Observed Signal · Nov 6, 2026 · Earnings Report · Source: Digiday · Impact: 4/5 · Sentiment: Neutral
AppLovin, Unity Surge While Criteo, Taboola Decline in Q3
In Q3 2026, ad tech earnings revealed a stark divide: AppLovin and Unity posted strong growth, while Criteo, Taboola, and Teads saw revenue declines. AppLovin's revenue rose 55% to $2.19 billion, with net income up 72% to $1.44 billion, and its revenue alone surpassed the combined revenue of the other five companies. Unity's revenue grew 32% to $622 million, with its Vector ad platform surging 126% year-over-year. Magnite reported a 14% revenue increase to $204.2 million, driven by CTV growth. Conversely, Criteo's revenue fell 11% to $416 million, Taboola declined 6.9% to $462.3 million, and Teads dropped 26% to $235.1 million. CTV remained a bright spot for Magnite and Teads, but was insufficient to offset broader declines. The results highlight the ongoing shift toward mobile and CTV, while the open web struggles.
The earnings reports from six major ad tech companies highlight the growing divide between mobile/CTV growth and open-web decline, signaling a structural shift in the industry.
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Key Takeaways & Evidence Grounding
- AppLovin's Q3 revenue rose 55% to $2.19 billion, with net income of $1.44 billion, up 72% year-over-year.
- Unity reported Q3 revenue of $622 million, up 32%, with its Vector ad platform growing 126% year-over-year.
- Criteo's Q3 revenue fell 11% to $416 million, with contribution ex-TAC down 17% to $240 million.
- Taboola's Q3 revenue declined 6.9% to $462.3 million, but gross profit rose 9.6% to $152.3 million.
- Teads reported a 26% revenue decline to $235.1 million and a net loss of $325.5 million.
Connected Companies & Entities
7 Entities mapped“AppLovin reported $2.19 billion in third-quarter revenue, up 55% year over year, alongside net income of $1.44 billion.”
“Unity reported revenue of $622 million, up 32%, with the Grow Solutions division generating $457 million.”
“Criteo reported Q3 revenue of $416 million, down 11%.”
“Taboola reported revenue of $462.3 million, down 6.9%.”
“Teads recorded a revenue decline of 26% to $235.1 million.”
“Magnite reported revenue of $204.2 million, up 14%.”
“Outbrain's executive team saw CTV revenue increase 37% year over year.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Ad tech earnings show mixed results, CTV growth
Digiday’s May 14, 2026 briefing reviews recent Q1 earnings across a 12-company ad tech cohort. While most firms reported revenue increases and some raised guidance, the quarter was mixed: three companies recorded year‑over‑year revenue declines and several executives flagged AI-driven changes that could affect platform stickiness and margins. AppLovin posted strong Q1 results (nearly $2 billion), Teads and Criteo reported revenue declines (7% and 6%, respectively), and Viant and others highlighted Connected TV (CTV) as a major growth driver — with Viant reporting CTV ad spend now accounts for more than half of platform spend. The Trade Desk’s $750M Q2 revenue guide was viewed as soft and pressured its stock. The article notes varied AI initiatives (ChatGPT integrations, Taboola’s AI Answer engine, PubMatic’s AI deals) but few clear examples of material AI-driven revenue yet.
Wall Street’s Tough Take on Ad Tech Earnings
Publicly traded ad tech companies reported mixed Q2 results but faced sharp negative investor reactions, highlighting Wall Street’s skepticism about their ability to compete with Big Tech. AppLovin, The Trade Desk, Criteo, Taboola and Teads all saw sizable share-price drops after earnings despite some revenue growth, while PubMatic, Magnite and Zeta Global posted positive stock moves. Analysts and investors cited the growing share of ad spend going to Meta, Amazon and Google, rising expectations around AI-driven performance, and a preference from marketers for scale and convenience over best-of-breed stacks. The quarter also accelerated consolidation and take-private activity, including Nielsen’s agreed $2.15 billion purchase of DoubleVerify and Novacap’s $1.9 billion take-private of Integral Ad Science. Observers say measurement vendors may reposition toward multi-signal activation and omni-channel measurement to regain investor appeal.
Silver Lake, PIF Explore $25B Unity Acquisition
Unity has engaged in acquisition talks with a consortium led by Saudi Arabia's Public Investment Fund (PIF) and including Silver Lake, with discussions reportedly valuing Unity at around $25 billion. Silver Lake already owns 8% of Unity, having invested $400 million in May 2017. The consortium previously acquired Electronic Arts for $55 billion. Unity's third-quarter revenue rose 32% to $622.1 million, marking its first GAAP-profitable quarter since going public in 2020, driven by its mobile adtech platform Vector, which saw 126% growth. The potential acquisition underscores PIF's interest in mobile gaming, as most mobile games are built with Unity. No deal is certain, and terms could change. Unity declined to comment, while Silver Lake and PIF did not respond.
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