Taboola.com Ltd
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did TBLA Beat Earnings? Q4 2025 Results
Taboola delivered a mixed fourth quarter for fiscal 2025, falling short of Wall Street expectations on both the top and bottom lines as rising traffic acquisition costs weighed on results. Revenue grew 6.4% year-over-year to $522.31 million, missing the $537.80 million consensus by 2.88%, while earnings per share of $0.17 came in just below the $0.18 estimate, a gap of 3.79%. The primary culprit was traffic acquisition costs, which climbed to $313.60 million from $279.82 million a year ago, compressing gross profit to $175.57 million and pushing Adjusted EBITDA down 6.6% to $86.15 million for the quarter. On the positive side, Taboola swung to full-year GAAP net income of $42.28 million, compared to a net loss of $3.76 million in fiscal 2024, reflecting improved operating leverage and a favorable tax benefit. With some analysts flagging the stock as potentially undervalued following the selloff, investor attention now turns to 2026 guidance calling for revenues of $1.99 billion to $2.05 billion and Adjusted EBITDA of $222 million to $236 million, suggesting the company expects measured momentum ahead.
- Revenue growth of 6.4% YoY in Q4 and 8.3% for the full year
- Realize platform driving improved advertiser outcomes
- 18% reduction in share count through aggressive buybacks
- Full-year Non-GAAP Net Income growth to $168.6 million from $122.4 million
- Full-year free cash flow improvement to $163.4 million from $149.2 million
“2025 was not just about beating guidance - it was a turning point for Taboola and validation that Realize is working. We accelerated growth throughout the year, improved advertiser outcomes, generated strong free cash flow, and reduced our share count by 18%, all while continuing to invest heavily in AI-driven innovation. As Realize gains traction, our proprietary intent data and deep distribution across the open web increasingly differentiate us in an AI-driven world. We believe these structural advantages in data and distribution position Taboola to build the leading performance advertising company beyond Search and Social and drive long-term expansion.”
Taboola CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Taboola expects revenues of $444–$462 million, gross profit of $119–$125 million, ex-TAC Gross Profit of $158–$164 million, Adjusted EBITDA of $20–$26 million, and Non-GAAP Net Income (Loss) of ($1)–$7 million. For full-year 2026, the company expects revenues of $1,993–$2,054 million, gross profit of $601–$621 million, ex-TAC Gross Profit of $753–$774 million, Adjusted EBITDA of $222–$236 million, and Non-GAAP Net Income of $165–$191 million.
TBLA YoY Financials
Figures from SEC filings and company reports. Not investment advice.