Taboola.com (NASDAQ:TBLA) Posts Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Q1 beat expectations: Taboola reported $0.20 EPS vs. a ($0.01) consensus and revenue of $466.4M (+9.1% YoY), and management raised full‑year revenue and Adjusted EBITDA guidance while targeting a ~30% Adjusted EBITDA margin.
• Profitability caveats: Adjusted EBITDA fell ~25.7% YoY to $26.7M and margins compressed, with results affected by FX headwinds (stronger Israeli shekel) and GAAP metrics boosted by a ~$77M pre‑tax legal settlement excluded from non‑GAAP figures.
• Share repurchases prioritized: Taboola repurchased ~7M shares for $23.5M in Q1 (about 19% repurchased between 2025 and YTD‑2026) and plans to allocate the majority of free cash flow to further buybacks.

Taboola.com (NASDAQ:TBLA - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.20 earnings per share for the quarter, topping analysts' consensus estimates of ($0.01) by $0.21, FiscalAI reports. Taboola.com had a net margin of 2.21% and a return on equity of 11.97%. The business had revenue of $466.40 million during the quarter, compared to the consensus estimate of $453.30 million. During the same quarter last year, the company earned ($0.03) earnings per share. The business's quarterly revenue was up 9.1% compared to the same quarter last year.

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

• Q1 results beat the high end of guidance across all metrics with revenue up 9% YoY to $466.4M and management raised full‑year guidance (revenue $2.00–2.06B, ex‑TAC gross profit $760–781M, Adjusted EBITDA $222–240M) while targeting a 30% Adjusted EBITDA margin.
• Realize (and the new agentic automation Realize+) is driving advertiser success and scale — scaled advertisers rose 3.5% and average revenue per scaled advertiser increased 5%, with integrations into LLMs/Claude and products like DeeperDive cited as incremental growth catalysts.
• Foreign exchange is a meaningful headwind (notably a stronger Israeli shekel), costing roughly $13M in FY operating expenses and about a $4.7M drag to Q1 Adjusted EBITDA, and Q1 net income / free cash flow benefited from a one‑time legal settlement that is excluded from non‑GAAP results.
• Capital allocation prioritizes buybacks — Taboola repurchased ~7M shares for $23.5M in Q1 and says it has repurchased ~19% of the company between 2025 and YTD‑2026, planning to use the majority of free cash flow for further repurchases.

Taboola.com Stock Performance

TBLA stock traded up $0.85 during mid-day trading on Wednesday, reaching $4.66. The company had a trading volume of 6,752,595 shares, compared to its average volume of 1,671,504. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $1.13 billion, a P/E ratio of 31.03 and a beta of 1.43. Taboola.com has a one year low of $2.84 and a one year high of $4.65. The stock's 50-day simple moving average is $3.33 and its two-hundred day simple moving average is $3.71.

Analysts Set New Price Targets

TBLA has been the topic of several research analyst reports. Rosenblatt Securities raised their price objective on Taboola.com from $6.00 to $7.00 and gave the stock a "buy" rating in a research note on Thursday, February 26th. Wall Street Zen cut Taboola.com from a "strong-buy" rating to a "buy" rating in a research note on Saturday, February 28th. Needham & Company LLC restated a "buy" rating and set a $4.50 price objective on shares of Taboola.com in a research note on Wednesday, February 25th. Zacks Research cut Taboola.com from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Taboola.com in a research note on Tuesday, April 21st. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $5.00.

Taboola.com News Roundup

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

• Positive Sentiment: Q1 beats on revenue and EPS — Taboola reported Q1 revenue of $466.4M (up 9.1% YoY) and EPS that beat consensus, driven by Realize platform momentum. Taboola (TBLA) beats first-quarter forecasts
• Positive Sentiment: Raised revenue guidance — Q2 revenue guide $492–$505M (above consensus) and FY 2026 revenue guide $2.006–$2.062B, signaling management sees accelerating demand. Taboola Reports Strong First Quarter 2026 Results
• Positive Sentiment: Cash generation & profit turnaround — net income improved to ~$59.1M from a prior-year loss; operating cash flow ~$108.7M and free cash flow ~$90.3M. Management also signaled aggressive share repurchases. Taboola Reports Strong Q1 2026 Results (Quiver)
• Neutral Sentiment: Company provided non‑GAAP guidance (Adjusted EBITDA, Non‑GAAP net income) but did not give GAAP net‑income guidance due to variability in items like share‑based comp and warrant valuations — limits direct GAAP reconciliation. Taboola Press Release (guidance disclosure)
• Neutral Sentiment: Pre‑earnings commentary flagged FX headwinds and higher costs as risks heading into the report; those remain items to monitor on upcoming calls. TBLA set to report Q1 (Zacks preview)
• Negative Sentiment: Adjusted EBITDA declined ~25.7% year‑over‑year to $26.7M and margins compressed; some of the GAAP beat was driven by a ~$77M pre‑tax legal settlement that makes comparability to ongoing operations more challenging. Quiver summary (EBITDA & settlement)
• Negative Sentiment: Related‑party revenue increased and recent insider sales have been sizeable — items investors may flag for corporate governance and revenue quality scrutiny. Quiver (insider & related‑party notes)

Institutional Investors Weigh In On Taboola.com

A number of hedge funds have recently added to or reduced their stakes in the stock. Mercer Global Advisors Inc. ADV lifted its stake in Taboola.com by 126.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 79,591 shares of the company's stock valued at $367,000 after buying an additional 44,498 shares during the last quarter. Empowered Funds LLC raised its stake in shares of Taboola.com by 4.1% during the fourth quarter. Empowered Funds LLC now owns 1,427,478 shares of the company's stock valued at $6,581,000 after purchasing an additional 55,910 shares in the last quarter. XTX Topco Ltd raised its stake in shares of Taboola.com by 78.8% during the fourth quarter. XTX Topco Ltd now owns 635,318 shares of the company's stock valued at $2,929,000 after purchasing an additional 280,036 shares in the last quarter. VARCOV Co. bought a new stake in shares of Taboola.com during the fourth quarter valued at about $761,000. Finally, Stoic Point Capital Management LLC bought a new stake in shares of Taboola.com during the fourth quarter valued at about $5,699,000. 42.89% of the stock is currently owned by institutional investors.

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.

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