Adtech Taboola's Q4 revenue growth falls short of market expectations

Reuters02-25
Adtech Taboola's Q4 revenue growth falls short of market expectations

Overview

  • Advertising technology firm's Q4 revenue rose but missed analyst expectations

  • Adjusted EBITDA for Q4 beat analyst expectations

  • Adjusted net income for Q4 beat analyst expectations

Outlook

  • Taboola expects Q1 2026 revenue between $444 mln and $462 mln

  • Company forecasts FY 2026 revenue between $1.993 bln and $2.054 bln

  • Taboola anticipates FY 2026 adjusted EBITDA between $222 mln and $236 mln

Result Drivers

  • REALIZE PLATFORM - CEO Adam Singolda highlighted Realize as a key factor in accelerating growth and improving advertiser outcomes

  • AI INNOVATION - Heavy investment in AI-driven innovation is seen as a differentiator in the AI-driven world

  • SHARE COUNT REDUCTION - Company reduced share count by 18%, contributing to improved financial metrics

Company press release: ID:nGNX4CtC7

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$522.3 mln

$537.72 mln (7 Analysts)

Q4 EPS

$0.17

Q4 Adjusted Net Income

Beat

$79.10 mln

$54.90 mln (4 Analysts)

Q4 Net Income

$50.10 mln

Q4 Adjusted EBITDA

Beat

$86.10 mln

$83.98 mln (7 Analysts)

Q4 Free Cash Flow

$46.90 mln

Q4 Gross Profit

$175.60 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Taboola.com Ltd is $4.50, about 43.3% above its February 24 closing price of $3.14

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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