Criteo S.A. (NASDAQ: CRTO) faces a securities investigation by Levi & Korsinsky after slashing its full-year 2026 Contribution ex-TAC outlook from flat to low-single-digit growth to a 10% to 12% decline. The company reported Q2 2026 revenue of $428 million, down 11% year over year, and net income of $12 million, down 49%, sending shares sharply lower on Aug. 5.
Criteo S.A. faces a securities investigation after cutting its 2026 Contribution ex-TAC outlook to a 10% to 12% decline, sending shares sharply lower.
"Levi & Korsinsky notifies investors that it has commenced an investigation into Criteo S.A. concerning potential violations of the federal securities laws," the firm said in a notice.
The reversal is concentrated in one line item. On May 8, Criteo told investors it expected "flat to low-single-digit growth in Contribution ex-TAC at constant currency" for fiscal 2026. Less than three months later, on Aug. 5, that outlook became a projected decline of 10% to 12%. Second-quarter revenue came in at $428 million, down 11% year over year, with net income of $12 million, down 49%, and adjusted EBITDA of $73 million, down 18%. Contribution ex-TAC totaled $255 million.
The disclosure accompanied a change in finance leadership. Chief Strategy Officer Connor McGogney replaced Sarah Glickman as chief financial officer effective Aug. 10, after Glickman had served six years in the role. Glickman remains a senior adviser through Sept. 30.
On the Q1 earnings call held May 6, Glickman told investors the company expected Contribution ex-TAC to "decline by low single digits at constant currency" for 2026. Chief Executive Officer Michael Komasinski said on the same call that management remained "highly confident in the trajectory of our business, including our expectation of a return to growth in the fourth quarter and reacceleration into 2027."
Levi & Korsinsky, a New York-based firm that has ranked in ISS Securities Class Action Services' Top 50 report for seven consecutive years, is investigating whether Criteo made materially false or misleading statements about its fiscal 2026 outlook. The firm has recovered hundreds of millions of dollars for shareholders over the past two decades, according to its notice.
The guidance cut points to a sharper deterioration in Criteo's advertising business than management flagged in May, and the investigation could lead to shareholder litigation that adds legal costs and reputational pressure. Investors will watch whether the company provides further detail on the drivers of the slowdown when it reports third-quarter results, and whether the CFO transition affects its strategic direction.
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