Taboola.com (TBLA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $427.5 million, up 3.3% year-over-year, exceeding high-end guidance, driven by growth in scaled advertisers and strong execution.

• Adjusted EBITDA surged 53% to $35.9 million, with margin expanding to 23.7% from 16.9% in Q1 2024.

• Realize platform officially launched, introducing new ad formats, predictive audiences, and early adoption among key verticals; new supply partnerships signed with LINE and major publishers.

• Share buyback program accelerated, with $92 million spent in Q1 and Q2 to date, reducing shares outstanding by 4% year-over-year; additional $200 million authorization and 16.2 million shares repurchased in Q1 2025.

• Net loss narrowed to $8.8 million from $26.2 million in Q1 2024, reflecting improved gross profit and lower operating loss.

Financial highlights

• Q1 2025 revenue: $427.5 million (+3.3% YoY); ex-TAC gross profit: $151.7 million (+9% YoY); gross profit: $119.3 million (+10% YoY).

• Adjusted EBITDA: $35.9 million (+53% YoY); free cash flow: $36.1 million (+35% YoY); operating cash flow: $48.1 million.

• Net loss: $8.8 million; non-GAAP net income: $25 million.

• Cash and equivalents at quarter-end: $216.2 million; net cash balance: $89.7 million; total assets: $1,719 million.

• Free cash flow benefited from improved profitability and a one-time $11 million timing benefit from Yahoo supply testing.

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: revenue $1,838–$1,889 million, ex-TAC gross profit $674–$690 million, adjusted EBITDA $201–$209 million, non-GAAP net income $122–$128 million.

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

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

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