Outbrain Inc. (OB): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of the ad-tech landscape after that major Teads acquisition closed in early 2025, and frankly, the combined entity's Business Model Canvas is where the real story is. Honestly, the new structure hinges on using their proprietary predictive AI to maximize monetization for over 10,000 premium publishers while serving measurable, full-funnel outcomes for 20,000+ global advertisers. With the full-year 2025 revenue estimate landing near $1.45 billion and a firm guide for at least $180 million in Adjusted EBITDA, the focus is clearly on high-margin formats and high-growth CTV, even while managing significant Traffic Acquisition Costs. You need to see exactly how the $1.45 billion revenue flows through the nine building blocks, so dive into the details below to map out their strategy.

Outbrain Inc. (OB) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power the newly combined Teads platform following the February 2025 acquisition of Teads by Outbrain Inc. This section details the critical external entities that make the business function, focusing on the scale and financial arrangements as of the first quarter of 2025.

The publisher side of the equation is massive, built on the union of two major players. Teads is directly partnered with more than 10,000 publishers globally, connecting advertisers to this premium inventory across online, CTV, and app environments. The combined platform reaches over 2 billion consumers per month across 50+ markets. For instance, the Moments vertical video offering, launched in Q3 2024, is already live on over 70 publishers, including renewals like Conde Nast and TMZ (US) and new wins like Godo (Spain).

Here's a quick look at the network scale as of early 2025:

The relationship with major brands is formalized through Strategic Joint Business Partnerships (JBPs). Teads announced new JBPs in Q1 2025 with major global entities including Ferrero, Haleon, Philip Morris International, and Beiersdorf. In total, there are over 50 JBP partnerships in place.

For ad delivery and platform integration, the focus is on direct connections. The combined entity unites two of the richest contextual and interest data sets on the open internet, powering an advanced AI prediction engine. CTV, a key growth area, experienced more than 100% year-over-year growth in Q1 2025.

The former owner of Teads, Altice, remains a significant partner through its equity stake. The acquisition transaction valued Teads at approximately $900 million, paid via $625 million in cash and 43.75 million shares of Outbrain common stock. Altice will nominate two directors to the combined company's board. The convertible preferred equity issued to Altice accrues dividends at a rate of 10% per annum.

You should track the cross-selling momentum, as initial campaigns leveraging legacy Outbrain performance solutions onto legacy Teads enterprise brand customers began in Q2 2025.

• CTV revenue grew 100% year-over-year in Q1 2025.
• Approximately 70% of total customer spend comes from the approximately 500 advertisers spending at least a half a million dollars on a rolling 12-month basis, with an average spend over $2 million annually.
• The company expects to realize approximately $65 million to $75 million of total synergies in 2026.

Finance: draft 13-week cash view by Friday.

Outbrain Inc. (OB) - Canvas Business Model: Key Activities

You're looking at the core engine of the newly combined entity, now operating as Teads following the February 3, 2025, acquisition of Teads by Outbrain. This section details the critical actions the management team must execute daily to keep the platform running and growing.

The foundation of the business remains the technology. This involves the constant development and maintenance of the predictive AI-driven ad platform. This AI powers the two-sided marketplace, optimizing audience attention and engagement for advertisers and monetization for media owners. The combined company unites two rich contextual and interest data sets to feed this prediction engine.

Securing and managing exclusive premium publisher inventory is non-negotiable. The combined platform, as of early 2025 reporting, directly partners with more than 10,000 publishers across online, CTV, and app environments. This inventory scale is what allows the platform to reach billions of consumers.

Executing the integration and synergy plan post-Teads acquisition is a major Key Activity throughout 2025. The transaction itself was valued at approximately $900 million, comprised of $625 million in cash and 43.75 million shares of common stock. Management is focused on realizing cost synergies, expecting to book approximately $40 million in savings for the full year 2025, with about 90% of the compensation-related portion already actioned. The long-term synergy target is between $65 million and $75 million in 2026.

Sales and account management is geared toward a massive client base. This activity focuses on driving revenue across the full funnel, from branding to performance. The combined entity is managing relationships with 20,000 global advertisers. To be fair, a significant portion of the spend comes from a core group of high-value clients.

