Criteo's Q3 profit falls 85% as large clients cut spending.
Criteo's third-quarter revenue fell 11% to $416m and net income dropped 85% to $6m, even though media spend through its platforms rose 9% at constant currency. The ad tech company kept its full-year forecast of a 10% to 12% fall in its main profit measure.
The results, published on 4 November and analysed by PPC Land, show Contribution ex-TAC, the figure Criteo steers by, down 17% to $240m, or 15% at constant currency. Adjusted EBITDA fell 39% to $65m. Media spend reached $1.2bn. Part of the drop in net income came from a one-time $6m tax charge linked to moving the company's legal home to the US, expected on 1 January 2027, subject to shareholder approval. Revenue fell 14% in the Americas, 9% in EMEA and 11% in Asia-Pacific.
Chief financial officer Connor McGogney said several large enterprise clients spent less than a year earlier, and fashion spending fell 14%. Retail Media revenue dropped 23% to $52m, including a $20m hit from reduced work with two retail clients; without them, the segment's Contribution ex-TAC grew 10%. Criteo said its ChatGPT ads offer is live in 89 countries and that 3,600 clients have used it on and off, but chief executive Michael Komasinski said spending had yet to scale and should build in 2027.
Criteo is also phasing out standalone self-registration for GO, its self-service tool, and said all the major holding companies are testing its Model Context Protocol link, which lets agency AI tools plan campaigns in plain language. Its Performance CTV product reaches Brazil and Mexico by the end of 2026 and the UK, France, Germany and other markets in 2027. It did not disclose revenue for CTV, social or ChatGPT ads.
For retailers in the Gulf building their own media networks, Criteo's quarter is a reminder that retail media revenue can swing sharply when a few big partners change how they work, and that newer channels such as AI chat ads are still small next to the core business.
Why it matters
One of retail media's biggest independent players is shrinking as big clients pull back, while its bets on CTV and ChatGPT ads are not yet large enough to offset it.
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