Taboola.com (TBLA) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 90.3
• Beta (1Y): 1.01
• Revenue Growth: 16.62%
• EPS Growth: N/A
• Country: US
• Employees: 2,000
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): -0.03
• Shares Outstanding: 284,728,300
• 10 Day Avg. Volume: 1,004,697
• 30 Day Avg. Volume: 1,352,589
• PEG Ratio: 0.04
• Price to Book (P/B): 63.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.46
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.82
• Enterprise Value/Ebitda: 1.31
• 1Y Price Target: $4.13
• Price Target Upside: 20.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $4.00 ▲(16.28%Upside)

Taboola's strong financial performance and positive earnings call sentiment are major strengths. However, technical analysis and valuation concerns weigh down the overall score, reflecting potential risks in market sentiment and high valuation.

Positive Factors

Financial Performance

Taboola reported a gross profit of $119.3 million, which is up 10% year-over-year and 6% above the analyst's estimate.

Growth Strategy

Investor Day presented a compelling case for Taboola becoming the new Robinhood of the performance advertising market with its recent Realize product launch.

Product Development

Realize is TBLA's new bidding platform that 100% of its ad buyers now use, showcasing a successful transition from the old platform.

Negative Factors

Cost Management

There is an expectation of needing to cut operational expenses in the second half to meet EBITDA guidance.

Market Conditions

China ad revenues are down 20% year-over-year, affecting the segment that previously contributed 5%-6% of total revenues.

Revenue Guidance

Revenue guidance reflects no '25E incrementality from Realize, China-based advertiser weakness, and additional macro deterioration.

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 makes money primarily through its native advertising services. The company partners with publishers and advertisers, allowing them to place sponsored content alongside organic content on publisher websites. Revenue is generated on a cost-per-click (CPC) or cost-per-impression (CPM) basis, where advertisers pay Taboola for the visibility and engagement their content receives. Taboola shares advertising revenue with its publisher partners, incentivizing them to host Taboola's content recommendations on their sites. Significant partnerships with large media companies and a robust network of advertisers and publishers contribute to Taboola's earnings. Additionally, Taboola offers advanced targeting and analytics capabilities to advertisers, enhancing the effectiveness of their campaigns and driving further revenue.

Taboola.com Financial Statement Overview

Summary

Taboola has shown strong revenue growth and improving operational metrics. The balance sheet is stable with a solid equity base, and cash flow generation is robust, providing financial flexibility. However, there is a need for improved net profitability and consistent returns.

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	1.78B	664.66M	1.44B	1.40B	1.38B	1.19B
Gross Profit	544.56M	534.22M	425.56M	464.25M	441.07M	319.50M
EBITDA	109.38M	126.84M	32.77M	77.56M	39.85M	60.15M
Net Income	33.46M	-3.76M	-82.04M	-11.97M	-24.95M	8.49M
Balance Sheet
Total Assets	1.65B	1.72B	1.71B	1.53B	1.60B	580.17M
Cash, Cash Equivalents and Short-Term Investments	216.22M	230.36M	181.83M	262.81M	319.32M	242.81M
Total Debt	213.48M	180.89M	214.88M	298.73M	362.89M	78.79M
Total Liabilities	642.57M	692.71M	650.74M	695.09M	830.28M	533.53M
Stockholders Equity	1.01B	1.05B	1.06B	834.53M	767.57M	46.64M
Cash Flow
Free Cash Flow	157.99M	149.18M	52.24M	18.57M	24.45M	121.31M
Operating Cash Flow	199.45M	184.33M	84.37M	53.48M	63.52M	139.09M
Investing Cash Flow	-36.77M	-30.11M	59.64M	-139.56M	-620.46M	10.88M
Financing Cash Flow	-122.03M	-99.98M	-134.61M	-62.87M	631.13M	2.60M

Taboola.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 3.44 is below the 20-day moving average (MA) of 3.62, below the 50-day MA of 3.57, and above the 200-day MA of 3.44, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 13.62 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
EVER	75 Outperform	$930.67M	25.01	32.17%	―	113.43%	―
TBLA	69 Neutral	$1.12B	90.29	1.35%	―	16.62%	―
ANGI	69 Neutral	$800.42M	15.98	5.05%	―	-16.79%	―
Sector *	66 Neutral	¥379.06B	14.95	2.24%	2.39%	5.43%	-14.83%
IZEA	56 Neutral	$66.01M	―	-28.40%	―	7.16%	-90.90%
TEAD	55 Neutral	$271.58M	―	-14.61%	―	4.15%	-394.93%
NXDR	54 Neutral	$746.05M	―		―	12.01%	35.71%

Taboola.com Corporate Events

Taboola.com Holds Annual General Meeting Online

On June 4, 2025, Taboola.com Ltd. held its Annual General Meeting of Shareholders online, where key resolutions were passed. Shareholders approved the re-election of a Class I director, an advisory proposal on executive compensation, amendments to the CEO’s compensation terms, and the re-appointment of Kost, Forer, Gabbay & Kasierer as the independent registered public accounting firm for 2025. These decisions reflect the company’s ongoing commitment to governance and operational stability.

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

Taboola Reports Strong Q1 2025 Financial Results

On May 7, 2025, Taboola announced its first quarter financial results for 2025, reporting revenues of $427 million, a 3% increase from the previous year. The company achieved growth across all key metrics, surpassing its guidance, with significant improvements in gross profit and adjusted EBITDA. This performance reflects broad-based growth and disciplined execution, positioning Taboola strongly in the competitive digital advertising sector.