Key Takeaways:
Taboola (Nasdaq: TBLA) reported first-quarter revenue of $466.4 million, an increase of 9.1 percent year-over-year, exceeding the high end of its guidance and prompting the company to raise its full-year outlook.
"We're starting the year strong, exceeding the high end of our guidance across all metrics and raising our full-year outlook, reflecting accelerated growth," said Adam Singolda, CEO of Taboola. "We're seeing steady progress toward consistent double-digit growth, driven by advertiser success on Realize."
For the second quarter of 2026, Taboola expects revenue to be in the range of $492 million to $505 million. The company raised its full-year 2026 revenue guidance to a range of $2.006 billion to $2.062 billion, up from the previous range of $1.996 billion to $2.052 billion. Shares of Taboola rose as much as 9% in pre-market trading.
Taboola's gross profit for the first quarter was $129.6 million, an 8.6% increase from the same period last year. The company's ex-TAC (Traffic Acquisition Cost) gross profit was $168.1 million, up 10.8% year-over-year. Net income was $59.1 million, or $0.21 per share, a significant improvement from a net loss of $8.8 million, or ($0.03) per share, in the first quarter of 2025.
Adjusted EBITDA for the quarter was $26.7 million, down 25.7% from the prior year, which the company attributed to investments in growth. Free cash flow was strong at $90.3 million, a substantial increase from $36.1 million in the first quarter of 2025.
For the full year 2026, Taboola now expects:
The raised guidance suggests management is confident in the continued growth of its Realize platform and its ability to capture a larger share of the performance advertising market. Investors will be watching the company's ability to maintain its growth trajectory and improve profitability in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
