"Chief Financial Officer Sagi Niri cited 'reduced spending from one DSP customer amid their FPO initiative, softness in our non-programmatic business line, more competitive CPMs, tariff-driven reductions from certain partners, and the absence of political advertising spend compared to Q4 2024' as negative Q4 impacts."
"Ofer Druker said, 'contribution ex-TAC and programmatic revenue are trending ahead of our initial expectation following the strongest January and February in our history,' revealing sustained early-year demand strength."
"According to Ofer Druker, 'today, data is in more than 80% of our campaigns,' indicating high proprietary data adoption fueling competitive differentiation and integration across offerings."
"Sagi Niri confirmed, 'The impact from the DSP customer also appears isolated to Q4,' as year-to-date spending trends positive for 2026, signaling recovery from recent partner-driven headwinds."
Q4 2025 performance faced headwinds from reduced spending by a major DSP customer undergoing an FPO initiative, softness in non-programmatic business, increased competitive CPM pressure, tariff-driven reductions from partners, and the absence of political advertising revenue compared to Q4 2024. Contribution ex-TAC retention rate declined from 102% to 92% following discontinuation of smaller unprofitable relationships. Non-IFRS diluted EPS fell from $0.48 to $0.33 year-over-year, and operating cash flow decreased from $52.3 million to $37.7 million. However, early 2026 showed recovery with January and February representing the strongest months in company history. Programmatic revenue and contribution ex-TAC metrics trended ahead of expectations. The DSP customer impact appears isolated to Q4, with positive year-to-date spending trends indicating recovery. Proprietary data adoption exceeded 80% of campaigns, and enterprise customer base more than doubled in 2025.
#q4-2025-earnings #programmatic-advertising #revenue-decline-and-recovery #enterprise-customer-growth #proprietary-data-adoption
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