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Taboola.com
(NASDAQ:TBLA)
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Rating:69Neutral
Price Target:
$6.00
▲(24.48% Upside)
Action:Downgraded
Date:08/06/26
TBLA scores as moderately attractive primarily due to improving financial quality (profitability turning positive, low leverage, and strong free cash flow) and constructive price trends. The score is held back by top-line contraction in the financial statements and meaningful platform/policy headwinds discussed on the call (Google Explore More deprecation) that could pressure revenue and ex-TAC in the near term, while valuation appears reasonable but not a standout based on P/E alone.
Positive Factors
Strong cash generation and FCF conversion
Sizable TTM operating cash flow and free cash flow provide durable internal funding for buybacks, product investment, and working-capital needs. High FCF relative to net income (~81%) supports financial flexibility and reduces reliance on external capital over the next several quarters.
Negative Factors
Top-line contraction and revenue durability
A sharp TTM revenue decline (~-14.8%) and modest recent top-line growth raise questions about the sustainability of earnings improvements. Profitability gains could prove dependent on cost cuts or one-offs if demand, advertiser spend, or scaled inventory do not re-accelerate over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
Sizable TTM operating cash flow and free cash flow provide durable internal funding for buybacks, product investment, and working-capital needs. High FCF relative to net income (~81%) supports financial flexibility and reduces reliance on external capital over the next several quarters.
Read all positive factors
Taboola.com (TBLA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$994.17M
Dividend YieldN/A
Average Volume (3M)3.35M
Price to Earnings (P/E)9.0
Beta (1Y)1.23
Revenue Growth8.00%
EPS Growth991.05%
CountryUS
Employees2,000
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.41
Shares Outstanding252,115,750
10 Day Avg. Volume2,202,941
30 Day Avg. Volume3,353,521
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.58
Price to Sales (P/S)0.75
P/FCF Ratio8.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$5.75Price Target Upside19.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.41
Revenue Forecast (FY)$1.96B
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 par...
How the Company Makes Money
Taboola primarily makes money by selling advertising through its performance advertising platform and sharing a portion of the resulting revenue with its publisher and distribution partners. Advertisers (brands, agencies, and performance marketers...
Taboola.com Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 1.91B | 664.66M | 1.44B | 1.40B | 1.38B |
| Gross Profit | 575.31M | 569.51M | 534.22M | 425.56M | 464.25M | 441.07M |
| EBITDA | 228.71M | 137.31M | 123.98M | 32.77M | 86.77M | 51.14M |
| Net Income | 118.76M | 42.28M | -3.76M | -82.04M | -11.97M | -24.95M |
Balance Sheet | ||||||
| Total Assets | 1.55B | 1.61B | 1.72B | 1.71B | 1.53B | 1.60B |
| Cash, Cash Equivalents and Short-Term Investments | 133.05M | 120.86M | 230.36M | 181.83M | 262.81M | 319.32M |
| Total Debt | 85.40M | 194.09M | 180.89M | 214.88M | 298.73M | 362.89M |
| Total Liabilities | 610.36M | 702.64M | 666.75M | 650.74M | 695.09M | 829.74M |
| Stockholders Equity | 937.99M | 907.20M | 1.05B | 1.06B | 834.53M | 767.57M |
Cash Flow | ||||||
| Free Cash Flow | 200.81M | 163.45M | 149.18M | 52.24M | 18.57M | 24.45M |
| Operating Cash Flow | 252.76M | 208.36M | 184.33M | 84.37M | 53.48M | 63.52M |
| Investing Cash Flow | -51.75M | -40.94M | -30.11M | 59.64M | -139.56M | -620.46M |
| Financing Cash Flow | -183.13M | -277.31M | -99.98M | -134.61M | -62.87M | 631.13M |
Taboola.com Technical Analysis
Negative
4.82
Price Trends
4.77
Negative
4.51
Negative
4.14
Negative
Market Momentum
-0.33
Positive
33.13
Neutral
16.47
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 4.82 is above the 20-day moving average (MA) of 4.34, above the 50-day MA of 4.77, and above the 200-day MA of 4.14, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 33.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBLA.
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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.28B | 11.12 | 18.61% | ― | 1.50% | -6.82% | |
69 Neutral | $994.17M | 9.03 | 12.80% | ― | 8.00% | 991.05% | |
68 Neutral | $806.85M | 7.39 | 8214.45% | ― | 13.84% | ― | |
64 Neutral | $714.82M | -32.82 | -94.75% | ― | 10.16% | 28.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $373.64M | -28.99 | -1.95% | ― | 2.86% | -195.80% | |
43 Neutral | $197.67M | -0.94 | -39.81% | 24.73% | -10.81% | -409.24% |
* Communication Services Sector Average
TBLA
Taboola.com
3.73
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9.71%
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Taboola.com Corporate Events
Business Operations and StrategyFinancial Disclosures
Taboola Raises 2026 Guidance Amid Strong Momentum
Positive
Aug 5, 2026
Taboola reported strong financial results for the second quarter ended June 30, 2026, with revenues rising 2.4% year over year to $476.8 million and ex-TAC gross profit jumping 11.8% to $192.4 million. The company swung to net income of $4.3 milli...
Executive/Board ChangesShareholder Meetings
Taboola Shareholders Reaffirm Leadership, Pay and Auditor Oversight
Positive
Jun 10, 2026
Taboola.com Ltd. held its Annual General Meeting of Shareholders online on June 9, 2026, at which shareholders approved the re-election of two Class II directors and endorsed an advisory proposal on executive compensation. Investors also approved ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Taboola Lifts 2026 Outlook After Strong First Quarter
Positive
May 6, 2026
On May 6, 2026, Taboola reported first-quarter 2026 results for the period ended March 31, 2026, posting revenues of $466.4 million, up 9.1% year-on-year, and gross profit of $129.6 million, up 8.6%, with ex-TAC gross profit rising 10.8% to $168.1...
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.