Criteo's Net Income Soars 552% on Revenue Growth, Cost Controls

TL;DR

**CRTO is crushing it, with net income up over 5x, making it a strong buy as cookie fears fade.**

AI Summary

Criteo S.A. reported a significant increase in net income for the three and nine months ended September 30, 2025. Net income surged to $40.077 million for the three months ended September 30, 2025, up from $6.144 million in the same period of 2024, representing a 552% increase. For the nine months ended September 30, 2025, net income reached $103.008 million, a substantial rise from $42.769 million in the prior year, marking a 140.8% increase. Revenue also saw growth, increasing to $469.660 million for the three-month period, up from $458.892 million, and to $1,403.765 million for the nine-month period, compared to $1,380.254 million in 2024. Gross profit improved to $256.483 million for the quarter and $751.977 million for the nine months. Operating expenses decreased to $204.854 million for the quarter from $222.330 million, primarily due to lower research and development expenses and sales and operations expenses. A key business change was Alphabet Inc.'s decision not to deprecate third-party cookies in Chrome, leading to an accelerated amortization of $7.9 million and a nonrecurring impairment charge of $0.9 million related to internally developed intangible assets. The company also extended its share repurchase program to up to $805.0 million in January 2025.

Why It Matters

Criteo's impressive net income growth, driven by increased revenue and disciplined cost management, signals strong operational efficiency and a robust position in the evolving commerce media landscape. The decision by Alphabet Inc. to delay third-party cookie deprecation in Chrome is a critical development, alleviating a significant competitive pressure and allowing Criteo to leverage its existing ad tech infrastructure more effectively. This could lead to sustained investor confidence, potentially boosting CRTO's stock price. For employees, a stronger financial performance could mean greater job security and potential for growth, while customers benefit from Criteo's continued investment in its AI-powered Commerce Media Platform, enhancing advertising effectiveness.

Risk Assessment

Risk Level: medium — While Criteo shows strong financial performance with net income up 552% for the quarter, the company still faces inherent risks in the dynamic digital advertising market. The accelerated amortization of $7.9 million and a nonrecurring impairment charge of $0.9 million related to internally developed intangible assets due to Alphabet Inc.'s decision on third-party cookies highlights the volatility and potential for rapid obsolescence in ad tech, even if the immediate impact was positive.

Analyst Insight

Investors should consider increasing their position in Criteo (CRTO) given the substantial net income growth and the positive implications of the delayed third-party cookie deprecation. Monitor future developments regarding privacy regulations and browser changes, but the current outlook suggests strong momentum.

Financial Highlights

revenue

$469.660M

net Income

$40.077M

eps

$0.72

gross Margin

54.6%

revenue Growth

+2.3%

Revenue Breakdown

Key Numbers

• $40.077M — Net Income (Q3 2025) (Increased 552% from $6.144M in Q3 2024)
• $103.008M — Net Income (9M 2025) (Increased 140.8% from $42.769M in 9M 2024)
• $469.660M — Revenue (Q3 2025) (Increased from $458.892M in Q3 2024)
• $1,403.765M — Revenue (9M 2025) (Increased from $1,380.254M in 9M 2024)
• $204.854M — Total Operating Expenses (Q3 2025) (Decreased from $222.330M in Q3 2024)
• $7.9M — Accelerated Amortization (Related to internally developed intangible assets due to Alphabet's cookie decision)
• $0.9M — Nonrecurring Impairment Charge (Related to internally developed intangible assets due to Alphabet's cookie decision)
• $805.0M — Share Repurchase Program (Extended authorization as of January 31, 2025)
• 52,549,158 — Ordinary Shares Outstanding (As of October 24, 2025)
• $0.72 — Basic EPS (Q3 2025) (Increased from $0.11 in Q3 2024)

