Taboola.com (TBLA) AI Stock Analysis

• Market Cap: $905.02M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 40.6
• Beta (1Y): 1.02
• Revenue Growth: 10.96%
• EPS Growth: N/A
• Country: US
• Employees: 2,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.17
• Shares Outstanding: 258,183,720
• 10 Day Avg. Volume: 1,074,186
• 30 Day Avg. Volume: 1,067,589
• PEG Ratio: -0.02
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 21.53
• 1Y Price Target: $5.00
• Price Target Upside: 69.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $2.04B

• Rating: 61 Neutral
• Price Target: $3.50 ▲(18.64% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by improving fundamentals—strong free cash flow, low leverage, and a return to profitability—reinforced by constructive FY2026 guidance and continued buybacks. These positives are tempered by weak technicals (downtrend and negative momentum) and a relatively expensive valuation (high P/E with no dividend support).

Positive Factors

Free Cash Flow Strength

Sustained FCF near $163M with high conversion from adjusted EBITDA provides durable funding for R&D, share repurchases, and debt servicing. Reliable cash generation cushions ad-market cyclicality and supports capital allocation flexibility over the next 2–6 months.

Conservative Balance Sheet & Liquidity

Low net leverage, meaningful equity base and a $270M revolver with ~$168M available liquidity reduce refinancing and solvency risk. This balance sheet position sustains investment in product initiatives and buybacks while providing a buffer through sector slowdowns.

Realize Platform Traction

Early but measurable gains from Realize (more scaled advertisers and improving ARPU) indicate product differentiation through AI and data. Structural adoption of a higher-performing platform supports sustainable ex‑TAC profit expansion and longer-term monetization runway.

Negative Factors

Top-line Volatility

Marked inconsistency in reported revenue trends undermines predictability; volatile top-line complicates forecasting of advertiser demand and margin sustainability. If revenue comparability remains uneven, sustaining profit improvements will be harder to confirm over the coming months.

Growth Momentum Below Target

Management’s guidance implying mid-single-digit ex‑TAC growth means the company must rely more on margin expansion and buybacks to drive returns. Slower structural top-line gains extend the timeframe to capture the sizable addressable market and increase advertiser penetration.

Adjusted EBITDA Reporting Ambiguity

Discrepancies in adjusted EBITDA disclosures create modeling uncertainty and reduce transparency around margin progress. Reliable, consistent metrics are essential for assessing sustainable profitability and evaluating management execution against stated targets.

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 its native advertising solutions, where it charges advertisers based on performance metrics such as clicks or impressions. The company operates on a cost-per-click (CPC) and cost-per-impression (CPM) model, allowing clients to pay only when users engage with their ads. Key revenue streams include partnerships with various publishers who utilize Taboola's platform to display sponsored content, as well as direct advertising deals with brands. Additionally, Taboola benefits from data analytics services that provide insights to advertisers, further enhancing its value proposition. Significant partnerships with major media outlets and digital platforms bolster its reach and effectiveness, contributing to its overall earnings.

Taboola.com Financial Statement Overview

Summary

Strong and consistent cash generation (2025 FCF ~$163M) and a conservatively levered balance sheet support financial flexibility, while profitability returned in 2025. The key offset is uncertainty around revenue stability given the noted volatility in reported top-line trends.

Income Statement

Profitability has improved meaningfully versus 2021–2023: after several years of losses, the company returned to positive earnings in 2025 (annual net income of ~$42.3M) and improved operating profit versus 2024. Revenue, however, appears volatile—2025 shows an unusually large decline (about -62.9% year-over-year) after modest growth in 2022–2023 and a slight decline in 2024, which raises questions about business stability and comparability across years. Overall: improving bottom-line momentum, but inconsistent top-line trajectory is a key overhang.

Balance Sheet

The balance sheet looks conservatively levered in recent years, with debt-to-equity staying low in 2022–2024 (roughly ~0.17–0.36) and equity remaining substantial (about $907M–$1.06B from 2023–2025). Total debt is moderate (~$194M in 2025) relative to the asset base (~$1.61B). The main drawback is that profitability and returns on equity were negative in 2021–2024, which can pressure balance-sheet quality over time if it re-emerges.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive across the period, with 2025 producing ~$208M of operating cash flow and ~$163M of free cash flow. Free cash flow also held up well in 2024–2025 (only a modest decline in 2025, about -3%). Earlier years show more variability in growth rates, but the overall pattern is resilient cash production that supports financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.91B	664.66M	1.44B	1.40B	1.38B
Gross Profit	569.51M	534.22M	425.56M	464.25M	441.07M
EBITDA	44.06M	126.84M	32.77M	77.56M	39.85M
Net Income	42.28M	-3.76M	-82.04M	-11.97M	-24.95M
Balance Sheet
Total Assets	1.61B	1.72B	1.71B	1.53B	1.60B
Cash, Cash Equivalents and Short-Term Investments	120.86M	230.36M	181.83M	262.81M	319.32M
Total Debt	194.09M	180.89M	214.88M	298.73M	362.89M
Total Liabilities	702.64M	666.75M	650.74M	695.09M	829.74M
Stockholders Equity	907.20M	1.05B	1.06B	834.53M	767.57M
Cash Flow
Free Cash Flow	163.45M	149.18M	52.24M	18.57M	24.45M
Operating Cash Flow	208.36M	184.33M	84.37M	53.48M	63.52M
Investing Cash Flow	-40.94M	-30.11M	59.64M	-139.56M	-620.46M
Financing Cash Flow	-277.31M	-99.98M	-134.61M	-62.87M	631.13M

Taboola.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.95
• 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 2.95 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 3.94, and below the 200-day MA of 3.63, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 18.48 is Positive, neither overbought nor oversold. The STOCH value of 8.33 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
YELP	71 Outperform	$1.22B	9.42	20.02%	―	5.35%	33.74%
SSTK	65 Neutral	$561.28M	12.59	8.28%	7.14%	13.06%	66.19%
TBLA	61 Neutral	$905.02M	40.58	2.63%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PERI	55 Neutral	$337.57M	-46.16	-1.13%	―	-28.29%	-126.12%
MAX	55 Neutral	$584.59M	24.25	783.82%	―	64.86%	-112.92%
SMWB	50 Neutral	$227.78M	―	-129.58%	―	14.25%	-211.21%

Taboola.com Corporate Events

Taboola Posts Strong Q4 2025 Results, Raises 2026 Outlook

On February 25, 2026, Taboola reported strong financial results for the fourth quarter and full year 2025, with quarterly revenue rising 6.4% to $522.3 million and full-year revenue up 8.3% to $1.9 billion versus 2024. The company highlighted modest gross profit growth for the year, a return to positive net income of $42.3 million for 2025 from a loss in 2024, stable adjusted EBITDA margins around 30%, and solid free cash flow generation of $163.4 million for the year despite slightly lower quarterly cash metrics.

Management described 2025 as a turning point, citing accelerated growth, improved advertiser outcomes, significant share count reduction of 18% and continued heavy AI investment under its Realize initiative, which it says strengthens Taboola’s competitive edge in data and distribution across the open web. For 2026, Taboola issued guidance calling for further revenue growth to between $1.993 billion and $2.054 billion and higher adjusted EBITDA of $222 million to $236 million, signaling confidence in sustained expansion and reinforcing its ambitions to build a leading performance advertising platform beyond search and social channels.

The most recent analyst rating on (TBLA) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on Taboola.com stock, see the TBLA Stock Forecast page.