Second Quarter 2026
Filed Aug 5, 2026Taboola Reports Strong Q2 2026 Financial Results, & Raises Full-Year ex-TAC Gross Profit and Adjusted EBITDA Guidance
Revenue increased 2.4%, while ex-TAC Gross Profit increased 11.8%, Adjusted EBITDA increased 22.8%, and net income improved to $4.3 million from a net loss. The company also raised full-year ex-TAC Gross Profit and Adjusted EBITDA guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $476.8 million | – | 2.4% |
| Gross ProfitGAAP | $139.5 million | – | 2.9% |
| ex-TAC Gross Profitnon-GAAP | $192.4 million | – | 11.8% |
| Net IncomeGAAP | $4.3 million | – | – |
| Adjusted EBITDAnon-GAAP | $55.5 million | – | 22.8% |
| Adjusted EBITDA marginsnon-GAAP | 28.8% | – | – |
| Cash Flow provided by operating activitiesGAAP | $31.3 million | – | – |
| Free Cash Flownon-GAAP | $17.3 million | – | – |
Q3 2026 and FY 2026 outlook
- RevenueQ3 2026: $ 460 - $473; FY 2026: $ 1,930 - $1,956
- NoteGross profit: Q3 2026: $ 148 - $152; FY 2026: $ 605 - $615
- Noteex-TAC Gross Profit: Q3 2026: $ 184 - $190; FY 2026: $ 772 - $783
- NoteAdjusted EBITDA: Q3 2026: $ 51.5 - $56.5; FY 2026: $ 228 - $240
- NoteNon-GAAP Net Income (Loss): Q3 2026: $ 38 - $42; FY 2026: $ 168 - $176
What drove it
- The company cited momentum with Realize.
- The company cited the addition of Fox News and other strategic wins.
- Management said it is strengthening its position in performance advertising and executing on its vision to build the leading platform for the Open Web.
- The company reported ex-TAC Gross Profit growth of 11.8% and Adjusted EBITDA growth of 22.8%.
Concerns
- Cash Flow provided by operating activities was $31.3 million, compared to $47.4 million.
- Free Cash Flow was $17.3 million, compared to $34.2 million.
- The company identified risks related to whether Realize can achieve its intended performance objectives and attract, retain and grow advertisers and advertising spending.
- The company identified intense competition in the digital advertising space, including competitors with significantly more resources.
- The company identified risks from reliance on a limited number of partners for a significant portion of revenue.
- The company identified risks related to privacy, data protection, advertising regulation, competition, third-party cookies, tariffs, and the war in Israel.
What to watch
- Execution against Q3 2026 revenue guidance of $ 460 - $473 and FY 2026 revenue guidance of $ 1,930 - $1,956.
- Execution against Q3 2026 ex-TAC Gross Profit guidance of $ 184 - $190 and FY 2026 guidance of $ 772 - $783.
- Execution against Q3 2026 Adjusted EBITDA guidance of $ 51.5 - $56.5 and FY 2026 guidance of $ 228 - $240.
- Whether Realize momentum, the Fox News addition, and other strategic wins support advertiser spending and platform scale.
- Operating cash flow and Free Cash Flow following the reported comparisons with the prior-year quarter.
Balance sheet and cash flow
- Cash and cash equivalents: $ 133,052 U.S. dollars in thousands as of June 30, 2026.
- Cash and cash equivalents: $ 120,865 U.S. dollars in thousands as of December 31, 2025.
- Trade receivables: $ 316,740 U.S. dollars in thousands as of June 30, 2026.
- Trade receivables: $ 360,166 U.S. dollars in thousands as of December 31, 2025.
- Total current assets: $ 518,943 U.S. dollars in thousands as of June 30, 2026.
- Total current assets: $ 558,031 U.S. dollars in thousands as of December 31, 2025.
- Cash Flow provided by operating activities was $31.3 million, compared to $47.4 million.
- Free Cash Flow was $17.3 million, compared to $34.2 million.
Analysis
Taboola reported second-quarter 2026 revenue of $476.8 million, an increase of 2.4%. GAAP Gross Profit was $139.5 million, up 2.9%, while non-GAAP ex-TAC Gross Profit was $192.4 million, up 11.8%. Management attributed its commercial momentum to Realize, the addition of Fox News, and other strategic wins.
Profitability improved materially in the reported quarter. Net Income was $4.3 million, improving from a Net Loss of $(4.3) million. Adjusted EBITDA was $55.5 million, up 22.8%, and Adjusted EBITDA margins expanded to 28.8% from 26.2%. The faster growth in ex-TAC Gross Profit and Adjusted EBITDA than reported revenue is the central operating feature of the quarter.
Cash conversion was weaker than the prior-year comparison. Cash Flow provided by operating activities was $31.3 million, compared to $47.4 million, and Free Cash Flow was $17.3 million, compared to $34.2 million. Cash and cash equivalents were $ 133,052 U.S. dollars in thousands as of June 30, 2026, compared with $ 120,865 U.S. dollars in thousands as of December 31, 2025. The supplied filing excerpt does not include debt or complete liabilities.
For Q3 2026, Taboola guided for Revenues of $ 460 - $473, Gross profit of $ 148 - $152, ex-TAC Gross Profit of $ 184 - $190, Adjusted EBITDA of $ 51.5 - $56.5, and Non-GAAP Net Income (Loss) of $ 38 - $42. For FY 2026, it guided for Revenues of $ 1,930 - $1,956, Gross profit of $ 605 - $615, ex-TAC Gross Profit of $ 772 - $783, Adjusted EBITDA of $ 228 - $240, and Non-GAAP Net Income (Loss) of $ 168 - $176. The company stated that it raised full-year ex-TAC Gross Profit and Adjusted EBITDA guidance, but no previous outlook was provided for comparison.
Management, verbatim
We delivered another quarter beating our ex-TAC Gross Profit and Adjusted EBITDA guidance and are raising our full-year guidance for both metrics.
Adam Singolda, CEO of Taboola
With the momentum we’re seeing with Realize, the addition of Fox News and other strategic wins, we are further strengthening our position as a leader in performance advertising and executing on our vision to build the leading platform for the Open Web.
Adam Singolda, CEO of Taboola
Not in the filing
stated, not guessed- Previous-release outlook, so reported results cannot be compared with prior guidance.
- GAAP operating income or loss.
- GAAP gross margin.
- GAAP and non-GAAP diluted EPS.
- Actual second-quarter 2026 non-GAAP net income or loss.
- Revenue by operating segment.
- Prior-year dollar values for Revenues, Gross Profit, ex-TAC Gross Profit, and Adjusted EBITDA.
- Prior-quarter comparisons for reported operating metrics.
- Debt, total liabilities, and shareholders' equity, because the supplied balance-sheet excerpt is truncated.
- Capital-return activity, including share repurchases and dividends.
- Guidance for operating expenses and tax rate.
- GAAP net income or loss guidance and a reconciliation of Adjusted EBITDA and Non-GAAP Net Income (Loss) guidance to GAAP net income or loss.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.