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Debt Obligations
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt Obligations
8. Debt Obligations
The following table presents the Company’s debt obligations as of March 31, 2026 and December 31, 2025:
March 31, 2026December 31, 2025
(In thousands)
10.000% Senior Secured Notes
$628,226 $628,226 
    Debt discount(9,862)(10,364)
    Unamortized debt issuance costs(12,130)(12,749)
Total long-term debt606,234 605,113 
Short-term debt (€15 million)
17,194 17,595 
    Total debt$623,428 $622,708 
10.000% Senior Secured Notes due 2030
In February 2025, the Company issued $637.5 million in aggregate principal amount of 10.000% senior secured notes due February 15, 2030 (the “Senior Secured Notes”). The Senior Secured Notes bear interest at 10.000% per annum, payable semi-annually on February 15 and August 15. In June 2025, the Company repurchased $9.3 million aggregate principal amount of the Senior Secured Notes for $8.0 million in cash.
During the three months ended March 31, 2026, the Company recognized approximately $16.8 million of interest expense related to the Senior Secured Notes, including amortization of debt discount and deferred financing costs of $1.1 million. As of March 31, 2026, the Senior Secured Notes had an outstanding balance of $606.2 million, net of unamortized discount and deferred financing costs. There have been no material changes to the terms of the Senior Secured Notes or related covenants since December 31, 2025. See Note 9, Debt Obligations—10% Senior Secured Notes due 2030, to the 2025 Form 10-K for additional information.
Credit Facilities
2025 Revolving Facility
The Company maintains a $100.0 million revolving credit facility (the “2025 Revolving Facility”) pursuant to the credit agreement (the “Credit Agreement”) dated February 3, 2025, among the Company, OT Midco Inc., the additional borrowers party thereto from time to time, Goldman Sachs Bank USA, as sole administrative agent and swingline lender, U.S. Bank Trust Company, National Association, as the collateral agent, and the lenders, issuing banks and arrangers party thereto from time to time. The 2025 Revolving Facility may be used for working capital and other general corporate purposes of the Company and its subsidiaries. As of March 31, 2026, no borrowings were outstanding under the 2025 Revolving Facility and the Company was in compliance with all applicable covenants. The 2025 Revolving Facility includes a springing financial covenant based on a maximum senior secured net leverage ratio. As of March 31, 2026, the available borrowing capacity was limited to $40.0 million (representing 40% of the facility limit) to maintain compliance with this covenant. There have been no material changes to the terms of the Credit Agreement since December 31, 2025. See Note 9, Debt Obligations—Credit Facilities—Credit Agreement, to the 2025 Form 10-K for additional information.
Short-Term Debt
The Company’s French subsidiary maintains a €15 million overdraft credit facility with HSBC (the “Overdraft Facility”) which may be used to fund the general working capital needs of Teads France SAS. As of March 31, 2026, approximately $17.2 million (€15 million) in borrowings were outstanding under the Overdraft Facility, which were recorded within short-term debt in the Company’s condensed consolidated balance sheets. The Company is currently in discussions with HSBC and expects to pay down the Overdraft Facility in full via a payment plan of up to six months. See Note 9, Debt Obligations—Short-Term Debt, to the 2025 Form 10-K for additional information.
Interest Expense and Prior Period Activity
The Company recognized total interest expense of $17.4 million and $23.1 million for the three months ended March 31, 2026 and 2025, respectively. Interest expense for the three months ended March 31, 2025 includes $13.3 million related to the $625 million senior secured bridge term loan credit facility (the “Bridge Facility”), which was used to finance the Acquisition and subsequently repaid in full in February 2025. Additionally, in connection with the entry into the Credit Agreement in February 2025, the Company terminated its 2021 credit facility and recognized the remaining $0.2 million of unamortized deferred financing costs within interest expense.