The latest earnings calls from publicly traded ad tech companies wrapped up this week, shedding light on the sector’s challenges and opportunities. Recent financial data submitted to stock exchanges revealed a 17.4% average revenue growth for the industry in 2025. Notable outliers like AppLovin (70% growth) and Teads (46% growth post-merger with Outbrain), along with declines in revenue for Perion and PubMatic by 12% and 2.88%, respectively, raised eyebrows.
Further examination indicated a weighted sector growth of 26.6% in 2025; however, stock prices didn’t mirror this positive trend due to concerns surrounding AI and Big Tech’s impact, leading to a downward market trend post-disclosure.
Key takeaways from the earnings calls included a focus on disciplined spending and profitability over aggressive expansion by management teams, with potential merger and acquisition activities hinted at by some. Themes such as AI-driven product development took center stage, with Zeta Global, Criteo, and The Trade Desk highlighting its significance for automation and predictive targeting.
Companies involved in commerce media, particularly Criteo and Taboola, acknowledged challenges such as soft retail media performance and fluctuating advertiser demand. Executives at Nexxen and PubMatic attributed Q4 revenue declines to macro cyclicality issues in brand and CTV budgets.
AppLovin maintained its lead in revenue within the sector; however, questions arose about AI disruption potentially lowering entry barriers in gaming and ad tech. AppLovin’s team defended against this notion, arguing that increased bid density strengthens economics rather than weakens them.
On the other hand, The Trade Desk faced inquiries about market competition and reduced spending from automotive and CPG advertisers. Despite these challenges, management highlighted strength in other sectors like tech, pharma, and travel while addressing concerns about Big Tech’s influence.
Criteo experienced a decline in Q4 revenue due to softness in retail media spend but showcased positive results from early testing of agentic commerce experiments. A partnership announcement with OpenAI for ads in ChatGPT reignited investor enthusiasm following a brief dip in stock price trends.
Please note that LiveRamp follows a distinct fiscal calendar compared to other ad-tech companies. For the quarter ending on Dec. 31, 2025, LiveRamp reported revenues of $212 million, marking a 9% increase.