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Teads Holding Co. (TEAD) Fundamental Analysis & AI Grade 2026

TEAD Nasdaq Services-Computer Programming, Data Processing, Etc. DE CIK: 0001454938
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
88% Confidence
N/A
D
88% Conf
Pending
Analysis scheduled

📊 TEAD Key Takeaways

Revenue: $266.0M
Net Margin: -14.6%
Free Cash Flow: $-35.6M
Current Ratio: 1.04x
Debt/Equity: 12.06x
EPS: $-0.40
AI Grade: D with 88% confidence
Teads Holding Co. (TEAD) receives a D fundamental grade with 88% confidence from our AI analysis based on SEC 10-K filings. With revenue of $266.0M, net profit margin of -14.6%, and return on equity (ROE) of -77.2%, Teads Holding Co. demonstrates mixed fundamentals in the Technology sector. Below is our complete TEAD stock analysis for 2026.

Is Teads Holding Co. (TEAD) a Good Investment?

Claude

Despite 46% revenue growth, Teads is operationally and financially distressed with negative operating cash flow, unsustainable leverage (12.06x D/E), and inability to cover interest expenses from operations. The company is burning cash while carrying massive debt, creating imminent solvency risk regardless of revenue trajectory.

Teads Holding Co. Key Strengths (TEAD)

Claude
  • + Strong top-line revenue growth of 46.1% YoY demonstrates market demand
  • + Reasonable gross margin of 31.4% indicates viable unit economics at production level
  • + Maintains $85.5M cash balance providing short-term operational runway

TEAD Stock Risks: Teads Holding Co. Investment Risks

Claude
  • ! Extreme leverage with 12.06x debt-to-equity ratio and $606.2M long-term debt against only $50.3M equity - capital structure is unsustainable
  • ! Negative operating cash flow of -$34.9M means company is burning cash from core business; cannot self-fund operations or service debt
  • ! Negative interest coverage ratio of -14.5x indicates inability to cover interest expense from operations - debt default risk is material
  • ! Negative operating margin of -8.2% and net margin of -14.6% show growth is unprofitable; high operating expenses consuming 70%+ of gross profit
  • ! Tight liquidity with current ratio of only 1.04x provides minimal buffer for operational disruptions or debt maturities

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory - must return to positive to demonstrate sustainability
  • * Debt refinancing/maturity schedule - assess ability to manage $606.2M debt load
  • * Operating margin improvement path - determine if profitability is achievable at current revenue scale
  • * Cash burn rate and runway - calculate quarters until liquidity crisis if cash flow remains negative

Teads Holding Co. (TEAD) Financial Metrics & Key Ratios

Revenue
$266.0M
Net Income
$-38.8M
EPS (Diluted)
$-0.40
Free Cash Flow
$-35.6M
Total Assets
$1.2B
Cash Position
$85.5M

💡 AI Analyst Insight

Teads Holding Co. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

TEAD Profit Margin, ROE & Profitability Analysis

Gross Margin 31.4%
Operating Margin -8.2%
Net Margin -14.6%
ROE -77.2%
ROA -3.2%
FCF Margin -13.4%

TEAD vs Technology Sector: How Teads Holding Co. Compares

How Teads Holding Co. compares to Technology sector averages

Net Margin
TEAD -14.6%
vs
Sector Avg 18.0%
TEAD Sector
ROE
TEAD -77.2%
vs
Sector Avg 22.0%
TEAD Sector
Current Ratio
TEAD 1.0x
vs
Sector Avg 2.5x
TEAD Sector
Debt/Equity
TEAD 12.1x
vs
Sector Avg 0.5x
TEAD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Teads Holding Co. Stock Overvalued? TEAD Valuation Analysis 2026

Based on fundamental analysis, Teads Holding Co. shows some fundamental concerns relative to the Technology sector in 2026.

