Q3 FY2026
Filed Nov 4, 2026Taboola Reports Q3 2026 Financial Results; Full Page Monetization Live Across All NBCUniversal; Fox News Live 100%; Dianomi Acquisition Expected to Close Before End of Year
Third-quarter revenue decreased while gross profit, ex-TAC Gross Profit, net income and Adjusted EBITDA increased. Cash flow from operations and Free Cash Flow were lower than the prior-year quarter, while fourth-quarter and full-year guidance calls for higher revenue, gross profit, ex-TAC Gross Profit, Adjusted EBITDA and Non-GAAP Net Income.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenuesGAAP | $462.3M | – | a decrease of (6.9)% |
| Q3 2026 traffic acquisition costGAAP | 277,633 | – | – |
| Q3 2026 other cost of revenuesGAAP | 32,289 | – | – |
| Q3 2026 total cost of revenuesGAAP | 309,922 | – | – |
| Q3 2026 gross profitGAAP | $152.3M | – | an increase of 9.6% |
| Q3 2026 ex-TAC Gross Profitnon-GAAP | $188.8M | – | an increase of 6.8% |
| Q3 2026 research and development, netGAAP | 36,688 | – | – |
| Q3 2026 sales and marketingGAAP | 64,657 | – | – |
| Q3 2026 general and administrativeGAAP | 24,086 | – | – |
| Q3 2026 total operating expensesGAAP | 125,431 | – | – |
| Q3 2026 operating incomeGAAP | 26,910 | – | – |
| Q3 2026 finance income (expenses), netGAAP | (2,736) | – | – |
| Q3 2026 income tax expensesGAAP | (5,809) | – | – |
| Q3 2026 net incomeGAAP | $18.36M | – | improved from Net Income of $5.2 million |
| Q3 2026 basic net income per share attributable to Ordinary and Non-voting Ordinary shareholdersGAAP | $ 0.07 | – | – |
| Q3 2026 diluted net income per share attributable to Ordinary and Non-voting Ordinary shareholdersGAAP | $ 0.06 | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $56.01M | – | up 16.1% |
| Q3 2026 Adjusted EBITDA marginsnon-GAAP | 29.7% | – | – |
| Q3 2026 Non-GAAP Net Incomenon-GAAP | $39.89M | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $35.57M | – | – |
| Q3 2026 purchases of property and equipment, including capitalized internal-use softwareGAAP | (15,177) | – | – |
| Q3 2026 Free Cash Flownon-GAAP | $20.39M | – | – |
| Nine months ended September 30, 2026 revenuesGAAP | $ 1,405,484 | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $ 421,397 | – | – |
| Nine months ended September 30, 2026 ex-TAC Gross Profitnon-GAAP | $ 549,181 | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | 103,553 | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | $ 81,748 | – | – |
| Nine months ended September 30, 2026 diluted net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholdersGAAP | $ 0.28 | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $ 138,188 | – | – |
| Nine months ended September 30, 2026 Non-GAAP Net Incomenon-GAAP | $ 98,369 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $ 175,479 | – | – |
| Nine months ended September 30, 2026 Free Cash Flownon-GAAP | $ 127,991 | – | – |
Q4 2026 and FY 2026 outlook
- RevenueQ4 2026: $ 477 - $493; FY 2026: $ 1,882.5 - $1,898.5
- NoteGross profit: Q4 2026: $ 174 - $183; FY 2026: $ 595 - $604
- Noteex-TAC Gross Profit: Q4 2026: $ 204.5 - 213.5; FY 2026: $ 754 - $763
- NoteAdjusted EBITDA: Q4 2026: $ 73.5 - $82.5; FY 2026: $ 212 - $221
- NoteNon-GAAP Net Income (Loss): Q4 2026: $ 53-$62; FY 2026: $ 151 - $160
- NoteTraffic acquisition cost: Q4 2026: ($277) - ($284); FY 2026: ($1,157) - ($1,164)
- NoteOther cost of revenues: Q4 2026: ($26) - ($26); FY 2026: (130.5) - (130.5)
Capital returns
- Repurchase of Ordinary shares and Non-voting Ordinary shares: $ (30,397) for the three months ended September 30, 2026, compared to $ (34,591) for the three months ended September 30, 2025.
- Repurchase of Ordinary shares and Non-voting Ordinary shares: $ (94,630) for the nine months ended September 30, 2026, compared to $ (184,599) for the nine months ended September 30, 2025.
- Treasury Ordinary shares, at cost: $ (481,223) as of September 30, 2026, compared to $ (385,651) as of December 31, 2025.
What drove it
- Gross profit increased to $ 152,341 from $ 139,019 despite revenues declining to $ 462,263 from $ 496,764.
- Traffic acquisition cost declined to 277,633 from 324,079.
- Sales and marketing declined to 64,657 from 70,090, while research and development, net declined to 36,688 from 37,867.
- Adjusted EBITDA increased to $ 56,009 from $ 48,223, and Adjusted EBITDA margins expanded to 29.7% from 27.3%.
- The company cited bringing more premium publishers onto its platform, increasing revenue with existing publisher partners, and investments in Taboola News and social commerce.