Innovating new ad formats is essential to capture evolving digital spend. The 'Moments' vertical video solution, launched in Q3 2024, is a prime example. By Q1 2025, it was live on over 70 publishers, including major names like Fox News and Axel Springer. Early data suggests this format is sticky, with 40% of users watching three or more videos in a single session. This innovation directly supports the growth in video, as Connected TV (CTV) revenue is projected to hit $100 million by the end of 2025.

Here's a look at the scale of the advertiser base and the financial impact of these activities as reported in Q1 2025:

The focus on high-growth areas like video is clear when you look at the performance metrics:

• CTV revenue growth was more than 100% year-over-year in Q1 2025.
• CTV spend represented approximately 5% of total ad spend in Q1 2025.
• Advertisers spending over $500,000 annually represented about 70% of total customer spend in Q1 2025.
• The 'Moments' format expanded to over 70 publishers by Q1 2025.

The AI platform's effectiveness is also reflected in cookieless environments, where the company has seen an RPM (Revenue Per Mille) and CTR (Click-Through Rate) lift of greater than 25%. That's the kind of concrete outcome the platform is built to deliver. Finance: draft 13-week cash view by Friday.

Outbrain Inc. (OB) - Canvas Business Model: Key Resources

You're looking at the core assets that power Outbrain Inc.'s (now operating under the Teads brand) ability to deliver on its value proposition in late 2025. These aren't just line items; they are the competitive moat.

The most tangible asset right now is the balance sheet strength post-Teads integration. As of March 31, 2025, Outbrain Inc. held $155.9 million in cash and equivalents, which is a critical buffer following the approximately $900 million acquisition of Teads in February 2025. That cash position is comprised of cash and cash equivalents of $136.3 million and short-term investments in marketable securities of $19.6 million.

The technology itself is the engine. Outbrain Inc.'s proprietary predictive AI and machine learning algorithms are central to its cookieless strategy, particularly with tools like Engagement Bid Strategy (EBS). This technology is designed to optimize bids in real-time based on user behavior and intent data, without relying on third-party cookies. The platform harnesses this AI across its entire footprint to drive measurable outcomes.

This technology is deployed across an exclusive, high-quality publisher network access, which represents the open internet scale the company commands. While the exact number of properties fluctuates, the platform uses its AI and machine learning across more than 8,000 online properties globally to predict moments of engagement. Furthermore, the focus on premium video is evident, with CTV revenues growing by more than 100% year-over-year on a pro forma basis in Q1 2025, and the new Moments vertical video solution live on 70+ publishers.

The human capital and global footprint are also massive resources, especially following the combination with Teads. The company maintains global sales and engineering teams, cited in the outline as nearly 1,800 people operating in 30+ offices worldwide. This global presence helps tailor regional campaigns and support the expanded end-to-end advertising solution.

Finally, the data asset is irreplaceable. Outbrain Inc. possesses extensive first-party data, which is the foundation for its context-driven addressability, especially as third-party identifiers fade. This data, combined with the AI, allows for performance optimization toward user attention and intent.

Here's a quick look at some of the key operational and financial metrics underpinning these resources as of the first quarter of 2025:

The integration of Teads is expected to drive significant margin benefits, as evidenced by the Q1 2025 Gross Margin increasing to 28.9% from 19.2% the prior year, largely due to the acquired business's higher-margin profile. Also, the company is targeting an Adjusted EBITDA of at least $180 million for the full year 2025.

The core technological capabilities driving these results include:

• Bid automation powered by machine learning algorithms.
• Creative Automation tools using generative AI.
• Engagement Bid Strategy (EBS) for cookieless optimization.
• Contextual insights derived from direct publisher relationships.

Finance: review the impact of the $610.8 million carrying value of the 10% senior secured notes due 2030 on the Q2 debt covenants by end of next week.

Outbrain Inc. (OB) - Canvas Business Model: Value Propositions

You're looking at the core value delivered by Outbrain Inc., which is now operating under the Teads brand following the acquisition of Teads in February 2025 for approximately $900 million. This combined entity focuses on driving measurable results across its platform, which partners with over 10,000 publishers and 20,000 advertisers globally.

