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Mar 31, 2025
Outbrain Q1 2025 Earnings Report
Outbrain announced financial results for the first quarter ended March 31, 2025.
Key Takeaways
Outbrain, operating under the new Teads brand following its acquisition of Teads, reported significant revenue and gross profit increases in Q1 2025, primarily due to the acquisition. The company achieved its guidance for Ex-TAC gross profit and Adjusted EBITDA and reiterated its full-year 2025 guidance. Integration and synergy realization are on track.
Revenue increased 32% year-over-year to $286.4 million, driven by the acquisition of Teads.
Gross profit increased 99% year-over-year to $82.7 million, reflecting the higher margin profile of the acquired business.
Ex-TAC gross profit increased 98% year-over-year to $103.1 million.
Adjusted EBITDA significantly increased to $10.7 million from $1.4 million in the prior year period.
Forward Guidance
For the second quarter ending June 30, 2025, the company expects Ex-TAC gross profit between $141 million and $150 million and Adjusted EBITDA between $26 million and $34 million. For the full year ending December 31, 2025, the company continues to expect Adjusted EBITDA of at least $180 million.
Positive Outlook
- Expected increase in Ex-TAC gross profit in Q2 2025 compared to Q1 2025.
- Significant expected increase in Adjusted EBITDA in Q2 2025 compared to Q1 2025.
- Reiteration of full-year 2025 Adjusted EBITDA guidance of at least $180 million.
- Indicates positive momentum and confidence in future performance.
- Potential for continued synergy realization to positively impact results.
Challenges Ahead
- Guidance relies on non-GAAP measures for which GAAP reconciliation is not provided.
- Subject to risks and uncertainties outlined in the forward-looking statements.
- Achieving guidance depends on successful integration and synergy realization.
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