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TBLA Q1 Earnings Match, Revenues Rise Y/Y on Realize Momentum
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Key Takeaways
TBLA reports Q1'26 loss of 1 cent per share, matching estimates as revenues rise 9.1% to $466.4M.
TBLA's growth was driven by Realize. Scaled advertisers grew 3.5% & average revenue per advertiser rose 5%.
TBLA ex-TAC gross profit rose 10.8% on higher ad spend, offset by FX headwinds and rising costs.
Taboola.com (TBLA - Free Report) posted a first-quarter 2026 loss of 1 cent per share, in line with the Zacks Consensus Estimate. Revenues of $466.4 million increased 9.1% year over year, surpassing the Zacks Consensus Estimate by 2.71%.
The quarter reflected continued traction from Realize, Taboola’s performance advertising platform, alongside growth in scaled advertisers and higher average spend per scaled advertiser.
TBLA’s Top Line in Detail
TBLA’s growth narrative in the quarter leaned on advertiser expansion at the higher end of its customer base. Revenues from scaled advertisers represented roughly 85% of total revenues, underscoring the mix shift toward larger, more repeatable budgets.
Scaled advertisers grew about 3.5% year over year to 2,061, while average revenue per scaled advertiser increased about 5% to approximately $193,000. Management linked the improvement to product enhancements in Realize that helped drive higher ad spend and better retention among existing advertisers.
Taboola.com Ltd. Price, Consensus and EPS Surprise
Taboola’s ex-TAC gross profit rose 10.8% year over year to $168.1 million, supported primarily by higher advertising spend. The company cited solid performance from Taboola News and Bidded Supply as contributors to the expansion in ex-TAC gross profit.
Gross profit increased 8.6% to $129.6 million. The company noted that gains in ex-TAC gross profit were partially offset by higher infrastructure and operational costs as it scales the business for future growth initiatives tied to performance advertising.
Adjusted EBITDA was $26.7 million in the quarter, down 25.7% year over year, with the adjusted EBITDA margin at 15.9%. Management attributed the margin pressure partly to foreign exchange headwinds, particularly from the Israeli shekel, given Taboola’s cost base.
The company quantified FX as roughly a $4.7 million headwind to first-quarter adjusted EBITDA, driven by an estimated $3.6 million tailwind to ex-TAC gross profit and an $8.2 million headwind to operating expenses. Management indicated that FX is expected to remain a headwind through the rest of 2026.
Taboola reported operating income of $69.4 million in the first quarter of 2026 compared with an operating loss of $6.3 million in the first quarter of 2025, reflecting a strong year-over-year improvement driven by higher revenues and a one-time settlement gain. As a result, the company’s operating margin improved significantly year over year, moving from a negative operating margin in the first quarter of 2025 to a positive margin in the first quarter of 2026. The improvement was supported by stronger gross profit expansion and improved operating leverage, partially offset by higher operating expenses.
Taboola’s Balance Sheet & Cash Flow
As of March 31, 2026, cash and cash equivalents were $150.3 million compared with $120.9 million as of Dec. 31, 2025. At the end of the first quarter, TBLA had long-term debt of $66.4 million. Management described available liquidity of about $203.6 million, reflecting the capacity to fund growth initiatives while continuing shareholder returns.
Cash flow from operating activities was $108.7 million in the first quarter compared with $59.7 million in the previous quarter. Free cash flow was $90.3 million in the first quarter of 2026 compared with $46.9 million in the previous quarter. The company noted that free cash flow benefited from proceeds related to a one-time legal settlement in the period.
Taboola leaned into capital returns. In the quarter, it repurchased about 7 million shares for a total consideration of $23.5 million. Management reiterated its intent to allocate the majority of free cash flow to share repurchases, with approximately $160 million remaining under authorization.
TBLA Raises 2026 Outlook
For the second quarter of 2026, the company guided to revenues of $492-$505 million, adjusted EBITDA of $49-$55 million and non-GAAP net income of $36-43 million.
For the year 2026, Taboola raised its outlook and now expects revenues of $2,006-$2,062 million, adjusted EBITDA of $222-$240 million and non-GAAP net income of $167-$191 million.
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TBLA Q1 Earnings Match, Revenues Rise Y/Y on Realize Momentum
Key Takeaways
Taboola.com (TBLA - Free Report) posted a first-quarter 2026 loss of 1 cent per share, in line with the Zacks Consensus Estimate. Revenues of $466.4 million increased 9.1% year over year, surpassing the Zacks Consensus Estimate by 2.71%.
The quarter reflected continued traction from Realize, Taboola’s performance advertising platform, alongside growth in scaled advertisers and higher average spend per scaled advertiser.
TBLA’s Top Line in Detail
TBLA’s growth narrative in the quarter leaned on advertiser expansion at the higher end of its customer base. Revenues from scaled advertisers represented roughly 85% of total revenues, underscoring the mix shift toward larger, more repeatable budgets.
Scaled advertisers grew about 3.5% year over year to 2,061, while average revenue per scaled advertiser increased about 5% to approximately $193,000. Management linked the improvement to product enhancements in Realize that helped drive higher ad spend and better retention among existing advertisers.
Taboola.com Ltd. Price, Consensus and EPS Surprise
Taboola.com Ltd. price-consensus-eps-surprise-chart | Taboola.com Ltd. Quote
TBLA’s Q1 Operating Results
Taboola’s ex-TAC gross profit rose 10.8% year over year to $168.1 million, supported primarily by higher advertising spend. The company cited solid performance from Taboola News and Bidded Supply as contributors to the expansion in ex-TAC gross profit.
Gross profit increased 8.6% to $129.6 million. The company noted that gains in ex-TAC gross profit were partially offset by higher infrastructure and operational costs as it scales the business for future growth initiatives tied to performance advertising.
Adjusted EBITDA was $26.7 million in the quarter, down 25.7% year over year, with the adjusted EBITDA margin at 15.9%. Management attributed the margin pressure partly to foreign exchange headwinds, particularly from the Israeli shekel, given Taboola’s cost base.
The company quantified FX as roughly a $4.7 million headwind to first-quarter adjusted EBITDA, driven by an estimated $3.6 million tailwind to ex-TAC gross profit and an $8.2 million headwind to operating expenses. Management indicated that FX is expected to remain a headwind through the rest of 2026.
Taboola reported operating income of $69.4 million in the first quarter of 2026 compared with an operating loss of $6.3 million in the first quarter of 2025, reflecting a strong year-over-year improvement driven by higher revenues and a one-time settlement gain. As a result, the company’s operating margin improved significantly year over year, moving from a negative operating margin in the first quarter of 2025 to a positive margin in the first quarter of 2026. The improvement was supported by stronger gross profit expansion and improved operating leverage, partially offset by higher operating expenses.
Taboola’s Balance Sheet & Cash Flow
As of March 31, 2026, cash and cash equivalents were $150.3 million compared with $120.9 million as of Dec. 31, 2025. At the end of the first quarter, TBLA had long-term debt of $66.4 million. Management described available liquidity of about $203.6 million, reflecting the capacity to fund growth initiatives while continuing shareholder returns.
Cash flow from operating activities was $108.7 million in the first quarter compared with $59.7 million in the previous quarter. Free cash flow was $90.3 million in the first quarter of 2026 compared with $46.9 million in the previous quarter. The company noted that free cash flow benefited from proceeds related to a one-time legal settlement in the period.
Taboola leaned into capital returns. In the quarter, it repurchased about 7 million shares for a total consideration of $23.5 million. Management reiterated its intent to allocate the majority of free cash flow to share repurchases, with approximately $160 million remaining under authorization.
TBLA Raises 2026 Outlook
For the second quarter of 2026, the company guided to revenues of $492-$505 million, adjusted EBITDA of $49-$55 million and non-GAAP net income of $36-43 million.
For the year 2026, Taboola raised its outlook and now expects revenues of $2,006-$2,062 million, adjusted EBITDA of $222-$240 million and non-GAAP net income of $167-$191 million.
Zacks Rank & Stocks to Consider
TBLA currently carries a Zacks Rank #3 (Hold).
Box (BOX - Free Report) , Cisco Systems (CSCO - Free Report) , and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. All the stocks presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Box have lost 14.2% in the year-to-date period. BOX is set to report its first-quarter fiscal 2027 results on May 26.
Cisco Systems shares have increased 19.6% in the year-to-date period. CSCO is scheduled to release third-quarter fiscal 2026 results on May 13.
DELL Technologies shares rose 82.9% in the year-to-date period. DELL is set to report its first-quarter fiscal 2027 results on May 28.