For Advertisers: Omnichannel outcomes platform for full-funnel results

The platform is built to address the reality that the average consumer now uses six touchpoints when buying an item, up from two just 15 years ago. Companies with strong cross-touchpoint engagement see three times the annual revenue increase compared to those with weak engagement. Furthermore, 90% of consumers expect consistent interactions with a brand across channels.

The shift to new formats is evident, with Connected TV (CTV) advertising growing over 100% year-over-year in Q1 2025, now accounting for approximately 5% of total ad spend.

For Advertisers: Access to premium, brand-safe media environments

Advertisers gain access to premium inventory on the open internet, which is increasingly valued over social channels where trust is eroding. An Outbrain-Savanta research study showed that 75% of people mistrust ads on social media networks compared to ads shown in editorial publications. The scale of premium inventory is significant, with the combined company directly partnered with more than 10,000 publishers.

For Publishers: Maximizing monetization through high-margin ad formats

Outbrain Inc. helps media owners increase revenue through formats designed for high engagement and viewability. For instance, publishers incorporating Native Outstream Video see an average RPM increase of 40%. Older performance data suggested publisher Revenue Per Mille (RPM) could range between $0.37 and $1.12 per thousand pageviews, based on a reported 50% revenue share from clicks with Cost-Per-Click (CPC) ranging from $0.15 to $0.30.

The company is focused on driving higher RPM through improved algorithms; for example, Q1 2025 Gross Margin increased to 28.9%, and Ex-TAC Gross Margin reached 36.0%, reflecting the higher gross margin profile of the acquired business.

For Publishers: Increased engagement via native and vertical video (Moments)

The 'Moments' vertical video solution is designed to mimic social media-style engagement on trusted publisher sites. Early tests indicated that users consume an average of 3.2 videos per session. Attention metrics are strong: users spent an average of 14.6 seconds on Moments experiences, significantly more than the 3.4 seconds spent on high-impact display experiences. This format has been adopted by over 70 publishers in beta tests.

Delivering measurable business outcomes, not just views or impressions

The focus is on connecting media to tangible business results, as evidenced by the advertiser base. Approximately 70% of total customer spend comes from about ~500 advertisers who spend over $500,000 on a rolling 12-month basis, with an average annual spend exceeding $2 million. This focus on outcomes is supported by video effectiveness, where 84% of consumers say a brand's video convinced them to buy something.

Here's a quick look at the scale and financial focus driving these propositions as of Q1 2025 and guidance:

The company is executing on integration, with approximately 90% of estimated compensation-related cost synergies already actioned, aiming for $40 million in cost savings for 2025.

Outbrain Inc. (OB) - Canvas Business Model: Customer Relationships

You're looking at how the newly combined entity, operating as Teads as of February 2025, structures its interactions with the market. The relationship strategy clearly segments based on customer value and required service level, which is a smart move post-merger.

Dedicated account management for enterprise brands and agencies

For the largest spenders, the approach is definitely high-touch. This segment is where the focus on driving meaningful business outcomes, especially across branding objectives, is most intense. The data shows a clear concentration of spend here:

• Approximately 70% of total customer spend comes from a core group of high-value clients.
• This core group consists of about 500 advertisers spending a minimum of $500,000 on a rolling 12-month basis.
• The average annual spend for these top-tier advertisers exceeds $2 million.

Also, the establishment of new strategic Joint Business Partnerships (JBPs) signals deep, dedicated engagement with major global entities, including Ferrero, Haleon, Philip Morris International, and Beiersdorf.

Strategic cross-selling of legacy solutions to combined customer base

A key post-acquisition focus is unifying the offerings. The initial cross-selling efforts began in Q2 2025, targeting legacy Teads enterprise brand customers with legacy Outbrain performance solutions. This effort is designed to immediately expand the wallet share within the combined client pool. While the exact dollar value of cross-sold revenue for the full year isn't finalized yet, the launch itself is a concrete action point for 2025.

High-touch, long-term relationships with premium media owners

The foundation of the platform rests on its publisher relationships. The combined company maintains direct partnerships with more than 10,000 publishers globally. These are described as premium media environments, suggesting contractual depth beyond simple ad serving. This scale helps the platform reach over 2.2 billion consumers per month, which is the leverage point for securing long-term media contracts.

