Free cash flow has deteriorated into a negative 13.4% margin as of 2026Q1, exacerbated by persistent working capital outflows of $16.6 million during the same period.
| Cash from Operations | 4.67M | 7.61M | 68.56M | 13.75M | 3.81M | 56.76M | 52.99M |
| Operating CF Margin % | - | 0.58% | 7.7% | 1.47% | 0.38% | 5.59% | 6.91% |
| Operating CF Growth % | -3204.22% | -88.91% | 398.77% | 260.5% | -93.28% | 7.13% | - |
| Net Income | -501.01M | -517.07M | -711K | 10.24M | -24.58M | 10.99M | 4.36M |
| Depreciation & Amortization | 53.27M | 0 | 19.48M | 20.7M | 26.92M | 19.47M | 18.51M |
| Stock-Based Compensation | 7.43M | 0 | 15.46M | 12.14M | 11.66M | 26.31M | 0 |
| Deferred Taxes | -31.1M | 0 | -5.09M | -4.31M | -3.85M | -31.81M | -2.26M |
| Other Non-Cash Items | 509.12M | 517.57M | -2.83M | -14.45M | 4.98M | 48.13M | 3.74M |
| Working Capital Changes | -33.03M | 7.1M | 42.26M | -10.57M | -11.31M | -16.33M | 28.63M |
| Change in Receivables | 46.94M | 25.93M | 35.91M | -12.95M | 5.28M | -31.5M | -24.12M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -69.3M | -21.99M | -11.7M | -1.23M | 7.96M | 36.11M | 31.43M |
| Cash from Investing | -16.48M | -554.18M | 67.15M | 69.64M | -317.9M | -20.1M | -9.42M |
| Capital Expenditures | -14.08M | -22.76M | -7.38M | -10.13M | -13.38M | -9.74M | -10.5M |
| CapEx % of Revenue | 1.1% | 1.75% | 0.83% | 1.08% | 1.35% | 0.96% | 1.37% |
| Acquisitions | 0 | -598.32M | -181K | -389K | -45.15M | 0 | 1.12M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -12.06M | 66.89M | -10.01M | -10.18M | -12.7M | -10.36M | -39K |
| Cash from Financing | -41.86M | 585.34M | -117.7M | -117.07M | -31.7M | 325.89M | -4.23M |
| Debt Issued (Net) | -7.59M | 617.73M | -110M | -98M | -3.19M | 195.66M | -4.77M |
| Equity Issued (Net) | -284K | -775K | -6.6M | -18.52M | -32.66M | 134.65M | 545K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -284K | 0 | -6.6M | -18.52M | -32.66M | -14.15M | 0 |
| Other Financing | -33.99M | -31.61M | -1.1M | -547K | 4.16M | -4.41M | 0 |
| Net Change in Cash | -51.86M | 39.13M | 18.65M | -34.69M | -349.83M | 361.52M | 44.05M |
| Free Cash Flow | -7.58M | -9.54M | 51.27M | -6.49M | -22.13M | 36.71M | 51.48M |
| FCF Margin % | -0.59% | -0.73% | 5.76% | -0.69% | -2.23% | 3.61% | 6.71% |
| FCF Growth % | -118.94% | -118.61% | 890.2% | 70.68% | -160.29% | -28.69% | - |
| FCF per Share | -0.08 | -0.11 | 0.97 | -0.11 | -0.40 | 0.68 | 0.96 |
| FCF Conversion (FCF/Net Income) | 0.02x | -0.01x | -96.43x | 1.34x | -0.16x | 5.16x | 12.16x |
| Interest Paid | 33.15M | 0 | 4.32M | 6.03M | 7.46M | 587K | 0 |
| Taxes Paid | 9.21M | 0 | 10.27M | 8.6M | 6.89M | 6.74M | 0 |
Integration-driven cash volatility
According to the provided financial data, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio fluctuating from -255.47 in 2024Q4 to 0.90 in 2026Q1, highlighting significant accounting distortions that obscure the company's true underlying cash-generating capability post-merger.
The extreme volatility in the OCF/NI ratio suggests that GAAP net income is currently an unreliable proxy for operational health due to heavy non-cash charges and integration-related adjustments. Investors should monitor whether the company can stabilize this conversion metric as the post-merger accounting noise eventually subsides.
As reported in recent quarterly filings, TEAD's free cash flow trajectory has turned sharply negative, reaching a -13.4% margin in 2026Q1, which contrasts with the positive 10.8% margin observed in 2025Q4 and indicates a deteriorating ability to self-fund operations following the recent corporate reorganization.
The swing from positive to negative FCF margins suggests that the company is struggling to maintain operational efficiency while absorbing the costs of the Teads-Outbrain integration. This trend warrants further investigation into whether the current cash burn is a temporary byproduct of restructuring or a sign of structural margin erosion.
Based on the reported cash flow statements, working capital changes have become a persistent headwind, with a $16.6 million outflow in 2026Q1 following a $16.3 million outflow in 2025Q4, suggesting that the company is facing increased difficulty in managing its cash conversion cycle during this integration phase.
The consistent negative working capital adjustments imply that the company may be experiencing delays in collections or inefficient inventory-like management of its ad-tech supply chain. This liquidity drain appears to be exacerbating the company's overall cash burn, necessitating a closer look at its accounts receivable and payable management.
As evidenced by the 2025Q1 acquisition expenditure of $598.3 million, the company has prioritized aggressive inorganic growth, yet the subsequent cash flow data suggests that these capital deployments have not yet translated into sustainable, self-sustaining cash generation for the combined entity as of the most recent quarter.
The heavy reliance on acquisition-led growth appears to have strained the balance sheet, leaving little room for error as the company navigates its current negative cash flow environment. Investors should monitor whether management shifts toward debt reduction or operational optimization rather than further capital-intensive expansion in the near term.
Quick answers to the most common questions about buying TEAD stock.
Teads Holding Co. (TEAD) generated $7.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Teads Holding Co. (TEAD) reported negative free cash flow of $9.5M in 2025, indicating capital requirements exceeded cash from operations.
Teads Holding Co. (TEAD) spent $22.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.