Verve Group’s shares sank 17.6% to $1.08 on Wednesday after the digital advertising firm reported softer-than-expected organic growth in its second quarter of 2026, despite a 6.5% year-over-year revenue increase to EUR 152.3 million.
The company’s organic revenue growth of 3.5% fell short of management’s expectations, contributing to the decline. Total revenue growth was supported by a 4.6% contribution from acquisitions, primarily from Jun Group and Captify, partially offset by a 1.7% currency headwind from a weaker U.S. dollar. Adjusted EBITDA rose 2.2% to EUR 30.1 million, with an EBITDA margin of 19.8%, while gross profit margin expanded by 6.9 percentage points to 40.0%.
Cash at quarter-end stood at EUR 132.4 million, down EUR 14.8 million from the prior quarter. One-time items totaling EUR 9.3 million included restructuring costs, legal fees, and advisory expenses. Ad impressions declined 10% year-over-year as the company shifted away from lower-quality inventory. Customer retention remained strong at 99%, while large clients generating over $100,000 annually grew 21.5%.
Verve Group reaffirmed its full-year 2026 guidance, projecting revenue between EUR 680 million and EUR 730 million, and EBITDA between EUR 145 million and EUR 175 million. Capital expenditures are estimated at EUR 74 million to EUR 79 million, including EUR 34 million for acquisitions. The company expects annualized cost savings of EUR 8 million from restructuring actions and gross margins to remain within a 39% to 41% range for the remainder of the year.
Management highlighted progress in its retail media network, which now spans over 17,000 stores in Germany, reaching 46 million shoppers weekly. Plans include a U.S. expansion. The company also noted near-full utilization of its EUR 100 million securitization facility and a EUR 8.5 million one-off tax settlement in Germany covering 2011 to 2019.
Geographically, North America accounted for 75% of revenues, with mobile advertising representing 90% of the total. Gaming and entertainment segments performed well, while macroeconomic uncertainty delayed spending in travel, consumer packaged goods, automotive, and parts of large tech.
Verve Group is scheduled to relocate its corporate headquarters to Ireland on October 1, 2026, in preparation for a potential future direct listing in the U.S.