Self-service options for mid-market and direct response advertisers

For the broader advertiser base, which includes the mid-market and direct response advertisers, the relationship shifts toward scalable, lower-touch models. The total advertiser base is stated at 20,000 globally. Looking at the legacy Outbrain Amplify platform, as of 2025, there are 8,344 verified companies using that specific self-service tool, indicating a significant existing user base accustomed to platform independence.

The growth in Connected TV (CTV) is also relevant here, as it represents a modern, often programmatically accessible channel. CTV revenue grew by more than 100% year-over-year in Q1 2025, making up approximately 5% of total ad spend.

Contractual agreements with publishers for exclusive ad placements

The direct partnership model with 10,000 publishers implies contractual agreements are in place to secure inventory, especially for newer formats like CTV. These agreements are crucial for ensuring the omnichannel outcomes platform can deliver across curated inventory. While the specific terms of exclusivity aren't public, the structure is built on direct supply paths across the open internet and CTV.

Here's a quick look at the scale of the customer base as of the Q1 2025 reporting period:

The focus on driving higher RPM (revenue per thousand impressions) through improved algorithms suggests that even the self-service relationships are being optimized for yield, which helps publisher satisfaction.

Finance: draft 13-week cash view by Friday

Outbrain Inc. (OB) - Canvas Business Model: Channels

You're looking at how Outbrain Inc., now operating as Teads following the February 2025 acquisition, gets its value proposition-driving outcomes for advertisers and revenue for publishers-out to the market. The channel strategy is clearly multi-pronged, balancing direct relationships with broad programmatic reach.

The direct sales effort targets the biggest spenders. This is where the high-touch relationship matters for complex brand campaigns. As of Q1 2025, the company has approximately 500 advertisers spending at least a half a million dollars on a rolling 12-month basis. These top-tier customers drive significant volume, with their average annual spend exceeding $2 million, which accounts for roughly 70% of total customer spend.

Distribution through publisher partnerships remains foundational. This involves direct integration with over 10,000 premium publisher websites. This scale is what feeds the recommendation engine across the open web. The platform powers the discovery feed experience for over one billion people globally.

The Connected TV (CTV) platform is a major growth vector. For the first quarter of 2025, CTV revenues grew by more than 100% year-over-year on a pro forma basis. This segment now makes up approximately 5% of total ad spend. The company has access to more than 300,000,000 TV screens globally, with about half coming from exclusive partnerships with LG and Vida.

Programmatic channels are essential for scale and efficiency. Outbrain Inc. utilizes Demand-Side Platforms (DSPs) to connect with a wider pool of advertisers seeking automated buying of its inventory across the open internet.

Geographic reach is supported by a significant physical footprint. While the prompt suggests over 30 offices, recent data indicates the company operates out of 18 global offices. This network supports publishers and marketers in over 55 countries.

Here's a quick look at the scale across these key channels as of the latest reporting:

The Moments vertical video offering is also a growing distribution point, live on over 70 publishers, including major names like Axel Springer and Fox News.

You should track the synergy realization from the Teads acquisition, as that will directly impact the efficiency of these channels moving into the second half of 2025. Finance: draft 13-week cash view by Friday.

Outbrain Inc. (OB) - Canvas Business Model: Customer Segments

You're looking at the customer base for Outbrain Inc., which, following the February 2025 acquisition, is now operating under the Teads brand. The customer segments are quite distinct, spanning both the supply side (publishers) and the demand side (advertisers).

The platform serves a global base, directly partnered with more than 10,000 publishers and 20,000 advertisers globally as of the first quarter of 2025. This scale is a key part of the value proposition for both sides of the marketplace.

Enterprise brands and agencies seeking full-funnel advertising solutions are a core focus, especially following the integration. We saw initial cross-selling of legacy Outbrain performance solutions to legacy Teads enterprise brand customers starting in the second quarter of 2025. This indicates a strategic push to serve larger, more complex marketing needs across the combined entity.

Premium media owners and publishers, such as news and lifestyle sites, form the supply side. The platform provides them with monetization through personalized recommendations, helping them generate revenue based on user-specific contextual analysis.

