TBLAW · Taboola.com, Ltd.

Taboola.com Ltd. delivered a robust first quarter 2026, exceeding the high end of its guidance across all metrics. Revenue grew 9.1% year-over-year to $466.4 million, driven by steady progress in advertiser success on the Realize platform. The company highlighted unique data, AI, and distribution capabilities as key drivers of performance outcomes. GAAP Net Income saw a significant turnaround, reporting a profit of $59.1 million compared to a loss of $8.8 million in the prior year period. This profitability surge was supported by an "Other income, net" of $77.0 million, substantially boosting operating income. Ex-TAC Gross Profit, a non-GAAP measure reflecting direct cash contribution, rose 10.8% to $168.1 million. However, Adjusted EBITDA decreased 25.7% to $26.7 million, resulting in an Adjusted EBITDA margin of 15.9% on the ex-TAC Gross Profit base. Cash generation was strong, with operating cash flow more than doubling to $108.7 million and Free Cash Flow increasing to $90.3 million from $36.1 million in the same quarter last year. The company also emphasized its aggressive share repurchase program and strengthening position in performance advertising beyond search and social. Looking forward, management raised its full-year 2026 outlook, now guiding for revenues between $2,006 million and $2,062 million, reflecting accelerated growth expectations. The guidance implies continued momentum, with Non-GAAP Net Income projected to reach $167 million to $191 million for the full year.