Finance

Criteo Shares Soar on Q3 Beat, HQ Shift: How the Digital Ad Specialist Aims for S&P 500 Glory

Criteo’s shares rose after Q3 results beat estimates, with plans to relocate headquarters to Luxembourg and potentially the U.S.

byAndres Castro

October 29, 2025, 3:13 PM

Close-up of a colorful LED stock market ticker showing price changes at night.

A colorful electronic stock ticker displays market changes. By MDL.

Executive Summary

Criteo’s third-quarter results significantly exceeded analyst expectations, with contribution ex-TAC up 8% to $288 million and adjusted EPS increasing 36% to $1.31.

The company announced a strategic two-step plan to relocate its corporate headquarters from Paris to Luxembourg in 2026, with a potential future move to the United States.

This relocation aims to simplify Criteo’s U.S. stock listing, enhance its market presence, and achieve eligibility for major stock indices like the S&P 500 to expand access to capital.

The Story So Far

Criteo, a Paris-based digital advertising specialist, is strategically relocating its corporate headquarters, first to Luxembourg and potentially later to the United States, despite strong financial performance. This move is driven by the aim to simplify its U.S. stock listing from American Depositary Shares to a direct Nasdaq listing, enhance its eligibility for inclusion in major U.S. stock indices like the S&P 500, and ultimately expand its access to capital and broaden its investor base.

Why This Matters

Criteo’s stronger-than-expected third-quarter performance, which boosted its shares, is now coupled with a strategic two-step plan to relocate its corporate headquarters to Luxembourg and potentially the United States. This move aims to streamline its U.S. stock listing and, more significantly, position the company for eligibility in major indices like the S&P 500, thereby expanding its access to passive and active capital and broadening its investor base for future growth.

Who Thinks What?

Criteo’s management, including CFO Sarah Glickman, believes that the strategic two-step relocation of its corporate headquarters, especially the potential move to the U.S., will expand access to passive capital, trigger benchmarking from actively managed funds, broaden its shareholder base, and make it eligible for the S&P 500 market index.

Analysts and the market demonstrated a positive outlook, as Criteo’s third-quarter results significantly surpassed analyst expectations for both contribution ex-TAC and adjusted earnings per share, leading to an 8.7% jump in shares.

Criteo (NASDAQ: CRTO), the Paris-based digital advertising specialist, saw its shares open 8.7% higher on Wednesday after reporting third-quarter results that significantly surpassed analyst expectations. The company also announced a strategic two-step plan to relocate its corporate headquarters from Paris to Luxembourg in 2026, with a potential future move to the United States to enhance its market presence and eligibility for major stock indices.

Third-Quarter Performance Exceeds Forecasts

For the third quarter, Criteo’s contribution excluding traffic acquisition costs (ex-TAC), a key non-GAAP revenue metric in the advertising industry, increased by 8% year-over-year to $288 million. This figure exceeded the average Wall Street analyst estimate of $281.3 million.

Adjusted earnings per diluted share also saw a substantial jump of 36%, reaching $1.31. Analysts had projected earnings closer to $0.93 per share for the period.

Strategic Headquarters Relocation

The company’s relocation initiative involves an initial move of its corporate domicile from Paris to Luxembourg in 2026. Following this, Criteo retains the option for a subsequent relocation to the United States.

This first step to Luxembourg is intended to facilitate a transition for Criteo’s American stock listing from American Depositary Shares (ADS) to a direct listing on the Nasdaq stock exchange, aiming to simplify trading for U.S. investors.

Pursuing Index Eligibility and Capital Access

Management indicated that the potential cross-Atlantic move of corporate headquarters to the U.S. could make Criteo eligible for inclusion in the S&P 500 market index. This eligibility is a significant driver for the relocation strategy.

CFO Sarah Glickman stated on the earnings call that such a move “would expand our access to passive capital, triggering associated benchmarking from actively managed funds and broadening our shareholder base.”

Outlook

Criteo’s robust third-quarter performance, coupled with its ambitious corporate restructuring, signals a strategic pivot aimed at enhancing its financial market standing and investor appeal. The company’s efforts to streamline its U.S. listing and pursue S&P 500 eligibility underscore its long-term growth and capital access objectives.