Taboola.com (TBLA) investor relations material

Executive summary

• Q3 revenue was $462.3M, down 6.9% YoY; gross profit rose 9.6% to $152.3M, ex-TAC gross profit rose 6.8% to $188.8M, and Adjusted EBITDA increased 16.1% to $56.0M.

• Ex-TAC revenue grew 7% to $189M; lower FY ex-TAC revenue guidance of $758M represents 6% growth, reflecting fewer ad impressions despite relatively steady page views.

• Priorities include adding premium publisher supply, expanding monetization of existing partners, and investing in Taboola News, apps, and social commerce.

• Yahoo and Taboola each initiated mediation after quarter-end, alleging material non-compliance with their services agreement.

Financial highlights

• Q3 revenue was $462.3M versus $496.8M; gross profit was $152.3M versus $139.0M, operating income $26.9M versus $6.5M, and net income $18.4M versus $5.2M.

• Q3 non-GAAP net income was $39.9M; Adjusted EBITDA was $56.0M, with a 29.7% margin on ex-TAC gross profit.

• Nine-month revenue was $1.405B versus $1.390B; net income was $81.7M versus a $7.9M loss, including a $77.0M pre-tax legal settlement benefit.

• Nine-month Adjusted EBITDA was $138.2M versus $129.3M, and ex-TAC gross profit was $549.2M versus $500.7M.

Outlook and guidance

• Q4 guidance: revenue $477M–$493M, gross profit $174M–$183M, ex-TAC gross profit $204.5M–$213.5M, and Adjusted EBITDA $73.5M–$82.5M.

• FY 2026 guidance: revenue $1,882.5M–$1,898.5M, gross profit $595.5M–$604.5M, ex-TAC gross profit $754M–$763M, and Adjusted EBITDA $212M–$221M.

• FY non-GAAP net income guidance is $151.5M–$160.5M; the midpoint implies revenue down 1% and Adjusted EBITDA flat YoY.

• FY free cash flow conversion from Adjusted EBITDA is expected at 60%–70%; FY estimates include $60M CapEx and an 18%–20% long-term effective tax rate.