Overview
- Q4 revenue reached $1.66 billion versus $1.61 billion expected, EPS came in at $3.24, and adjusted EBITDA was about $1.4 billion for a record margin near 84%, with free cash flow of $1.31 billion.
- The company guided Q1 2026 revenue to $1.745–$1.775 billion and adjusted EBITDA to $1.465–$1.495 billion, topping consensus but pointing to slower growth than recent quarters.
- Shares fell as much as 9% after hours and tumbled up to 16% early Thursday despite the beat and raised outlook.
- CEO Adam Foroughi said results reflect the firm's strongest operating performance, crediting proprietary AI models, while the Axon 2.0 engine converted 95% of incremental revenue into EBITDA.
- CFO Matt Stumpf said the self-service ad portal is not ready for general launch, as analysts flagged tougher competition from players like Meta and new AI entrants, with Wedbush reiterating Outperform and lifting its price target to $640.