Taboola.com (TBLA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 9.1% year-over-year to $466.4 million, exceeding the high end of guidance, driven by strong advertiser demand, product innovation, and increased spend from scaled advertisers, especially via the Realize platform.

• Net income reached $59.1 million, reversing a prior year loss, aided by a $77 million one-time legal settlement; Adjusted EBITDA was $26.7 million (15.9–16% margin), down year-over-year due to higher operating expenses and FX headwinds.

• Raised full-year 2026 guidance for revenue, ex-TAC gross profit, and Adjusted EBITDA, reflecting accelerating growth and confidence in long-term prospects.

• Continued share repurchases, with 19% of shares bought back since 2025 and $22.7–$23.5 million spent in Q1 2026; majority of free cash flow allocated to buybacks.

• Strategic focus on advancing AI-driven Realize platform, verticalizing sales, and strengthening brand perception as an AI-powered performance platform.

Financial highlights

• ex-TAC gross profit increased 10.8–11% year-over-year to $168.1 million; gross profit was $129.6 million, up 8.6–9%.

• Operating cash flow was $108.7 million; free cash flow more than doubled to $90.3 million, aided by the legal settlement.

• Traffic acquisition cost rose 8.1% to $302.4 million; operating expenses increased across R&D, sales and marketing, and G&A.

• Diluted EPS was $0.20, compared to $(0.03) a year ago; basic EPS was $0.21.

• Cash and cash equivalents increased to $150.3 million; net cash balance at quarter-end was $83.9 million, with long-term debt of $66.4 million.

Outlook and guidance

• Q2 2026 guidance: revenue $492–$505 million, ex-TAC gross profit $189–$194 million, Adjusted EBITDA $49–$55 million, non-GAAP net income $36–$43 million.

• Full-year 2026 guidance: revenue $2,006–$2,062 million, ex-TAC gross profit $760–$781 million, Adjusted EBITDA $222–$240 million, non-GAAP net income $167–$191 million.

• Adjusted EBITDA guidance reflects a $13 million FX headwind; without FX, margin would be ~34%.

• Revenue and profit expected to be weighted more toward the second half of 2026.

• Management expects continued investment in R&D and technology platform.