Taboola — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenues were $462.3 million, a 6.9% decrease year-over-year compared to Q3 2025.
• Gross profit was $152.3 million, an increase of 9.6% year-over-year; ex-TAC Gross Profit was $188.8 million, an increase of 6.8%.
• Net income improved to $18.4 million from $5.2 million in Q3 2025.
• Adjusted EBITDA was $56.0 million, up 16.1% year-over-year, with margins expanding to 29.7% from 27.3%.
• Cash flow provided by operating activities was $35.6 million, down from $53.2 million in Q3 2025.
• Free cash flow was $20.4 million, down from $46.3 million in Q3 2025.
• Cash and cash equivalents were $128.7 million as of September 30, 2026, compared to $120.9 million as of December 31, 2025.
• Trade receivables were $303.2 million as of September 30, 2026, down from $360.2 million as of December 31, 2025.
• Revolving credit facility balance was $78.5 million as of September 30, 2026, down from $102.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 revenue guidance is $477 million to $493 million.
• Full Year 2026 revenue guidance is $1,882.5 million to $1,898.5 million.
• Q4 2026 Adjusted EBITDA guidance is $73.5 million to $82.5 million.
• Full Year 2026 Adjusted EBITDA guidance is $212 million to $221 million.
• Q4 2026 Non-GAAP Net Income guidance is $53 million to $62 million.
• Full Year 2026 Non-GAAP Net Income guidance is $151 million to $160 million.
• The company does not provide guidance for GAAP net income (loss) due to the unpredictability of share-based compensation expenses.

Business Segments and Product Lines:

• Full Page Monetization is now live across all NBCUniversal properties.
• Fox News is now 100% live on the platform.
• The acquisition of Dianomi is expected to close before the end of the year.
• Management is focusing on bringing more premium publishers onto the platform, growing revenue with existing partners, and investing in Taboola News and social commerce.

Market and Competitive Landscape:

• The open web continues to evolve, with the company positioning its technology, data, scale, and partner relationships to help publishers and advertisers navigate change.
• Taboola works with thousands of businesses on its Realize platform, reaching over 600 million daily active users across publishers like NBC News and Yahoo, and OEMs such as Samsung and Xiaomi.

Risks and Challenges:

• Risks include the ability to grow and manage growth profitably, maintain customer relationships, and retain key employees.
• Potential impacts from changes in laws, regulations, and third-party policies (including Google) on digital advertising.
• Risks related to the war in Israel, the company's incorporation in Israel, and reliance on a limited number of partners for significant revenue.
• Uncertainty regarding the ability to attract new digital properties, meet minimum guarantee requirements, and secure high-quality content.
• Potential impacts of tariffs on advertising spend and consumer sentiment.

Management Commentary and Tone:

• CEO Adam Singolda stated the company delivered $189 million in ex-TAC and $56 million in Adjusted EBITDA for the quarter.
• Management expressed confidence that the company's technology and deep partner relationships position it well to capture opportunities ahead.
• The tone emphasizes a focus on premium publishers, revenue growth with existing partners, and investment in complementary areas.

Other Key Points:

• The company repurchased $30.4 million of Ordinary and Non-voting Ordinary shares during Q3 2026.
• A pre-tax income of approximately $77 million was recognized in the nine months ended September 30, 2026, related to a binding settlement agreement where the company acted as a plaintiff.
• Costs associated with a reduction in workforce implemented in April 2026 totaled $5.97 million for the nine months ended September 30, 2026.
• The company is not able to provide guidance for projected net income (loss) or reconcile Adjusted EBITDA and Non-GAAP Net Income guidance without unreasonable efforts due to the variability of share-based compensation.