Taboola.com (TBLA) AI Stock Analysis

• Market Cap: $916.86M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 83.9
• Beta (1Y): 1.03
• Revenue Growth: 12.01%
• EPS Growth: N/A
• Country: US
• Employees: 2,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.01
• Shares Outstanding: 264,705,100
• 10 Day Avg. Volume: 1,079,689
• 30 Day Avg. Volume: 1,137,398
• PEG Ratio: 3.48
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 10.62
• 1Y Price Target: $4.10
• Price Target Upside: 33.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $3.50 ▲(13.64% Upside)

Taboola's strong financial performance and positive earnings call are significant strengths, indicating robust growth and operational efficiency. However, the high P/E ratio suggests potential overvaluation, and technical indicators show neutral momentum. Concerns about profitability and market challenges also weigh on the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and enhance product adoption, contributing to long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively, supporting long-term stability.

New Product Adoption

The adoption of the Realize platform with AI features indicates potential for future growth by enhancing advertiser engagement and expanding the company's technological capabilities.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may limit the company's ability to reinvest in growth and innovation, potentially affecting long-term competitiveness and financial health.

Limited Growth in Key Metric

Limited growth in average revenue per advertiser suggests challenges in maximizing monetization, which could hinder revenue expansion and market competitiveness.

Market Challenges in China

Challenges in the Chinese market may restrict international revenue growth, impacting the company's ability to diversify its revenue streams and reduce geographic risk.

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 Kingdom, the United States, Germany, France, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. Taboola.com Ltd. was incorporated in 2006 and is headquartered in New York, New York.

How the Company Makes Money

Taboola generates revenue primarily through a performance-based advertising model. The company earns money by charging advertisers for clicks or impressions on their promoted content displayed on partner publisher sites. Key revenue streams include cost-per-click (CPC) and cost-per-impression (CPM) advertising, where advertisers pay for user interactions with their ads. Additionally, Taboola benefits from partnerships with various media companies and publishers that integrate its recommendation engine into their content platforms, enhancing their monetization strategies. The company's ability to leverage data analytics to optimize ad placements and improve user engagement further contributes to its earnings.

Taboola.com Financial Statement Overview

Summary

Taboola demonstrates strong revenue growth and improving operational metrics. The balance sheet is stable with a sound equity base, and cash flow generation is robust, providing financial flexibility. However, net profitability needs enhancement, and consistent returns are required to strengthen overall financial health.

Income Statement

Taboola has demonstrated strong revenue growth with a positive trajectory from 2020 to the TTM period ending in March 2025. The gross profit margin has been steady, indicating efficient cost management. However, the net profit margin has been volatile, with occasional negative results, reflecting challenges in controlling operational costs. The EBIT and EBITDA margins show improvement, indicating better operational efficiency, yet still require attention to boost profitability.

Balance Sheet

The balance sheet reflects a stable equity position with a steady increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, suggesting a balanced capital structure. Return on equity has been inconsistent, linked to fluctuating net income levels. The equity ratio indicates a healthy proportion of equity financing, reducing financial risk. Overall stability is present, though profitability improvements are needed.

Cash Flow

Taboola's cash flow statement reveals strong operating cash flow generation, consistently exceeding net income. The company has been effective in maintaining positive free cash flow, which has shown growth in recent periods. The free cash flow to net income ratio underscores strong cash conversion capabilities, supporting liquidity and financial flexibility. Positive trends in cash flow metrics highlight operational robustness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	664.66M	1.44B	1.40B	1.38B	1.19B
Gross Profit	565.32M	534.22M	425.56M	464.25M	441.07M	319.50M
EBITDA	113.73M	126.84M	32.77M	77.56M	39.85M	60.15M
Net Income	33.41M	-3.76M	-82.04M	-11.97M	-24.95M	8.49M
Balance Sheet
Total Assets	1.53B	1.72B	1.71B	1.53B	1.60B	580.17M
Cash, Cash Equivalents and Short-Term Investments	115.44M	230.36M	181.83M	262.81M	319.32M	242.81M
Total Debt	175.45M	180.89M	214.88M	298.73M	362.89M	78.79M
Total Liabilities	603.55M	666.75M	650.74M	695.09M	830.28M	533.53M
Stockholders Equity	925.03M	1.05B	1.06B	834.53M	767.57M	46.64M
Cash Flow
Free Cash Flow	165.34M	149.18M	52.24M	18.57M	24.45M	121.31M
Operating Cash Flow	207.68M	184.33M	84.37M	53.48M	63.52M	139.09M
Investing Cash Flow	-38.64M	-30.11M	59.64M	-139.56M	-620.46M	10.88M
Financing Cash Flow	-238.35M	-99.98M	-134.61M	-62.87M	631.13M	2.60M

Taboola.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLA, the sentiment is Negative. The current price of 3.08 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.34, and below the 200-day MA of 3.37, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 25.31 is Positive, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBLA.

Taboola.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	80 Outperform	$794.62M	12.42	11.62%	5.18%	14.20%	38.92%
YELP	76 Outperform	$2.13B	15.25	20.13%	―	5.37%	13.08%
TBLA	70 Outperform	$916.86M	83.92	1.40%	―	12.01%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PERI	52 Neutral	$434.61M	41.65	-0.67%	―	-38.18%	-107.00%
SMWB	52 Neutral	$708.19M	―	-123.81%	―	16.06%	-134.90%
MAX	47 Neutral	$712.06M	35.76	-115.07%	―	116.58%	62.29%

Taboola.com Corporate Events

Taboola Reports Strong Q2 2025 Financial Results

On August 6, 2025, Taboola announced its strong financial results for the second quarter of 2025, surpassing the high-end of its guidance. The company reported an 8.7% increase in revenues and an 18.2% rise in gross profit compared to the same quarter in 2024. Additionally, Taboola raised its full-year guidance and expanded its share repurchase program by $200 million, reflecting confidence in its business and long-term vision. The company also highlighted the early success of its new performance advertising platform, Realize.

The most recent analyst rating on (TBLA) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Taboola.com stock, see the TBLA Stock Forecast page.