of this is our new integration with Havas, which allows their planners to activate our audiences directly from their own planning environment, driving both speeds and efficiency. Third, we're scaling our performance business for enterprise advertisers. We're integrating performance capabilities, leveraging legacy, our brain know how directly into teams and manager designed to create a frictionless experience for agencies buying full funnel. And we are advancing our algorithmic capabilities and investing in superior post campaign measurement. We expect these investments to drive continuous improvements in ROAS and overall campaign performance for our enterprise advertisers. Turning to our direct response advertisers, there we are purely focused on ROAS, plain and simple, and internally on driving efficiencies that grow profitability. The 2025 trimming of our supply and demand sources to ensure higher quality will impact our year-over-year comparisons early on, but the foundation of our business is significantly stronger today than it was a year ago. We also see here exciting opportunities such as running direct response performance campaigns on CTV. In Q4 of last year, we had several million dollars of such sales. One general comment. You'll hear our peers discuss supply-pass shortening as a new initiative, but for us, it is a foundational architecture. we provide a straight line to the source of premium supply, whether that's an LG home screen or a top-tier global publisher, which is one of the reasons we can deliver superior outcomes from branding to performance. AI. AI is the engine behind many of these growth areas. It's both a performance driver for our clients and a productivity tool for our engineers and teams. On the algorithmic side, we have progressed on the integration of our AI and data infrastructure, and we are already seeing tangible results. In addition, by using LLM models to sharpen our predictive delivery, for example, by analyzing the content of ads to extract additional relevant signals, we are achieving two goals at the same time. We're hitting better KPIs for our advertisers, specifically by lowering the cost per acquisition, And we're seeing a path forward, expanding our own margins at the same time. We're also investing in transitioning from manual campaign setups and toward a genetic-driven goal setting, which we believe will simplify the experience for our partners and allow our technology to optimize for outcomes more effectively. To sum it up, I believe the heavy lifting of the transition is behind us. We've used the second half of last year to build a leaner, faster, and better team. We saw some positive indicators in Q4 into Q1. We have started the year with strategic clarity, a well-defined execution plan, and the right leadership, which I'm confident will allow us to make 2026 a breakout year. I will now turn it over to Jason to walk through the financials.