Criteo (NASDAQ:CRTO) saw its shares dip in early trading after the company issued a conservative 2026 forecast, overshadowing a year of record-breaking free cash flow and significant progress in its "Commerce Media" transformation.
The New York-based firm posted full-year 2025 revenue of $1.945 billion, a 1% increase, while navigating a 2% decline in the fourth quarter due to scope changes with two major Retail Media clients.
Despite the quarterly revenue dip to $541 million, Criteo’s bottom line remained robust.
Full-year net income reached $149 million, with diluted EPS of $2.64.
The company’s focus on high-margin segments and operational discipline drove free cash flow to a record $211 million—a 16% increase over the previous year—underpinned by the lowest Days Sales Outstanding (DSO) in the company's history.
"2025 was a year of disciplined execution where we solidified our position at the forefront of 'Agentic Commerce,'" said CEO Michael Komasinski.
To support this vision, Criteo recently introduced AI-powered shopping assistants and expanded its retail footprint with new partners like Lidl and JB Hi-Fi.
These additions are part of a broader strategy to offset the "temporary impact" of shifting client scopes that hindered fourth-quarter performance.