Teads (Formerly Outbrain) Plunges 40% After Weak Q3 Results — Stock Down 90% in 2025

Shares of Teads — formerly Outbrain — collapsed by more than 40% last week, capping a devastating year in which the company has lost over 90% of its market value. The fall followed disappointing third-quarter results, deepening investor fears over the firm’s financial stability.

Teads, now worth just $74 million, is burdened with declining revenues, negative operating cash flow, and a $628 million loan at 10% interest due in 2030. With only $138 million in cash and a share price below $1, the company’s ability to raise capital is severely constrained. Analysts expect Teads to attempt debt buybacks to appease shareholders.

The crisis puts CEO David (Dickie) Kostman — also chairman of NICE Systems — in the spotlight. Under his leadership, Outbrain completed a reverse merger with the larger Teads in early 2025, a move now seen as a strategic misstep. The merger failed to deliver expected synergies, and both legacy businesses have suffered from regulatory changes and shrinking ad revenues.

Insiders say Teads’ reliance on direct large-client sales rather than ad agencies left it vulnerable. The company has since hired a strategic consultancy to salvage the merger and refocus on connected TV (CTV) advertising, which could reach $100 million in revenue by 2025 — far below the company’s billion-dollar ambitions.

Teads, which still employs around 2,000 workers, recently began layoffs affecting 10% of staff, and further cuts are expected — including in Israel.