TTGT Q3 2026 earnings call transcript, November 6, 2026

Thank you, Charlie, and good morning, everyone. As always, we appreciate you taking the time to join us today. Our third quarter results... ...reflect disciplined execution and continued strategic and product progress in a market that remains challenging and shaped by macro uncertainty. In the main, our customers are healthy, they are growing and profitable. However, they continue to wrestle with both the risks and opportunities that AI represents. And the healthy opportunity pipeline that we have built through the year is converting more slowly than we anticipated. Against that backdrop, we continue to invest in our audience membership, in our products, and to focus our go to market efforts in the largest customers and the most attractive markets. In a moment, Dan will review the quarter in more detail, but at a high level, third quarter revenue was $119.2 million, up 2.6% sequentially from the second quarter, a little stronger than last year's 2% sequential improvement, so down 2.5% year on year. Brand-to-demand revenue was 2.5% lower than last year's Q3, while intelligence and advisory revenue was 2.4% lower. Adjusted EBITDA was $18.6 million, representing a margin of 15.6%. For the first nine months, revenue was $341.4 million, down 1.4% year on year. Behind the scenes, we remain focused on and continue to make good progress on our strategic priorities. On the subject of trust and authority, our audience membership unveiled

engagement is a key leading indicator into the underlying health of the business and our ability to grow. AI is changing how technology buyers discover, research and make buying decisions. The buying journey and the concept of the buying group is evolving. That has implications on how our healthcare workers are concerned. We have a lot of impact on what we have astrengure, the products and products and products. We are in the company of a business. We have Legislature and Envision Education, our tools that we have a resources that we need to be willing to get this information We need to understand the potential benefit of your business. We need to see the result of the financial structure. AWS Fisherman Technology, we need to continue to integrate KT. Clients, the vendors of technology and services, raise awareness, establish thought leadership, ensure consideration and generate demand. In the short term, it is giving our customers reason to pause. In the midterm, however, I am confident that the dynamics of this new world render informative target and even more indispensable partner. As in this new world, trust and authority to voices are highly prized and valued assets. As such, we continue to invest in our editorial activities, the source of our audience membership and that vital permissioned first party audience. Our audience membership continued to grow in the third quarter to over 59 million, which represents a mid single digit percentage increase year over year. In particular, active membership across our DAI network grew double digits, further validating the role.

of trusted authoritative content in the buying journey and our strategy and the investments we are making in this area of the business. To that end, in Q3, we completed the brand refresh, replatforming and future proofing of the editorial and audience development strategy of TechTarget. Leveraging the tried and tested dive model, these investments support our strategy of prioritizing engagement over acquisition, quality over quantity and meeting the audience where they are rather than expecting the audience to come to us. The new TechTarget network focuses... on five topics and communities, AI, the CIO, cyber security, data and infrastructure. Further, we will have completed the migration of the remainder of our media titles, for example, dark reading and information week to this new platform and model by the end of Q1 20. 2027 enabling us to extract further performance and scale gains. On the subject of product innovation, we remain committed to investing in our products and leveraging AI technology to enhance how our customers discover, access and extract value from our proprietary market and our permissioned audience.

Pain points identify the exact business problem prospects are actively trying to solve. Pitch Assist automatically crafts tailored messaging and talking points aligned with observed buyer behaviors. And Persona and ICP Intelligence refines ideal customer. Profiles and maps out active buying group roles. Since the launch, over 40% of our users have embraced these new features and adoption continues to grow with encouraging observations. On the subject of speed to insight, our AI assistant produces full buyer persona. intelligence reports in less than a minute. In terms of deepening engagement, sellers using our AI insights spend nearly twice as long in the platform per session as those who do not. And on the subject of insight to action, sellers using pitch assist are far more likely to take a next step. And they're selling journey. Nearly half go on to generate an outreach email to the prospects we've identified. In addition, we launched our model context protocol or MCP integration framework, allowing clients to activate our proprietary intent and buyer intelligence within their own. AI workflows and large language model environments. It is a vitally important step in further embedding our data within the tools our customers use to plan and execute their go-to-market programs. And by way of example, we further announced our plans to integrate buyer intelligence with demand. The demand-based pipeline engine. Beginning in January, joint customers will be able to access InformaTech targets directly observed person level intent data and click level behavioral insights natively within their demand-based investment. We also launched in Q3 the InformaTech target B2B.

