NEW YORK, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the fourth quarter ended December 31, 2025.
"2025 was not just about beating guidance -- it was a turning point for Taboola and validation that Realize is working," said Adam Singolda, CEO of Taboola. "We accelerated growth throughout the year, improved advertiser outcomes, generated strong free cash flow, and reduced our share count by 18%, all while continuing to invest heavily in AI-driven innovation. As Realize gains traction, our proprietary intent data and deep distribution across the open web increasingly differentiate us in an AI-driven world. We believe these structural advantages in data and distribution position Taboola to build the leading performance advertising company beyond Search and Social and drive long-term expansion."
Fourth Quarter and Full Year 2025 Financial Results
(All comparisons are to the fourth quarter and full year of 2024 unless otherwise noted.)
-- Revenues in the fourth quarter were $522.3 million and $1.9 billion for
the full year, an increase of 6.4% and 8.3%, respectively.
-- Gross Profit in the fourth quarter was $175.6 million and $569.5 million
for the full year, a decrease of 1.1% and increase of 6.6%, respectively.
Ex-TAC Gross Profit in the fourth quarter was $212.8 million, and $713.5
million for the full year, an increase of 0.1% and 6.9%, respectively.
-- Net Income in the fourth quarter was $50.1 million, and $42.3 million for
the full year, improving from a Net Income (loss) of $33.1 million and
$(3.8) million, respectively. Adjusted EBITDA in the fourth quarter was
$86.1 million, and $215.5 million for the full year, a decrease of 6.6%
and increase of 7.2%, respectively. Adjusted EBITDA margins of 30.2%
compared to 30.1% from last year.
-- Cash Flow generated by operating activities in the fourth quarter was
$59.7 million, and $208.4 million for the full year, compared to $61.9
million and $184.3 million, respectively. Free Cash Flow in the fourth
quarter was $46.9 million and $163.4 million for the full year, compared
to $51.9 million and $149.2 million, respectively.
First Quarter and Full Year 2026 Guidance
For the First Quarter and Full Year 2026, the Company currently expects (dollars in millions):
Q1 2026 FY 2026
Guidance Guidance
Unaudited
----------------------------
Revenues $444 - $462 $1,993 - $2,054
Gross profit $119 - $125 $601 - $621
ex-TAC Gross Profit* $158 - $164 $753 - $774
Adjusted EBITDA* $20 - $26 $222 - $236
Non-GAAP Net Income (Loss)* ($1) - $7 $165 - $191
Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income (Loss), we are not able to provide guidance for projected net income (loss), the most directly comparable GAAP measure. Certain elements of net income (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on net income (loss) or to reconcile our Adjusted EBITDA and Non-GAAP Net Income (Loss) guidance without unreasonable efforts. Consequently, no disclosure of projected net income (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
Webcast & Conference Call
Taboola's senior management team will discuss the Company's earnings on a call that can be accessed via webcast at https://investors.taboola.com. To access the call by phone, please go to this link: https://register-conf.media-server.com/register/BI4b6a251069304db0b673999b819f7c19 to register at and you will be provided with dial in details. The webcast will be available for replay for one year, through the close of business on February 25, 2027.
*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income (Loss), which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income (loss), cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly-titled measures used by other companies. The Company believes non-GAAP financial measures provide useful supplemental information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them, which may vary from period to period. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.
Definitions
-- ex-TAC Gross Profit: Gross profit adjusted to add back other cost of
revenues and non-cash amortization of the Commercial agreement asset. We
add back the non-cash amortization of the Commercial agreement asset
because it is unique primarily due to the issuance of equity rather than
cash, such that ex-TAC Gross Profit includes solely direct cash
contribution components.
-- Adjusted EBITDA: Net income (loss) before finance income (expenses), net,
income tax expenses, depreciation and amortization and non-cash
amortization of the Commercial agreement asset, further adjusted to
exclude share-based compensation including Connexity holdback
compensation expenses and other noteworthy income and expense items such
as M&A costs and restructuring costs which may vary from
period-to-period.
-- Adjusted EBITDA margins: The ratio of Adjusted EBITDA to ex-TAC Gross
Profit as Adjusted EBITDA divided by ex-TAC Gross Profit.
Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the "Company"). In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "guidance", "intend", "will", "estimate", "anticipate", "believe", "predict", "target", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company's future performance and cause results to differ from the forward-looking statements in this press release include, but are not limited to: the Company's ability to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; changes in applicable laws or regulations; the degree to which, or whether, Realize can achieve its intended performance objectives and attract, retain and grow advertisers and advertising spending; the Company's estimates of expenses and profitability and underlying assumptions with respect to accounting presentations and purchase price and other adjustments; the extent to which we will buyback any of our shares pursuant to authority granted by the Company's Board of Directors, which may depend upon market and economic conditions, other business opportunities and priorities, satisfying required conditions under the Israeli Companies Law and the Companies Regulations or other factors; the ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company's ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to prioritize investments to improve profitability and free cash flow; ability to make continued investments in the Company's AI-powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, "third party cookies" and its impact on digital advertising; continued engagement by users who interact with the Company's platform on various digital properties; reliance on a limited number of partners for a significant portion of the Company's revenue; changes in laws and regulations related to privacy, data
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