Taboola.com (TBLA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $427.5 million, up 3–3.3% year-over-year, exceeding the high end of guidance, with ex-TAC gross profit and adjusted EBITDA both up 9% and 53% year-over-year, respectively.

• Realize platform officially launched, introducing new ad formats, predictive audiences, and a refreshed UI, driving incremental ad spend and early adoption among scaled advertisers.

• Share buyback program continued aggressively, with $92 million spent in Q1 and Q2 to date, reducing shares outstanding by 4% year-over-year; authorization expanded by $200 million in February 2025.

• Expanded partnerships with Microsoft, Gannett, and signed an exclusive global deal with LINE, adding differentiated supply and data.

• No material macroeconomic impact observed, though a 1% revenue impact from China-related tariffs was noted and factored into guidance.

Financial highlights

• Q1 2025 revenue: $427.5 million, up 3–3.3% year-over-year; ex-TAC gross profit: $151.7 million, up 9% year-over-year.

• Adjusted EBITDA: $35.9 million, up 53% year-over-year, with margin expanding to 24% from 17% in Q1 2024.

• Net loss narrowed to $8.75–$8.8 million; non-GAAP net income was $25 million.

• Free cash flow was $36.1 million, up 35% year-over-year, benefiting from improved profitability and a one-time $11 million timing benefit from Yahoo supply testing.

• Operating cash flow for Q1 was $48.1 million; cash and equivalents at quarter-end were $216.2 million.

Outlook and guidance

• Q2 2025 guidance: revenue $438–$458 million, ex-TAC gross profit $156–$166 million, adjusted EBITDA $38–$44 million, non-GAAP net income $26–$32 million.

• Full-year 2025 guidance reiterated: revenue $1.84–$1.89 billion, ex-TAC gross profit $674–$690 million, adjusted EBITDA $201–$209 million, non-GAAP net income $122–$128 million.

• Second-half revenue growth expected to be stronger year-over-year due to normalization after Yahoo testing; guidance remains conservative due to macro uncertainty.

• CapEx for 2025 estimated at $44 million; effective tax rate expected at ~18%.

• Management expects seasonality to continue, with Q1 typically the weakest quarter and Q4 the strongest for revenue and margins.