Return on Equity
-77.2%
Sector avg: 22%
Net Profit Margin
-14.6%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
12.06x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Teads Holding Co. Balance Sheet: TEAD Debt, Cash & Liquidity

Current Ratio
1.04x
Quick Ratio
1.04x
Debt/Equity
12.06x
Debt/Assets
95.8%
Interest Coverage
-14.48x
Long-term Debt
$606.2M

TEAD Revenue & Earnings Growth: 5-Year Financial Trend

TEAD 5-year financial data: Year 2021: Revenue $1.0B, Net Income -$20.5M, EPS $-1.34. Year 2022: Revenue $1.0B, Net Income $4.4M, EPS $0.08. Year 2023: Revenue $1.0B, Net Income $11.0M, EPS $0.20. Year 2024: Revenue $992.1M, Net Income -$24.6M, EPS $-0.44. Year 2025: Revenue $1.3B, Net Income $10.2M, EPS $-0.06.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Teads Holding Co.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.06 indicates the company is currently unprofitable.

TEAD Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-13.4%
Free cash flow / Revenue

TEAD Quarterly Earnings & Performance

Quarterly financial performance data for Teads Holding Co. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $266.0M -$38.8M $-0.40
Q3 2025 $224.2M -$544.0K $0.01
Q2 2025 $214.1M -$2.2M $-0.04
Q1 2025 $217.0M -$5.0M $-0.10
Q3 2024 $224.2M $508.0K $0.01
Q1 2024 $214.1M -$2.2M $-0.04
Q2 2023 $225.8M $508.0K $0.01
Q1 2023 $231.8M -$1.9M $-0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Teads Holding Co. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$34.9M
Cash generated from operations
Stock Buybacks
$38.0K
Shares repurchased (TTM)
Capital Expenditures
$726.0K
Investment in assets
Dividends
None
No dividend program

TEAD SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Teads Holding Co. (CIK: 0001454938)

📋 Recent SEC Filings

Date Form Document Action
May 20, 2026 4 xslF345X06/wk-form4_1779311148.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779138351.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779138345.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779138340.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779138334.xml View →

Frequently Asked Questions about TEAD

What is the AI rating for TEAD?

Teads Holding Co. (TEAD) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TEAD's key strengths?

Claude: Strong top-line revenue growth of 46.1% YoY demonstrates market demand. Reasonable gross margin of 31.4% indicates viable unit economics at production level.

What are the risks of investing in TEAD?

Claude: Extreme leverage with 12.06x debt-to-equity ratio and $606.2M long-term debt against only $50.3M equity - capital structure is unsustainable. Negative operating cash flow of -$34.9M means company is burning cash from core business; cannot self-fund operations or service debt.

What is TEAD's revenue and growth?

Teads Holding Co. reported revenue of $266.0M.

Does TEAD pay dividends?

Teads Holding Co. does not currently pay dividends.

Where can I find TEAD SEC filings?

Official SEC filings for Teads Holding Co. (CIK: 0001454938) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TEAD's EPS?

Teads Holding Co. has a diluted EPS of $-0.40.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TEAD's fundamental grade?

Based on our AI fundamental analysis in June 2026, Teads Holding Co. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TEAD stock overvalued or undervalued?

Valuation metrics for TEAD: ROE of -77.2% (sector avg: 22%), net margin of -14.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is TEAD's AI grade for 2026?

Our dual AI analysis gives Teads Holding Co. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TEAD's free cash flow?

Teads Holding Co.'s operating cash flow is $-34.9M, with capital expenditures of $726.0K. FCF margin is -13.4%.

How does TEAD compare to other Technology stocks?

Vs Technology sector averages: Net margin -14.6% (avg: 18%), ROE -77.2% (avg: 22%), current ratio 1.04 (avg: 2.5).

Is Teads Holding Co. carrying too much debt?

TEAD has a debt-to-equity ratio of 12.06x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.04 suggests adequate short-term liquidity.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI