Taboola.com (NASDAQ:TBLA) Posts Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Taboola.com (NASDAQ:TBLA) released its earnings results on Wednesday. The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.04), FiscalAI reports. The business had revenue of $476.83 million during the quarter, compared to analysts’ expectations of $499.43 million. Taboola.com had a net margin of 5.64% and a return on equity of 10.72%. Taboola.com’s revenue for the quarter was up 2.4% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.01) EPS.

Here are the key takeaways from Taboola.com’s conference call:

• Taboola raised its full-year ex-TAC gross profit guidance to $772–$783 million and adjusted EBITDA guidance to $228–$240 million, reflecting expected momentum from strategic wins and Realize.
• The company highlighted major publisher expansions, including a forthcoming deal to monetize a partner’s broader display and video inventory and the addition of Fox News; these opportunities are expected to begin contributing in the fourth quarter and ramp in 2027.
• Revenue was pressured by Google’s rapid deprecation of Taboola’s Explore More product and the removal of low-quality publishers, with Explore More previously expected to contribute more than $20 million in second-half ex-TAC; management expects near-term pain but believes the supply cleanup will improve long-term advertiser performance.
• Taboola reported growing adoption of its AI products, with more than 300 advertisers using Realize+ and DeeperDive approaching 10 million users; management cited strong early engagement and substantially higher monetization potential, although these initiatives remain early-stage.
• The company repurchased approximately 9.4 million shares for $41.4 million in the quarter, bringing cumulative buybacks since early 2025 to roughly 20% of shares outstanding, with $114 million remaining under its authorization.

Taboola.com Stock Down 27.1%

Shares of NASDAQ:TBLA traded down $1.44 on Wednesday, reaching $3.85. The company had a trading volume of 8,233,302 shares, compared to its average volume of 2,391,815. The stock has a market capitalization of $937.88 million, a P/E ratio of 10.14 and a beta of 1.50. The stock has a 50-day moving average price of $5.00 and a 200 day moving average price of $4.18. Taboola.com has a twelve month low of $2.84 and a twelve month high of $5.71. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.07.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on TBLA shares. Benchmark upped their price target on shares of Taboola.com from $4.50 to $6.50 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Wall Street Zen upgraded Taboola.com from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. TD Cowen increased their price objective on Taboola.com from $4.00 to $6.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Needham & Company LLC raised their price objective on shares of Taboola.com from $4.50 to $5.50 and gave the company a “buy” rating in a research report on Thursday, May 7th. Finally, Zacks Research cut shares of Taboola.com from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $5.90.

Insider Buying and Selling at Taboola.com

In related news, major shareholder Apollo Management Holdings Gp, sold 12,000,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $4.40, for a total value of $52,800,000.00. Following the transaction, the insider directly owned 18,039,644 shares of the company’s stock, valued at approximately $79,374,433.60. This trade represents a 39.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 20.60% of the company’s stock.

Hedge Funds Weigh In On Taboola.com

A number of institutional investors have recently modified their holdings of TBLA. Quarry LP acquired a new stake in shares of Taboola.com in the third quarter worth $42,000. Headlands Technologies LLC acquired a new position in Taboola.com during the 2nd quarter worth $43,000. Captrust Financial Advisors acquired a new position in Taboola.com during the 2nd quarter worth $46,000. Schonfeld Strategic Advisors LLC bought a new stake in Taboola.com during the third quarter valued at about $54,000. Finally, Boothbay Fund Management LLC bought a new stake in Taboola.com during the third quarter valued at about $55,000. Institutional investors own 42.89% of the company’s stock.

Key Stories Impacting Taboola.com

Here are the key news stories impacting Taboola.com this week:

• Positive Sentiment: Taboola reported second-quarter revenue of $476.8 million, up 2.4% year over year, while net income improved to $4.3 million from a $4.3 million loss a year earlier. Adjusted EBITDA increased 22.8% to $55.5 million, and its margin expanded to 28.8%. Taboola Q2 financial results
• Positive Sentiment: On an adjusted basis, Taboola earned $0.14 per share, exceeding the Zacks consensus estimate of $0.13. The company also raised its full-year guidance for ex-TAC gross profit to $772 million-$783 million and adjusted EBITDA to $228 million-$240 million. Taboola Q2 earnings beat
• Neutral Sentiment: Management cited momentum from its Realize advertising platform, new publisher relationships including Fox News, and other strategic wins as drivers of its longer-term growth strategy.
• Negative Sentiment: Revenue fell short of analysts’ expectations of roughly $499.4 million. Reported diluted GAAP EPS was $0.01, below the $0.05 consensus estimate cited by some market data providers, creating conflicting headline signals versus the adjusted EPS beat. Taboola Q2 earnings and revenue outlook
• Negative Sentiment: Third-quarter revenue guidance of $460 million-$473 million is well below the approximately $519.7 million analyst consensus, while full-year revenue guidance of $1.93 billion-$1.956 billion is also around or below the $2.0 billion expectation. Operating cash flow and free cash flow declined year over year in the quarter, adding to investor concerns about growth quality and near-term demand.

Taboola.com Company Profile

Taboola.com (NASDAQ: TBLA) operates a leading content discovery platform that connects advertisers with premium publishers through native advertising and personalized recommendations. The company’s technology analyzes user behavior and contextual information to deliver promoted content, video, and product recommendations to audiences across a network of thousands of websites and mobile apps. By leveraging machine learning and big data, Taboola helps publishers generate incremental revenue while enabling advertisers to reach engaged users at scale.

Taboola’s suite of products includes feed placements, video recommendations, and sponsored content units designed to blend seamlessly with editorial pages.