Key Players & Entities

• Criteo S.A. (company) — registrant
• Alphabet Inc. (company) — announced decision on third-party cookies
• $40.077 million (dollar_amount) — Net Income for Q3 2025
• $6.144 million (dollar_amount) — Net Income for Q3 2024
• $103.008 million (dollar_amount) — Net Income for nine months ended Sep 30, 2025
• $42.769 million (dollar_amount) — Net Income for nine months ended Sep 30, 2024
• $469.660 million (dollar_amount) — Revenue for Q3 2025
• $7.9 million (dollar_amount) — accelerated amortization
• $0.9 million (dollar_amount) — nonrecurring impairment charge
• $805.0 million (dollar_amount) — share repurchase program extension

FAQ

Risk Factors

• Third-Party Cookie Deprecation Uncertainty [high — regulatory]: Alphabet Inc.'s decision not to deprecate third-party cookies in Chrome has led to an accelerated amortization of $7.9 million and a nonrecurring impairment charge of $0.9 million. While this is a short-term relief, the long-term strategy regarding cookie usage and data privacy remains a significant uncertainty for Criteo's business model.
• Intensifying Competition [medium — market]: The digital advertising market is highly competitive, with numerous players vying for advertiser spend. Criteo faces competition from large established platforms and emerging ad-tech companies, which could pressure pricing and market share.
• Dependence on Technology and Infrastructure [medium — operational]: Criteo's operations are heavily reliant on its technology infrastructure and data processing capabilities. Any disruption, failure, or security breach could significantly impact its ability to deliver services and maintain client trust.
• Evolving Data Privacy Regulations [high — regulatory]: Increasingly stringent data privacy regulations globally (e.g., GDPR, CCPA) pose ongoing compliance challenges and could restrict Criteo's ability to collect and use data, impacting its core business functions.

Industry Context

The digital advertising industry is characterized by rapid technological advancements and evolving privacy regulations. Criteo operates in a competitive landscape dominated by major tech platforms and specialized ad-tech firms. The ongoing shift towards data privacy and the potential deprecation of third-party cookies are significant trends impacting the ecosystem.

Regulatory Implications

Criteo faces significant regulatory scrutiny related to data privacy and advertising practices. Compliance with global regulations like GDPR and CCPA is crucial and can impact its data collection and targeting capabilities. The uncertainty surrounding third-party cookies also presents a regulatory-adjacent challenge.

What Investors Should Do

1. Monitor the impact of Alphabet's cookie policy changes on Criteo's long-term strategy and revenue streams.
2. Evaluate the sustainability of Criteo's recent net income growth, considering operating expense reductions and revenue drivers.
3. Assess Criteo's competitive positioning and ability to adapt to the evolving ad-tech landscape.

Key Dates

• 2025-01-31: Share Repurchase Program Extended — Demonstrates management's confidence in the company's financial health and commitment to returning value to shareholders.
• 2025-09-30: Q3 2025 Financial Results — Reported significant net income growth of 552% and revenue increase, indicating strong operational performance.

Glossary

Accelerated Amortization

An accounting charge that recognizes the expense of an intangible asset over a shorter period than originally planned, often due to changes in its expected useful life or economic benefit. (Related to internally developed intangible assets impacted by Alphabet's cookie decision, affecting reported expenses.)

Nonrecurring Impairment Charge

A charge taken when the carrying amount of an asset is deemed to be not recoverable, meaning its future economic benefits are less than its book value. 'Nonrecurring' suggests it's a one-time event. (Recorded due to the impact of Alphabet's cookie decision on internally developed intangible assets.)

Ordinary Shares Outstanding

The total number of common shares that have been issued by a company and are held by investors, excluding treasury shares. (Key metric for calculating earnings per share (EPS) and understanding shareholder dilution.)

Year-Over-Year Comparison

Criteo has demonstrated strong performance compared to the prior year, with significant increases in net income for both the three-month (552%) and nine-month (140.8%) periods ended September 30, 2025. Revenue also saw modest growth. A key development impacting financial reporting was Alphabet's decision regarding third-party cookies, leading to specific charges. Operating expenses decreased, contributing to improved profitability. No new significant risks were explicitly detailed in the provided excerpt, but the existing risks related to regulatory changes and competition remain pertinent.

