Taboola.com (TBLA) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 55.4
• Beta (1Y): 0.99
• 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): 0.02
• Shares Outstanding: 258,183,720
• 10 Day Avg. Volume: 1,702,541
• 30 Day Avg. Volume: 2,505,976
• PEG Ratio: 3.49
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: $4.50
• Price Target Upside: 15.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $1.93B

• Rating: 72 Outperform
• Price Target: $4.50 ▲(15.38% Upside)

Taboola.com has a strong overall stock score driven by positive financial performance and a favorable earnings call. The technical analysis supports a bullish trend, although the high P/E ratio suggests overvaluation. The company's strategic initiatives and strong cash flow management enhance its market position.

Positive Factors

Strong Financial Performance

Exceeding guidance with robust revenue and EBITDA growth indicates strong operational execution and financial health, supporting long-term stability.

Strategic Partnerships

The partnership with LG Ad Solutions expands Taboola's reach in connected TV, enhancing its market position and offering advertisers broader engagement opportunities.

Growth in Scaled Advertisers

Growth in scaled advertisers and revenue per advertiser reflects successful platform adoption, driving sustained revenue growth and competitive advantage.

Negative Factors

Year-Over-Year Margin Decline

Declining margins may indicate pricing pressure or increased costs, potentially impacting profitability unless addressed through strategic cost management.

Challenges with Chinese Advertisers

Reduced demand from Chinese advertisers could limit growth in a significant market, necessitating diversification to mitigate regional risks.

Foreign Exchange Rate Impact

Foreign exchange volatility can impact financial results, requiring effective hedging strategies to manage currency risk and protect margins.

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

Taboola.com exhibits a positive financial trajectory with improving profitability and strong cash flow management. The company has low leverage and a strong equity position, providing a stable financial foundation. However, profitability metrics like ROE could be improved to enhance shareholder value.

Income Statement

Taboola.com shows a modest revenue growth rate of 3.51% TTM, indicating a positive trajectory. The gross profit margin of 36.71% TTM is healthy, though it has decreased from previous years. The net profit margin of 1.62% TTM reflects a return to profitability after previous losses, but remains relatively low. EBIT and EBITDA margins have improved, suggesting better operational efficiency, yet they remain modest.

Balance Sheet

The company's debt-to-equity ratio of 0.19 TTM indicates low leverage, which is a positive sign of financial stability. Return on equity at 2.60% TTM shows improvement but remains low, suggesting limited profitability relative to equity. The equity ratio of 59.60% TTM indicates a strong equity base, contributing to financial stability.

Cash Flow

Taboola.com demonstrates strong cash flow management with a free cash flow growth rate of 1.87% TTM. The operating cash flow to net income ratio of 4.51 TTM indicates robust cash generation relative to net income. The free cash flow to net income ratio of 0.80 TTM suggests efficient conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	664.66M	1.44B	1.40B	1.38B	1.19B
Gross Profit	571.55M	534.22M	425.56M	464.25M	441.07M	319.50M
EBITDA	151.85M	126.84M	32.77M	77.56M	39.85M	60.15M
Net Income	25.29M	-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	115.47M	230.36M	181.83M	262.81M	319.32M	242.81M
Total Debt	168.64M	180.89M	214.88M	298.73M	362.89M	78.79M
Total Liabilities	617.88M	666.75M	650.74M	695.09M	829.74M	533.53M
Stockholders Equity	911.46M	1.05B	1.06B	834.53M	767.57M	46.64M
Cash Flow
Free Cash Flow	168.43M	149.18M	52.24M	18.57M	24.45M	121.31M
Operating Cash Flow	210.65M	184.33M	84.37M	53.48M	63.52M	139.09M
Investing Cash Flow	-38.24M	-30.11M	59.64M	-139.56M	-620.46M	10.88M
Financing Cash Flow	-274.17M	-99.98M	-134.61M	-62.87M	631.13M	2.60M

Taboola.com Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLA, the sentiment is Positive. The current price of 3.9 is below the 20-day moving average (MA) of 4.01, above the 50-day MA of 3.73, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 29.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TBLA.

Taboola.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	72 Outperform	$1.12B	55.43	2.63%	―	10.96%	―
YELP	70 Outperform	$1.90B	13.70	20.37%	―	5.35%	33.74%
SSTK	64 Neutral	$663.88M	11.18	10.76%	7.06%	13.06%	66.19%
MAX	61 Neutral	$828.33M	-599.07	―	―	64.86%	-112.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PERI	60 Neutral	$434.61M	-38.11	-1.56%	―	-28.29%	-126.12%
SMWB	50 Neutral	$597.93M	-19.51	-120.56%	―	14.25%	-211.21%

Taboola.com Corporate Events

Taboola.com Executes Share Repurchase Agreement

On November 10, 2025, Taboola.com Ltd. executed a share repurchase agreement with Pitango Venture Capital, buying back 6,387,648 shares for approximately $23.4 million. This transaction, approved by the company’s Audit Committee, reflects Taboola’s strategic financial management and could influence its market positioning by consolidating ownership.

Taboola Reports Strong Q3 2025 Financial Results

On November 5, 2025, Taboola reported strong financial results for the third quarter of 2025, surpassing the high-end of its guidance across all metrics. The company experienced a 14.7% increase in revenues, driven by growth in Scaled Advertisers and an increase in Average Revenue per Scaled Advertiser. The results reflect the momentum of Taboola’s performance platform, Realize, and contributions from Taboola News and Bidded Supply. The company also improved its net income from a loss in the previous year and raised its full-year outlook, indicating a positive impact on its operations and industry positioning.