Taboola.com (TBLAN) AI Stock Analysis

Taboola.com

(BMV:TBLAN)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Profitability and cash generation improvedThe shift to positive earnings alongside substantial operating and free cash flow indicates improved financial quality and internal funding capacity. Strong cash conversion can support product investment, publisher development, debt management, and shareholder returns through the next several quarters.

Negative Factors

Revenue contraction raises growth-quality concernsProfitability has improved while the top line has contracted, making the earnings recovery less supported by underlying demand expansion. If revenue volume remains weak, operating leverage and reinvestment capacity could become harder to sustain despite current margins and cash generation.

Taboola.com Business Overview & Revenue Model

Company Description

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, which is a platform that partne...

Taboola.com Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|Next Earnings Date:Nov 03, 2026

Earnings Call SentimentPositive

The call conveyed multiple substantive positives — strong ex-TAC gross profit growth (+12%), encouraging margin and adjusted EBITDA performance, strategic publisher wins (FOX News and a large multi-format expansion), meaningful product traction with Realize Plus and Deeper Dive, and disciplined capital returns including large buybacks. Offsetting these are discrete but material headwinds: a faster-than-expected Google policy change that will remove >$20M of ex-TAC in H2 2026, an intentional network cleanup that depressed near-term revenue, a ~$7.5M FX drag, and a ~$12M one-time write-down. Management framed the cleanup and product transitions as deliberate, long-term positive moves and raised ex-TAC and adjusted EBITDA guidance. Overall, the positives (product momentum, strategic wins, improved ex-TAC and margin expansion, guidance raises, and strong buybacks) are judged to outweigh the transitory and one-time negatives.

Positive Updates

Revenue and Profitability Growth

Revenues grew 2% year-over-year to $476.8M. Ex-TAC gross profit increased 12% year-over-year to $192.4M. Gross profit was $139.5M, up 3% year-over-year. Adjusted EBITDA was $55.5M (29% margin) and non-GAAP net income was $41.3M; GAAP net income was $4.3M.

Negative Updates

Google Policy Change — Explore More Deprecation

Google deprecated the 'Explore More' experience faster than expected, which removed a product that historically contributed meaningful economics. Management estimates the deprecation will reduce ex-TAC by more than $20M in the second half of 2026; the action contributed materially to revenue coming in below guidance and will affect year-over-year comparisons into early 2027.

Company Guidance

Taboola guided Q3 revenue of $460–473M, gross profit $148–152M, ex‑TAC gross profit $184–190M, adjusted EBITDA $51.5–56.5M and non‑GAAP net income $38–42M. For the full year it now expects revenue of $1.93–1.96B, gross profit $605–615M, ex‑TAC gross profit $772–783M (raised ~$7M at the midpoint) and adjusted EBITDA $228–240M (raised ~$3M at the midpoint), with non‑GAAP net income of $168–176M. Management noted Q2 baselines of $476.8M revenue (+2% YoY), $192.4M ex‑TAC gross profit (+12% YoY), $139.5M gross profit (+3% YoY) and $55.5M adjusted EBITDA (29% margin; ex‑FX ~$63M or 33% margin), operating cash flow $31.3M and FCF $17.3M, while the updated outlook incorporates the publisher cleanup and Google Explore More deprecation (expected to have been >$20M ex‑TAC in H2) and an ongoing FX headwind (~$7.5M impact to Q2 adjusted EBITDA).

Taboola.com Risk Analysis

Taboola.com disclosed 81 risk factors in its most recent earnings report. Taboola.com reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Taboola.com Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

MX:TBLAN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	78Outperform	$17.65B	17.73	30.57%	―	62.18%	175.50%
GOOGL	73Outperform	$3.41T	14.35	42.62%	0.31%	22.21%	89.60%
MAX	69Neutral	$873.08M	7.45	503.71%	―	15.22%	―
PINS	64Neutral	$10.95B	77.46	5.25%	―	15.38%	-91.36%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEAD	24Underperform	$28.54M	-0.05	-314.81%	―	12.26%	-664.57%

* Communication Services Sector Average

Performance Comparison

MX:TBLAN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GOOGL	Alphabet Inc. Class A	279.84	-3.14	-1.11%
PINS	Pinterest	19.36	-14.34	-42.55%
MAX	Mediaalpha, Inc.	14.75	1.49	11.24%
TEAD	Teads Holding Co.	0.29	-1.15	-79.79%
RDDT	Reddit, Inc. Class A	91.73	-113.25	-55.25%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Taboola.com AI Stock Analysis