Key Financial Figures

• $23.4 million — Trade receivables, net of allowances of $23.4 million and $28.6 million at September 30, 2025
• $28.6 million — net of allowances of $23.4 million and $28.6 million at September 30, 2025 and December 31,
• $2,023 — Balance at December 31, 2023 61,165,663 $2,023 (5,400,572) $(161,788) $769,240 $(85,32
• $769,240 — 1,165,663 $2,023 (5,400,572) $(161,788) $769,240 $(85,326) $555,456 $1,079,605 $31,786 $
• $555,456 — ,400,572) $(161,788) $769,240 $(85,326) $555,456 $1,079,605 $31,786 $1,111,391 Net inco
• $1,079,605 — $(161,788) $769,240 $(85,326) $555,456 $1,079,605 $31,786 $1,111,391 Net income — — — —
• $31,786 — $769,240 $(85,326) $555,456 $1,079,605 $31,786 $1,111,391 Net income — — — — — — 7,2
• $1,111,391 — 0 $(85,326) $555,456 $1,079,605 $31,786 $1,111,391 Net income — — — — — — 7,244 7,244 1,
• $2,024 — ) Balance at March 31, 2024 61,181,001 $2,024 (6,617,119) $(204,363) $797,492 $(96,76
• $797,492 — 1,181,001 $2,024 (6,617,119) $(204,363) $797,492 $(96,763) $543,092 $1,041,482 $31,117 $
• $543,092 — ,617,119) $(204,363) $797,492 $(96,763) $543,092 $1,041,482 $31,117 $1,072,599 Net inco
• $1,041,482 — $(204,363) $797,492 $(96,763) $543,092 $1,041,482 $31,117 $1,072,599 Net income — — — —
• $31,117 — $797,492 $(96,763) $543,092 $1,041,482 $31,117 $1,072,599 Net income — — — — — — 26,
• $1,072,599 — 2 $(96,763) $543,092 $1,041,482 $31,117 $1,072,599 Net income — — — — — — 26,987 26,987
• $1,967 — 5) Balance at June 30, 2024 59,063,486 $1,967 (4,461,517) $(154,254) $761,681 $(103,8

Filing Documents

• criteo10qq32025.htm (10-Q) — 1115KB
• exhibit311ceocertificateq3.htm (EX-31.1) — 8KB
• exhibit312cfocertificateq3.htm (EX-31.2) — 8KB
• exhibit321ceocfocertificat.htm (EX-32.1) — 6KB
• 0001576427-25-000116.txt ( ) — 1138KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4

Controls and Procedures

Controls and Procedures 41 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 42 Item 1A

Risk Factors

Risk Factors 42 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5 Other Information 43 Item 6 Exhibits 43

Signatures

Signatures 45 General Except where the context otherwise requires, all references in this Quarterly Report on Form 10-Q (Form 10-Q) to the Company, Criteo, we, us, our or similar words or phrases are to Criteo S.A. and its subsidiaries, taken together. In this Form 10-Q, references to $ and US$ are to United States dollars. Our unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. Trademarks "Criteo," the Criteo logo and other trademarks or service marks of Criteo appearing in this Form 10-Q are the property of Criteo. Trade names, trademarks and service marks of other companies appearing in this Form 10-Q are the property of their respective holders. Special Note Regarding Forward-Looking Statements This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are based on our management's beliefs and assumptions and on information currently available to our management. All statements other than present and historical facts and conditions contained in this Form 10-Q, including statements regarding our future results of operations and financial position, business strategy, plans and objectives for future operations, are forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially. When used in this Form 10-Q, the words "anticipate," "believe," "can," "could," "estimate," "expect," "intend," "is designed to," "may," "might," objective, "plan," "potential," "predict," project, seek, "should," will, would, or the negative of these and similar expressions identify forward-looking statements. You should refer to Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024, and

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