AI Authority Index, a diagnostic tool designed to help B2B marketers assess and improve their brand's influence across AI-mediated buying journeys. This builds on the AI visibility audit and the Geo Topic Planner products that we introduced earlier in the year and further strengthens our ability. to help customers understand how their brands and content appear in emerging Answer Engine environments. A key insight from those engagements, while 77% of customers cite AI authority as a priority business objective, only 45% currently have a robust plan. to achieve that goal. This is a clear market opportunity. And finally, on our commercial focus, we continue to focus and align our go to market efforts on the largest clients in the market. This approach is designed to deepen relationships, increase share of wallet, and bring a more integrated set of intelligence data. media, content, and marketing solutions to market. This focus is paying dividends with double digit bookings growth from this cohort in Q3 as we cross sell the breadth and scale of our portfolio and expanded to new business units and geographies. We successfully launched our North American B2B marketing community event Strata in Austin, Texas. With over 50 of our largest clients in the room, Strata represented a unique opportunity to position InformaTech Target as a thought leader in the evolving B2B landscape. We took the opportunity to demonstrate the breadth and scale of InformaTech Target with speakers from BrightTalk.

NetLine and Omdia. And through keynotes and panels featuring our own experts alongside customer and industry voices, we delivered the sort of real world actionable insights our customers count on us for. Looking ahead, we expect a strong seasonal sequential improvement in fourth quarter. revenue and profitability, underpinned by our three channel partner forums across EMEA, the Americas and APAC. However, given the caution and uncertainty in client spending and the slower conversion of our opportunity pipeline, we now expect full year 2026 revenue to be modestly lower than the prior year. Compared with our prior expectation of a return to growth. We expect that this will translate into a full year adjusted EBITDA of between $80 and $85 million, compared to our prior expectation of $95 to $100 million. While I am disappointed in having to realize that to advise our near-term 2026 expectations, I remain confident in our strategy, the investments that we are making, and the long-term opportunity created by a unique combination of trusted brands, market expertise, and proprietary data, and in our ability to leverage AI to unlock greater value. Our priorities as we will transition into 2027 are clear. Taking market share and share of wallet and returning the business to top-line growth remains our key performance indicator. As such, we will continue to invest in our go-to-market and our marketing and sales, increasingly shifting the emphasis of our resources.

to the frontline. We will continue to invest in our products and in particular leverage AI to enable our clients to more easily discover, consume and extract value from our proprietary market and our permissioned audience membership data. And we will continue to invest in trust and authority and our permissioned audience membership. It's a key point of differentiation and what makes us an even more indispensable partner to the B2B technology industry in an age of AI. Now, I'll turn the call over to Dan to discuss our financial results and outlook in more detail, and then we'll be happy to take your questions.

Compared to 18.5% a year ago. The year-over-year change largely reflected the lower revenue and cost inflation, including higher cost of revenues. These pressures were partially offset by structural cost savings and synergies. For the first nine months, adjusted EBITDA margin was $22.6 million compared to 18.5% a year ago. Adjusted EBITDA was $41 million compared with $45.7 million in the prior year period. Adjusted EBITDA margin was 12% compared with 13.2% in the first nine months of 2025. On a gap basis, third quarter net loss narrowed to $18.2 million, or a net loss margin of $15. compared with a net loss of $76.8 million, or a net loss margin of 62.8% in the prior year period. For this first nine months, net loss narrowed to $110.7 million, or a net loss margin of 32.4%, from $998.8 million, or a net loss margin of 288.6%. The year-over-year improvement primarily reflects substantially lower non-cash goodwill impairment charges and the absence of restructuring expense in the third quarter of 2026. From a cash flow standpoint, adjusted free cash flow was a positive $15 million for the first nine months of 2026. Unadjusted free cash flow was impacted by acquisition, integration, and restructuring cost programs we have had in place, the majority of which are now behind us, as we have previously mentioned. Our balance sheet remains strong at September 30, 2020. Cash and cash equivalents were $35.3 million. We had $120.1 million drawn under our $250 million unsecured five-year revolving credit facility, leaving $129.9 million available. This resulted in a net debt of $84.8 million.

representing approximately one-time trailing 12-month adjusted EBITDA. We believe our existing cash and remaining availability are sufficient to meet our anticipated cash needs. Turning to our full-year outlook, we expect a strong seasonal sequential improvement in fourth quarter revenue and profitability. supported by the three annual forums that run in the EMEA, Americas, and APAC regions. For the full year, given continued customer caution and slower pipeline conversion, we now expect 2026 revenue to be modestly lower than the prior year rather than growth. Our opportunity pipeline, as Gary mentioned, remains healthy and is growing. As a consequence of the lower revenue outlook and continued investment in the health of our business for the long term in terms of audience, product innovation, data capabilities, and go-to-market, we now expect full year adjusted EBITDA to be between 80 and 85 million. And with that, we're now happy to answer your questions. Operator, will you please open the line for Q&A? Thank you. The floor is now open for questions. If you would like to ask a question, please press star 1 on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star 1. Star 2, if you would like to remove your questions from the queue.