- The company stated that Full Page Monetization is live across all NBCUniversal and Fox News is live 100%.
Concerns
- Revenues decreased of (6.9)% to $ 462,263 in the third quarter.
- Net cash provided by operating activities declined to $ 35,571 from $ 53,203, and Free Cash Flow declined to $ 20,394 from $ 46,289.
- Purchases of property and equipment, including capitalized internal-use software, were (15,177), compared to (6,914).
- The company expects the Dianomi acquisition to close before the end of the year.
- The filing identifies risks relating to advertiser spending, publisher and advertiser relationships, minimum guarantees, competition, third-party cookies, privacy and advertising regulation, third-party policy changes, tariffs, and the war in Israel.
What to watch
- Delivery against Q4 2026 revenue guidance of $ 477 - $493 and FY 2026 revenue guidance of $ 1,882.5 - $1,898.5.
- Delivery against Q4 2026 Adjusted EBITDA guidance of $ 73.5 - $82.5 and FY 2026 Adjusted EBITDA guidance of $ 212 - $221.
- The expected timing and closing of the Dianomi acquisition before the end of the year.
- Cash conversion following third-quarter operating cash flow of $ 35,571 and Free Cash Flow of $ 20,394.
- Further development of Full Page Monetization across NBCUniversal and the Fox News deployment.
Balance sheet and cash flow
- Cash and cash equivalents: $ 128,677 as of September 30, 2026, compared to $ 120,865 as of December 31, 2025.
- Trade receivables: 303,204 as of September 30, 2026, compared to 360,166 as of December 31, 2025.
- Total assets: $ 1,541,090 as of September 30, 2026, compared to $ 1,609,839 as of December 31, 2025.
- Revolving credit facility: 78,500 as of September 30, 2026, compared to 102,300 as of December 31, 2025.
- Total current liabilities: 467,566 as of September 30, 2026, compared to 520,966 as of December 31, 2025.
- Total shareholders' equity: 935,747 as of September 30, 2026, compared to 907,195 as of December 31, 2025.
- Net cash provided by operating activities was $ 35,571 for the three months ended September 30, 2026, compared to $ 53,203.
- Free Cash Flow was $ 20,394 for the three months ended September 30, 2026, compared to $ 46,289.
Analysis
Taboola reported third-quarter revenue of $ 462,263, compared with $ 496,764 in the third quarter of 2025, and described the change as a decrease of (6.9)%. The revenue decline coincided with lower traffic acquisition cost of 277,633 versus 324,079. Gross profit rose to $ 152,341 from $ 139,019, while ex-TAC Gross Profit increased to $ 188,756 from $ 176,811.
Operating expenses were lower year over year, with research and development, net at 36,688 versus 37,867, sales and marketing at 64,657 versus 70,090, and general and administrative at 24,086 versus 24,557. Operating income was 26,910 versus 6,505. Net income was $ 18,365 compared with $ 5,244, and diluted net income per share was $ 0.06 compared with $ 0.02.
Adjusted EBITDA increased to $ 56,009 from $ 48,223 and the company reported Adjusted EBITDA margins of 29.7%, compared with 27.3%. Non-GAAP Net Income was $ 39,894 versus $ 34,263. Cash conversion was weaker in the quarter: operating cash flow was $ 35,571 compared with $ 53,203, capital expenditures were (15,177) compared with (6,914), and Free Cash Flow was $ 20,394 compared with $ 46,289.
The balance sheet reported cash and cash equivalents of $ 128,677 and a revolving credit facility of 78,500 at September 30, 2026. The company repurchased Ordinary shares and Non-voting Ordinary shares totaling $ (30,397) during the quarter. Management expects the Dianomi acquisition to close before year end and highlighted Full Page Monetization across NBCUniversal and a fully live Fox News deployment.
For Q4 2026, Taboola guided to revenue of $ 477 - $493, gross profit of $ 174 - $183, ex-TAC Gross Profit of $ 204.5 - 213.5, Adjusted EBITDA of $ 73.5 - $82.5, and Non-GAAP Net Income (Loss) of $ 53-$62. Full-year guidance calls for revenue of $ 1,882.5 - $1,898.5, gross profit of $ 595 - $604, ex-TAC Gross Profit of $ 754 - $763, Adjusted EBITDA of $ 212 - $221, and Non-GAAP Net Income (Loss) of $ 151 - $160.
Management, verbatim
In the third quarter, we delivered $189 million in ex-TAC and $56 million in Adjusted EBITDA.
Adam Singolda, CEO of Taboola
As the open web continues to evolve, we're focused on three areas, bringing more premium publishers onto our platform, growing the revenue we generate with our existing publisher partners, and investing in complementary growth areas like Taboola News and social commerce.
Adam Singolda, CEO of Taboola
We believe our technology, data, scale and deep partner relationships position us well to help publishers and advertisers navigate change and capture the opportunities ahead.
Adam Singolda, CEO of Taboola
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics
- Segment revenue and segment profitability disclosure
- GAAP gross margin
- Non-GAAP EPS
- Dividend amount or dividend policy
- Q4 2026 and FY 2026 guidance for operating expenses
- Q4 2026 and FY 2026 guidance for tax rate
- Prior outlook for comparison with actual results
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.