Direct response advertisers focused on performance marketing remain a segment, though the combined company is emphasizing a broader brandformance platform strategy. The new strategic Joint Business Partnerships (JBPs) announced in Q1 2025 with major consumer goods companies like Ferrero, Haleon, Philip Morris International, and Beiersdorf highlight the focus on high-value brand advertising.

Here's a quick look at the top-tier advertisers that drive significant revenue:

The customer base is segmented by spend and need, which helps in tailoring the platform's offerings, especially as they integrate the legacy platforms. The focus on high-spending clients is clear when you see the concentration of spend.

• Enterprise brands and agencies requiring full-funnel solutions.
• Premium media owners and publishers (news, lifestyle sites).
• Direct response advertisers needing performance marketing.
• Large advertisers contributing approximately 70% of total spend.
• Total global advertiser partners reached 20,000 as of Q1 2025.

Finance: draft 13-week cash view by Friday.

Outbrain Inc. (OB) - Canvas Business Model: Cost Structure

You're looking at the cost side of the newly combined Teads entity, post-acquisition. The cost structure is heavily influenced by the integration following the February 2025 transaction, which is why you see significant one-time charges alongside the ongoing operational costs.

The largest recurring cost component remains the outlay to secure inventory.

• Traffic Acquisition Costs (TAC) paid to publishers for ad space totaled $183,235 thousand in Q1 2025.

Technology investment is clearly a priority, especially given the focus on AI-driven platforms.

The Research and Development expense, which covers the AI platform build and other tech, was $13,979 thousand for the first quarter of 2025. That's a jump from $9,193 thousand in Q1 2024, showing increased investment in the platform. Honestly, you'd expect that number to keep climbing as they push the AI narrative.

To support the global network of 20,000+ advertisers, the Sales and Marketing spend was substantial in Q1 2025.

The integration phase brought non-recurring hits to the bottom line. You asked specifically about integration and restructuring charges, and the required figure for this is $23.7 million. This is comprised of the reported acquisition-related costs of $16.4 million and restructuring charges of $7.3 million recognized in Q1 2025. It's a clear sign of the upfront cost of streamlining operations post-merger.

Management is actively working to offset these costs through efficiency drives. The operating expense structure is being managed with a clear goal in mind:

• Operating expenses are being scrutinized to realize a projected $40 million in 2025 cost synergies.
• Approximately 90% of the compensation-related synergy actions, which account for about $45 million of the total expected $60 million in 2026 run-rate synergies, have already been actioned as of Q1 2025.

The total operating expenses for Q1 2025, before considering impairment and interest, were $127,086 thousand. That figure includes the restructuring charges of $7,279 thousand. Finance: draft 13-week cash view by Friday.

Outbrain Inc. (OB) - Canvas Business Model: Revenue Streams

You're looking at how Outbrain Inc., now operating as Teads following the February 2025 combination, monetizes its platform across the open internet, mobile, and Connected TV (CTV) environments. The revenue engine is clearly shifting, especially with the integration of Teads' video capabilities.

The core revenue generation still relies on driving advertiser outcomes, which naturally splits between performance-based models, where advertisers pay for clicks (CPC) or conversions (CPA), and branding/video advertising, often transacted on a cost-per-mille (CPM) basis. The company is actively pushing its brandformance platform strategy to capture more upper-funnel spend.

The high-growth area right now is definitely Connected TV. This segment is seeing massive adoption, which is key for scaling revenue outside of the traditional feed recommendations. Here's what the latest data from Q1 2025 shows regarding this shift:

• CTV revenue grew by more than 100% year-over-year in Q1 2025 on a pro forma basis.
• CTV now represents approximately 5% of total ad spend for the combined entity.
• The company has exclusive access to over 300 million home screen placements for CTV.
• The business is focused on cross-selling legacy performance solutions to legacy Teads brand customers.

To give you a clear picture of the financial expectations for the full year, based on analyst consensus and company guidance as of mid-2025, here are the key numbers you need to track:

The company is targeting annualized cost synergies of approximately $40 million for the full year 2025, which directly supports that Adjusted EBITDA floor. So, you see the revenue target, and then you see the profitability commitment built on top of that, helped by those synergy captures.