/
Acquisition of Teads On February 3, 2025, Outbrain Inc. ( Outbrain ) completed its acquisition (the Acquisition ) of TEADS, a private limited liability company ( soci t responsabilit limit e ) incorporated and existing under the laws of the Grand Duchy of Luxembourg ( Legacy Teads ). The consideration paid at the closing of the Acquisition was approximately $900 million, comprising a cash payme…
The business is unprofitable at the operating level (-30.87% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 45.8%, still solid. Margins contracted 29.4pp, which offsets some of the top-line progress.
Free cash flow declined 97% versus the prior year, cash generation momentum has weakened. ROIC dropped from -3.32% to -63.29%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.27B
▲ +45.8% YoY
Net Income (TTM)
-$501M
▼ -72624.3% YoY
Op. Margin
-29.63%
▼ -29.4pp YoY
ROIC
-31.29%
▼ -60.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$30M
▼ -96.7% YoY
Op. Cash Flow (TTM)
-$26M
▼ -88.9% YoY
Net Debt
$555M
Cash & Equiv.
$99M
5Y CAGR: +11.1%
5Y CAGR: -47.8%
Continue Research